Analyst Boosts Alvarion

Pacific Growth pushes Alavarion as star performer in the growing fixed-wireless market

June 30, 2004

2 Min Read
Analyst Boosts Alvarion

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%



— Dan Jones, Site Editor, Unstrung

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  • The Evolving Wireless Communications Infrastructure

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