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Analyst Boosts Alvarion

Light Reading
LR Mobile News Analysis
Light Reading
6/30/2004

Fixed-wireless player Alvarion Ltd. (Nasdaq: ALVR) will be one of the major beneficiaries of a growing market for wireless broadband equipment, even before much-vaunted WiMax kit hits the market in 2005, according to Pacific Growth Equities Inc. In a note issued yesterday, Pacific Growth analyst Joe Noel initiated coverage of Alvarion, saying he expects to see annual revenue growth in excess of 55 percent to $198.7 million this year, compared to revenues of $127.2 million in 2003. Earnings per share are expected to grow 275 percent in 2004 to $0.22, compared to an operating EPS loss of $0.12 in 2003.

Overall, Pacific Growth is predicting that the broadband wireless access market will swell by at least 40 to 60 percent per year during the next three years.

Most analysts predict that the new 802.16d fixed-wireless standard, which will be commercialized under the WiMax moniker, will be a main market driver (see WiMax Spec Ratified).

Noel says that Alvarion -- and, to a lesser extent, rival Airspan Networks -- should win some actual contracts this year.

"We think there will be plenty of business for Alvarion and Airspan... even before WiMax products ship in 2005," he says.

Noel is particularly bullish about the prospect of Alvarion winning some business from the Chinese governement, saying that the firm's "E1 line-oriented backhaul" offerings are particularly suited to Chinese requirements.

"We should see contracts in the next few months," Noel opines.

Below is a table laying out the stock performance of the players in this market:

Table 1: Broadband Wireless Access Stock Price Performance

Company Ticker Market Cap (6/30/04) Price Change
(Yr. to 6/30/04)
Airspan Networks Inc Nasdaq: AIRN $209M Up 232%
Alvarion Ltd. Nasdaq: ALVR $672M Up 194%
Proxim Corp. Nasdaq: PROX $142M Down 32%
SR Telecom Inc. Nasdaq: SRXA $63M Down 51%
Ceragon Networks Ltd Nasdaq: CRNT $125M Up 93%
Harris Corp. NYSE: HRS $3,340M Up 64%
Source: Unstrung Stock Quote


— Dan Jones, Site Editor, Unstrung


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