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alvr (ALVR) Message Board

  • dubi_calmy dubi_calmy Feb 5, 2013 10:24 AM Flag

    Alvarion should not be sold yet .....

    Alvarion has something to offer even compared with major competitors like Cisco Systems and Ericsson.

    4 February 13 15:42, Shlomi Cohen

    Last week, share prices in three small companies I hold were very volatile. At Attunity Inc. (Nasdaq: ATTU) and AudioCodes Ltd. (Nasdaq: AUDC; TASE: AUDC) it was because of their financials and Attunity's investors conference in New York. The third share, Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR), jumped 25% last week, on rumors of a sale of the company.
    I hope that the report about a reverse merger with a small private company DVtel Inc. is not true, because I think this would be a difficult transaction to pull off without a clear synergy between the companies, and the value cited for Alvarion seems very low to me. Alvarion, under president and CEO Hezi Lapid, recently put its Wi/MAX division up for sale and is now focusing on Wi-Fi solutions for communications providers. This follows what I think was the brilliant acquisition of Wi-Fi solutions developer Wavion Networks from Elron Electronic Industries Ltd. (TASE: ELRN) by Alvarion's previous CEO Eran Gorev.
    Wavion's Wi-Fi solutions have been integrated with the technologies and know-how that Alvarion has accumulated over the years, and it now has something to offer even compared with major competitors like Cisco Systems Inc. (Nasdaq: CSCO) and Ericsson AB (NYSE; OMX: ERIC).
    Before speculating about a possible sale of Alvarion, we should wait for the publication of the company's financials on February 20. It is quite possible that they will be a pleasant surprise, thanks to the sale of patents and payment of the Nortel debt - around $24 million altogether - and maybe also a large write-off on the hemorrhaging Wi/MAX division. After all, even following the latest rise in the share price, Alvarion has a market cap of just $35 million.
    The sale of the Wi/MAX division will turn Alvarion into a very small pure play company with great potential in the hot field of Wi-Fi, which enables telecommunications providers to offer high-speed Internet access and avoid bottlenecks from traffic loads from viewing heavy video content on smartphones and tablets.
    Anyone who doubts that Wi-Fi is also a hot item on Wall Street should see what has happened to a company which went public just three months ago: Ruckus Wireless Inc. (Nasdaq: RKUS). It's market cap has skyrocketed to $1.7 billion with a 12-month sales multiple of 6 and profit multiple of over 130. This company, rich in cash following the IPO, and with a share price that is currency for a very steep acquisition, would find it very worthwhile to acquire Alvarion, even for a lot more than the figures cited in the latest rumors.

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