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Powerwave Technologies Reports Second Quarter Results

SANTA ANA, Calif. - Aug. 2, 2010 - Powerwave Technologies, Inc. (Nasdaq:PWAV), a global supplier of end-to-end wireless solutions for wireless communications networks, today reported preliminary results for its second quarter ended July 4, 2010.

Net sales in the second quarter of fiscal 2010 were $144.6 million, compared with $136.1 million in the second quarter of fiscal 2009. Powerwave also reported second quarter GAAP net income of $0.2 million, which includes $0.9 million of restructuring and impairment charges and $0.8 million of non-cash debt discount amortization associated with certain outstanding long-term debt. For the second quarter of 2010, the net income equates to basic and diluted earnings per share of 0 cents. This compares with net income of $2.6 million, or basic and diluted earnings per share of 2 cents in the prior year period. The prior year period included a $6.4 million gain associated with the repurchase of outstanding debt.

For the second quarter of fiscal 2010, excluding the restructuring and impairment charges and debt discount amortization, on a pro forma basis, Powerwave would have reported net income of $2.5 million, or basic and diluted earnings per share of 2 cents.

For the first six months of fiscal 2010, total revenue was $259.1 million compared with $285.9 million for the first six months of fiscal 2009. Powerwave reported a total net loss for the first six months of 2010 of $10.6 million, or basic loss per share of 8 cents, compared with a net loss of $1.8 million, or a basic loss per share of 1 cent for the first six months of fiscal 2009. The results for the first six months of 2010 include a total of $1.3 million of restructuring and impairment charges and $1.6 million of non-cash debt discount amortization net of a gain on the exchange of outstanding long-term debt, and the results for the first six months of 2009 included $4.8 million of restructuring and intangible asset amortization expenses, offset by a net gain of $6.5 million associated with the repurchase of long-term debt, net of non-cash debt discount amortization.

“We continued to be affected by significant supply-chain constraints that are impacting the global electronics industry and have resulted in delayed shipments for us during the second quarter,” stated Ronald Buschur, president and chief executive officer of Powerwave Technologies. “In spite of this, we were able to grow our revenues by over 26% sequentially from the first quarter of this year. More importantly, we were able to show significant improvement in our gross margins during the quarter, thereby obtaining profitability on both a GAAP and pro forma basis for the second quarter. While global macro economic issues continue to impact our business, we continue to believe that there are signs of improvement as well as increasing North American wireless capital spending for the remainder of this year. During the remainder of this year, we expect to continue to face long lead times for certain electronic components that may impact our growth. In spite of this, we do believe that we have positioned Powerwave to be in an excellent position from which to capitalize on the long-term growth opportunities within the global wireless infrastructure market.”

To view the whole news release, click here.

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