Airvana on Friday predicted that its fiscal first-quarter revenue will be 67 percent to 72 percent below the same period last year, but its merger with 72 Mobile Holdings to take the company private will move forward as planned with a vote on April 9 as the board still recommends the deal.
In December, 72 Mobile Holdings, representing a group of private equity firms, offered to buy Airvana for $530 million in cash. Airvana has predicted that fiscal first-quarter revenue will come in at between $2.5 million and $3 million compared with 9 million the same period a year ago.
During the first quarter of 2010, Airvana said it has experienced stronger than anticipated demand for its EV-DO products, but shipments of its femtocell products have been slower than expected. The company said it expects about half of its billings in the first quarter to be attributed to shipments made by Ericsson, which bought the bankrupt Nortel Networks' CDMA business in November 2009.
"Airvana has not changed its projection of $200 million in total billings for full-year 2010, as set forth in its Proxy Statement dated March 11, 2010," the company said in a press release. "Higher sales of EV-DO products are expected to be offset by continued weakness in sales of femtocell products, resulting in EV-DO sales accounting for a larger proportion of total billings in 2010 than previously anticipated."
Shares of Airvana slipped 3 cents on Friday to close at $7.70.
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