Wireless broadband equipment maker and Motley Fool Rule Breakers recommendation Alvarion
So far, the slowdown hasn't caught up with Alvarion. Third-quarter revenue grew at a healthy clip -- 23% more than the same quarter last year -- to come in at $74.3 million. The company even countered the incremental GAAP loss last quarter with income of $803,000 this time around. With the dollar strengthening, Alvarion is finally getting currency relief after getting whacked by a strong shekel earlier this year.
The solid financials arrived on the back of a diverse customer base and several milestone achievements in the quarter. Alvarion won its first major deal with partner Nortel Networks
But while Alvarion management still sees no direct indications of customers reining in spending, it fully expects to feel the impact of souring economies around the globe at some point. For this reason, the company kept guidance for revenue next quarter tepid at $70 million to $78 million and expects 2009 to be a tough year. Management has frozen hiring and is also taking a measured approach to its buyback strategy, planning to purchase about $5 million in stock in the fourth quarter.
The goal is to come out of the expected downturn stronger than before and even take market share away from competitors. With giants like Cisco