-- $95 million in revenues for 2007 including $64.3 million of WiMAX
-- 40% WiMAX revenue increase for 2007 over 2006
-- Fourth quarter total revenues at $23.8 million
-- Fourth quarter WiMAX revenues of $19.3 million represent 81% of total
revenues
-- WiMAX shipments in the fourth quarter amounted to $21.7 million
-- Six WiMAX customers with more than $1.0 million in revenues
Business Highlights
-- Airspan ranked #1 in 2007 market share for IEEE802.16-2004 systems by
Industry Analysts
-- A record 1,500 WiMAX sectors shipped in the fourth quarter 2007
-- Asia momentum with Fujitsu cooperation agreement to develop new Mobile
WiMAX base station
-- North America 3.65 GHz first mover advantage
-- Major Middle East deployments with WiTribe, QatarTel, SaudiTel,
-- U.K. commercial launch with Intel backed Freedom4
-- Eastern European wins with major operators Enforta and Comstar
-- Latin America WiMAX contracts with PuntoNet and Tricom and a $9
million Axtel expansion order for their Proximity network, to be delivered
throughout 2008
-- OEM agreement signed with Gilat to distribute Airspan WiMAX products
Airspan Networks Inc. (
Key Figures
In $US thousands
except for EPS Fourth Qtr Third Qtr Fourth Qtr Full Year Full Year
2007 2007 2006 2007 2006
---------- ---------- ---------- ---------- ----------
Total Revenue 23,767 22,470 31,274 94,970 127,812
---------- ---------- ---------- ---------- ----------
WiMAX Revenue 19,331 16,119 12,770 64,276 45,753
---------- ---------- ---------- ---------- ----------
Non-WiMAX
Revenue 4,436 6,351 18,504 30,693 82,059
---------- ---------- ---------- ---------- ----------
Gross profit 6,944 7,790 10,445 24,836 32,864
---------- ---------- ---------- ---------- ----------
Operating
Expenses 14,913 13,583 15,051 55,865 63,539
---------- ---------- ---------- ---------- ----------
Net Loss before
deemed
dividend (7,889) (5,769) (4,118) (30,462) (29,202)
---------- ---------- ---------- ---------- ----------
Deemed dividend
associated
with preferred
stock (532) (4,138) N/A (4,670) (9,179)
---------- ---------- ---------- ---------- ----------
Net loss
attributable
to common
stockholders (8,421) (9,907) (4,118) (35,132) (38,381)
---------- ---------- ---------- ---------- ----------
Net loss per
share (basic
and diluted) ($ 0.14) ($ 0.24) ($ 0.10) ($ 0.77) ($ 0.96)
---------- ---------- ---------- ---------- ----------
Weighted
Average
Common
Shares
Outstanding(1) 58,294,901 41,905,579 40,332,166 45,387,386 40,026,411
---------- ---------- ---------- ---------- ----------
(1) Excludes shares of common stock issuable on exercise of stock
options and 21,630,856 shares of common stock issuable on conversion of
the Company’s Series B preferred stock.
"We continued our strong WiMAX growth in the fourth quarter as we have
moved to being one of the few pure WiMAX plays in the industry. We shipped
over 1,500 WiMAX base station sectors, a company record," said Eric
Stonestrom, Airspan's president and chief executive officer. "Our WiMAX
revenue was up 40% in 2007 over 2006. As a result, today Airspan is the
leading U.S. based pure-play WiMAX equipment supplier and our market share
position has been recognized by leading market research analysts like
Maravedis."
"In the beginning of 2008, we entered into a key agreement with Fujitsu for
the development and commercialization of a new, best in class Mobile WiMAX
base station. We believe this collaboration will allow both companies to
take a leadership position in the dynamic 2.5 GHz and 2.3 GHz mobile WiMAX
frequency bands. In addition, our award winning multi-band MiMAX USB
device is getting attention from carriers as they continue to navigate
through decisions regarding frequencies, compatibility and
interoperability. We will continue to invest in leading technology which
positions Airspan at the forefront of the dynamic WiMAX market."
"We have strengthened our management team with the addition of Declan Byrne
as Chief Marketing Officer in recognition of the growing consensus that the
global WiMAX opportunity is very large. Industry analysts are predicting a
$1 billion WiMAX market in 2008, with Mobile WiMAX growing to $5 billion in
the next four to five years. Airspan's objective is to continue to grow
its leadership position in this exciting space," Mr. Stonestrom continued.
Fourth Quarter Financial highlights
WiMAX revenues grew to $19.3 million, representing 81% of total fourth
quarter revenues. Total fourth quarter revenues grew by 5.8% to $23.8
million compared to $22.5 million in the third quarter of 2007, largely
driven by the growth in WiMAX, partially offset by the continuing decline
in non-WiMAX business. Compared to the fourth quarter of 2006, total
revenues decreased by 24% to $23.8 million compared with $31.3 million.
Gross margin was 29%. Total operating expenses for the fourth quarter of
2007 were $14.9 million, the same level as the fourth quarter of 2006 and
up 10% over the third quarter 2007. The increase over the third quarter of
2007 was primarily due to an increase in R&D for development efforts in
Mobile WiMAX and higher G&A expenses.
The geographic breakdown of revenue for the quarter was as follows: 36%
from Latin America and the Caribbean; 19% from Europe; 24% from Africa and
the Middle East; 14% from Asia; and 7% from North America.
"We are encouraged by the expanding footprint of our WiMAX equipment around
the world. We have weathered a significant decline in legacy products from
$82 million in 2006 to $30 million in 2007. By focusing our resources on
the WiMAX business, we have introduced a product line-up well suited to
capture the expanding opportunities for growth as operators begin to deploy
WiMAX in earnest. We are building a base for profitable operations in the
future as our WiMAX business continues to grow," commented David Brant,
Airspan's chief financial officer.
Outlook
"The telecom equipment sector traditionally experiences seasonality with a
lighter first quarter than the previous year's fourth quarter and we are
anticipating that same trend for our business. We are currently expecting
revenues of $20 million - $21 million for the first quarter of 2008," said
Mr. Stonestrom.
"As we move into 2008, we are intensifying our focus on mobile network
deployments and the new opportunities presented by these projects and our
strong product line-up. The characteristics of these products are such
that they will not contribute significant first half revenue and will
require continued R&D investment. However, we are cautiously optimistic on
the potential for these new products to contribute substantial revenue in
the second half of 2008 and we will have more visibility later in the
year."
Conference Call
The Company has scheduled an investor conference call for 5 p.m. EST today.
Please call the following dial-in number to participate in the call: US
toll-free number is (888) 443-9987; the international access dial-in number
is +1 (706) 634-0598. Please reference the Airspan Networks quarterly
conference call, Conference ID 33482089. A replay of the call will be
available approximately two hours following the live session through March
27, 2008. The U.S. toll-free number for the replay is (800) 642-1687;
international dial-in number for the replay is +1 (706) 645-9291. Please
use access code 33482089.
Investors may also register for the audio webcast of the conference call
under the 'financial calendar' tab of the Investor Relations section of the
Airspan Web site at http://www.visualwebcaster.com/event.asp?id=45701.
About Airspan Networks Inc.
Airspan Networks provides wireless voice and broadband data systems and
solutions for the fixed and mobile WiMAX and Wi-Fi markets, including Voice
Over IP (VoIP). Its wireless products serve operators around the world in
both licensed and unlicensed frequency bands between 700 MHz and 6 GHz.
Airspan has a strong wireless product roadmap that includes WiMAX Forum
Certified equipment and products meeting 802.11 a/b/g Wi-Fi standards.
Airspan's HiperMAX and MicroMAX base station products support portable and
mobile 802.16e-2005 WiMAX alongside fixed and nomadic 802.16-2004 products.
Airspan products also include "self install" and professionally installed
customer premise equipment. Airspan is on the Board and is a founder member
of the WiMAX Forum and a member of the Wi-Fi Alliance. The Company has
deployments in more than 100 countries with more than 400 operators, 100 of
which use Airspan's WiMAX Forum Certified and non-certified products.
Airspan's wireless systems are based on radio technology that delivers
excellent area coverage, high security and resistance to fading. These
systems can be deployed rapidly and cost effectively, providing an
attractive alternative to traditional wired communications networks.
Airspan also offers radio planning, network installation, integration,
training and support services to facilitate the deployment and operation of
its systems. Airspan is an international telecommunications equipment
provider headquartered in Boca Raton, Florida.
More information on Airspan can be found at http://www.airspan.com.
This press release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. All statements, other than statements of
historical facts, including statements regarding our strategy, future
operations, financial position, future revenues, projected costs,
prospects, plans and objectives of management, may be deemed to be
forward-looking statements. The words "anticipates," "believes,"
"estimates," "expects," "intends," "may," "plans," "projects," "will,"
"would" and similar expressions or negative variations thereof are intended
to identify forward-looking statements, although not all forward-looking
statements contain these identifying words. We may not actually achieve
the plans, intentions or expectations disclosed in our forward-looking
statements and you should not place undue reliance on our forward-looking
statements. There are a number of important factors that could cause actual
results or events to differ materially from the plans, intentions and
expectations disclosed in the forward-looking statements we make. Investors
and others are therefore cautioned that a variety of factors, including
certain risks, may affect our business and cause actual results to differ
materially from those set forth in the forward-looking statements. The
Company is subject to the risks and uncertainties described in its filings
with the Securities and Exchange Commission, including its Annual Report on
Form 10-K for the year ended December 31, 2006 and in the Company's 2007
Quarterly Reports on Form 10-Q. You should read those factors as being
applicable to all related forward-looking statements wherever they appear
in this press release. We do not assume any obligation to update any
forward-looking statements.
Airspan Networks Inc.
Consolidated Statements of Operations
(in thousands except for share and per share data)
Quarter End Year-to-Date
---------------------- ----------------------
December December December December
31, 31, 31, 31,
2006 2007 2006 2007
---------- ---------- ---------- ----------
(audited)
Revenue $ 31,274 $ 23,767 $ 127,812 $ 94,970
Cost of revenue (20,829) (16,822) (94,948) (70,134)
---------- ---------- ---------- ----------
Gross profit 10,445 6,945 32,864 24,836
---------- ---------- ---------- ----------
Operating expenses:
Research and development 5,947 7,023 24,797 24,596
Sales and marketing 3,621 3,849 17,203 14,240
Bad debt provision 709 248 2,257 1,835
General and administrative 3,885 3,763 16,039 14,947
Amortization of intangibles 234 234 1,060 936
Restructuring 655 (204) 2,183 (689)
---------- ---------- ---------- ----------
Total operating expenses 15,051 14,913 63,539 55,865
---------- ---------- ---------- ----------
Loss from operations (4,606) (7,968) (30,675) (31,029)
Interest expense (200) (408) (362) (654)
Interest and other income 704 520 1,589 1,315
---------- ---------- ---------- ----------
Loss before income taxes (4,102) (7,856) (29,448) (30,368)
Income tax (credit)/charge (16) (33) 246 (94)
---------- ---------- ---------- ----------
Net loss before deemed
dividend (4,118) (7,889) (29,202) (30,462)
Deemed dividend associated
With issuance
of preferred
stock - (532) (9,179) (4,670)
---------- ---------- ---------- ----------
Net loss attributable to
common shareholders $ (4,118) $ (8,421) $ (38,381) $ (35,132)
========== ========== ========== ==========
Net loss attributable to
common shareholders per
share - basic and diluted $ (0.10) $ (0.14) $ (0.96) $ (0.77)
Weighted average shares
Outstanding - basic and
diluted 40,332,166 58,294,901 40,026,411 45,387,386
Airspan Networks Inc.
Consolidated Balance Sheets
(in thousands)
December 31, December 31,
2006 2007
------------- -------------
(audited)
ASSETS
Current Assets
Cash and cash equivalents $ 15,890 $ 30,815
Restricted cash 1,111 393
Short-term investments 10,233 5,504
Accounts receivable, less allowance for
doubtful accounts 31,063 33,830
Unbilled accounts receivable 711 23
Inventory 23,624 16,720
Prepaid expenses and other current assets 5,935 5,338
------------- -------------
Total Current Assets 88,567 92,623
Property, plant and equipment, net 5,705 5,895
Goodwill 10,231 10,231
Intangible assets, net 2,806 1,870
Other non-current assets 3,245 3,402
------------- -------------
Total Assets $ 110,554 $ 114,021
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 15,940 $ 11,938
Accrued taxes 687 670
Deferred revenue 6,656 5,125
Customer advances 1,665 892
Other accrued expenses 16,197 12,393
Short-term debt - 7,500
------------- -------------
Total Current Liabilities 41,145 38,518
------------- -------------
Non Current Liabilities
Long-term debt 1,707 1,978
Stockholders’ Equity
Common stock 12 17
Note receivable - stockholder (87) (87)
Additional paid in capital 308,768 349,718
Accumulated deficit (240,991) (276,123)
------------- -------------
Total Stockholders’ Equity 67,702 73,525
------------- -------------
------------- -------------
Total Liabilities and
Stockholders’ Equity $ 110,554 $ 114,021
------------- -------------
Contact Information: For Investor Relations and Media Inquiries, contact: David Brant Senior Vice President & Chief Financial Officer Airspan Networks Inc. Tel: +1 561 893-8650 Fax: +1 561 893-8681 Email: Charlotte Laurent-Ottomane Investor Relations Email: Tel. +561 395 4581