Knobias Clip Report (03-03-2008)
Submitted By Knobias ClipReport
AIRN: Fujitsu Partner Receives Contract; Shares Gain 3.5%
WiMAX continues to be the replacement of Cable/DSL and has seen brisk growth. In recent reports, the number of fixed WiMAX subscribers will nearly double between the years of 2008 through 2013. The equipment market will obviously see an increase as well.
One Company in that area is Airspan Networks, Inc. (AIRN). The Company is a provider of 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.
On Monday, the Company announced that its partner, Fujitsu, was selected as a mobile WiMAX equipment provider to UQ Communications, a mobile WiMAX operator in Japan that is jointly owned by KDDI Corporation, Intel Corporation, East Japan Railway Company, Kyocera Corporation, Daiwa Securities Group Inc. and the Bank of Tokyo-Mitsubishi UFJ, Ltd.
Following the announcement, shares of Airspan spiked at the open but consolidated throughout the day, finishing up about 3.5% on heavy volume.
According to a report by Nikkei, the services were expected to be launched in Japan in 2009. The contract, which is estimated to be worth more than Y10 billion, concerns base stations that handle the connections between the network and portable terminals and personal computers.
The partnership of Fujitsu and Airspan together has developed one of the world’s smallest base stations. The smaller size will likely make it more efficient for KDDI because of the ease in finding outdoor locations for installations.
Airspan also recently reported earnings. Revenue came in at $95 million, which included $64.3 million from WiMAX which was a 40% increase over 2006. Fourth quarter total revenues came in at $23.8 million, of which WiMAX contributed $19.3 million or 81% of total revenues for the quarter.
“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, “said Eric Stonestrom, Airspan’s president and chief executive officer in the earnings release.
With the Company becoming the one of the only pure plays in the WiMAX industry, the name is certainly one to watch over the coming months as the technology begins its growth phase.
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