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Non-Tech : EARNINGS REPORTING - surprises, misses & more -- Ignore unavailable to you. Want to Upgrade?

To: 2MAR$ who wrote (553)	4/13/2001 5:43:55 AM
From: 2MAR$	Read Replies (1) \| Respond to of 762

PWAV ($13 down $11)reports deeper-than-expected Q1 loss (UPDATE: updates share price movement, adds detail on forecast earnings, 3G sales) SANTA ANA, Calif., April 12 (Reuters) - Powerwave Technologies Inc. (NasdaqNM:PWAV - news), which makes amplifiers for mobile phone base stations, on Thursday reported a 30 percent drop in first-quarter revenues it blamed on an ``unprecedented and broadly based'' slowdown in U.S. telecommunications investment. ADVERTISEMENT Powerwave shares, which had rallied by almost 14 percent in Nasdaq trade ahead of the announcement, gave back most of those gains in after-hours trade. The stock traded down to $11.90 in the after-hours market, against $13.54 at the Nasdaq close. The company posted net sales of $73 million for the quarter ended April 1, compared with $103.9 million the year earlier. That resulted in a net loss of $9.5 million or 15 cents per diluted share compared with a profit of $10.3 million or 16 cents per share in 2000. The loss was deeper than the most bearish estimate among nine analysts tracked by Thomson Financial/First Call. On average the analysts had projected a loss of 6 cents per share with a range of forecasts between a loss of 3 cents and a loss of 10 cents. In a conference call, Powerwave projected full-year revenues of $400 million with earnings-per-share of 10 cents -- sharply lower than the revenues of $500 million and earnings near 29 cents that analysts had forecast. For the second quarter, the company projected a return to ``very modest profitability.'' Powerwave President and Chief Executive Bruce Edwards said the brand name manufacturers that form its customer base had sharply cut back on purchases for existing phone networks in the past quarter amid the broader economic uncertainty. ``I think everyone wants to get a better feel of what the market is,'' he told analysts. ``Longer-term -- to be frank -- it's not what we've been investing in and what we would expect to see growth from.'' Instead, Powerwave has concentrated on amplifiers for third generation (3G) cellular phone networks, he said, equipment that will bring a clearer signal to the next-generation phones that are expected to feature broadband Internet capabilities. Powerwave began shipping 3G amplifiers to Nortel Networks Corp. (NYSE:NT - news) and Nokia in the past quarter, sales that accounted for 20 percent of total revenue, Edwards said. Nortel (NYSE:NT - news) was Powerwave's largest customer in the quarter, representing about 37 percent of revenue, the company said. Cingular Wireless, a joint venture between SBC Communications (NYSE:SBC - news) and BellSouth (NYSE:BLS - news), Verizon Wireless, a unit of Verizon Communications (NYSE:VZ - news), and Samsung Electronics each accounted for 10 percent or more of revenues, the company said. Powerwave shares have fallen by 37 percent in the past four weeks and 83 percent since the start of the year, underperforming the Nasdaq Composite index which is down about 20 percent this year. (Kevin Krolicki, Los Angeles bureau, 213 955 6760, fax 213 622 0056))