Alvarion today announced that it expects first-quarter 2012 revenues to be approximately $33 million to $33.5 million below previous guidance, primarily as a result of lower-than-expected sales of an older product line that the company intends to replace later this year.

The company also said that delivery of a $3 million order for its carrier-grade Wi-Fi solution has been delayed from Q1 until Q2.

Alvarion also noted that it will be in default of a financial covenant under certain loan and credit facility agreements, including a $30 million loan obtained by the company for the acquisition of Wavion.

“Although we expected a decline in demand for certain older products ahead of their planned replacement later this year, we did not anticipate it would be of the magnitude we began to see in the last few weeks,” said Eran Gorev, president and CEO of Alvarion.

Alvarion said it shipped $5 million worth of orders for its carrier-grade Wi-Fi equipment in the first quarter and has won several large carrier-grade Wi-Fi deals with Tier 1 carriers in the Asia Pacific region, and it expects those revenues in future quarters.

Gorev said business in the broadband wireless access segment was only slightly below expectations and that the company recently received a multi-million-dollar order for a combination of base stations and CPEs. That order will ship over the next couple of quarters.

Specific guidance for Q2 and any revisions that may be required to the financial targets for 2012 will be provided when the company announces final results for the first quarter of 2012 on May 16.