Israeli broadband solution provider Alvarion
But investors proved very unkind to Alvarion following its release and conference call and sent the stock down 8% for the day. Even though the company emphasized that it sees no impact from a slowing U.S. economy, the company noted that it is hurt by the weak U.S. dollar compared with the Israeli shekel. Because of exchange-rate fluctuations and falling interest rates, the company expects to report non-GAAP earnings of $0.00 to $0.03 per share next quarter, below the $0.05 per share reported this quarter.
But other factors also likely weighed on the minds of investors. One was AT&T's
Verizon Wireless -- a joint venture between Verizon Communications
Regardless of questions of adoption in the U.S., though, Alvarion continues to benefit from foreign customers such as Vodafone
Even with a reduced share price, Alvarion's enterprise value is still about 1.5 times trailing-12-month sales. This and the uncertainty around future profits mean Alvarion is a more risky play compared with more established and diversified peers. Even with the risks, though, the stock is a compelling play on WiMAX -- if investors have patience and the stomach for volatility.