0
Alvarion’s exposure to Nortel Bankruptcy
A week after Airspan published a warning , Alvarion is providing some information, financial and strategic impacts following Nortel’s bankruptcy.
- The strategic alliance and joint project are canceled
- Collection of payments for (1) are uncertain
- About $2.4 Million cannot be recognized for Q4, 2008.
Alvarion now expects a Q4 GAAP net loss of approximately ($4.9) million, or approximately ($0.08) per share, including a restructuring charge of approximately $3.4 million or $0.06 per share for the quarter, related to the cost reduction initiatives announced on December 8, 2008.
As for revenues:
“total revenues for the fourth quarter ended December 31, 2008, are expected to be approximately $70 million, at the low end of the Company’s revenue guidance of $70 to $78 million”
Alvarion stock (NASDAQ: ALVR) went down yesterday 5.57% Before this press release.