Powerwave Technologies Reports First Quarter Results
IRVINE, Calif. - Apr. 12, 2001 -
Powerwave Technologies, Inc. (NASDAQ:PWAV) today reported net sales of
$73.0 million for its first quarter ended April 1, 2001, compared to
first quarter fiscal 2000 revenues of $103.9 million. Powerwave also
reported a first quarter net loss of $9.5 million, or a basic loss per
share of 15 cents for its fiscal first quarter, compared to net income
of $10.3 million, or diluted earnings per share of 16 cents for the
prior year period.
"As we previously announced, during the first
quarter we experienced significant order quantity reductions and
delivery push outs for the majority of our 2G single carrier products,"
stated Bruce C. Edwards, President and Chief Executive Officer. "In
addition, the sharp economic slowdown which is occurring in the United
States, coupled with the slowdown in the wireless communications sector,
caused us to see delays in purchasing decisions at the network operator
level which also impacted our revenues for the first quarter. While we
are clearly disappointed with the dramatic slowdown in the Company's 2G
single carrier product lines and the impact that the current economic
slowdown is having on our overall demand level, we have continued to
pursue opportunities to expand our customer base and product lines."
"During
the first quarter, we expanded our relationships with three of the top
wireless infrastructure OEMs, by entering into agreements covering
multi-carrier products. We also began shipping production quantities of
some of our new 3G WCDMA products, which accounted for approximately 20%
of our first quarter revenues. In addition, during the first quarter we
completed the move to our new Santa Ana headquarters and production
facility which provides us with a consolidated Southern California
operations headquarters as well as expanded production capacity."
For
the first quarter of 2001, North American revenues were $40.8 million
or approximately 56% of revenues as compared to $81.7 million or
approximately 79% of revenues for the first quarter of 2000. Total sales
to customers based in Asia accounted for approximately 20% of revenues
or $14.4 million for the first quarter of 2001. This compares to 8% of
revenues or $7.8 million for the first quarter of 2000. Total European
and other international revenues for the first quarter of 2001 were
$17.8 million or approximately 24% of revenues as compared to $14.3
million or approximately 14% of revenues for the first quarter of 2000.
Powerwave's
customer diversification for the first quarter of 2001 includes
Cingular Wireless, Verizon Wireless, and Samsung Electronics each
accounting for at least 10% of revenues and Nortel Networks Corporation
accounting for approximately 37% of revenues. In addition, our total
sales to network operators accounted for approximately 26% of revenues
in the first quarter of 2001.
Balance Sheet
At
April 1, 2001, Powerwave had total cash and cash equivalents of
approximately $110.0 million. Total assets were approximately $381.4
million with net inventories of $69.9 million and net accounts
receivable of $55.4 million.
Company Background
Powerwave Technologies, Inc., a TL 9000 and 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 for use in cellular, PCS and 3G base stations
throughout the world. Corporate headquarters are located at 1801 E. St.
Andrew Place, Santa Ana, Calif. 92705. Telephone (714) 466-1000. 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. Powerwave and Powerwave
Technologies are registered trademarks of Powerwave Technologies, Inc.
and the Powerwave logo is a trademark of Powerwave Technologies, Inc.
Conference
Call
Powerwave is providing a simultaneous Webcast of its
Fiscal 2001 first quarter financial results conference call on Thursday,
April 12, 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 2001 first
quarter financial results conference call is 18479251. 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 first quarter financial
results conference call will be available beginning at approximately
4:00pm PDT on April 12, 2001 through April 19, 2001 by calling (800)
633-8284 or (858) 812-3440 and entering reservation number 18479251.
Forward-Looking
Statements
The foregoing statements regarding growth
possibilities associated with deployment of 3G systems; our ability to
benefit from the expected growth in demand for multi-carrier 2G and 3G
products; and the possibility of delays in deployments of 2G and 3G
wireless networks 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; 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 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 December 31, 2000 which is
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.LIABILITIES AND SHAREHOLDERS' EQUITY CONSOLIDATED STATEMENTS INCOME
(in thousands, except per share amounts)
Three Months Ended % of Net Sales
(unaudited) (unaudited)
April 1, April 2, April 1, April 2,
2001 2000 2001 2000
Net Sales $72,976 $103,854 100.0% 100.0%
Cost of Sales 68,383 71,397 93.7 68.8
Gross Profit 4,593 32,457 6.3 31.2
Operating Expenses:
Sales and Marketing 4,976 5,065 6.8 4.9
Research and Development 10,897 9,008 14.9 8.7
General and Administrative 6,158 3,585 8.5 3.4
Total Operating Expenses 22,031 17,658 30.2 17.0
Operating Income (Loss) (17,438) 14,799 (23.9) 14.2
Other Income, net 2,546 1,210 3.5 1.2
Income (Loss) before
Income Taxes (14,892) 16,009 (20.4) 15.4
Provision (Benefit)
for Income Taxes (5,361) 5,683 (7.3) 5.5
Net Income (Loss) $(9,531) $10,326 (13.1%) 9.9%
Net Income (Loss) per Share
(basic): ($.15) $.17
(diluted): ($.15) $.16
Weighted Average Common
Shares used in Computing
per Share Amounts (basic): 63,697 60,936
(diluted): 63,697 64,284
POWERWAVE TECHNOLOGIES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
April 1, 2001 December 31, 2000
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $109,994 $128,733
Accounts receivable, net 55,390 80,006
Inventories, net 69,903 51,275
Other current assets 17,000 13,966
Total Current Assets 252,287 273,980
Property, plant and equipment, net 111,980 101,658
Other assets 17,117 18,159
Total Assets $381,384 $393,797
Current Liabilities:
Accounts payable $ 49,314 $ 50,829
Accrued expenses and other liabilities 19,637 24,023
Income taxes payable - 2,299
Current portion of long-term debt 167 96
Total Current Liabilities 69,118 77,247
Long-term debt 39 42
Other non-current liabilities 56 236
Total Liabilities 69,213 77,525
Shareholders' Equity:
Total Shareholders' Equity 312,171 316,272
Total Liabilities and Shareholders' Equity $381,384 $393,797
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