Company News

UPDATE 1-Alvarion's Q3 results beat estimates

* Q3 EPS $0.00 excluding items

* Q3 revenue down 21 pct to $58.4 mln

* Sees Q4 revenue at $55 mln to $63 mln

* Q4 non-GAAP EPS seen at loss of $0.04 to profit of $0.02

* Stock up 4.5 pct

TEL AVIV, Nov 4 (Reuters) - Alvarion Ltd ALVR.TA, an Israel-based maker of WiMax and wireless broadband equipment, reported lower quarterly earnings and revenue on Wednesday, although the results beat expectations and sent its shares higher.

Alvarion ALVR.O posted third-quarter earnings per share diluted, excluding items, of 0 cents, compared with a profit of 5 cents a share a year earlier.

Revenue fell 21 percent to $58.4 million.

Analysts had forecast the company would post a loss of 2 cents on revenue of $57.87 million, according to Thomson Reuters I/B/E/S.

Its shares were up 4.5 percent at 15.15 shekels in morning trade in Tel Aviv.

“We expect a similar quarter in the fourth quarter, followed by a gradual recovery which is expected to begin during the first half of 2010 based on improving demand, plus our ability to reach revenue recognition milestones on projects already won,” Alvarion President and Chief Executive Tzvika Friedman said in a statement.

“Catalysts for improving demand may include easing of tight credit conditions, new projects funded under the U.S. broadband stimulus program, and WiMax license auctions in India.”

For the fourth quarter, Alvarion forecast earnings excluding items to be in a range of a loss of 4 cents to a profit of 2 cents. It estimated revenue at between $55 million and $63 million.

Analysts forecast fourth quarter EPS excluding items of 1 cent on revenue of $64.41 million.

In the long term, “we expect continued growth in demand for WiMax based on low broadband penetration in many countries and continuing growth in demand for data-intensive applications on mobile platforms, aided by additional spectrum availability and the proliferation of new devices,” Friedman said.

($1 = 3.79 shekels)