Airvana Inc. grounded on Q2 profit decrease
Shares of Airvana Inc. (Nasdaq: AIRV) have lost altitude following news that the provider of network infrastructure products used by wireless carriers reported a decline in second-quarter profit and revenue.
The net income for the three months ended July 1 was $86.1 million, a drop of 28.5%, compared with $120.5 million a year earlier, the Chelmsford, Ma.-based company announced before the opening bell. Analyst estimates were not available.
Revenues declined less steeply, falling 6.56% to $156.3 million, from $167.3 million in the second quarter of 2006.
Airvana blamed the profit fall on higher tax expenses and additional costs related to investments in new products.
The second quarter was marked by the acquisition 3Way Networks Ltd., a provider of Universal Mobile Telecommunications Service (UMTS) technology based in the United Kingdom. The financial terms of the deal, which was announced on May 2, have not been released.
At 11:42 a.m. ET shares were down $0.06, or 1%, to $7.00. The 52-week high of $8.35 was reached on July 24. The 52-week low of $6.58 was set on July 20.
