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:
- 9 years after NASDAQ IPO Alvarion fails to become profitable
- Failed Interwave acquisition for $56M, later sold, which resulted in a major loss.
- Cisco preferred to buy Navini Networks over Alvarion. (My comment: Not sure how successful was the Navini acquisition)
- $0 Dividends
- -89% Share price
- Since IPO, Accumulated loss of $183M
I think Alvarion has the right products for their market, but will they ever become profitable?