TO ALL PWAV LONGS
Powerwave Technologies Reports Fourth Quarter, Year-End Results
BusinessWire, Wednesday, January 14, 1998 at 22:55
IRVINE, Calif.--(BUSINESS WIRE)--Jan. 14, 1998--Powerwave
Technologies Inc. (NASDAQ:PWAV) Wednesday reported record annual
net sales of $119.7 million for its fiscal year ended Dec. 28, 1997,
representing an increase of 98% from fiscal year 1996 revenues of
$60.3 million.
Powerwave also reported annual net income of $16.2 million, or
earnings per share of 92 cents for its fiscal year 1997,
representing a 112% increase from net income of $7.6 million, or
earnings per share of 52 cents for fiscal year 1996.
Revenues for the fourth quarter ended Dec. 28, 1997 were $37.8
million, representing an increase of 126% when compared to $16.7
million for the fourth quarter of fiscal 1996. Powerwave also
reported record quarterly net income of $5.3 million, or earnings
per share of 29 cents for the fourth quarter of fiscal 1997 which
represents an increase of 142% when compared to net income of $2.2
million, or earnings per share of 15 cents for the fourth quarter of
fiscal year 1996.
"Powerwave's fourth quarter and fiscal 1997 performance
represent significant milestones for Powerwave and demonstrate what
we believe is the success of our strategy to be the leading
independent supplier of high performance multi-carrier RF power
amplifiers for use in wireless communications networks," stated
Bruce C. Edwards, president and chief executive officer.
"During the fourth quarter of 1997, revenues related to our
multi-carrier cellular products accounted for approximately 68% of
revenues or $25.5 million, while PCS products accounted for
approximately 28% of revenues or $10.6 million. Also during the
fourth quarter, Powerwave continued to pursue our long-term strategy
of customer diversification with sales of our multi-carrier cellular
amplifiers to non-Korean customers accounting for approximately 16%
of revenues or $6.2 million."
During the fourth quarter of 1997, total sales to customers in the
South Korean market accounted for approximately 76% of revenues or
$28.8 million. Subsequent to the end of the fourth quarter of 1997,
economic and currency conditions in South Korea have continued to
negatively impact overall market conditions within South Korea.
Based on recent discussions with its South Korean customers,
Powerwave now believes that a prolonged period of continued market
uncertainty within South Korea will result in either postponed,
rescheduled or possibly cancelled orders with the company's South
Korean customers. Powerwave is continuing to closely monitor the
situation in Korea and the Asian markets.
Powerwave completed fiscal 1997 by continuing its focus on asset
management, generating annualized inventory turns of 10 based on net
inventory of $8.8 million. At Dec. 28, 1997, Powerwave had total
cash and cash equivalents of approximately $67.4 million, which
represented over 65% of the company's total assets of approximately
$101.7 million.
Also during the fourth quarter of fiscal 1997, Powerwave
purchased over 500,000 shares of its Common Stock pursuant to the
Common Stock repurchase plan authorized by its Board of Directors on
Dec. 11, 1997.
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 amplifiers, with a primary focus on multi-carrier
amplifiers. Powerwave's products are utilized in both cellular and
PCS base stations in both digital and analog networks. Powerwave
also produces RF power amplifiers for the land mobile radio
market. Corporate headquarters are located at 2026 McGaw Ave.,
Irvine, Calif. 92614. Telephone: 714/757-0530. For more information
on Powerwave's high performance ultra-linear RF power amplifiers and
amplifier systems, call 888/PWR-WAVE (797-9283) or visit its Web
site at powerwave.com .
Forward-Looking Statements
Statements contained in this news release which are not historical
information are forward-looking statements as defined within the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to risks and uncertainties
which could cause actual results to differ materially from those
projected or implied. Such potential risks and uncertainties
include, but are not limited to: dependence on a limited number of
customers in the Korean marketplace; reductions or cancellations in
orders from new or existing customers; potential deterioration of
business and economic conditions in the company's customers
marketplaces, including the Korean marketplace; potential
deterioration of the company's customers credit quality due to
deteriorating economic conditions in the company's customers
marketplaces, including the Korean marketplace; a limited number of
potential customers; intensely competitive industry with increasing
price competition; variability in gross margins on new products and
resulting impacts on operating results; continued success in the
design of new amplifier products and the ability to manufacture in
quantity such new products; continued favorable business conditions
and growth in the wireless communications market; and dependence on
certain suppliers for single-sourced components.
In addition, prior financial performance and customer orders are
not necessarily indicative of the results that may be expected in
the future and the company believes that such comparisons can not be
relied upon as indicators of future performance.
Additional factors which could affect the company's operating and
financial results are described in the company's Form S-1 dated June
30, 1997, and Form 10-Q for the period ended Sept. 28, 1997, 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
or to be filed with the Securities and Exchange Commission. Due to
the foregoing factors, the company believes that period-to-period
comparisons of its operating results are not necessarily meaningful
and that such comparisons cannot be relied upon as indicators of
future performance. Additionally, the company 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.
*T
POWERWAVE TECHNOLOGIES INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Three Months Ended Year Ended
(unaudited)
Dec. 28, Dec. 29, Dec. 28, Dec. 29,
1997 1996 1997 1996
Net Sales $37,758 $16,736 $119,709 $60,331
Cost of Sales 22,077 9,399 71,027 34,770
Gross Profit 15,681 7,337 48,682 25,561
Operating Expenses:
Sales and Marketing 2,990 1,050 9,053 4,365
Research and
Development 3,545 1,736 11,483 5,770
General and
Administrative 1,567 987 4,889 2,991
Total Operating
Expenses 8,102 3,773 25,425 13,126
Operating Income 7,579 3,564 23,257 12,435
Other Income 837 151 2,601 484
Income before Income
Taxes 8,416 3,715 25,858 12,919
Provision for Income
Taxes 3,114 1,523 9,667 5,297
Net Income $ 5,302 $ 2,192 $16,191 $ 7,622
Net income per share
(diluted): $ 0.29 $ 0.15 $ 0.92 $ 0.52
(basic): $ 0.30 $ 0.15 $ 0.95 $ 0.54
Weighted average common shares
used in computing per share
amounts (diluted): 18,039 14,999 17,436 14,606
(basic): 17,690 14,537 16,958 14,181
NOTE: 1996 shares outstanding gives effect to the conversion of
3,375,900 shares of Series A Convertible Preferred Stock into
5,063,850 shares of Common Stock and the reversal of accrued
dividends payable thereon which occurred upon the completion of the
company's initial public offering on Dec. 11, 1996.
POWERWAVE TECHNOLOGIES INC.
Percentage of Net Sales
(unaudited)
Three Months Ended Year Ended
Dec. 28, Dec. 29, Dec. 28, Dec. 29,
1997 1996 1997 1996
Statement of Operations Data:
Net Sales 100.0% 100.0% 100.0% 100.0%
Cost of Sales 58.5 56.2 59.3 57.6
Gross Profit 41.5 43.8 40.7 42.4
Operating Expenses:
Sales and Marketing 7.9 6.3 7.6 7.2
Research and Development 9.4 10.3 9.6 9.6
General and
Administrative 4.1 5.9 4.1 5.0
Total Operating
Expenses 21.4 22.5 21.3 21.8
Operating Income 20.1 21.3 19.4 20.6
Other Income 2.2 0.9 2.2 0.8
Income before Income
Taxes 22.3 22.2 21.6 21.4
Provision for Income
Taxes 8.3 9.1 8.1 8.8
Net Income 14.0% 13.1% 13.5% 12.6%
POWERWAVE TECHNOLOGIES INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
Dec. 28, 1997 Dec. 29, 1996
ASSETS
Current Assets:
Cash and cash
equivalents $ 67,433 $ 32,386
Accounts receivable,
net 11,967 3,325
Inventories, Net 8,844 4,708
Other current assets 4,305 2,203
Total Current Assets 92,549 42,622
Property and equipment, net 8,377 4,201
Other assets 757 109
Total Assets $101,683 $ 46,932
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 9,607 $ 3,589
Accrued expenses and other
liabilities 10,249 3,878
Income taxes payable 4,674 1,658
Current portion of long-term
debt 507 254
Total Current Liabilities 25,037 9,379
Long-term debt 659 520
Other non-current liabilities 507 189
Total Liabilities 26,203 10,088
Shareholders' Equity:
Common Stock $.0001 par
value 64,801 33,571
Retained earnings 31,695 15,504
Less treasury stock at
cost (21,016) (12,231)
Total Shareholders' Equity 75,480 36,844
Total Liabilities and
Shareholders' Equity $101,683 $ 46,932
*T
CONTACT: Powerwave Technologies Inc., Irvine
Kevin Michaels, 714/757-6608 |
