Alvarion Adds Income
TEL AVIV -- Alvarion Ltd. (NASDAQ: ALVR), the world’s leading provider of WiMAX™ and wireless broadband solutions, today announced that an agreement between Alvarion and ADC Telecommunications Inc. (“ADC”), finalized on March 26, 2008, will result in favorable changes to Alvarion’s results of operations for the fourth quarter and full year 2007, as disclosed in a press release on February 6, 2008. The agreement related primarily to payment of notes from LGC Wireless Inc. (“LGC”) after LGC was acquired by ADC in November 2007. The adjusted results reflect other income of approximately $8.3 million, representing the gain from the sale of Alvarion’s equity investment in LGC as well as the net income derived from the promissory notes which became due as a result of the acquisition by ADC.
Specific adjustments made to the 2007 financial statements include: recording other income of $8,265,000, and adjusting the balance sheet for December 31, 2007, to increase Other Accounts Receivable and Shareholders’ Equity by $8,265,000. As a result of these adjustments, revised GAAP net income for 2007 is $12.5 million, or $0.19 per diluted share compared to previously announced GAAP net income of $4.2 million, or $0.06 per diluted share. Revised GAAP net income for Q4 2007 is $12.4 million, or $0.19 per diluted share compared to previously announced Q4 2007 GAAP net income of $4.1 million, or $0.06 per diluted share.
Alvarion Technologies Ltd. (Nasdaq: ALVR)