ALVR - Sector: Technology --- Industry: Computer Services

[setravis]

Trending up.
A couple of days ago the S&P ranked ALVR as one of it's 5 star stocks that is expected to
outperform the market. They have a buy rating and 14 price target.


Alvarion Demonstrates BreezeMAX(TM) Si - Self Install CPE - for WiMAX Networks at WCA Annual Event
6:00 AM ET June 29, 2005
Alvarion Ltd. (NASDAQ:ALVR), the world's leading provider of wireless broadband solutions and specialized mobile networks, today announced the BreezeMAX(TM) Si, a self-installable, indoor WiMAX-ready customer premises equipment (CPE) based on the IEEE 802.16-2004 standard and using the Intel(R)PRO/Wireless 5116 broadband interface chip. Available for customer trials later this year, the BreezeMAX Si will be demonstrated at the WCA annual show, June 29-30, Booth #323, in Washington, D.C.

The BreezeMAX Si opens the door for fixed broadband wireless access (BWA) WiMAX standard-based solutions to be widely and quickly deployed. Factors of economies of scale, standards-based technology and ease-of-deployment will pave the way for wide adoption of WiMAX-based products. In addition, it enables centrally provisioned, portable connectivity for subscribers to use the CPE in various points within the network coverage and re-connect to the service after moving from one location to another.

"Alvarion is taking another positive step towards realizing the future of WiMAX technology for use in the home and office," said Scott Richardson, General Manager of Intel's Broadband Wireless Division. "With the Intel(R) PRO/Wireless WiMAX Modem Silicon, Alvarion's BreezeMAX Si offers consumers a high-quality broadband wireless solution with simple indoor installation."

BreezeMAX Si represents another major industry milestone by combining easy plug-and-play CPE installation and relocation with the performance and reliability that have qualified Alvarion as the leading WiMAX equipment vendor. This new indoor CPE, together with outdoor CPEs, offers carriers optimization of their network planning by trading-off coverage, capacity and installation costs. With the elimination of professional installation, this self-install unit enables carriers to vary their distribution channels to best fit their business models.

Powered by superior technology, the BreezeMAX Si is the most advanced WiMAX CPE today featuring:

-- WiMAX-ready technology with Intel PRO/Wireless 5116 broadband interface chip

-- Six-element beam switching antenna design, providing 360 degree coverage with iFAS - intelligent Fast Antenna Selection algorithm that ensures instant selection of best antenna, interference immunity and reduced signal fading

-- OFDM and OFDMA radio technology for improved indoor penetration and NLOS operation

-- Central provisioning and authentication architecture that enables immediate connectivity at any point of coverage within the BreezeMAX network

-- Quick installation using SIM card or user-friendly installation utility. End user can self-install the BreezeMAX Si CPE and get broadband connectivity instantly.

Since announcing its WiMAX technology related agreement with Intel in July 2003, Alvarion has been at the forefront of WiMAX, with industry-leading milestones. These include the commercial launch of its WiMAX-ready BreezeMAX(TM) 3500 and subsequent installation with numerous operators worldwide, the first live demonstration of triple play services with a WiMAX-ready CPE using the Intel(R) PRO/Wireless 5116 broadband interface, showcased in April of this year with Iberbanda's Alvarion network in the WiMAX Forum's Cetecom lab in Malaga, Spain; and the recent announcement of the upcoming availability of BreezeMAX at 2.3 and 2.5 GHz.

"BreezeMAX Si represents another significant achievement in Alvarion realizing its WiMAX vision of broadband everywhere. It's small, attractive shape contains the most advanced WiMAX technology on the market today making it easy to deploy and easy to use," said Zvi Slonimsky, CEO of Alvarion. "As the world leader in selling WiMAX equipment, we are continuing to push toward mass market adoption and reducing installation time and cost is a major part of that effort. The enhanced value proposition of a standards-based, self-install CPE with Alvarion's proven reliability and performance will benefit our existing customers as well as the market as a whole."

BreezeMAX(TM) is Alvarion's WiMAX-ready platform that uses OFDM technology for advanced non-line-of-sight (NLOS) functionality and is designed for operators to offer broadband IP-based data and voice services. Its carrier-class design supports broadband speeds and quality of service (QoS) to enable carriers to offer multiple services to thousands of subscribers in a single base station.

[setravis]

Some action in the pre-market
+10.82%.........Volume @..........602,423

Yesterday's Chart..................

[setravis]

Cramer touts it tonight.
Strike Up the Broadband.
The noise could easily take it out of the dumps back to $15.
Looking a 2 and 3 year chart,looks like a.....
Falling Wedge (Reversal) Pattern could be in the making, Possible.

Support @ $8.10...7.53...7.38
Resistance @ $8.99...9.59...9.79
MACD is bullish
Stochastic is neutral

Technicals
Most Actives
Gap Up
Percentage Gainer

Last Price Quote is:
above 13-day EMA
above 50-day EMA
RS Rating: 37 

Fundamentals
Key Data:
Market Cap (M): $445.08 
P/E Ratio: NA 
PEG Ratio: -2.32333 
Next Earnings: 02/15/2006
Last Analyst Rating: Sector Underperform

Falling Wedge (Reversal)
The falling wedge is a bullish pattern that begins wide at the top and contracts as prices move lower. This price action forms a cone that slopes down as the reaction highs and reaction lows converge. In contrast to symmetrical triangles, which have no definitive slope and no bias, falling wedges definitely slope down and have a bullish bias. However, this bullish bias cannot be realized until a resistance breakout.

The falling wedge can also fit into the continuation category. As a continuation pattern, the falling wedge will still slope down, but the slope will be against the prevailing uptrend. As a reversal pattern, the falling wedge slopes down and with the prevailing trend. Regardless of the type (reversal or continuation), falling wedges are regarded as bullish patterns.

As with rising wedges, the falling wedge can be one of the most difficult chart patterns to accurately recognize and trade. When lower highs and lower lows form, as in a falling wedge, a security remains in a downtrend. The falling wedge is designed to spot a decrease in downside momentum and alert technicians to a potential trend reversal. Even though selling pressure may be diminishing, demand does not win out until resistance is broken. As with most patterns, it is important to wait for a breakout and combine other aspects of technical analysis to confirm signals.


Volume: 11,112,071 
Avg Vol (3m): 501,188 

[setravis]

• Coverage initiated on Alvarion by Morgan Joseph
Briefing.com (Mon 8:40am) 

News Link:  http://finance.yahoo.com/q/ud?s=ALVR


Alvarion (ALVR ) : Cuts to 3 STARS (hold) from 4 STARS (buy)
Analyst: Ari Bensinger


Shares are nearing our 12-month target price of $10. Given its time-to-market advantage, we think Alvarion is well positioned to benefit from a growing interest for the nacsent Wi-MAX technology. However, we believe that Wi-MAX faces considerable hurdles ahead, such as product certification and spectrum allocations. We advise holding but not adding to positions.
********************************************************************

Check out the weekly chart, downtrend line is at about $9.50, going back to December 2004. I will    look to position if it breaks through that. Seems ALVR is heavily shorted which could squeeze it back towards $15.

Support @ $8.10...7.53...7.38
Resistance @ $8.99...9.59...10.12
MACD is bullish
Stochastic is neutral

Technicals
Last Price Quote is:
above 13-day EMA
above 50-day EMA
RS Rating: 75 

Fundamentals
Coverage Initiated: Buy

Key Data:
Market Cap (M): $508.25 
P/E Ratio: NA 
PEG Ratio: -2.65667 
Next Earnings: 02/15/2006
Last Analyst Rating: Buy

[Lucas Scott]

setravis - did you buy ALVR in late June just before the gap down? Was noticing the day of your first post   I bought Friday after seeing Cramer's tout the night before, and sold this morning just short of the 200 dma. Thought it would hit resistance there but looks like the resistance was not so strong. Oh well, made enough coin to pay for lunch for two weeks. A man's gotta eat!

[setravis]

setravis - did you buy ALVR in late June just before the gap down? Was noticing the day of your first post I bought Friday after seeing Cramer's tout the night before, and sold this morning just short of the 200 dma. Thought it would hit resistance there but looks like the resistance was not so strong. Oh well, made enough coin to pay for lunch for two weeks. A man's gotta eat!

No,I never took up a position back in late June.
It was a good thing, because I would have been on the long side..."The Wrong side" ! LOL
I am looking at it now to possibly take a position.
Oh forgot...good trade when cramer put the tag on it.A man does have to eat!
Applaud that profit trade.

[luka]

1% retracement on lower volume after a 25% upside move. News is now what will propel this thing


Cramer is bullish on Israeli wireless broadband connectivity company Alvarion (ALVR:Nasdaq - commentary - research - Cramer's Take) as a play on the expected growth in WiMax.

WiMax, said Cramer, could be huge as it has a range of 30 miles as opposed to WiFi, which is measured in feet.

Alvarion has made a profit in just two years of its 10-year history, though, said Cramer. But, at $7.67 -- where the stock closed Thursday -- the stock is cheap, he said.



Cramer believes that Alvarion's stock has bottomed and that the catalyst for the stock to move higher should come early next year when industry standards for WiMax are expected to be decided upon.

Asked about the possibility of Alvarion getting acquired, Cramer said he never speculates on takeovers when a company's earnings are declining. He is "playing it for the earnings, and they've got to come back."

[setravis]

Big mouth...
Cramer says Tel Aviv-based Alvarion (ALVR) leads the way to WiMax.

[aaa]

2-3 year play

[setravis]

Press Release Source: Alvarion Ltd


Rioplex Wireless Using Alvarion Wireless Broadband to Capture Business Customers in Its Region
Wednesday December 21, 5:00 am ET 
Leading Texas Carrier Now Deploying 5,000 Square Mile Network Using BreezeACCESS(R) VL


MOUNTAIN VIEW, Calif. & MCALLEN, Texas--(BUSINESS WIRE)--Dec. 21, 2005--Alvarion Ltd, (NASDAQ: ALVR - News), the world's leading provider of wireless broadband solutions and specialized mobile networks, today announced the deployment of a 5,000 square mile broadband network using its BreezeACCESS VL by Rioplex Wireless, a leading Texas wireless broadband operator now targeting high capacity business customers in its service territory. Since its inception in 2002, Rioplex has been using licensed frequencies to serve residential and small business customers, and now is expanding its network using the high capacity BreezeACCESS VL. Rioplex is an end-to-end wireless operator that owns its backbone and last mile networks, and tower infrastructure throughout its service territory. Due to its vertical integration, Rioplex is able to quickly scale this new network.


To date, Rioplex has deployed 23 sectors of BreezeACCESS VL to offer multi-megabit services across its current service territory. With net capacity of over 30 megabits per sector, BreezeACCESS VL allows Rioplex to target high bandwidth consumers and businesses.

"While our licensed footprint covers a very large part of south Texas, our current network only allows us to offer speeds suitable for small office, residential, and nomadic users limiting our ability to capture revenue from high capacity business customers," notes Othal Brand, president of Rioplex. "As a complement to our existing network, Alvarion's BreezeACCESS VL gives us the opportunity to build a cost effective, overlay network to connect high value consumers that want multi-megabit services to support bandwidth intensive IP applications such as video and VoIP services."

Alvarion's BreezeACCESS VL offers enhanced features such as OFDM for non-line-of-sight (NLOS) connections, extended reach of more than 20 kilometers (12.5 miles), high capacity, encryption, and quality of service (QoS) mechanisms for carrier-class broadband data and voice services. With its advanced features such as 10 and 20 MHz channels and automatic clear channel selection (ACCS) with built-in spectrum analyzer BreezeACCESS VL enables flexibility in frequency planning.

"We are excited to have Rioplex Wireless join the hundreds of operators using BreezeACCESS in thousands of cities across the U.S. to offer broadband services to both residential and business customers," said Amir Rosenzweig, president of Alvarion, Inc. "Rioplex is an innovative and proven licensed band carrier, and their choice of deploying BreezeACCESS VL in an unlicensed frequency to serve high value, large capacity customers shows the viability of this model for other carriers."

About Rioplex Wireless

Founded in 2002 by long time residents of the South Texas Valley, Rioplex Wireless is one of the United State's largest wireless broadband carriers and the pioneering wireless broadband operator in the South Texas/Rio Grande area. Deploying in both licensed and unlicensed frequency bands, Rioplex owns its end-to-end wireless infrastructure and tower network, as well as licensed BTA's throughout the region. Rioplex offers nomadic broadband service, as well as multi-megabit fixed wireless.

Rioplex's unique ability to provide high-speed Data, Voice, and Video to over 5,000 square miles make it the ultimate solution to all of your Internet Service needs, whether it be in your home, office, on your drilling rig, or anywhere in between.

For more information, contact Rioplex Wireless at (956) 683-7979 or [email protected]

About Alvarion

With more than 2 million units deployed in 130 countries, Alvarion is the worldwide leader in wireless broadband providing systems to carriers, ISPs and private network operators, and also in extending coverage of GSM and CDMA mobile networks to developing countries and other hard to serve areas.

Leading the WiMAX revolution, Alvarion has the most extensive deployments and proven product portfolio in the industry covering the full range of frequency bands with both fixed and mobile solutions. Alvarion's products enable the delivery of business and residential broadband access, corporate VPNs, toll quality telephony, mobile base station feeding, hotspot coverage extension, community interconnection, public safety communications, and mobile voice and data. Alvarion works with several global OEM providers and more than 200 local partners to support its diverse global customer base in solving their last-mile challenges.

As a wireless broadband pioneer, Alvarion has been driving and delivering innovations for more than ten years from core technology developments to creating and promoting industry standards. Leveraging its key roles in the IEEE and HiperMAN standards committees and experience in deploying OFDM-based systems, the Company's prominent work in the WiMAX Forum is focused on increasing widespread adoption of standards-based products in the wireless broadband market and leading the entire industry to mobile WiMAX solutions.

For more information, visit Alvarion's World Wide Web site at 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: 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 in ability to establish and maintain relationships with commerce, advertising, marketing, and technology providers and other risks detailed from time to time in 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.

You may request Alvarion's future press releases or a complete Investor Kit by contacting Carmen Deville, Investor Relations: [email protected] or +650.314.2653.



Contact:
Alvarion Ltd
Investors:
Dafna Gruber, +972-3-645-6252 or 650-314-2652
[email protected]
or
Carmen Deville, 650-314-2653
[email protected]
or
Press:
U.S.
Donna Carlson, +1-719-481-5880
[email protected]
or
U.K.
Bridget Fishleigh+44-127-362-4442
[email protected]

--------------------------------------------------------------------------------
Source: Alvarion Ltd

[setravis]

Press Release Source: Alvarion Ltd.


Alvarion Receives $7 Million Order under New Frame Agreement with Major Latin American Operator
Wednesday December 21, 6:00 am ET


TEL-AVIV, Israel--(BUSINESS WIRE)--Dec. 21, 2005--Alvarion Ltd. (NASDAQ:ALVR - News), the world's leading provider of wireless broadband solutions and specialized mobile networks, today announced that one of its major customers, a large operator in Latin America, has placed an initial $7 million order under a new frame agreement covering both BreezeMAX(TM) and eMGW(TM) products for several countries in Latin America.


The revenue impact of this order is expected to occur in 2006. Depending on the mix of products ordered, the frame agreement could be worth up to $15 million, including the order already received.

"We are gratified by this important customer's continued confidence in Alvarion," said Tzvika Friedman, CEO and President of Alvarion. Our industry-leading products coupled with outstanding service serve as the foundation for our ongoing partnership. We are pleased to support the enhancement and expansion of this strategic customer's networks."

[setravis]

All Signs Up......
Break of the down trend line.Back above the 50-day MA

Volume: 3,645,841
Avg Vol (3m): 625,828

Technicals
Close Above the 50-day EMA
Gap Up
Percentage Gainer

Last Price Quote is:
19.05%above 13-day EMA
7.31%above 50-day EMA
RS Rating: 20 

Fundamentals
Reports Earnings
Analyst Upgrade to Buy
Earnings Expected on Aug 2

Key Data:
Market Cap (M): $314.23 
P/E Ratio: NA 
PEG Ratio: -1.15 
Next Earnings: 11/08/2006
Last Analyst Rating: Buy

[setravis]

Press Release Source: Alvarion Ltd.


Alvarion Reports Second Quarter 2006 Results
Wednesday August 2, 12:15 am ET 
WiMAX Grows 23% Sequentially
Breakeven Non-GAAP EPS


TEL AVIV, Israel--(BUSINESS WIRE)--Aug. 2, 2006--Alvarion Ltd. (NASDAQ: ALVR - News), the leading provider of wireless broadband solutions and specialized mobile networks, today announced financial results for the second quarter ended June 30, 2006.
Q2 highlights:

Continued sequential growth to $50.5 million
BreezeMAX revenue increased 23% over Q1 to one-third of total revenue
Breakeven non-GAAP EPS (GAAP loss of $0.45 per share)
Self-install CPE and high power base stations began shipping in Q2
First order for 802.16e-capable solution from Tier 1 carrier
Demonstrated 802.16-e mobile WiMAX base station interoperability with various mobile WiMAX devices
Revenue for the second quarter reached $50.5 million, up 5% sequentially from $48.1 million in the first quarter of 2006. Revenue in Q2 2006 increased 7% from $47.0 million in the second quarter of 2005.

On a GAAP basis, the company reported a net loss of $(27.6) million, or $(0.45) per share, compared with a net loss of $(5.0) million, or $(0.08) per share in Q1 2006, and net loss of $(3.6) million, or $(0.06) per basic and diluted share in the second quarter of 2005.

During the early part of the second quarter, the rate of order intake in Alvarion's cellular mobile unit (CMU) was lower than anticipated. As a result, management decided to refocus the business to concentrate on generating positive cash flow and conducted an impairment analysis of goodwill and other intangibles. As a result, the net loss in Q2 2006 includes a non-cash goodwill impairment charge of $23.4 million. In addition, Q2 includes a restructuring charge of $1.1 million relating to the re organizing and refocusing of the cellular mobile unit around its GSM business aimed at enabling this unit to be cash flow positive as soon as possible. Q2 net loss also includes amortization of deferred stock compensation of $1.7 million, and amortization of acquired intangibles of $1.1 million. Q2 of 2005 includes amortization of deferred stock compensation of $11,000 and amortization of acquired intangibles of $1.1 million.

Excluding amortization of acquired intangibles and deferred stock compensation, and one time charges, on a non-GAAP basis, Q2 2006 net loss was reduced to $(242,000), or ($0.00) per share, compared with a net loss of ($2.4) million, or ($0.04) per share in the first quarter of 2006, and a non-GAAP net loss of $(2.5) million, or $(0.04) per share in Q2 of 2005.

For supplemental information to facilitate evaluation of the impact of non-cash charges and comparisons with historical results, see the attached table showing the detailed reconciliation of GAAP to non-GAAP for Q2 2006.

Comments of Management

"We are pleased with our progress in Q2," said Tzvika Friedman, President and CEO of Alvarion. "We achieved our major objectives and exceeded several of our targets for Q2. Our revenue growth and high gross margin, combined with our success in reducing operational losses in the cellular mobile unit, enabled us to reach breakeven EPS on a non-GAAP basis. We are committed to profitability and generating cash, and this quarter represents solid progress.

"Alvarion continues to lead the industry in the adoption of WiMAX," continued Mr. Friedman. "In Q2, WiMAX solutions contributed $17 million, about 33% of total revenue. Among our more than 70 commercial deployments are some of the largest and most successful anywhere in the world. We are please to see several satisfied customers expanding their networks for the second or third time, as new customers begin commercial deployment with smaller purchases, mostly of infrastructure.

"During Q2, we announced commercial availability of our self-install CPE based on Intel's Rosedale chip and we fulfilled our commitment to the certification process. In addition, our 100+ active trials now include evaluations of our 802,16e-capable systems, as the market shifts its attention toward the 802.16e-2005 standard for all types of applications. We are pleased to report that we received our first order for a system based on the "e" standard during Q2 from a Tier 1 operator in the US. We believe our proven ability to deliver working solutions in a variety of frequencies on a timely basis, our large base of satisfied customers and extensive field experience will provide a significant advantage in competing with smaller competitors introducing 802.16-2004 based solutions as well as larger vendors coming into the market for the first time with 802-16e-2005 based solutions. We also believe our track record makes us an attractive partner for operators, system integrators, device manufacturers and other participants in the WiMAX ecosystem, and we are very focused on further developing these relationships.

"As the WiMAX technology leader, we were the first to reach another important milestone in Q2 by achieving interoperability between BreezeMAX and a variety of WiMAX mobile devices. BreezeMAX is the Radio Access Network of 4Motion, our complete WiMAX 802.16e-2005 solution portfolio that we are developing in conjunction with leading providers of core network and IP technology to make personal broadband anywhere a reality. We continue to target improved financial performance while devoting substantial resources to the development of mobile WiMAX in order to enhance our long term growth prospects."

Q3 Guidance

The Company's revenue guidance for Q3 2006 is $50 million to $54 million. At this revenue range, non-GAAP per share results are expected to range between ($0.01) and $0.02, GAAP per share results are expected to range between ($0.03) and ($0.06).

Alvarion's management will host a conference call today, Aug 2, at 9:00 a.m. Eastern time to discuss the quarter. To participate in the call, please dial one of the following numbers approximately five minutes prior to the scheduled start time: USA: 612-288-0329, International: +1-612-288-0329.

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 on-line broadcast will be available on the website. A replay of the call will be available from 11:45 a.m. EDT on August 2, 2006 through 11:59 p.m. EDT on August 9, 2006. To access the replay, please call USA: (320) 365-3844, International: +1-320-365-3844. To access the replay, users will need to enter the following code: 835663.

About Alvarion

With more than 2 million units deployed in 150 countries, Alvarion is the world's leading provider of innovative wireless network solutions enabling personal broadband services to improve lifestyles and productivity with portable and mobile data, VoIP, video and other applications. Providing systems to carriers, ISPs and private network operators, the company also supplies solutions to extend coverage of GSM and CDMA mobile networks to developing countries and other hard to serve areas.

Leading the WiMAX revolution, Alvarion has the most extensive deployments and proven product portfolio in the industry covering the full range of frequency bands with both fixed and mobile solutions. Alvarion's products enable the delivery of business and residential broadband access, corporate VPNs, toll quality telephony, mobile base station feeding, hotspot coverage extension, community interconnection, public safety communications, and mobile voice and data. Alvarion works with several global OEM providers and more than 200 local partners to support its diverse global customer base in solving their last-mile challenges.

As a wireless broadband pioneer, Alvarion has been driving and delivering innovations for more than 10 years from core technology developments to creating and promoting industry standards. Leveraging its key roles in the IEEE and HiperMAN standards committees and experience in deploying OFDM-based systems, the Company's prominent work in the WiMAX Forum(TM) is focused on increasing the widespread adoption of standards-based products in the wireless broadband market and leading the entire industry to mobile WiMAX solutions. For more information, visit Alvarion's World Wide Web site at 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: 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 and other risks detailed from time to time in 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.

You may request Alvarion's future press releases or a complete Investor Kit by contacting Carmen Deville, Investor Relations: [email protected] or +1.650.314.2653.

[stockontop]

WiMAX for the Minimum

IT TAKES A healthy dose of blind faith to invest the hundreds of millions — and in some cases billions — of dollars required to get groundbreaking technologies off the ground. As far as these leaps of faith go, Sprint Nextel (S: 16.32, -0.07, -0.4%), Intel (INTC: 18.56, -0.05, -0.3%) and Motorola (MOT: 23.72, -0.09, -0.4%) seem to be jumping off of a springboard when it comes to the wireless broadband service known as WiMAX.

Don't get me wrong. I'm not pooh-poohing WiMAX's prospects. It holds the promise of revolutionizing the way people access the Internet and could provide these tech players with a healthy return in the process. The true money maker here is expected to be mobile WiMAX (as opposed to "fixed" WiMAX, which I'll explain later) that will offer high data rates at a range of several miles. As long as you're in your service provider's coverage area, it'll allow you to have high-speed wireless Internet service that travels with you and is ubiquitous across all of your devices, including your computer at home, your laptop in the airport and your cellphone.

Sprint recently said it's investing up to $3 billion over the next two years to create a mobile WiMAX network. The nation's third-largest wireless service provider is betting that the "4G services" that WiMAX would allow it to offer customers could prove to be formidable competition to the slower data rates offered by the 3G, or third generation, networks of Verizon Wireless and Cingular. Intel, which unveiled its Rosedale WiMAX chipsets last year, is investing millions in all sorts of WiMAX ventures. Most notably, it coughed up an added $600 million for Clearwire, the independent wireless broadband venture founded by wireless guru Craig McCaw. (McCaw is best known for founding McCaw Cellular, which later became AT&T Wireless and is now part of Cingular.) Motorola put $300 million into Clearwire. While Sprint will offer WiMAX nationwide, Clearwire will provide WiMAX service in smaller markets such as Klamath Falls, Ore., and Amarillo, Texas.

No doubt these are large endorsements from prominent industry leaders. But with any technology that has yet to be tested in the marketplace, there are some risks involved and some big money to be lost if it doesn't pan out the way everyone hopes. However, I have a hard time believing that Sprint and Intel will let WiMAX fail. "The price of getting a network started is a drop in the bucket compared to the amount of money they can make," explains Donna Carlson, principal analyst at Scottsdale, Ariz.-based wireless research house Sky Light Research. Don't expect Sprint, which says it will commercially launch its WiMAX network in 2008, to see that big payoff until 2010 though, says Carlson.

For those investors who have as much faith as Sprint and Intel but not as much patience, I think the best way to invest in WiMAX right now is to follow the money trail. What Sprint and Intel are putting those billions of dollars into are the base stations, devices and other equipment that'll make these networks work. Wireless device makers Motorola and Samsung have gotten on board with Sprint and are poised to profit down the road. But there is one smaller infrastructure company that's also worth keeping an eye on.

Alvarion (ALVR: 7.22, +0.25, +3.6%) is an Israeli company that makes wireless broadband network equipment. According to Sky Light Research, Alvarion currently owns a formidable 81% of the WiMAX equipment market. Right now that market revolves around gear for "fixed" WiMAX networks that connect individual WiFi hotspots or provide Internet access in lesser-developed locales where the infrastructure for DSL or broadband connections is nonexistent or spotty.

In its latest second quarter, Alvarion reported $50.5 million in revenue and, on a pro-forma basis, broke even. Sales of WiMAX equipment accounted for $17 million of the top line, a 26% increase from the previous quarter (other revenue comes from the sale of cellular mobile network equipment). The company is also showing improvements in controlling costs — a problem area in the past — with gross margins climbing to 49.0% from 46.1% in the first quarter, noted Merriman Curhan Ford analyst Kevin Dede in an Aug. 2 research report.

Dede, whose firm makes a market in Alvarion's shares, has a Buy rating on the stock. The analyst expects the company to report a loss of five cents a share on revenue of $208.5 million this year and projects that sales will grow close to 23% in 2007 to $256 million with a profit of 10 cents a share. "We believe Alvarion's sales should show steady sequential improvement through the balance of this year and next as WiMAX deployments spread around the world," the analyst says.

While Alvarion continues to build its fixed WiMAX presence, it's already developing its next generation of WiMAX equipment to help build out the emerging mobile WiMAX networks like the one Sprint wants. The company, which was one of the first to market with a WiMAX product, should continue to have a technologically leading edge over equipment vendors that are just entering the market.

Even so, investors should know that it's not necessarily going to be a smooth ride. Competition is going to get much stiffer as the testing and certification of mobile WiMAX equipment begins next month. "You can expect to see some of the major equipment vendors like Nokia (NOK: 21.29, -0.05, -0.2%) and Motorola jumping into the market once the mobile WiMAX standard has been settled," says Peter Bell, a senior analyst at telecom research firm TeleGeography Research in Washington, D.C., who tracks WiMAX deployments across the globe. Sky Light's Carlson believes the first mobile WiMAX product certification will come early next year.

Being in the middle of such an emerging hotspot is why I wouldn't be surprised if Alvarion entertains a takeover offer or two from one of the large equipment vendors like Nokia or Nortel Networks (NT: 2.06, +0.02, +1.0%) that want to get in on WiMAX quickly. Over the course of the last 12 months, Alvarion's shares have traded in a rather wide range of $4.92 to $10.96. The stock changes hands at around $7 now. Alvarion could prove to be a worthwhile leap of faith for investors or an acquisitive equipment maker.

[setravis]

Looks good.
13-day ema has crossed above the 50-day ema.

Technicals
Last Price Quote is:
8.26%above 13-day EMA
11.50%above 50-day EMA
RS Rating: 26 

Fundamentals
Key Data:
Market Cap (M): $403.33 
P/E Ratio: NA 
PEG Ratio: -1.66 
Next Earnings: 11/08/2006
Last Analyst Rating: Buy