Alvarion is far from technology agnostic. Instead, it has firmly planted itself in the WiMAX space, recently inking a deal with Nokia Siemens Networks (NSN) to further its stake in the technology.
When the company reports second-quarter results tomorrow, it will be interesting to see what the 4G technology is doing for Alvarion’s finances.
Alvarion’s loss is expected to widen to 5 cents per share in its second quarter as sales slump $58.23 million, from $67.9 million last quarter. The outlook for the rest of 2009 is a bit more optimistic, as the company is expected to break even and eventually turn a profit as its sales of WiMAX gear grows.
The company is heavily dependent on the success of WiMAX: of first-quarter sales, $50.9 million was attributable to WiMAX. The company recently scored a series of high-profile contracts in the WiMAX space.
Aside from its reselling deal with NSN, Alvarion has inked a $100 million contract with Open Range Communications to build out wireless broadband in rural America. It also was recently chosen to build a nationwide mobile WiMAX network in Italy, a deal valued at about $20 million.
Though the company expects the bulk of its growth to come from Africa, the Middle East and the Asia-Pacific region, it may be able to benefit from President Barack Obama’s broadband initiative. Given the flat outlook for the company, however, it looks like that benefit is some ways away.
Source : wirelessweek.com
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