Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Alvarion Keeps Revving

Wireless broadband equipment maker and Motley Fool Rule Breakers recommendation Alvarion (Nasdaq: ALVR  ) isn't exactly defying the market these days with abundant earnings and cash flow. But the small Israeli company continues to grow revenue at a healthy clip with expanded deployments of its WiMAX wireless network solutions around the world.

Showing once again that bad times can be good, Alvarion reported that revenue grew 21% to $69.7 million, near the top end of the company's guidance. The firm booked a small quarterly loss, though, showing $812,000 of red ink of the GAAP nature.

Constrained or delayed investment in new networks from Alvarion's diverse, global customer base -- which includes China Mobile (NYSE: CHL  ) and France Telecom (NYSE: FTE  ) -- is only one of the issues the company is dealing with in a less-than-peppy economy. The company has been squeezed hard by currency fluctuation, as the shekel has soared.

While top engineering talent at cut-rate wages in Israel used to attract big R&D dollars from multinationals like Intel (Nasdaq: INTC  ) and Microsoft (Nasdaq: MSFT  ) , today things are much different. For its part, Alvarion is still growing the company, but opting to deal with soaring overhead costs by expanding teams in Romania to augment the headquarters in Tel Aviv.

Regardless of the currency hits on the bottom line, though, Alvarion sees continued growth into the next quarter. OEM partners like Nokia (NYSE: NOK  ) continue to contribute strongly to bookings, and a new pairing with Nortel Networks (NYSE: NT  ) will expand its offerings to telecom carriers. As such, the company sees next quarter's revenue between $73 million and $77 million, with GAAP results anywhere from a $0.02-per-share loss to a $0.02-per-share gain.

With the visibility of solid growth, the company has initiated efforts to put some of its $149 million in cash to work by applying for a $30 million share repurchase grant from the Israeli court. While following the cues of company buybacks and insiders doesn't guarantee success, this Fool agrees with management and sees Alvarion as a compelling investment at this level.

More Foolishness:

Alvarion's prospects and track record helped the company make the cut as a recommendation at the Motley Fool Rule Breakers service. To see all the stocks that have the service beating the market by 11 points on average, take a free 30-day trial today.

Fool contributor Dave Mock can't help but stomp in puddles when the opportunity presents itself. He owns shares of Intel and is the author of The Qualcomm Equation. France Telecom is an Income Investor recommendation. Microsoft and Intel are Inside Value picks. The Fool has a disclosure policy that can do the two-step.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 697461, ~/Articles/ArticleHandler.aspx, 10/27/2016 1:37:34 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 4 hours ago Sponsored by:
DOW 18,199.33 30.06 0.17%
S&P 500 2,139.43 -3.73 -0.17%
NASD 5,250.27 -33.13 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
ALVR $0.00 Down +0.00 +0.00%
Alvarion CAPS Rating: No stars
CHL $58.16 Down -0.14 -0.24%
China Mobile CAPS Rating: ****
INTC $34.92 Down -0.18 -0.51%
Intel CAPS Rating: ****
MSFT $60.63 Down -0.36 -0.59%
Microsoft CAPS Rating: ****
NOK $5.16 Up +0.19 +3.82%
Nokia CAPS Rating: **
NT.DL $0.32 Down +0.00 +0.00%
Nortel Networks Co… CAPS Rating: **
ORAN $15.94 Down -0.04 -0.25%
Orange CAPS Rating: ****