Alvarion Signs Another Big Contract
This time they've one a deal in Italy. Aria owns a nationwide network so this is likely one of the $20M+ deals that ALVR management continuously discuss. ALVR continues to remain a very cheap stock especially now that they've announced 2 major contracts.
- Aria currently holds nationwide WiMAX licenses at the 3.5 GHz frequency bands in Italy. By using Alvarion’s Open WiMAX solution, Aria will be able to build a state of the art network with exceptional coverage to meet the growing demand for broadband services in the country.
- The order is from Aria SPA, an Italian wireless Internet service provider. Financial details were not disclosed. However, Lawrence M. Harris, an analyst with CL King & Associates, said in a note to investors the value of the deal is more than $20 million over the next two to three years.
- "The Aria announcement does not change our near-term forecast for Alvarion, but adds to our confidence in the company's outlook," wrote the analyst, who rates Alvarion "accumulate" with a target price of $5.
- Harris said he expects a profit of 2 cents per share for 2009. He said the Aria deal represents "the second major contract reported by Alvarion in the past week."