Powerwave Technologies Reports Fourth Quarter, Year End Results
IRVINE, Calif. - Jan. 23, 2001 -
Powerwave Technologies, Inc. (NASDAQ:PWAV) today reported net sales of $121.2 million for its fourth quarter ended December 31, 2000, representing an increase of 33% from fourth quarter fiscal 1999 revenues of $91.1 million. For the entire fiscal year 2000, Powerwave reported total revenues of $447.4 million, which represents an increase of 53% from fiscal 1999 total revenues of $292.5 million. Powerwave also reported fourth quarter net income of $12.4 million, or diluted earnings per share of 19 cents, compared to net income of $8.4 million, or diluted earnings per share of 13 cents for the prior year's fourth quarter. For all of fiscal 2000, Powerwave reported total net income of $45.7 million, or diluted earnings per share of 71 cents, compared to net income of $20.3 million or diluted earnings per share of 33 cents for fiscal year 1999.
"We are pleased with our fourth quarter results and the performance of our organization," stated Bruce C. Edwards, President and Chief Executive Officer. "During the fourth quarter, we continued to pursue our development activities with a primary focus on our new products under development for next generation, or 3G systems. During the fourth quarter, we delivered over 500 3G amplifiers to one of the top five wireless base station OEMs. In addition, during the quarter we continued the process of building out our new headquarters and operations facility to allow us to both consolidate our Southern California operations as well as expand our production capability. We currently are expediting our consolidation activities so that we will be completed by the end of the first quarter of fiscal 2001."
For the fourth quarter of 2000, North American revenues were $95.6 million or approximately 79% of revenues as compared to $57.0 million or approximately 63% of revenues for the fourth quarter of 1999. Total sales to customers based in Asia accounted for approximately 12% of revenues or $14.7 million for the fourth quarter of 2000. This compares to 24% of revenues or $22.0 million for the fourth quarter of 1999. Total European and other international revenues for the fourth quarter of 2000 were $10.9 million or approximately 9% of revenues as compared to $12.1 million or approximately 13% of revenues for the fourth quarter of 1999.
Powerwave's customer diversification for the fourth quarter of 2000 includes Cingular Wireless and Verizon Wireless each accounting for over 10% of revenues and Nortel Networks Corporation accounting for approximately 45% of revenues. In addition, our total sales to network operators accounted for approximately 30% of revenues in the fourth quarter of 2000.
Balance Sheet
At December 31, 2000, Powerwave had total cash and cash equivalents of approximately $128.7 million. Total assets were approximately $393.8 million with net inventories of $51.3 million and net accounts receivable of $80.0 million.
Company Background
Powerwave Technologies, Inc., an ISO 9001 quality certified company, is a leading supplier of high performance RF power amplifiers for use in wireless communications networks. Powerwave designs, manufactures and markets both single carrier and multi-carrier RF power amplifiers. Powerwave's products are utilized in both cellular and PCS base stations in both digital and analog networks. Corporate headquarters are located at 2026 McGaw Avenue, Irvine, Calif. 92614. Telephone (949) 809-1100. For more information on Powerwave's high performance ultra-linear RF power amplifiers and amplifier systems, please call (888)-PWR-WAVE (797-9283) or visit our web site at www.Powerwave.com.
Conference Call
Powerwave is providing a simultaneous Webcast of its Fiscal 2000 fourth quarter financial results conference call on Tuesday, January 23, 2001, at 2:00 PM Pacific Time. To access this audio Webcast, log onto www.themeetingson.com and select "Web Conferencing". Next, select "Join a Web Conference" and under Webcast, select "Access Your Webcast Now." The reservation number of the Powerwave Fiscal 2000 fourth quarter financial results conference call is 17487755. The call will last for approximately 1 hour. A replay of the Webcast will be available beginning approximately 1 hour after completion of the initial Webcast . Additionally, an audio playback of Powerwave's fourth quarter financial results conference call will be available beginning at approximately 4:00pm PDT on January 23, 2001 through January 28, 2001 by calling (800) 633-8284 or (858) 812-3440 and entering reservation number 17487755.
Forward-Looking Statements
The foregoing statements regarding the projected timing of our facilities consolidation; growth possibilities associated with deployment of 3G systems; and our ability to benefit from the expected growth in demand for 3G products are "forward looking statements." All of these statements are subject to risks and uncertainties which could cause our actual results to differ materially from those projected or implied. Such potential risks and uncertainties include, but are not limited to, in no particular order: delays in deployment of 3G systems by wireless OEM's and delays in acceptance of 3G systems by network operators; unexpected technical difficulties in developing 3G products; unexpected facilities consolidation delays and cost overruns; manufacturing disruptions related to the facilities consolidation which could negatively impact short-term revenue and expenses; we require continued success in the design of new amplifier products and such products must be manufacturable and of good quality and reliability; our dependence on single source suppliers for certain key components used in our amplifiers exposes us to potential material shortages; variability in our gross margins on new products which could result in a negative impact on our operating results; the movement and relocation of our production lines to new facilities requires re-qualification from certain customers and any delays in obtaining such re-qualification could have a negative impact on our operating results; the ramp up of new production lines may take longer than planned and any such delays may have a negative impact on our operating results; our business requires continued favorable business conditions and growth in the wireless communications market. Powerwave also notes that its reported financial performance and period to period comparisons are not necessarily indicative of the results that may be expected in the future and Powerwave believes that such comparisons cannot be relied upon as indicators of future performance. Powerwave also notes that the market price of its Common Stock has exhibited high levels of volatility and therefore may not be suitable for all investors. More detailed information on these and additional factors which could affect Powerwave's operating and financial results are described in the Company's Form 10-K for the fiscal year ended January 2, 2000, and its Form 10-Q for the quarterly period ended October 1, 2000, both of which are filed with the Securities and Exchange Commission, and other risks detailed from time to time in the Company's reports filed with the Securities and Exchange Commission. Powerwave urges all interested parties to read these reports to gain a better understanding of the many business and other risks that the Company faces. Additionally, Powerwave undertakes no obligation to publicly release the results of any revisions to these forward-looking statements which may be made to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.
POWERWAVE TECHNOLOGIES, INC.CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Years Ended
(unaudited) (audited)
Dec. 31, Jan. 2, Dec. 31, Jan. 2,
2000 2000 2000 2000
Net Sales $121,232 $91,130 $447,422 $292,547
Cost of Sales 83,857 64,244 305,095 210,305
Gross Profit 37,375 26,886 142,327 82,242Operating Expenses:
Sales and Marketing 5,648 4,570 21,217 15,179
Research and Development 10,410 7,268 41,054 26,250
General and Administrative 4,151 3,279 15,339 12,088
Total Operating Expenses 20,209 15,117 77,610 53,517Operating Income 17,166 11,769 64,717 28,725
Other Income 1,991 1,242 6,063 2,846
Income before Income Taxes 19,157 13,011 70,780 31,571
Provision for Income Taxes 6,801 4,619 25,127 11,306Net Income $12,356 $8,392 $45,653 $20,265
Net Income per Share (basic): $.20 $.14 $.75 $.34
(diluted): $.19 $.13 $.71 $.33
Weighted Average Common
Shares used in Computing
per Share Amounts (basic): 63,313 60,392 61,953 58,480
(diluted): 66,784 63,202 65,313 60,671
POWERWAVE TECHNOLOGIES, INC.
Percentage of Net Sales
Three Months Ended Years Ended
(unaudited) (audited)
Dec. 31, Jan. 2, Dec. 31, Jan. 2,
2000 2000 2000 2000Statement of Income Data:
Net Sales 100.0% 100.0% 100.0% 100.0%
Cost of Sales 69.2 70.5 68.2 71.9Gross Profit 30.8 29.5 31.8 28.1
Operating Expenses:
Sales and Marketing 4.7 5.0 4.7 5.2
Research and Development 8.6 8.0 9.2 9.0
General and Administrative 3.4 3.6 3.4 4.1
Total Operating Expenses 16.7 16.6 17.3 18.3Operating Income 14.1 12.9 14.5 9.8
Other Income 1.7 1.4 1.3 1.0
Income before Income Taxes 15.8 14.3 15.8 10.8
Provision for Income Taxes 5.6 5.1 5.6 3.9Net Income 10.2% 9.2% 10.2% 6.9%
POWERWAVE TECHNOLOGIES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
December 31, 2000 January 2, 2000ASSETS
Current Assets:
Cash and cash equivalents $128,733 $ 76,671
Accounts receivable, net 80,006 47,476
Inventories, net 51,275 31,696
Other current assets 13,966 15,382
Total Current Assets 273,980 171,225Property, plant and equipment, net 86,820 32,932
Land 14,838 -
Other assets 18,159 18,881
Total Assets $393,797 $223,038
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 50,829 $ 30,128
Accrued expenses and other liabilities 24,023 19,399
Income taxes payable 2,299 3,007
Current portion of long-term debt 96 125
Total Current Liabilities 77,247 52,659Long-term debt 42 -
Other non-current liabilities 236 600
Total Liabilities 77,525 53,259Shareholders' Equity:
Total Shareholders' Equity 316,272 169,779
Total Liabilities and Shareholders' Equity $393,797 $223,038
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