Alvarion® Reports Record Revenues and Increase in Profits for Third Quarter 2008

Download Q3 08 Financials

Tel Aviv, Israel – November 3, 2008 - Alvarion Ltd. (NASDAQ: ALVR), the world’s leading provider of WiMAX™ and wireless broadband solutions, today announced financial results for the third quarter ended September 30, 2008.

Highlights:

Record revenues of $74.3 million, up 23% from Q3 2007
GAAP net income up 29% compared to Q3 2007; Non-GAAP net income up 24%
Non-GAAP EPS of $0.05; GAAP EPS of $0.01
WiMAX revenues of $49.5 million, up 41% from Q3 2007
Cumulative WiMAX shipments of over $390 million
Cash reserves of $146 million

In the third quarter of 2008, revenues increased to $74.3 million, a 23% increase from $60.6 million in the third quarter of 2007, and a 7% increase from $69.7 million in the second quarter of 2008. BreezeMAX® revenues in Q3 2008 were over $49 million, or about 67% of total revenues.

GAAP net income in the third quarter of 2008 was $803,000, or $0.01 per share, compared to GAAP net income of $621,000, or $0.01 per share, in Q3 of 2007, which included income from discontinued operations of $750,000 , and GAAP net loss of $(812,000), or $(0.01) per share, in Q2 2008.

Excluding amortization of acquired intangibles, stock based compensation expenses and discontinued operations, the company reported non-GAAP net income of $3.0 million, or $0.05 per diluted share, compared with non-GAAP net profit of $2.4 million, or $0.04 per diluted share, in Q3 2007, and $1.7 million, or $0.03 per diluted share in the second quarter of 2008.

Cash reserves as of September 30, 2008 totaled approximately $146 million.

For supplemental information to facilitate evaluation of the impact of non-cash charges, results of discontinued operations and comparisons with historical results, see the attached table showing the detailed reconciliation of GAAP to non-GAAP results for Q3 and the first nine months of 2008 and the comparative periods.

Comments from Management
“Q3 was an excellent quarter with record revenues and shipments, improved profitability and strong bookings. The U.S. dollar strengthened during the quarter, so currency translation had less of an impact than we had expected. We also achieved several business milestones including being awarded the first major project with Nortel, and two major expansions of existing customers’ projects in Europe and Latin America.

“This strong execution occurred in a climate of increasingly negative sentiment resulting from the spreading credit crisis and subsequent predictions of global recession. These macro-economic factors are becoming a looming threat at a time when our own visibility is much better than a year ago, and the company is stronger than ever in terms of both business and financial parameters. If we are heading into a slowdown, we are doing so with excellent momentum.

“Current metrics such as number of projects in the pipeline, bookings and customer feedback are still giving positive signals, but we also have seen a few projects move more slowly for reasons unrelated to the economy. Therefore, we are adopting a cautious stance in our assumptions about the timing of shipments and related revenues. In addition, we are preparing to operate within a more difficult business climate as we move into 2009. We will intensify our expense control efforts, adopt even more conservative credit policies, and continually monitor our bookings and pipeline of business in order to focus our resources on the projects most likely to move forward regardless of the economic environment. During this period of uncertainty, we will concentrate on maintaining maximum flexibility and prepare to take action if the market weakens, with the main goal of capturing market share from weaker competitors or those changing their focus.”

Q4 2008 Guidance
The company’s revenue guidance for Q4 2008 is $70 to $78 million. Based on this revenue range, non-GAAP per share results are expected to range between $0.00 and $0.07, based on approximately 64.5 million of estimated weighted average diluted shares outstanding. GAAP results are expected to range between a loss of ($0.04) and earnings per share of $0.03.

Alvarion’s management will host a conference call today at 9:00 a.m. ET.
Please call the following dial in number to participate:
USA: (800) 288-8961; International: +1(612) 332-0636">332-0636.

The public is invited to listen to the live webcast of the conference call.
For details please visit Alvarion’s website at www.alvarion.com.
An archive of the online broadcast will be available on the website.

A replay of the call will be available from 11:00 a.m. EST on November 3, 2008 through 11:59 p.m. EST on December 3, 2008.
To access the replay, please call:
USA: (800) 475-6701
International: +1(320) 365-3844">365-3844.
To access the replay, users will need to enter the following code: 962370.

About Alvarion
Alvarion is the largest WiMAX pure player, ensuring customer long-term success with fixed and mobile solutions for the full range of frequency bands. Based on its OPEN™ WiMAX strategy, the company offers superior wireless broadband infrastructure and an all-IP best-of-breed ecosystem in cooperation with its strategic partners. Alvarion has delivered over 200 commercial WiMAX deployments worldwide (www.alvarion.com).

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of Alvarion’s management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: : potential impact on our business of the spread of the U.S. credit crisis and subsequent predictions of, and potential for, global recession; the failure of the market for WIMAX products to develop as anticipated; Alvarion’s inability to capture market share in the expected growth of the WIMAX market as anticipated, due to, among other things, competitive reasons or failure to execute in our sales, marketing or manufacturing objectives; inability to further identify, develop and achieve success for new products, services and technologies; increased competition and its effect on pricing, spending, third-party relationships and revenues; as well as the inability to establish and maintain relationships with commerce, advertising, marketing, and technology providers, the failure of the agreement with Nortel networks limited to generate increased sales as anticipated and other risks detailed from time to time in the Company’s 20-F Annual Report Risk Factors section as well as in other filings with the Securities and Exchange Commission.

Information set forth in this press release pertaining to third parties has not been independently verified by Alvarion and is based solely on publicly available information or on information provided to Alvarion by such third parties for inclusion in this press release. The web sites appearing in this press release are not and will not be included or incorporated by reference in any filing made by Alvarion with the Securities and Exchange Commission, which this press release will be a part of.

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Alvarion uses non-GAAP measures of net income, operating income and earnings per share, which are adjustments from results based on GAAP to exclude non-cash equity-based compensation charges in accordance with SFAS 123R, amortizations of intangibles and results of discontinued operations. Alvarion's management believes the non-GAAP financial information provided in this release is useful to investors' understanding and assessment of Alvarion's on-going operations and prospects for the future. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and as such has determined that it is important to provide this information to investors.

You may request Alvarion's future press releases or a complete Investor Kit by contacting Kika Stayerman, This e-mail address is being protected from spambots. You need JavaScript enabled to view it or +972.3.767.4159.

“Alvarion” and “BreezeMAX” are the registered trademarks of Alvarion Ltd.
“OPEN” is the trademark of Alvarion Ltd.

All other companies' names, products, services may be the properties of their respective owners.

" Our network costs are down by 50% thanks to the Alvarion wireless solution. It was a simple case of ‘pay less and get more’. "

Ged Bell, Head of IT, Dundee City Council