<PAGE>

================================================================================

               UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549

                                   FORM 10-Q

(Mark one)

[X]  Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
     Act of 1934

                 For the quarterly period ended April 1, 2001

                                      OR

[_]  Transition Report Pursuant to Section 13 or 15(d) of the Securities
     Exchange Act of 1934

             For the transition period from _________to__________.


                       Commission file number 000-31031


                             AIRSPAN NETWORKS INC.
            (Exact name of registrant as specified in its charter)

         Washington                                    75-2743995
(State or other jurisdiction of            (I.R.S. Employer Identification No.)
 incorporation or organization)

    13450 West Sunrise Boulevard                         33323
           Sunrise, FL                                 (Zip Code)
----------------------------------------
(Address of principal executive offices)

              Registrant's telephone number, including area code:
                                (954) 851-1660
                        -------------------------------

Securities registered pursuant to Section 12(b) of the Act:
                                     NONE

Securities registered pursuant to Section 12(g) of the Act:
                                     NONE

  Indicate by a check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.    Yes    [X]      No [_]

  Number of shares outstanding of the registrant's common stock as of April 1,
2001: 34,775,952

================================================================================

<PAGE>

PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements

                             AIRSPAN NETWORKS INC.
                          CONSOLIDATED BALANCE SHEETS
                                (in thousands)
<TABLE>
<CAPTION>
                                                                            December 31,           April 1,
                                                                               2000                  2001
                                                                         ----------------     ----------------
                         ASSETS                                                                  (unaudited)
<S>                                                                      <C>                  <C>
Current Assets
Cash and cash equivalents                                                $        115,340     $         97,740
Restricted cash                                                                     7,207                7,154
Accounts receivable, less allowance for doubtful accounts
 of $1,371 in 2000 and $1,098 at April 1, 2001                                     14,482               16,860
Unbilled accounts receivable                                                          349                1,104
Inventory                                                                           8,166               10,423
Deferred tax asset                                                                      -                1,481
Prepaid expenses and other current assets                                           3,481                4,311
                                                                         ----------------     ----------------
       Total Current Assets                                                       149,025              139,073

Property, plant and equipment, net                                                  6,800                7,285
Intangible assets, net                                                              1,209                1,103
Accounts receivable greater than one year                                               -                  648
Other non-current  assets                                                             300                  252
                                                                         ----------------     ----------------
       Total Assets                                                      $        157,334     $        148,361
                                                                         ================     ================
               LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable                                                         $          6,038     $          6,492
Short term debt                                                                       849                  487
Accrued taxes                                                                         351                  474
Deferred revenue                                                                    1,210                1,844
Deferred tax liability                                                                  -                1,481
Other accrued expenses                                                              3,720                5,534
Current portion of capital lease obligations                                           34                   20
Current portion of long-term debt                                                   5,723                3,718
                                                                         ----------------     ----------------
       Total Current Liabilities                                                   17,925               20,050
                                                                         ----------------     ----------------
Non current liabilities
Long-term portion of note payable to DSC Telcom L.P.                               12,983                    -
Other long-term debt                                                                2,500                2,500
Accrued interest on long-term debt                                                    271                    -
                                                                         ----------------     ----------------
                                                                                   15,754                2,500
                                                                         ----------------     ----------------
Stockholders' equity
Preferred Stock, $0.01 par value, 81,000,000 shares authorized
  and none issued in 2000 and 2001
Common Stock, $0.0003 par value; 50,000,000 shares authorized and
  34,692,331 issued in 2000 and 50,000,000 shares authorized and
  34,775,952 issued in 2001                                                            51                   51
Note receivable-stockholder                                                          (180)                (180)
Additional paid in capital                                                        214,025              214,127
Accumulated other comprehensive income                                                441                 (859)
Accumulated Deficit                                                               (90,682)             (87,328)
                                                                         ----------------     ----------------
Total Stockholders' Equity                                                        123,655              125,811
                                                                         ----------------     ----------------
Total Liabilities and Stockholders' Equity                               $        157,334     $        148,361
                                                                         ================     ================
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>

                             AIRSPAN NETWORKS INC.
                       CONSOLIDATED STATEMENTS OF INCOME
              (in thousands except for share and per share data)

<TABLE>
<CAPTION>
                                                                  Three months       Three months
                                                                  ended April 2,     ended April 1,
                                                                      2000               2001

                                                                  --------------     -------------
                                                                    (unaudited)       (unaudited)
                                                                  --------------     -------------
<S>                                                               <C>                <C>
Revenue                                                           $        5,661     $      10,051
Cost of revenue                                                           (3,530)           (5,964)
                                                                  --------------     -------------
Gross Profit                                                               2,131             4,087
                                                                  --------------     -------------
Operating expenses:
Research and development                                                   4,199             4,045
Sales and marketing                                                        3,099             4,137
General and administrative                                                 2,243             2,859
Amortisation of intangibles                                                  276               106
                                                                  --------------     -------------
Total operating expenses                                                   9,817            11,147
                                                                  --------------     -------------
Loss from operations                                                      (7,686)           (7,060)

Interest expense                                                            (473)             (191)

Interest and other income                                                  1,111             1,361
                                                                  --------------     -------------
Loss before income taxes and extraordinary item                           (7,048)           (5,890)

Income taxes                                                                 (16)            2,773
                                                                  --------------     -------------
Net loss before extraordinary item                                        (7,064)           (3,117)

Extraordinary item
 Gain on extinguishment of debt                                                -             9,244
 Income tax charge                                                             -            (2,773)
                                                                  --------------     -------------
Gain after tax                                                                 -             6,471
                                                                  --------------     -------------
Net (loss) / income                                               $       (7,064)    $       3,354
                                                                  ==============     =============

Earnings per share - basic and diluted

              Loss before extraordinary item                      $        (6.50)    $       (0.09)
              Extraordinary item, net of taxes                    $            -     $        0.19
                                                                  --------------     -------------
              Net (loss) / earnings per share                     $        (6.50)    $        0.10

Weighted average shares outstanding - basic and diluted                1,087,047        34,580,448

Pro forma net (loss) / income per share - basic and diluted       $        (0.26)    $        0.10

Pro forma weighted average shares
outstanding - basic and diluted                                       27,633,079        34,580,448

</TABLE>

The accompanying notes are an integral part of these financial statements
<PAGE>

                             AIRSPAN NETWORKS INC.
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (in thousands)

<TABLE>
<CAPTION>
                                                                          Three months        Three months
                                                                             Ended               Ended
                                                                            April 2,            April 1,
                                                                             2000                2001
                                                                          (unaudited)        (unaudited)
                                                                         -------------      -------------
<S>                                                                      <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) / income                                                      $      (7,064)     $       3,354
Adjustments to reconcile net (loss) / income to net cash
  used in operating activities:
  Depreciation and amortisation                                                    976                951
  Gain on settlement of long term debt                                               -             (9,252)
  Stock compensation                                                                25                  -
  Other comprehensive income                                                         -             (1,300)
  Accretion of interest on notes payable                                           299                109
Changes in operating assets and liabilities:
  Increase in receivables                                                         (318)            (2,978)
  Increase in inventories                                                         (512)            (2,257)
  Increase in other current assets                                                (197)            (1,585)
  (Decrease) / increase in accounts payable                                       (471)               454
  Increase in accrued expenses                                                     460              2,571
                                                                         -------------      -------------
Net cash used in operating activities                                           (6,802)            (9,933)
                                                                         -------------      -------------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment                                                (893)            (1,330)
                                                                         -------------      -------------
Net cash used in investing activities                                             (893)            (1,330)
                                                                         -------------      -------------

CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from issuance of preferred stock                                    4,000                  -
Payment of short-term debt                                                           -               (362)
Payment on long-term debt, including capital lease obligations                     (47)            (6,130)
Exercise of stock options                                                            6                102
Restricted cash movement                                                           814                 53
                                                                         -------------      -------------
Net cash provided / (used) by financing activities                               4,773             (6,337)
                                                                         -------------      -------------

Decrease in cash and cash equivalents                                           (2,922)           (17,600)
Cash and cash equivalents, beginning of period                                  58,828            115,340
                                                                         -------------      -------------
Cash and cash equivalents, end of period                                 $      55,906      $      97,740
                                                                         =============      =============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

Interest paid                                                            $         473      $         358
                                                                         =============      =============
</TABLE>

The accompanying notes are an integral part of these financial statements
<PAGE>

                            AIRSPAN NETWORKS, INC.
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 (Unaudited)


BUSINESS

We are a global supplier of broadband Fixed Wireless Access (FWA) systems that
allow network operators (communications service providers) to cost effectively
deliver integrated high speed data and voice services (what we call "Wireless
DSL"). Our systems are based on Direct Sequence - Code Division Multiple
Access, or DS-CDMA, a digital wireless technique that provides wide area
coverage, security and resistance to fading. Our systems can be deployed rapidly
and cost effectively, providing an attractive alternative or complement to
traditional copper wire, cable, or fiber communications access networks. Our
products also include software tools that optimize geographic coverage of our
systems and provide ongoing network management. To facilitate the deployment and
operation of our systems, we also offer network installation, training and
support services. During 1996, we began shipping our products--these were among
the first fixed point-to-multipoint wireless systems to be commercially
deployed. Our systems have been installed by over 50 network operators in
approximately 40 countries and are being tested by numerous other service
providers. Our primary operations, manufacturing and product development centres
are located in Uxbridge, U.K., with our corporate headquarters in Sunrise,
Florida. Our telephone number in Sunrise Florida is (954) 851-1660. Further
contact details and the location of all Airspan's worldwide offices may be found
at www.airspan.com.


BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial information
and with the instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments considered necessary for a fair
presentation have been included and are of a normal recurring nature. The
interim operating results are not necessarily indicative of operating results
expected in subsequent periods or for the year as a whole.

The balance sheet at December 31, 2000 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements.

For further information, refer to the consolidated financial statements and
footnotes thereto included in the company's Annual Report on Form 10-K for the
year ended December 31, 2000.

All notes to the financial statements are shown in thousands, except for share
data.


INVENTORY

Inventory consists of the following:

                                       December 31,    April 1,
                                           2000          2001
                                       ------------    --------
                                                      (unaudited)

Purchased parts and materials              $  5,713     $ 6,173
Finished goods and consumables                2,453       4,250
                                           --------    --------
                                           $  8,166     $10,423
                                           ========    ========

<PAGE>

SEGMENTAL INFORMATION

As a developer and supplier of fixed wireless communication access systems and
solutions, the Company has one reportable segment. The revenue of this single
segment is comprised primarily of revenue from products and, to a lesser extent,
services.  Predominantly all of the Company's revenue is generated from the
United Kingdom operations.  Substantially all of the Company's assets, other
than most of the cash and certain intangibles, which are held in the United
States, are located within the United Kingdom.

Revenue by geographical market:

                                   April 2,            April 1,
                                     2000                2001
                                --------------      --------------
                                 (unaudited)         (unaudited)

USA                                $    285            $  1,124
Rest of the World:
Asia:
Philippines                           2,273               3,862
Sri Lanka                             1,611               1,245
Rest of Asia                            209                 753
Europe:
Ireland                                 989                 650
Rest of Europe                          183               1,833
Africa and the Middle East               86                 446
South America                            25                 138
                                   --------            --------
                                   $  5,661            $ 10,051
                                   ========            ========

COMPREHENSIVE (LOSS) / INCOME

Total comprehensive (loss)/income was $(7,064) for the three months ended
April 2, 2000 and $2,054 for the three months ended April 1, 2001.

Components of Comprehensive (Loss)/Income:


                                   April 2,            April 1,
                                     2000                2001
                                --------------      --------------
                                 (unaudited)         (unaudited)

Net (loss) / income for the
   three months                    $ (7,064)           $  3,354
Other Comprehensive Income -
   unrealized loss on forward
   exchange contracts                     -              (1,300)
                                   --------            --------
                                   $ (7,064)           $  2,054
                                   ========            ========

<PAGE>

NET INCOME OR LOSS PER SHARE

Net income or loss per share is computed using the weighted average number of
shares of common stock outstanding less the number of shares subject to
repurchase. Shares associated with stock options, warrants and the convertible
preferred stock are not included in the calculation of diluted net income or
loss per share as they are antidilutive.   During 2000 the preferred stock
converted to common stock upon the closing of the initial public offering.  Pro
forma net income or loss per share data has been determined as if each share of
convertible preferred stock had converted to common stock at the time of the
issuance.

The following table sets forth the computation of basic and diluted net income
or loss per share and pro forma basis and diluted net income or loss per share
for the periods indicated.


<TABLE>
<CAPTION>
                                                                     Three months            Three months
                                                                        Ended                   Ended
                                                                       April 2,                April 1,
                                                                         2000                    2001
                                                                     -----------             -----------
                                                                      (unaudited)            (unaudited)
<S>                                                                  <C>                     <C>
Numerator:
Loss before tax and extraordinary item                               $    (7,048)            $    (5,890)
Income tax (charge)/ credit                                                  (16)                  2,773
                                                                     -----------             -----------
Loss before extraordinary item                                       $    (7,064)            $    (3,117)
Extraordinary item, net of taxes                                               -                   6,471
                                                                     -----------             -----------
Net (loss) / income                                                  $    (7,064)            $     3,354
                                                                     ===========             ===========

Denominator:
Weighted average common shares outstanding                             1,350,936              34,719,337
Less:  weighted average shares of restricted stock                      (263,889)               (138,889)
                                                                     -----------             -----------
Denominator for basic and diluted calculations                         1,087,047              34,580,448

Weighted average pro forma  conversion of convertible
 preferred stock                                                      26,546,032                       -
                                                                     -----------             -----------
Denominator for pro forma basic and diluted calculation               27,633,079              34,580,448
                                                                     ===========             ===========

Earnings per share - basic and diluted:
Loss before tax and extraordinary item                               $     (6.48)            $     (0.17)
Income tax (charge) / credit                                               (0.02)                   0.08
                                                                     -----------             -----------
Loss before extraordinary item                                       $     (6.50)            $     (0.09)
Extraordinary item, net of taxes                                               -                    0.19
                                                                     -----------             -----------
Net (loss) / earnings                                                $     (6.50)            $      0.10
                                                                     ===========             ===========
Pro forma basic and diluted                                          $     (0.26)            $      0.10
                                                                     ===========             ===========

</TABLE>
<PAGE>

Item 2.  Management's Discussion and Analysis of Financial Condition and Results
of Operations

Comparison of the Quarter Ended April 1, 2001 to the Quarter Ended April 2, 2000

Revenue

Revenue totalled $10.1 million for the quarter ended April 1, 2001 representing
a 78% increase from the $5.7 million reported for the comparable 2000 quarter.
Higher sales were driven by network deployments to customers in the Philippines,
United States, Sri Lanka and Poland.  Network deployments for United States
customers were predominantly shipped to locations outside the U.S. During the
quarter, shipments were made to 25 customers, including five new customers who
represented 22% of revenue.  Geographically, 25% of our revenues were derived
from Europe, 58% from Asia, 12% from U.S. based customers and 5% from the rest
of the world.

Cost of Revenue

Cost of revenue increased 69% from $3.5 million in the quarter ended April 2,
2000 to $6.0 million in the quarter ended April 1, 2001 as a result of the
increase in revenue. Gross margin as a percentage of revenue totalled 41% in the
first quarter of 2001 and 38% in the first quarter of 2000. The improvement in
gross margin primarily reflected the results of lower product costs.

Research and Development Expenses

Research and development expenses decreased 4% from $4.2 million in the quarter
ended April 2, 2000 to $4.0 million in the quarter ended April 1, 2001. The
decrease was due to the timing of projects focused on new product development
and cost reduction.

Sales and Marketing Expenses

Sales and marketing expenses increased 33% from $3.1 million in the quarter
ended April 2, 2000 to $4.1 million in the quarter ended April 1, 2001,
reflecting a higher headcount, the expansion of our sales and marketing
activities, including additional trade show and user conference activity,
customer trial costs and the impact of commissions based on higher sales.

General and Administrative Expenses

General and administrative expenses increased 27% from $2.2 million in quarter
ended April 2, 2000 to $2.9 million in the quarter ended April 1, 2001. The
increase was due to a higher headcount supporting our expanding operations, the
set up of our corporate offices in Florida, and compliance with reporting and
other requirements of being a public company.

Amortisation of Intangibles

Amortisation of intangibles expense decreased 62% from $0.3 million in the
quarter ended April 2, 2000 to $0.1 million in the quarter ended April 1, 2001,
reflecting the full write off of developed technology, purchased sales contracts
and patents in previous quarters

Interest and Other Income

Net interest and other income increased 83% from $0.6 million for the quarter
ended April 2, 2000 to $1.2 million in the quarter ended April 1, 2001. The
increase was a result of greater interest income earned on higher cash deposits
with financial institutions from additional equity capital raised. Amounts from
interest income were partially offset by interest expense of $0.2 million in the
quarter ended April 1, 2001 and $0.5 million in the quarter ended April 2, 2000,
predominantly on outstanding indebtedness owed to DSC related to the purchase of
the company's assets in January 1998.

<PAGE>

Income Taxes

We recorded an income tax benefit in the first quarter of 2001, for the tax
losses generated in the U.K. to offset the income tax expense recorded on our
extraordinary gain. The tax provision for the first quarter of 2000 relates to
U.S. federal income taxes currently payable primarily attributable to
intercompany interest income.

Extraordinary Gain

The Company negotiated a settlement of its $18.5 million promissory note with
DSC Telcom L.P. in the first quarter of 2001. Under the settlement agreement,
the Company agreed to pay $9.3 million in 2001, in exchange for complete
forgiveness of the debt owed by the Company that was originally repayable over
36 equal instalments over three years starting February 1, 2001. In addition,
the Company and DSC Telcom L.P. mutually released each other from certain claims
made by the parties relating to the formation of Airspan in January 1998.   The
extraordinary gain of $9.2 million that arose from this transaction was
partially offset by tax on the gain of $2.7 million to show an extraordinary
gain, net of taxes of $6.5 million.

Net Income/Loss

As a result of the extraordinary gain we had net income of $3.4 million in the
quarter ended April 1, 2001 compared to a loss of $7.1 million from the first
quarter 2000. Loss before extraordinary items and taxes decreased from $7.1
million for the first quarter of 2000 to $5.9 million for the first quarter of
2001, or 16%.  Increases in sales and marketing, general and administrative
expenses of $1.0 million and $0.6 million, respectively, offset increases in
gross profits of $2.0 million . This was partly compensated for by a decrease in
amortization of intangibles of $0.2 million, a decrease in research and
development costs of $0.2 million and an increase in interest and other income
of $0.5 million.

Other Comprehensive Loss/Income

Other comprehensive loss for the three months ended April 1, 2001 was $1,300,
while there was no other comprehensive loss or income in the first quarter of
2000. The loss related to the change in fair value of our forward foreign
exchange contracts on retranslation. These forward exchange contracts are used
to hedge our UK expenses through to February 2002.

Liquidity and capital resources

Between inception and July 2000, we financed our operations primarily through
private sales of convertible preferred stock, which totalled $117.3 million (net
of transaction expenses). On July 25, 2000, we completed an initial public
offering of common stock for approximately $86.0 million in cash (net of
underwriting discounts, commission and other expenses).

As of April 1, 2001, we had cash and cash equivalents totalling $97.7 million,
as well as $7.1 million of restricted cash that is held as collateral for
performance guarantees on customer and supplier contracts and with landlords.
We do not have a line of credit or similar borrowing facility, nor do we have
any material capital commitments.

At April 1, 2001, we had outstanding long term debt of $6.2 million.  This is
made up of the remaining portion of the promissory note payable to DSC Telecom
L.P. for $3.3 million and $2.9 million owed to Comdisco Inc.

For the three months ended April 1, 2001, we used $9.9 million cash in operating
activities compared with $6.8 million for the three months ended April 2, 2000.
The cash used in operations was primarily as a result of the operating loss and
changes in working capital.

The net cash used in investing activities in the three months to April 1, 2001
and April 2, 2000, of $1.3 million and $0.9 million respectively, all related to
capital equipment.

Our financing cash flows for the three months ended April 1, 2001 were $6.3
million negative.  The outflows arose from the repayment of long and short term
debt in the amount of $6.5 million, partially offset by the proceeds from the
issuance of common stock on the exercise of stock options of $0.1 million and a
$0.1 million reduction in restricted cash.

The Company has no material commitments other than obligations on long term
debt, operating and capital leases and the forward exchange contracts mentioned
below.

<PAGE>

Item 3. Quantitative and Qualitative Disclosure of Market Risk

Interest rate risk

The Company's earnings are affected by changes in interest rates. As of December
31, 2000 and April 1, 2001 we had cash and cash equivalents and restricted cash
of $122.5 million and $104.9 million, respectively. Substantially all of these
amounts consisted of highly liquid investments with remaining maturities at the
date of purchase of less than 90 days. These investments are exposed to interest
rate risk and will decrease in value if market interest rates increase. A
hypothetical increase or decrease in market interest rates of 2 percent from
April 1, 2001 rates would cause the fair market value of these short-term
investments to change by an insignificant amount. Due to the short duration of
these investments, a short-term increase in interest rates would not have a
material effect on our financial condition or results of operations. Declines in
interest rates over time would, however, reduce our interest income.

Foreign currency exchange rate risk

For the three months ended April 1, 2001, 7.7% of our sales were denominated in
euros and the remaining 92.3% were denominated in US dollars. For the quarter
ended April 2, 2000, 17.2% of our sales were denominated in euros and the
remaining 82.8% were denominated in U.S. dollars. Our total euro denominated
sales for the three months ended April 1, 2001 were 0.8 million euros, which
were recorded at an average exchange rate of $1US = 1.1010 euros. If the average
exchange rate used had been higher or lower by 10% it would have decreased or
increased the euro-denominated sales value by $0.08 million. We expect the
proportions of sales in euros to fluctuate over time. The Company's sensitivity
analysis for changes in foreign currency exchange rates does not factor in
changes in sales volumes.

Since May 2000, we have entered in currency hedging contracts that lock in
minimum exchange rates for payments due to us under some of our sales contracts
where those payments are to be made in currencies other than US dollars. Prior
to 2000 we had not entered into any foreign currency forward or option contracts
to hedge those payments. We do not enter into any currency hedging activities
for speculative purposes. The cost of these contracts are included under
interest and other income if our financial statements. There were no euro hedges
outstanding at April 1, 2001. We will continue to monitor our foreign currency
exposures and may modify hedging strategies as we deem prudent.

Our operating results are affected by moves in foreign currency exchange rates,
particularly the rate between US dollars and Great Britain  pounds sterling.
That is because most of our operating expenses are incurred in pounds sterling.
During the three months ended April 1, 2001, we paid expenses in local currency
of approximately 6.7 million pounds sterling, at an average rate of $1US = 0.69
pounds sterling. If the average exchange rates had been higher or lower by 10%,
the pounds sterling denominated operating expenses would have decreased or
increased by $1.0 million. We expect the proportions of operating expenses paid
in pounds sterling to fluctuate over time.

To manage our pound sterling foreign currency risk, in November 2000 we entered
into a forward exchange contract to purchase 24 million pounds sterling at an
average exchange rate of $1US = 0.6793 pounds sterling in sixteen equal amounts
from that date to February 2002. At April 1, 2001 there were eleven payments
outstanding at an average exchange rate of $1US = 0.6785 pounds sterling. If the
future average exchange rates over the remaining life of the contract are higher
or lower than the contracted rate by 10% our results would be impacted by $2.2
million.

During 2000 we incurred the majority of our cost of revenue in Swedish Krona.
With the move of our printed circuit board sub-contracted production from Sweden
to Scotland at the beginning of 2001, we eliminated the Krona payments, and for
the three months ended April 1, 2001 we incurred the majority of our cost of
revenue in U.S. dollars.

Equity price risk

We do not own any equity investments, other than in our subsidiaries. As a
result, we do not currently have any direct equity price risk.

Commodity price

We not enter into contracts for the purchase or sale of commodities. As a
result, we do not currently have any direct commodity price risk.

<PAGE>

Part II Other Information


Item 1. Legal Proceeding

None


Item 2. Change in securities and use of proceeds

During the three months ended April 1, 2001 we granted stock options to purchase
an aggregate 1,551,400 shares of our common stock at an average exercise price
of $3.9007 per share to employees under our 1998 Stock Option and Restricted
Stock Plan and our 2001 Supplemental Stock Option Plan.  During the three months
ended April 1, 2001 employees exercised options for 83,621 shares of common
stock for aggregate consideration of $101,706.

Item 3. Defaults Upon Senior Securities.

None


Item 4 Submission of Matters to a Vote of Security Holders.

None


Item 5. Other Information

None


Item 6. Exhibits and Reports on Form 8-K

(a) Exhibits

None

(b) Reports on Form 8-K:

None

<PAGE>

                                  SIGNATURES

Pursuant to the requirements of the Securities Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorised.

May 15, 2001

                               AIRSPAN NETWORKS INC.

                               By:   /s/ PETER ARONSTAM
                             ---------------------------------------------------
                               Peter Aronstam
                               Senior Vice President and Chief Financial Officer