Alvarion CEO resigned

Alvarion Logo

Tzvika Friedman, Alvarion (Nasdaq: ALVR) announced his resignation on the same day the company announced 2009 Q2 results. Coincidence?

To me, it is very surprising that a CEO and a president steps aside without the board announcing who will replace him. Market reacted to both results and resignation with a 16% plunge in the share price to $3.96, bringing Alvarion Market Capitalization to about $250M.

Israeli financial website Calcalist published their analysis and history of the company.  Main highlights:

  1. 9 years after NASDAQ IPO Alvarion fails to become profitable
  2. Failed Interwave acquisition for $56M, later sold, which resulted in a major loss.
  3. Cisco preferred to buy Navini Networks over Alvarion. (My comment: Not sure how successful was the Navini acquisition)
  4. $0 Dividends
  5. -89% Share price
  6. Since IPO, Accumulated loss of $183M

I think Alvarion has the right products for their market, but will they ever become profitable?

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