Powerwave reports 85% increase in sales from last year and earnings increase from .11 to .48. The significance for Nortel is
that Nortel accounted for 41% of their revenue and Ericsson for 10%.
Powerwave Technologies Reports First Quarter
Results
Thu Apr 13 16:20:00 EDT 2000
IRVINE, Calif., Apr 13, 2000 (BUSINESS WIRE) -- Powerwave Technologies, Inc.
(Nasdaq:PWAV) Thursday reported net sales of $103.9 million for its first
quarter ended April 2, 2000, representing an increase of 85% from first quarter
fiscal 1999 revenues of $56.0 million.
This represents the largest quarterly revenues in Powerwave's history. Powerwave
also reported first quarter net income of $10.3 million, or diluted earnings per
share of 48 cents for its fiscal first quarter, compared with net income of $2.1
million, or diluted earnings per share of 11 cents for the prior year period.
"We are very proud of our first quarter results and are pleased with the demand
we continue to see for both our single carrier and multi-carrier products,"
stated Bruce C. Edwards, president and chief executive officer. "During the
first quarter, Powerwave recorded record revenues of $103.9 million, which are
almost double our first quarter 1999 revenues of $56 million.
"In addition, late in the first quarter Powerwave entered into a five-year
exclusive agreement with Motorola, Inc. that designates Powerwave as the sole
aftermarket supplier of high power, multi-carrier power amplifiers for certain
Motorola cellular base stations.
"We believe that this agreement coupled with our existing key OEM and network
operator customer relationships will further strengthen our leadership position
in the radio frequency power amplifier market."
For the first quarter of 2000, North American revenues were $81.7 million or
approximately 79% of revenues as compared with $39.3 million or approximately
70% of revenues for the first quarter of 1999. Total sales to customers based in
Asia accounted for approximately 8% of revenues or $7.8 million for the first
quarter of 2000. This compares with 18% of revenues or $9.8 million for the
first quarter of 1999.
Total European and other international revenues for the first quarter of 2000
were $14.3 million or approximately 14% of revenues as compared with $6.9
million or approximately 12% of revenues for the first quarter of 1999.
Powerwave's customer diversification efforts continued in the first quarter of
2000 with Ericsson Inc. accounting for more than 10% of revenues and Nortel
Networks Corp. accounting for approximately 41% of revenues.
In addition, the company's total sales to network operators accounted for
approximately 24% of revenues in the first quarter of 2000, as compared with
approximately 6% of revenues in the first quarter of 1999.
Balance Sheet
At April 2, 2000, Powerwave had total cash and cash equivalents of approximately
$83.8 million. Total assets were approximately $241.7 million with net
inventories of $31.5 million and net accounts receivable of $59.9 million.
Company Background
Powerwave Technologies, 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.
Powerwave also produces RF power amplifiers for the wireless local loop market.
Corporate headquarters are located at 2026 McGaw Avenue, Irvine, Calif. 92614.
Telephone 949/757-0530 or 949/809-1100. For more information on Powerwave's high
performance ultra-linear RF power amplifiers and amplifier systems, call
888/PWR-WAVE (797-9283) or visit the company's Web site at www.Powerwave.com.
Conference Call
A playback of Powerwave's first quarter financial results conference call will
be available beginning at approximately 4 p.m. PDT on April 13, 2000 through
April 18, 2000 by calling 800/633-8284 or 858/812-6440 and entering reservation
number 14842992.
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 the company's 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: the
company has a dependence on a limited number of customers; the company's
operating results would be negatively impacted by reductions or cancellations in
orders from new or existing customers; the company requires continued success in
the design of new amplifier products and such products must be manufacturable
and of good quality and reliability; the company requires success in the
redesign of existing amplifier products and the ability to manufacture in
quantity such redesigned products at a reasonable cost basis; the company has a
dependence on single source suppliers for certain key components used in its
amplifiers; the company operates in an intensely competitive industry with
increasing price competition and resulting negative impact on gross margins;
variability in the company's gross margins on new products could result in a
negative impact on its operating results; the company's 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 Jan. 2, 2000, which is 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. 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 INCOME
(in thousands, except per share amounts)
Three Months Ended % of Net Sales
(unaudited) (unaudited)
April 2, April 4, April 2, April 4,
2000 1999 2000 1999
Net Sales $103,854 $56,024 100.0% 100.0%
Cost of Sales 71,397 41,010 68.8 73.2
Gross Profit 32,457 15,014 31.2 26.8
Operating Expenses:
Sales and Marketing 5,065 3,578 4.9 6.4
Research and Development 9,008 5,295 8.7 9.4
General and Administrative 3,585 2,691 3.5 4.8
Total Operating Expenses 17,658 11,564 17.0 20.6
Operating Income 14,799 3,450 14.2 6.2
Other Income (Expense) 1,210 (219) 1.2 (0.4)
Income before Income
Taxes 16,009 3,231 15.4 5.8
Provision for Income
Taxes 5,683 1,179 5.5 2.1
Net Income $10,326 $ 2,052 9.9% 3.7%
Net income per share
(basic): $.51 $.11
(diluted): $.48 $.11
Weighted average common
shares used in computing
per share amounts
(basic): 20,312 18,005
(diluted): 21,428 18,584
POWERWAVE TECHNOLOGIES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
April 2, 2000 January 2, 2000
ASSETS (unaudited)
Current Assets:
Cash and cash equivalents $ 83,795 $ 76,671
Accounts receivable, net 59,884 47,476
Inventories, net 31,520 31,696
Notes receivable 71 7,045
Other current assets 11,016 8,337
Total Current Assets 186,286 171,225
Property and equipment, net 34,412 32,932
Other assets 20,958 18,881
Total Assets $241,656 $223,038
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 28,472 $ 30,128
Accrued expenses and other
liabilities 17,889 19,399
Income taxes payable -- 3,007
Current portion of long-term debt 46 125
Total Current Liabilities 46,407 52,659
Long-term debt 50 --
Other non-current liabilities 628 600
Total Liabilities 47,085 53,259
Shareholders' Equity:
Common Stock $.0001 par value 135,250 120,785
Retained earnings 59,321 48,994
Total Shareholders' Equity 194,571 169,779
Total Liabilities and
Shareholders' Equity $241,656 $223,038
Distributed via COMTEX.
Copyright (C) 2000 Business Wire. All rights reserved.
|
