Mountain View, California-based Interwave responded angrily to the news as it was about to hold a shareholders meeting to approve the deal, originally announced in July. Interwave strongly and vehemently disagrees with Alvarion’s position and intends to pursue all available alternatives, it said.
Alvarion intended to buy Interwave to extend its product range into cellular systems. However, it now says that after reviewing Interwave’s recent financial results, it believes that it has experienced a material adverse effect with respect to its business.
Alvarion CEO Zvi Slonimsky was anxious to make clear that any renegotiation of the deal was not due to any deterioration in his own company’s prospects. He said Alvarion’s outlook remains strong and it expects to meet third-quarter guidance.
In its full-year figures released in August, Interwave reported a 48% increase in revenue to $44.5m while its net loss was $6.34m, down from $28.2m. However, the company’s cash reserves were only $5.7m.
