Alvarion Concentrates on WiMAX

Alvarion is selling its Cellular Mobile unit to LG Wireless for $15 million in notes and the assumption of certain liabilities. Alvarion is unloading the unit to focus more of its efforts on WiMAX.

Alvarion believes the Cellular Mobile business is a good fit for LG Wireless and views the deal as in the best interest of shareholders. “We believe that this transaction represents a good outcome for the customers and employees of the Cellular Mobile Unit, as well as for the shareholders of Alvarion,” according to Alvarion President and CEO Tzvika Friedman. “The transaction will enable us to focus all of our resources and attention on WiMAX.”

Earlier this month, Alvarion reported revenue for the third quarter of $54 million, up 7 percent when compared to the prior quarter and up 20 percent from a year ago. WiMAX accounted for one-third of the company’s revenue.

Going forward, all of Alvarion’s revenues will be attributed to its broadband wireless access (BWA) business. The company is sticking with its previously announced revenue guidance for BWA to come in between $47 million and $51 million for the fourth quarter of 2006.

Alvarion reports that it has more than 100 commercial deployments and 120 active WiMAX trials up and running.

Source-  wirelessweek  Wireless Mobile Telecom