Global Press Releases

16
Feb

Floware Selects SCI Systems as Electronic Manufacturing Service Provider

SCI to Manufacture Indoor Units of Floware's Broadband Wireless Access System 
 
Or Yehuda, Israel, January 16, 2001 ­ Floware Wireless Systems Ltd. (NASDAQ: FLRE), a leading provider of broadband wireless access (BWA) communication systems, announced today that it had entered into an agreement with SCI Systems, Inc. (NYSE: SCI), a leading electronic manufacturing service (EMS) provider to produce the indoor units of Floware¹s WALKair system.

SCI will conduct turn-key production of the terminal station and base station indoor units for all the radio frequencies that the WALKair system supports at its plant in Irvine, Scotland. SCI will handle the entire manufacturing process, including purchasing of parts, stock management, board assembly, mechanical assembly, testing, quality assurance, packaging and delivery to customers. Going forward, SCI also will conduct new product introductions.

The terminal station and base station are the key components of Floware¹s WALKair system, a BWA system that enables telecommunications carriers to provide high-speed Internet access and a wide range of voice and data services on the 3.5, 10.5 and 26 GHz radio frequency bands.

"We are pleased to announce the agreement with a world-class electronic manufacturing service provider like SCI," said Amnon Yacoby, CEO of Floware. "The outsourcing of our indoor unit production to SCI is an important component of our strategy to reduce our product costs. SCI's tremendous purchasing power and ability to achieve manufacturing economies of scale allow us to successfully implement this strategy and significantly reduce product cost. In addition, SCI's substantial production capacity will enable us to rapidly increase the production volume of the WALKair system and continue meeting customers¹ delivery requirements for our BWA products."

Mr. Yacoby added, "Floware is also in the process of outsourcing the production of its outdoor units to turn-key manufacturers. The outdoor units of the 26 GHz radio frequency band are already produced by a turn-key manufacturer in Japan. Floware plans to have the outdoor units of the 10.5 GHz radio frequency band turn-key manufactured in the near future. We expect that the turn-key manufacturing will bring Floware similar benefits as the turn-key production of the indoor units."

"We are pleased to have been selected as the manufacturing service provider by an innovative, leading broadband wireless equipment provider such as Floware," said Gene Sapp, Chairman and CEO of SCI. "SCI is committed to providing Floware with all of its experience and expertise in quality and cost competitive manufacturing. This, coupled with our strong global presence, will considerably strengthen Floware's ability to meet the growing worldwide demand for its products, while further demonstrating SCI¹s broadband wireless communications capabilities."

About SCI Systems, Inc.
SCI Systems, Inc. is a world-class provider of manufacturing and supply chain services. SCI delivers supply chain solutions through its global reach, dedication to quality, efficiency, and total commitment to customer service. The company continues to pioneer new innovative end-to-end services through its commitment to being the leading e-enabled EMS services provider. SCI is publicly traded on the New York Stock Exchange under the symbol "SCI." The company, headquartered in Huntsville, Alabama, operates 51 facilities located in 19 countries. SCI employs more than 37,000 people.

About Floware
Floware Wireless Systems Ltd. is a leading provider of point-to-multipoint fixed broadband wireless access (BWA) systems. These systems are used mainly by new carriers (CLECs) which connect business customers in the "last mile." Floware's WALKair system enables carriers to provide high-speed Internet access, as well as a wide range of voice and data services, on the 3.5, 10.5 and 26 GHz radio frequency bands. Floware currently has more than 50 deployments worldwide.

This press release and statements by Floware in shareholder reports and public filings, as well as in oral public statements by Floware´s representatives may contain forward looking statements. Such statements are subjected to certain facts, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to in such statements. The risks are identified in Floware´s registration statement on Form F-1 (Registration Statement No. 333-12290) filed with the Securities and Exchange Commission.

7
Feb

Floware Announces Fourth Quarter and Year 2000 Results

Or Yehuda, Israel, February 7, 2001 ­ Floware Wireless Systems Ltd. (NASDAQ: FLRE), a leading provider of broadband wireless access (BWA) communication systems, today announced results for the fourth quarter and fiscal year ended December 31, 2000.

Highlights:

Revenues for the quarter reached a record $17,556,000, up 50% from 3Q00 Revenues for the full year grew to a record $38,477,000, up 1,057% from 1999 Gross margins for the quarter increased to 22% of revenues, up from 16% in 3Q00 Proforma net loss per share for the quarter was $0.06 and for the year was $0.36 Selection by new major carriers during the quarter included the Abrared Consortium in Spain, a large carrier in the Czech Republic and two leading Chinese telecommunications operators Agreement with SCI Systems for turn-key production of indoor units New offices opened in Sao Paulo, Brazil and Prague in the Czech Republic Revenues for the fourth quarter of 2000 increased to $17,556,000 from $1,846,000 in the fourth quarter of 1999. Revenues rose by 50% in the fourth quarter from $11,703,000 in the third quarter of 2000. Gross profit for the fourth quarter 2000 was $3,812,000 or 22% of revenues, compared to a gross loss of $196,000 in the fourth quarter of 1999. Gross profit in the third quarter of 2000 was $1,856,000 or 16% of revenues.

Revenues for the year 2000 increased to $38,477,000 from $3,325,000 in 1999. Gross profit for the year 2000 reached $6,360,000, or 17% of revenues, compared to a gross loss of $695,000 in 1999.

On a pro forma basis, which excludes $1,302,000 in amortization of deferred stock compensation, net loss for the quarter was $1,939,000 or a loss of $0.06 per share. This compares to a pro forma net loss for the fourth quarter of 1999 of $2,691,000 or $0.11 loss per share and a pro forma net loss in the third quarter of 2000 of $2,267,000 or a loss of $0.07 per share. For the year 2000, pro forma net loss was $10,193,000 or a pro forma net loss of $0.36 per share compared to a pro forma net loss of $8,668,000 for the year 1999 or a pro forma net loss of $0.42 per share.

"I am delighted to report that Floware had an excellent fourth quarter and, indeed, looking at the year as a whole, our performance has been nothing short of exceptional," said Amnon Yacoby, CEO of Floware. "Our achievements demonstrate Floware's ability to deliver on our strategy to become the leading provider in the broadband wireless fixed access market. We continued to grow and strengthen our relationships with carriers and integrators, won major sales in key markets and continued to develop our products to the highest standards. By all of these measures, Floware has more than met its 2000 objectives and in the year ahead we expect to continue to deliver outstanding results to our shareholders."

Research and development costs rose to $4,115,000 for the quarter, compared to $1,747,000 for the fourth quarter in 1999 and $2,901,000 for the third quarter in 2000. For the year 2000 research and development costs increased to $11,440,000 compared to $5,558,000 in 1999. In addition to continuing to develop the WALKair 3000 system and feature enhancements to the WALKair 1000 system, Floware's R&D efforts focused on reducing expenses associated with the WALKair 1000. To further reduce the production cost of the WALKair 1000, Floware expects to introduce FPGA masked chips by first quarter 2001 to replace the programmable chips currently used. The Company is also continuing to develop ASIC chips which will further reduce the production cost of terminal stations. Floware also signed an agreement with SCI Systems, a leading EMS (electronic manufacturing services) provider, to conduct turn-key production of its terminal and base station indoor units which is expected to further reduce production costs.

Sales and marketing expenses were $2,144,000 for the fourth quarter, compared to $935,000 for the same period in 1999 and $1,542,000 for the third quarter in 2000. Sales and marketing expenses for the year 2000 were $10,047,000 compared to $2,417,000 in 1999. The increase in expenses reflects an increase in sales and marketing personnel, including the expansion of the customer service group.

As of December 31, 2000, Floware's systems were deployed in 61 installations in 36 countries, including 35 commercial deployments.

Major wins in the quarter included two leading telecommunications operators in China, a large carrier in the Czech Republic and the Abrared Consortium in Spain.

In China, Floware was selected to supply its WALKair BWA system to two leading telecommunications operators for commercial deployments. These operators are both well established and well financed companies that are currently deploying commercial networks. Floware has received initial purchase orders for equipment for more than $6,000,000 and has already shipped substantial amounts of product. These are important wins for Floware as they give it a foothold in one of the largest markets in the world with significant growth potential.

The Abrared Consortium of Spain has selected Floware's WALKair system for its wireless network rollout throughout Spain. Spain, as one of the top five European countries by population, is a large market for fixed wireless systems. This win, along with Floware's previous selection by FirstMark Spain, means that Floware is now the supplier of BWA systems to two major carriers in Spain. In March 2000, the Abrared Consortium won a 3.5GHz license to provide fixed wireless access and is deploying a nationwide wireless infrastructure throughout Spain. The system integrator for Abrared, Lucent Technologies, has already placed purchase orders for equipment of approximately $3.7 million. The Abrared Consortium comprises six major Spanish companies and banks, including Iberdrola, the second largest electrical power company in Spain, and Formus Communications Iberica S.A., a leading global high-speed broadband services company.

In addition, Floware was awarded an order from a major carrier in the Czech Republic. which was one of three operators that won a license for the 26GHz frequency in the country in September 2000. This is Floware's second selection as a BWA supplier in the Czech Republic, following its earlier selection by Ceske Radiokomunikace.

During the fourth quarter Floware's existing customers continued to deploy their networks and major deliveries included FirstMark and Arctel in Germany, Abrared and FirstMark in Spain, Novis in Portugal, Ceske Radiokomunikace in the Czech Republic, Rivizul in Uruguay and the two carriers in China. Other developments in the quarter included:

An agreement with SCI Systems, a leading EMS provider, to conduct turn-key production of the Company's indoor units for terminals and base stations at its Scotland plant for all the radio frequencies that the WALKair system supports. The outsourcing of indoor unit production to SCI is an important component of Floware's strategy to reduce production costs. SCI is scheduled to begin turn-key production in the third quarter of 2001 and will reach full capacity production in the fourth quarter of the year. Opening offices in Sao Paulo, Brazil and Prague in the Czech Republic. Both offices are currently providing sales services and are expected to provide technical support in the near future. Floware opened these offices to support its strategic distribution partners in those markets as well as its customers, the telecommunications carriers. Total number of permanent employees grew to 234 at December 31, 2000, compared to 97 at the end of 1999 and 190 at September 30, 2000. Largest growth was in R&D, adding 24 new engineers during the quarter and 75 during the course of the year, and sales and marketing, which added five employees during the quarter for a total of 42 employees at the end of the year. "We are very optimistic for the year ahead," said Yacoby. "We can count on a well-established and high quality customer base. We will continue to focus on the lucrative SME (small and medium enterprises) market segment and we will continue to benefit from excellent global sales channels and strong relationships with our partners. With this firm foundation in place and by continuing to execute our strategy, we believe that we can look forward to another successful year ahead for Floware."

CEO Amnon Yacoby and CFO Tali Idan will host a conference call today, February 7, at 9:00 a.m. (Eastern) to discuss the results. To participate in the call, please dial (913) 981-5507 ten minutes prior to the scheduled call start time. A replay of the call will be available from 12:00 p.m. (Eastern) on February 7 until midnight on February 14. To access the replay, please dial (719) 457-0820 and enter code 790806.

Floware Wireless Systems Ltd. is a leading provider of point-to-multipoint fixed broadband wireless access (BWA) systems. These systems are used mainly by new carriers (CLECs) which connect business customers in the "last mile." Floware's WALKair system enables carriers to provide high-speed Internet access, as well as a wide range of voice and data services, on the 3.5, 10.5 and 26 GHz radio frequency bands. Floware currently has more than 60 deployments worldwide.

This press release and statements by Floware in shareholder reports and public filings, as well as in oral public statements by Floware´s representatives may contain forward looking statements. Such statements are subjected to certain facts, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to in such statements. The risks are identified in Floware´s registration statement on Form F-1 (Registration Statement No. 333-12290) filed with the Securities and Exchange Commission.

(Tables to follow)

CONDENSED STATEMENTS OF OPERATIONS U.S. dollars in thousands Three months ended December 31, Nine months ended December 31, 2000 1999 2000 1999 Revenues $ 17,556 $ 1,846 $ 38,477 $ 3,325 Cost of revenues 13,744 2,042 32,117 4,020 Gross profit (loss) 3,812 (196) 6,360 (695) Operating expenses: Research and development 4,115 1,747 11,440 5,558 Sales and marketing, net 2,144 935 10,047 2,417 General and administrative 800 177 1,877 732 Amortization of deferred stock compensation 1,302 278 4,279 717 Total operating expenses 8,361 3,137 27,643 9,424 Operating income (loss) (4,549) (3,333) (21,283) (10,119) Financial income (expenses), net 1,308 364 2,712 734 Net income (loss) $ (3,241) $ (2,969) $ (18,571) $ (9,385) Preferred shares deemed dividend - - 4,671 - Net loss to shareholders of ordinary shares (3,241) (2,969) (23,242) (9,385) Basic and diluted net loss per share $ (0.10) $ (0.87) $ (1.52) $ (2.76) Weighted average number of shares used in computing basic and diluted net loss per share 32,091,700 3,400,000 15,298,625 3,400,000 x Pro forma net loss(1) $(1,939) $(2,691) $(10,193) $(8,668) x Pro forma net loss per share $(0.06) $(0.11) $(0.36) $(0.42) x Pro forma weighted average number of shares used in computing pro forma net loss per share(2) 32,091,700 25,329,200 28,619,825 20,781,700 (1) Excluding the amortization of deferred stock compensation, the preferred shares deemed dividend (Q1-00) and the stock compensation included in marketing expenses (Q1-00). (2) Assuming a full conversion of the preferred shares into ordinary shares for the period prior to the initial public offering, in which preferred shares were outstanding. CONDENSED BALANCE SHEET U.S. dollars in thousands December 31, 2000 December 31, 1999 ASSETS CURRENT ASSETS: Cash, cash equivalents and short- term investments $ 75,187 $ 25,947 Trade receivables 10,777 1,755 Other accounts receivables and prepaid expenses 1,852 589 Inventories 21,416 2,861 Total current assets 109,232 31,152 SEVERANCE PAY FUND 1,384 571 PROPERTY AND EQUIPMENT, NET 5,275 1,919 Total assets $ 115,891 $ 33,642 LIABILITIES AND SHAREHOLDERS EQUITY CURRENT LIABILITIES: Trade payable $ 15,643 $ 3,791 Employees and payroll accruals 2,808 767 Accrued expenses and other accounts payables 5,074 452 Total current liabilities 23,525 5,010 ACCRUED SEVERANCE PAY 1,420 696 Total liabilities 24,945 5,706 SHAREHOLDERS' EQUITY 90,946 27,936 Total liabilities and shareholders' equity $ 115,891 $ 33,642 Copyright © 2000 Floware Wireless Systems Ltd. All Rights Reserved

6
Feb

BreezeCOM Opens Sales Office in Frankfurt

New Office to Support Expansion in German Market

TEL AVIV, Israel, CARLSBAD, Calif., February 6, 2001 – BreezeCOM (NASDAQ: BRZE), a leader in the design and manufacture of high-speed wireless access solutions today announced the opening of a new sales office in Frankfurt, Germany, to provide local marketing, sales, service and technical support. The sales office will support the Company’s German-based strategic original equipment manufacturer (OEM) partners, distributors and system integrators, as well as its large telecommunications customers.

Commenting on opening the office, Benny Glazer, VP corporate sales for BreezeCOM, said, “Our decision to establish a local representative office was motivated by our desire to provide a strong support center for our existing and future system integrators, partners and customers. The office will facilitate BreezeCOM’s expansion throughout Germany by supporting system integrators who provide solutions for ISP networks, our strong OEM partners, as well as telecommunications operators who have large-scale BreezeACCESS™ broadband wireless access deployments.”

Germany is the ideal marketplace for broadband wireless access because the market conditions and regulatory framework are well ahead of other countries in Europe.

The new German sales office joins BreezeCOM’s existing operations in the U.S., Latin America, Europe and Asia Pacific.

About BreezeCOM
BreezeCOM is the leading provider of Broadband Wireless Access (BWA) solutions used by service providers and enterprises. Its products provide a wireless alternative to wired access solutions, such as DSL and cable modems, and facilitate indoor and outdoor, as well as fixed and mobile wireless LAN connectivity. BreezeCOM products are based on a packet switching point-to-multipoint wireless platform, optimized for high-speed Internet and intranet access. Core technologies include spread spectrum radio, digital signal processing, modems, networking protocols and VLSI. For more information on BreezeCOM, visit www.breezecom.com.

31
Jan

BreezeCOM Reports Record Fourth Quarter and Record Year-End Results for 2000

$101M Yearly Revenues; 127% Growth over last year;
$10M Net Income for Year 2000 versus Loss of $(3.6)M in 1999;
EPS of $0.12 for Q4 2000 versus Loss of $(0.07) in Q4 1999
 
TEL AVIV, Israel & CARLSBAD, Calif., January 31, 2001 – BreezeCOM Ltd. (NASDAQ: BRZE), a leading developer and manufacturer of broadband wireless access products, today announced results for the fourth quarter and the year 2000. The yearly results reflect 127% revenue growth, compared with 1999 revenues.

Revenues for the fourth quarter which ended December 31, 2000 were $32.4 million, a 154% increase over $12.7 million reported in the fourth quarter of 1999, and a 12% increase over third quarter 2000 revenues of $29 million. Net operating income in the fourth quarter 2000 was $1.3 million, compared with an operating loss of $(629,000) in the same period of 1999. The Company reported net income for the fourth quarter 2000 of $3.9 million, or $0.12 per diluted share, compared with a net loss of $(765,000), or $(0.07) net loss per share, in the same period last year.

Revenues for the year 2000 were $101 million, a 127 % increase over revenues of $44.8 million for the same period in 1999. Net operating income for the year 2000 was $3 million, compared to a net operating loss of $(2.6) million in 1999. Net income for the year 2000 was $10 million, or $0.33 per diluted share, compared with a net loss of $(3.6) million, or $(0.32) net loss per share, in the same period last year.

In announcing the results, Zvi Slonimsky, President and CEO of BreezeCOM, said, “Year 2000 was exceptional for BreezeCOM. We became profitable, more than doubled our revenues and demonstrated solid quarter over quarter growth. Furthermore, we exceeded all of our strategic targets. Our fourth quarter results reflect the continued high demand from service providers and private networks.”

“We are the global leader of the sub-11 GHz broadband wireless access market, which has received conclusive recognition as a vital element of the telecommunications industry. Thousands of subscribers are receiving data and telephony services using BreezeCOM’s network solutions.”

“In the year 2000, we also made major inroads into the licensed 3.5GHz carrier market internationally and the unlicensed service provider market in the United States,” Mr. Slonimsky added. “We substantially increased our penetration into Latin America and Asia Pacific and believe this growth will position us for continued success in 2001. We introduced a variety of new products, including: BreezeACCESS MMDS in the U.S., Canada and Latin America; BreezeACCESS II, a carrier-class line for unlicensed applications worldwide; additional product lines in the 3.5 GHz licensed band; and an enhanced DS.11 Outdoor Bridge for the enterprise market.”

Mr. Slonimsky will discuss the Company’s earnings results and other news discussed herein in a group conference call Wednesday, January 31, 2001 at 9:00 a.m. EST. The call can be heard live as a webcast on www.streetevents.com and www.breezecom.com. A replay will also be available beginning 11:00 am. EST, January 31, 2001, through February 2, 2001 at 11:59 p.m., by dialing 1-888-266-2081 (Domestic), 1-703-925-2533 (International), Replay ID Code 4908026.

About BreezeCOM
BreezeCOM is the leading provider of Broadband Wireless Access (BWA) solutions used by service providers and enterprises. Its products provide a wireless alternative to wired access solutions, such as DSL and cable modems, and facilitate indoor and outdoor, as well as fixed and mobile wireless LAN connectivity. BreezeCOM products are based on a packet switching point-to-multipoint wireless platform, optimized for high-speed Internet and intranet access. Core technologies include spread spectrum radio, digital signal processing, modems, networking protocols and VLSI.

For Quarterly Report, please select: Q4 2000 Financial Report.

23
Jan

Floware’s WALKair Selected by Abrared in Spain for Nationwide Deployment

Floware Now Selected by Two of Spain's Major Broadband Wireless Carriers

Or Yehuda, Israel, January 23, 2001 ­ Floware Wireless Systems Ltd. (NASDAQ: FLRE), a leading provider of broadband wireless access (BWA) communication systems, announced today that the Abrared Consortium of Spain has selected Floware's WALKair system for its wireless network rollout throughout Spain. The selection by Abrared has resulted in purchase orders for Floware's WALKair system of approximately $3.7 million, of which about half have already been delivered. Following this selection, Floware is now the supplier of BWA systems to two major carriers in Spain.

In March 2000, the Spanish Government awarded fixed wireless licenses to six carriers for nationwide deployment, three in the 3.5GHz frequency band and three in the 26GHz band. The Abrared Consortium won a 3.5GHz band license to provide fixed local wireless access.

Abrared plans to deploy a nationwide wireless infrastructure throughout Spain and provide services to businesses and users in 55 cities and districts during its first year of operation, leading to 111 cities during the second year. The Abrared Consortium consists of Iberdola, the second largest electrical power company in Spain; Formus Communications Ibérica S.A., a leading global high-speed broadband services company; Merlin Servicios Portadores, stakeholder of the Spanish cable telecommunication company ONO; Bancaja and Caja Galicia, two major savings banks, and Grupo Corporativo Fuertes, an industrial group.

In announcing Abrared's selection, Amnon Yacoby, CEO of Floware said, "We are very pleased to be chosen by another large new carrier in Spain. Spain, as one of the top five European countries in terms of population, is expected to quickly become a large market of fixed wireless systems. Abrared's decision to use our WALKair system reinforces our significant presence in the Spanish market." About Abrared
The Abrared Consortium consists of Iberdola, the second largest electrical power company in Spain; Formus Communications Ibérica S.A., a leading global high-speed broadband services company; Merlin Servicios Portadores, stakeholder of the Spanish cable telecommunication company ONO; Bancaja and Caja Galicia, two major savings banks, and Grupo Corporativo Fuertes, an industrial group. Abrared is focused on providing high-speed broadband Internet connectivity to telecommunications carriers. Abrared's wireless technology will help to overcome the existing local loop bottleneck in Spain and will allow telecommunications operators to offer Internet access and services to business customers.

About Floware
Floware Wireless Systems Ltd. is a leading provider of point-to-multipoint fixed broadband wireless access (BWA) systems. These systems are used mainly by new carriers (CLECs) which connect business customers in the "last mile." Floware's WALKair system enables carriers to provide high-speed Internet access, as well as a wide range of voice and data services, on the 3.5, 10.5 and 26 GHz radio frequency bands. Floware currently has more than 50 deployments worldwide.

This press release and statements by Floware in shareholder reports and public filings, as well as in oral public statements by Floware´s representatives may contain forward looking statements. Such statements are subjected to certain facts, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to in such statements. The risks are identified in Floware´s registration statement on Form F-1 (Registration Statement No. 333-12290) filed with the Securities and Exchange Commission.