Airspan Posts Q4

BOCA RATON, Fla. -- Airspan Networks Inc. (Nasdaq: AIRN) today announced its fourth quarter and full year financial results for the period ending December 31, 2006. Full year reported revenues for 2006 were a record at $127.8 million, up 15% from the $111.0 million reported for 2005. The Company reported revenues for the 2006 fourth quarter of $31.3 million, a decrease of 17% from the fourth quarter of 2005, but up 15% compared to the third quarter of 2006. The net loss attributable to common stockholders for the fourth quarter was $4.1 million or $(0.10) per share, against a loss of $3.3 million or $(0.08) per share in the fourth quarter of 2005. The net loss attributable to common stockholders for the full year 2006 was $38.4 million, or $(0.96) per share, compared to $15.1 million, or $(0.39) per share, for 2005. Net loss attributable to common stockholders in 2006 included a cost of $9.2 million, or $(0.23) per share, for the deemed dividend associated with an exchange and beneficial conversion of preferred stock in September 2006.

Fourth Quarter 2006 Business Highlights

Financial Results

Full year reported revenues for 2006 were $127.8 million, up 15% from the $111.0 million reported for 2005. Gross profit of $32.9 million for 2006 was 4% higher than the $31.5 million recorded in 2005. The gross profit margin for 2006 was 26% versus 28% in 2005. The small decline in margin occurred as higher margins generated by increased WipLL, WiMAX and AS.NET sales were offset by lower pricing of ASX and Proximity products, an increase in inventory provisions and by higher freight and warranty expenses that grew as a result of the change in mix of products sold.

Fourth quarter revenues of $31.3 million were 17% lower than the $37.9 million we reported in the fourth quarter of 2005, but 15% higher than the $27.3 million recorded in the third quarter of 2006. The Company recorded a gross profit of $10.4 million in the fourth quarter, and gross profit as a percentage of revenue (the “gross profit margin”) was 33%. This compared to a gross profit of $10.1 million and a gross profit margin of 27% recorded for the fourth quarter of 2005, and a gross profit of $7.3 million and a gross profit margin of 27%, for the 2006 third quarter. The improvement in gross profit margin in the fourth quarter of 2006 over prior periods resulted primarily from increased sales of higher-margin WipLL, WiMAX and AS.NET products, which more than offset a decline in sales of lower-margin Proximity and ASX products, and higher period costs.

Airspan Networks Inc. (Nasdaq: AIRN)