Nortel exits Wimax business, Alvarion deal

January 30, 2009 at 14:00 Leave a comment

Nortel Networks has pulled out of a deal to resell mobile Wimax equipment from Alvarion and help fund development of Alvarion’s Wimax base stations. The network equipment maker partnered with Alvarion last June after cutting back its own Wimax efforts. Alvarion said that the collapse of the deal will take USD 0.04 per share off its fourth-quarter profits, due to be announced 4 February. As a result the company will report a loss of USD 0.08 per share, includign 6 cents for earlier announced restructuring measures. The company won’t be able to recognize about USD 2.4 million in revenue from sales of products to Nortel in the quarter. This will put sales at around USD 70 million for the quarter, at the low end of its earlier guidance of USD 70-78 million. Nortel filed for bankruptcy protection earlier this month. Nortel said it will work closely with Alvarion to make sure it can continue to support existing Wimax customers. Nortel is obligated to pay Alvarion for certain research and development services beyond the fourth quarter, but in the wake of the bankruptcy, Alvarion said it’s not certain whether it will be able to collect. The companies are working on shifting over their joint Wimax customers to Alvarion.

Wireless Industry News


Entry filed under: Alvarion, Mobile, Nortel Networks, Telecom, WiMAX, Wireless. Tags: , , , , , .

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