Airspan Networks, Inc., global supplier of broadband wireless access solutions, continues to face down the worldwide credit crisis through creative and aggressive strategies to cap or reduce costs. Successful achievement of targeted cost reductions, coupled with an increase in outstanding shares, has resulted in an improvement in per share performance, supporting Airspan’s ongoing drive to profitability. Though still in negative territory, the company’s third quarter per share loss was cut from .24 in 2007 to .13 in 2008, on sales of $17.8 million. Total operating expenses were reduced from the second quarter 2008 by 14%.
Airspan’s President and CEO, Eric Stonestrom, detailed the company’s plans to deal with the growing worldwide financial crisis. “We have focused our efforts on achieving our planned cost reductions and we will continue to extend our efforts in the light of the current economic environment. Our goal is to accelerate our efforts to achieve profitability while maintaining critical R&D activity and serving our customer base. Targeted operating cost savings have been achieved. However, we are continuing to reduce our operating costs to reflect the challenging economic environment.”
He continued, “We have seen the worldwide credit crisis impacting some of our customers’ availability of funds, which has contributed to a reduction of our reported revenue for the quarter. We also expect continued short term challenges on the demand side as capital expenditure budgets of our customers face further reductions. However, we remain confident in Airspan’s technology and the viability of WiMAX as an alternative to traditional broadband access. Our top priority is the creation of a profitable business from product lines that we have developed.”
The company also announced positive market developments. Third quarter commercial activity included new contracts and expansion orders with telecom service providers. There was significant growth in 3.65 GHz product deployments, and new distribution agreements with vertical segment systems integration partners in the defense, and oil and gas sectors. Airspan was also awarded a significant U.S. WiMAX project by FairPoint, a large U.S. telephone operator.
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