PWAV (18 vs 9c, actually green today) Reports Third- Quarter Results
IRVINE, Calif.--(BUSINESS WIRE)--Oct. 12, 2000--Powerwave Technologies Inc. (Nasdaq:PWAV - news) Thursday reported net sales of $111.9 million for its third quarter ended Oct. 1, 2000, representing an increase of 45% from third quarter fiscal 1999 revenues of $76.9 million.
For the first nine months of fiscal 2000, Powerwave reported total revenues of $326.2 million, which represents an increase of 62% from the first nine months of 1999 revenues of $201.4 million. Powerwave also reported third quarter net income of $11.6 million, or diluted earnings per share of 18 cents for its fiscal third quarter, compared with net income of $5.6 million, or diluted earnings per share of 9 cents for the prior year period.
For the first nine months of fiscal 2000, Powerwave reported total net income of $33.3 million, or diluted earnings per share of 52 cents.
``We are very pleased with our third quarter results and the performance of our organization,'' stated Bruce C. Edwards, president and chief executive officer.
``During the third quarter, we continued to grow our research and development capabilities as well as increase our focus on products under development for next generation, or 3G systems. We believe that the growth possibilities associated with the deployment of 3G systems over the next several years is quite strong and that Powerwave is in an excellent position to benefit from this growth.
``In addition, during the quarter we began the process of building out our new headquarters and operations facility to allow us to consolidate all of our Southern California manufacturing, engineering and sales and marketing activities into one location. We moved two existing single carrier production lines to this facility during the third quarter.
``During the fourth quarter, we will be configuring four new production lines in this facility as well as starting up initial production runs on several of these lines. We currently expect that our consolidation activities will be completed during the second quarter of fiscal 2001.''
For the third quarter of 2000, North American revenues were $83.3 million or approximately 74% of revenues as compared with $49.9 million or approximately 65% of revenues for the third quarter of 1999. Total sales to customers based in Asia accounted for approximately 13% of revenues or $14.9 million for the third quarter of 2000. This compares with 24% of revenues or $18.6 million for the third quarter of 1999.
Total European and other international revenues for the third quarter of 2000 were $13.7 million or approximately 12% of revenues as compared with $8.4 million or approximately 11% of revenues for the third quarter of 1999.
Powerwave's customer diversification for the third quarter of 2000 includes Ericsson Inc. accounting for more than 10% of revenues and Nortel Networks Corp. accounting for approximately 55% of revenues. In addition, the company's total sales to network operators accounted for approximately 12% of revenues in the third quarter of 2000.
Balance Sheet
At Oct. 1, 2000, Powerwave had total cash and cash equivalents of approximately $124.7 million. Total assets were approximately $349.2 million with net inventories of $43.2 million and net accounts receivable of $72.7 million. During the third quarter, Powerwave completed the sale of 1.5 million shares of its Common Stock pursuant to a previously filed shelf registration on Form S-3. As a result of the sale, Powerwave received approximately $61.8 million in proceeds, less applicable expenses.
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.
Corporate headquarters are located at 2026 McGaw Avenue, Irvine, Calif. 92614. Telephone 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 its Web site at www.Powerwave.com.
Conference Call
Powerwave is providing a simultaneous Webcast of its Fiscal 2000 third quarter financial results conference call on Thursday, Oct. 12, 2000, at 2 p.m. 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 2000 third quarter financial results conference call is 16473977.
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 third quarter financial results conference call will be available beginning at approximately 4 p.m. PDT on Oct. 12, 2000 through Oct. 17, 2000 by calling 800/633-8284 or 858/812-6440 and entering reservation number 16473977.
Forward-Looking Statements
The foregoing statements regarding growth possibilities associated with deployment of 3G systems; our expectations for future growth; our ability to benefit from the expected growth in demand for 3G products; and our ability to consolidate our facilities in a timely manner 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 OEMs and delays in acceptance of 3G systems by network operators; unexpected technical difficulties in developing 3G products; unexpected facilities consolidation delays and cost overruns; 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 movement and relocation of our production lines to new facilities may require re-qualification from certain customers and any delays in obtaining such re-qualification could have 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 Jan. 2, 2000, and its Form 10-Q for the quarterly period ended July 2, 2000, 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 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. |
