Tag: Airspan

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Airspan Announce Preferred Stock Sale

No need to speculate anymore.

In another twist in our plot, Airspan announces yet another preferred stock sale to Oak Investment Partners.
Neither Axxcelera nor Gilat managed to reach an agreement.

The press release explained the process:

Before entering into the Purchase Agreement with Oak, the Company conducted an extensive and lengthy strategic review process overseen by a special committee of independent directors, which retained Stephens Inc. as its financial advisor in February 2009 to assist with the process. While extensive negotiations were undertaken with several parties, no agreements could be reached on terms acceptable to the Special Committee. Following the termination of discussions with one such party on August 10, 2009, Oak made the offer which, following approximately three weeks of negotiations between the parties, resulted in the execution and delivery of the Purchase Agreement on September 1, 2009.

And Airspan’s dire financial situation:

Without the new investment, the Company would deplete its cash resources in the fourth quarter of 2009.

Either Oak Investment partners believe in Airspan’s turnaround or think future negotiations will help them return their investment. It is also obvious that Airspan cannot maintain their current burn rate and in need of extreme measures to save the failing company.

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Airspan UL warning

May be old news (from July), but I just bumped into it.

UL has issued a warning for Airspan Ethernet Adapter, including photos of the product. Not sure this warning has any effect on Airspan business.

However, this warning is interesting to me for another reason: How UL found out this product was not certified? Did a product malfunctioned which triggered an investigation, or was it a routine check?

If you can shed some light on UL process and warnings, please comment.

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Axxcelera bidding for Airspan

Bizportal , a Israeli financial portal published that Axxcelera is also bidding for Airspan.

Axxcelera, a private company is operating in the same field as Airspan in both Licensed and Unlicensed bands.

According the Bizportal report:

  1. Current bid is for less than $10 Millions
  2. If Axxcelera wins the bid, the Israeli R&D site will be shut down, while the London R&D office will be integrated into Axxcelera.
  3. Around 80 employees are currently working at Airspan’s Israeli branch.

Who Will it Be? Gilat or Axxcelera?

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Israeli WiMAX Map

Trying to collect a list of all companies and Start-Ups in Israel developing WiMAX Silicon/Systems as well as in the WiMAX Eco-System.

  1. Intel – WiMAX R&D center is in Israel (result of Envara acquisition).
  2. Runcom – Develops MS and BS Silicon as  well as Systems.
  3. Altair Semiconductor – 4G silicon for LTE, WiMAX and XGP.
  4. DesignArt Networks – WiMAX BS Silicon as well as backhaul solution.
  5. Alvarion – WiMAX Systems.
  6. Airspan – WiMAX Systems – Biggest R&D center is located in Israel.
  7. Comsys Mobile – WiMAX, LTE MS Silicon.
  8. WiNetworks – WiMAX Systems.
  9. Gilat – Resell WiMAX Systems (By Airspan).
  10. Ceragon – Mobile backhaul.
  11. Redbend – WiMAX device Management.
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Airspan Voluntarily Delist from NASDAQ

Yesterday (March 31th) Airspan has bombarded their investors with 8 SEC filings. Most important are the 10-k announcing earnings for 2008 and the notification of de-listing from NADSAQ.

It apperas that Airspan (NASDAQ: AIRN) has decided there is no point fighting the inevitable de-listing. On top of that Airspan management has given the following reasons:

  • the ongoing direct and indirect costs of public company compliance and the disproportionate impact of the foregoing costs on results of operations
  • the significant burden on Airspan’s management involved in the preparation of the Company’s public reports and compliance with accounting and other requirements of the Exchange Act;
  • the limited benefits to Airspan and its unaffiliated shareholders from the status as a “reporting company” in light of, among other things, the fact that the price of the common shares has been extremely low and the common shares have had limited liquidity in recent periods
  • the fact that due to market conditions, the low share price and low market capitalization Airspan is not currently in a position to use its public company status to issue meaningful amounts of equity securities or make acquisitions; and
  • Airspan’s belief that the number of shareholders of record is below 300.

Does it sound like a “Game Over? I have still many friends working there, so I hope this is not the case.

Airspan Yahoo message board has comments from some (300 or less) disgrunted investors who complain about the strange reasons given. It is evident that the company cannot avoid de-listing, and that should be the only reason. Saying that the management is burdened with the preparation of the public repots is not really a good one. Going public (IPO) is not just a way to get “easy money”; the money comes with a HUGE responsibility to the share holders; that should be the main focus of every CEO.

Highlights of the 10-k:

  1. Revenues for 2008 are $70,351,000 – worst in the last few years (10-k presents the results from 2004). Comparing to the previous 10-Q of $56,339,000 -> 4th Q revenues were $14,000,000 (lower than Q3).
  2. Loss from operations: $49,698,000. Compared to 10Q $27,329,000 -> Did Airspan lose $22,000,000 in Q4?
  3. …

Decided to stop my analysis here, it was just too depressing.

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Airspan Earnings

I have just realized Airspan (NASDAQ: AIRN) have not released Q4 Earnings yet, with no published date for the Conference Call. 

Odd, don’t you think?