Alvarion workers bracing for layoffs of up to 10%

Alvarion is thinking of laying off up to 10% of its 1,000-person workforce.

The company refused to confirm or deny the report, saying only that it constantly keeps tabs on the situation and responds as needed.

Two weeks ago Alvarion, which develops wireless communications technology, reported that it is suspending new fundraising efforts. However, at the time, chief executive Zvika Friedman commented that the company means to take advantage of the economic downturn to increase its market share.

In early November, Alvarion reported a 23% increase in revenues for the third quarter of 2008, to $74.3 million. In the parallel quarter, revenues amounted to $60.6 million.

However, its cost of sales shot up by 27% to $39.1 million, Alvarion reported, thanks in part to rising development costs that almost entirely eroded the benefit from its increased revenues.

The company netted $0.8 million in the third quarter of 2008 or 1 cent per share. In the parallel quarter it netted $621,000.

Minus nonrecurring costs and income, Alvarion's third-quarter profit reached $3 million, compared with $2.4 million in the same quarter a year ago.