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.

  1. The strategic alliance and joint project are canceled
  2. Collection of payments for (1) are uncertain
  3. 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.

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