Powerwave Technologies Reports Third Quarter Results
Santa Ana, CA - Nov 8, 2012 -
Powerwave Technologies, Inc. (Nasdaq:PWAV), a global supplier of end-to-end wireless solutions for wireless communications networks, today reported preliminary results for its third quarter ended September 30, 2012.
Net sales in the third quarter of fiscal 2012 were $42.1 million, compared with $77.1 million in the third quarter of fiscal 2011. Powerwave also reported a third quarter GAAP net loss of $52.7 million, which includes $0.3 million of non-cash equity based compensation expense and $1.5 million of non-cash debt interest accretion and debt discount amortization, $0.5 million of a loss on early extinguishment of debt and $0.6 million loss related to a change in the fair value of derivatives related to warrants issued in conjunction with our new senior term loan agreement, and $2.9 million of restructuring and impairment charges. For the third quarter of 2012, the net loss equates to a basic loss per share of $1.66. This compares to a net loss of $35.1 million, or a loss per share of $1.09 for the third quarter of 2011. For the third quarter of fiscal 2012, excluding the debt interest accretion and debt discount amortization, the non-cash equity based compensation expenses, the loss on the early extinguishment of debt, the change in fair value of derivatives and restructuring charges, on a pro forma basis, Powerwave would have reported a net loss of $36.6 million, or a basic loss per share of $1.15.
For the first nine months of fiscal 2012, total revenue was $127.8 million compared with $384.3 million for the first nine months of fiscal 2011. Powerwave’s reported total net loss for the first nine months of 2012 was $153.1 million, or a basic loss per share of $4.82, compared with a net loss of $35.0 million, or a basic loss per share of $1.05 for the first nine months of fiscal 2011. The results for the first nine months of 2012 include a total of $1.8 million of non-cash equity based compensation expenses, $4.1 million of non-cash debt interest accretion and debt discount amortization, $0.5 million of a loss on early extinguishment of debt, $0.6 million loss related to a change in the fair value of derivatives related to warrants issued and $16.8 million of restructuring and impairment charges. The results for the first nine months of 2011 include a total of $5.8 million of non-cash equity based compensation expenses and $3.6 million of non-cash debt discount amortization, interest accretion and a net loss on the repurchase of outstanding debt and $0.2 million of restructuring charges.
Summary of Significant Items Impacting the Third Quarter
During the third quarter of 2012, we incurred approximately $0.3 million of non-cash equity based compensation expense, as well as $1.5 million of non-cash debt interest accretion and debt discount amortization related to our outstanding convertible notes which is included in interest expense for the quarter. We also incurred a $0.5 million loss on early extinguishment of debt and $0.6 million reduction in the fair value of derivatives related to warrants issued in conjunction with our new senior term loan agreement, and $2.9 million of restructuring and impairment charges.
During the third quarter of 2011, we incurred approximately $1.8 million of non-cash equity based compensation expense, $0.1 million of restructuring and impairment charges, $2.1 million of non-cash debt interest accretion and debt discount amortization and a net loss on the repurchase of outstanding debt, which is all included in interest expense for the quarter.
The following is a brief summary of the significant items impacting the comparability of per share amounts for the three months ended September 30, 2012 and October 2, 2011. To calculate the per share impact of these significant items, an underlying effective tax rate of zero percent was used for both periods and the fully diluted shares outstanding for each respective period were used.
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