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Stocks A / Alvarion LTD
|Subject: Reduction of workforce||Date: 6/12/2011 2:33 PM|
|Author: newsreporter||Number: 444 of 445|
Alvarion reduces workforce by 38%
2010 was a difficult year for 4G access solutions developer Alvarion Ltd., with a 16.3% drop in revenue to $205.2 million and a GAAP-based net loss of $98.5 million, mainly due to write-offs on goodwill, according to its audited consolidated financial report for 2010 on Form 20-F filed with the US Securities and Exchange Commission (SEC) on Thursday.
In addition to the disappointing results, Alvarion made several rounds of layoffs last year. The company states in the report that its workforce totaled 608 employees at the end of February 2011, after the last round of layoffs, 38% fewer than at the end of 2008. The company did not disclose the geographical breakdown of its workforce, but 60% of its workforce at the end of 2010 (before 107 employees were fired in the most recent wave of layoffs) was in Israel. The company expects to return to profitability in the second quarter.
Alvarion said that it believes that its cash reserves will be sufficient for at least the next 12 months, and that its cost-cutting and layoffs will cut expenditures by 30% in 2011.
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