Exhibit | Description |
Sequential
Page Number
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1.
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Press release on Alvarion® Reports Q2 2010 Results.
Dated July 28 , 2010
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9
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ALVARION LTD.
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Date: July 28, 2010
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By: | /s/ Efrat Makov | |
Name: Efrat Makov
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Title: CFO
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Contacts
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Efrat Makov, CFO
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Claudia Gatlin, Investor Relations
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+972-3-645-6252
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+212-830-9080
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+760-517-3187
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claudia.gatlin@alvarion.com
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efrat.makov@alvarion.com
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·
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Shipments of $57.7 million, a 20.6% sequential increase
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·
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Revenues of $49.0 million, a 5.6% sequential decline
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·
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GAAP net loss of ($0.17) per share; non-GAAP net loss of ($0.11) per share.
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ALVARION LTD. & ITS SUBSIDIARIES
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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U.S. dollars in thousands (except per share data)
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Six
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Six
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Three
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Three
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Three
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||||||||||||||||
Months Ended
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Months Ended
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Months Ended
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Months Ended
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Months Ended
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||||||||||||||||
June 30,
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June 30,
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June 30,
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June 30,
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March 31,
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||||||||||||||||
2010
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2009
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2010
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2009
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2010
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||||||||||||||||
Sales
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$ | 100,951 | $ | 126,615 | $ | 49,013 | $ | 58,741 | $ | 51,938 | ||||||||||
Cost of sales
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61,035 | 69,327 | 31,401 | 32,089 | 29,634 | |||||||||||||||
Gross profit
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39,916 | 57,288 | 17,612 | 26,652 | 22,304 | |||||||||||||||
Operating expenses:
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||||||||||||||||||||
Research and development, net
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21,133 | 27,419 | 9,669 | 12,779 | 11,464 | |||||||||||||||
Selling and marketing
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22,993 | 26,341 | 11,144 | 12,970 | 11,849 | |||||||||||||||
General and administrative
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7,975 | 7,746 | 3,931 | 3,723 | 4,044 | |||||||||||||||
Amortization of intangible assets
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66 | 66 | 33 | 33 | 33 | |||||||||||||||
Restructuring and other charges (*)
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3,573 | 919 | 3,573 | 919 | - | |||||||||||||||
Total Operating expenses
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55,740 | 62,491 | 28,350 | 30,424 | 27,390 | |||||||||||||||
Operating loss
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(15,824 | ) | (5,203 | ) | (10,738 | ) | (3,772 | ) | (5,086 | ) | ||||||||||
Other loss
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- | (749 | ) | - | (749 | ) | - | |||||||||||||
Financial income, net
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452 | 1,097 | 102 | 518 | 350 | |||||||||||||||
Net loss before Tax
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(15,372 | ) | (4,855 | ) | (10,636 | ) | (4,003 | ) | (4,736 | ) | ||||||||||
Income Tax
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145 | - | (36 | ) | - | 181 | ||||||||||||||
Net loss
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(15,517 | ) | (4,855 | ) | (10,600 | ) | (4,003 | ) | (4,917 | ) | ||||||||||
Basic net loss per share:
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$ | (0.25 | ) | $ | (0.08 | ) | $ | (0.17 | ) | $ | (0.06 | ) | $ | (0.08 | ) | |||||
Weighted average number of shares used in computing basic net loss per share
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62,167 | 61,971 | 62,182 | 61,995 | 62,152 | |||||||||||||||
Diluted net loss per share:
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$ | (0.25 | ) | $ | (0.08 | ) | $ | (0.17 | ) | $ | (0.06 | ) | $ | (0.08 | ) | ||||||
Weighted average number of shares used in computing diluted net loss per share
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62,167 | 61,971 | 62,182 | 61,995 | 62,152 |
(*) Results of the organizational change and other charges.
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ALVARION LTD. & ITS SUBSIDIARIES
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RECONCILIATION BETWEEN GAAP TO NON-GAAP STATEMENT OF INCOME
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U.S. dollars in thousands (except per share data)
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Three |
Three
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Months Ended |
Months Ended
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|||||||||||||||
June 30, |
March 31,
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|||||||||||||||
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2010 |
2010
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||||||||||||||
GAAP
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Adjustments
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Non-GAAP
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Non-GAAP
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|||||||||||||
Sales
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$ | 49,013 | $ | - | 49,013 | $ | 51,938 | |||||||||
Cost of sales
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31,401 | (81 | )(a) | 31,320 | 29,555 | |||||||||||
Gross profit
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17,612 | 81 | 17,693 | 22,383 | ||||||||||||
Operating expenses:
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Research and development, net
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9,669 | (113 | )(a) | 9,556 | 11,104 | |||||||||||
Selling and marketing
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11,144 | 131 |
(a)
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11,275 | 11,470 | |||||||||||
General and administrative
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3,931 | (289 | )(a) | 3,642 | 3,714 | |||||||||||
Amortization of intangible assets
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33 | (33 | )(b) | - | - | |||||||||||
Restructuring and other charges
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3,573 | (3,573 | )(c) | - | ||||||||||||
Total Operating expenses
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28,350 | (3,877 | ) | 24,473 | 26,288 | |||||||||||
Operating loss
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(10,738 | ) | 3,958 | (6,780 | ) | (3,905 | ) | |||||||||
Financial income, net
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102 | 0 | 102 | 350 | ||||||||||||
Net loss before Tax
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(10,636 | ) | 3,958 | (6,678 | ) | (3,555 | ) | |||||||||
Income Tax
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(36 | ) | 0 | (36 | ) | 181 | ||||||||||
Net loss
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(10,600 | ) | 3,958 | (6,642 | ) | (3,736 | ) | |||||||||
Basic net loss per share
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$ | (0.17 | ) | (0.11 | ) | $ | (0.06 | ) | ||||||||
Weighted average number of shares used in computing basic net loss per share
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62,182 | 62,182 | 62,152 | |||||||||||||
Diluted net loss per share
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$ | (0.17 | ) | (0.11 | ) | $ | (0.06 | ) | ||||||||
Weighted average number of shares used in computing diluted net loss per share
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62,182 | 62,182 | 62,152 |
(a) The effect of stock-based compensation.
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(b) The effect of amortization of intangible assets.
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(c) Results of the organizational change and other charges.
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ALVARION LTD. & ITS SUBSIDIARIES
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DISCLOSURE OF NON-US GAAP NET INCOME
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FOR COMPARATIVE PURPOSES NET INCOME AND EARNINGS PER SHARE FROM CONTINUING OPERATIONS EXCLUDING AMORTIZATION OF
ACQUIRED INTANGIBLES, STOCK BASED COMPENSATION EXPENSES, RESTUCTURING EXPENSES AND OTHER CHARGES
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U.S. dollars in thousands (except per share data)
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Six
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Six
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Three
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Three
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Three
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||||||||||||||||
Months Ended
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Months Ended
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Months Ended
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Months Ended
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Months Ended
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||||||||||||||||
June 30,
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June 30,
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June 30,
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June 30,
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March 31,
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||||||||||||||||
2010
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2009
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2010
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2009
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2010
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Net loss according to US GAAP
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$ | (15,517 | ) | $ | (4,855 | ) | $ | (10,600 | ) | $ | (4,003 | ) | $ | (4,917 | ) | |||||
Amortization of acquired intangibles
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66 | 66 | 33 | 33 | 33 | |||||||||||||||
Stock based compensation expenses related to ASC 718
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1,500 | 3,270 | 352 | 1,697 | 1,148 | |||||||||||||||
Restructuring and other charges (*)
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3,573 | 919 | 3,573 | 919 | - | |||||||||||||||
Other loss
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- | 749 | - | 749 | - | |||||||||||||||
Net Income (loss) excluding amortization of acquired intangibles, stock based compensation and restructuring expenses
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$ | (10,378 | ) | $ | 149 | $ | (6,642 | ) | $ | (605 | ) | $ | (3,736 | ) | ||||||
Basic net earnings (loss) per share excluding amortization of acquired intangibles, stock based compensation and restructuring expenses
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$ | (0.17 | ) | $ | 0.00 | $ | (0.11 | ) | $ | (0.01 | ) | $ | (0.06 | ) | ||||||
Weighted average number of shares used in computing basic net earnings (loss) per share
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62,167 | 61,971 | 62,182 | 61,995 | 62,152 | |||||||||||||||
Diluted net earnings (loss) per share excluding amortization of acquired intangibles, stock based compensation and restructuring expenses
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$ | (0.17 | ) | $ | 0.00 | $ | (0.11 | ) | $ | (0.01 | ) | $ | (0.06 | ) | ||||||
Weighted average number of shares used in computing diluted net earnings (loss) per share
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62,167 | 62,502 | 62,182 | 61,995 | 62,152 |
(*) Results of the organizational change and other charges.
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ALVARION LTD. & ITS SUBSIDIARIES
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CONDENSED CONSOLIDATED BALANCE SHEETS
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U.S. dollars in thousands
|
June 30,
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March 31,
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|||||||
2010
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2010
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ASSETS
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Cash, cash equivalents, short-term and long-term investments
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$ | 91,423 | $ | 103,067 | ||||
Trade receivables
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61,823 | 61,618 | ||||||
Other accounts receivable
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7,553 | 9,564 | ||||||
Inventories
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46,047 | 35,242 | ||||||
LONG TERM INVESTMENT
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7,130 | 5,042 | ||||||
PROPERTY AND EQUIPMENT, NET
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15,588 | 16,291 | ||||||
GOODWILL AND OTHER INTANGIBLE ASSETS
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57,174 | 57,207 | ||||||
TOTAL ASSETS
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$ | 286,738 | $ | 288,031 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
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CURRENT LIABILITIES
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Trade payables
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$ | 45,989 | $ | 37,393 | ||||
Other accounts payable and accrued expenses
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35,197 | 31,523 | ||||||
Total current liabilities
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81,186 | 68,916 | ||||||
LONG TERM LIABILITIES
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Long term employees liabilities
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3,769 | 4,175 | ||||||
Long term liabilities others
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2,269 | 2,262 | ||||||
Total long term liabilities
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6,038 | 6,437 | ||||||
TOTAL LIABILITIES
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87,224 | 75,353 | ||||||
SHAREHOLDERS' EQUITY
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199,514 | 212,678 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
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$ | 286,738 | $ | 288,031 | ||||
ALVARION LTD.& ITS SUBSIDIARIES
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Consolidated Statement of Cash Flows
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U.S. dollars in thousands
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Three
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Months ended
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June 30, 2010
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Cash flows from operating activities:
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Net loss
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$ | (10,600 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities:
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Depreciation
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1,676 | |||
Capital Loss
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343 | |||
Stock based compensation expenses ASC 718
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352 | |||
Accrued interest from long term investment
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(88 | ) | ||
Amortization of intangibles assets
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33 | |||
Increase in trade receivables
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(205 | ) | ||
Decrease in other accounts receivable and prepaid expenses
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265 | |||
Increase in inventories
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(10,805 | ) | ||
Increase in trade payables
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8,596 | |||
Increase in other accounts payables and accrued expenses
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2,491 | |||
Decrease in long term employees liabilities
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(406 | ) | ||
Increase in long term liabilities
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7 | |||
Net cash used in operating activities
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(8,341 | ) | ||
Cash flows from investing activities:
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Purchase of fixed assets
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(1,316 | ) | ||
Investment in long term investment
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(2,000 | ) | ||
Net cash used in investing activities
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(3,316 | ) | ||
Cash flows from financing activities:
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Proceeds from exercise of employees' stock options
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13 | |||
Net cash provided by financing activities
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13 | |||
Decrease in cash, cash equivalents, short-term and long-term investments
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(11,644 | ) | ||
Cash, cash equivalents, short-term and long-term investments at the beginning of the period
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103,067 | |||
Cash, cash equivalents, short-term and long-term investments at the end of the period
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$ | 91,423 |