This is part of their statement in their last report. I think this will answer your question...
"Outside of the Asian markets, Powerwave's customer diversification strategy was further demonstrated as BellSouth Cellular, Northern Telecom and Metawave Communications Corp. each accounted for over 10% of revenues for the first quarter of 1998. The company also recorded initial shipments to Ericsson and Nokia during the first quarter of 1998."
Powerwave Technologies Reports First Quarter Results
IRVINE, Calif.--Powerwave Technologies Inc. (Nasdaq:PWAV) Wednesday reported net sales of $22.7 million for its first quarter ended March 29, 1998, representing an increase of 12% from first quarter fiscal 1997 revenues of $20.2 million.
Powerwave also reported first quarter net income of $2.2 million, or diluted earnings per share of 13 cents for its fiscal first quarter, compared with net income of $2.8 million, or diluted earnings per share of 17 cents for the prior year period.
"Powerwave's first quarter 1998 performance represents significant achievements in our strategy of customer diversification as well as the ability of Powerwave's employees to adapt to changing market conditions," stated Bruce C. Edwards, president and chief executive officer. "During the first quarter of 1998, revenues related to our multi-carrier cellular products accounted for approximately 87% of revenues or $19.8 million, while PCS products accounted for approximately 8% of revenues or $1.9 million.
"More importantly, while our South Korean based revenues were significantly reduced due to the ongoing economic crisis in Asia, our non-Korean revenues increased by 39% from the fourth quarter of 1997 to a total of $12.5 million or 55% of our revenues for the first quarter of 1998. We are aggressively pursuing our long-term strategy of customer diversification and we believe that Powerwave will continue to be successful in these efforts."
For the first quarter of 1998, total sales to customers in the South Korean market accounted for approximately 45% of revenues or $10.2 million. This compares with 83% of revenues or $16.8 million for the first quarter of 1997 and 76% of revenues or $28.8 million for the fourth quarter of 1997. As Powerwave has previously stated, the deteriorating economic and currency conditions throughout Asia and in South Korea in particular, have significantly impacted market conditions and demand for the company's products within South Korea.
During the first quarter of 1998, the company has experienced postponed, rescheduled and cancelled orders from its South Korean customers. The company currently believes that the final completion of the buildout of the South Korean wireless networks is dependent upon a stabilization and improvement of economic conditions within South Korea. Based upon discussions with our customers, Powerwave currently anticipates that future deployments of both the cellular and PCS networks in South Korea will be delayed until economic conditions firmly stabilize in the Asian region. At this time, the company is unable to predict when that will occur.
Outside of the Asian markets, Powerwave's customer diversification strategy was further demonstrated as BellSouth Cellular, Northern Telecom and Metawave Communications Corp. each accounted for over 10% of revenues for the first quarter of 1998. The company also recorded initial shipments to Ericsson and Nokia during the first quarter of 1998.
At March 29, 1998, Powerwave had total cash and cash equivalents of approximately $57.4 million, which represented over 61% of the company's total assets of approximately $93.3 million.
Also during the first quarter of fiscal 1998, Powerwave continued to purchase shares of its Common Stock pursuant to the Common Stock repurchase plan authorized by its board of directors on Dec. 11, 1997. As of March 29, 1998, the company has purchased a total of 810,000 shares of its Common Stock.
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 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 Avenue, 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 the company's 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.
The company also notes that continued delays of the deployment of the South Korean wireless networks will have a material adverse effect on the company's revenues from its customers in the South Korean market. 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 cannot 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 10-K for the fiscal year ended Dec. 28, 1997, 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. 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.
POWERWAVE TECHNOLOGIES INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Three Months Ended % of Net Sales
(unaudited) (unaudited)
March 29, March 30, March 29, March 30,
1998 1997 1998 1997
Net Sales $22,650 $20,243 100.0% 100.0%
Cost of Sales 13,795 11,528 60.9 56.9
Gross Profit 8,855 8,715 39.1 43.1
Operating Expenses:
Sales and Marketing 2,031 1,581 9.0 7.8
Research and Development 2,957 2,211 13.1 10.9
General and Administrative 1,236 943 5.4 4.7
Total Operating Expenses 6,224 4,735 27.5 23.4
Operating Income 2,631 3,980 11.6 19.7
Other Income 845 473 3.7 2.3
Income before Income Taxes 3,476 4,453 15.3 22.0
Provision for Income Taxes 1,269 1,692 5.6 8.4
Net Income $ 2,207 $ 2,761 9.7 13.6
Net income per share (diluted): $.13 $.17
(basic): $.13 $.17
Weighted average common shares
used in computing per share
amounts (diluted): 17,353 16,728
(basic): 17,136 16,219
POWERWAVE TECHNOLOGIES INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
March 29, 1998 Dec. 28, 1997
ASSETS (unaudited)
Current Assets:
Cash and cash equivalents $ 57,413 $ 67,433
Accounts receivable, net 12,069 11,967
Inventories, net 9,549 8,844
Other current assets 4,191 4,305
Total Current Assets 83,222 92,549
Property and equipment, net 9,355 8,377
Other assets 690 757
Total Assets $ 93,267 $ 101,683
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 6,059 $ 9,607
Accrued expenses and other liabilities 7,009 10,249
Income taxes payable 3,571 4,674
Current portion of long-term debt 507 507
Total Current Liabilities 17,146 25,037
Long-term debt 536 659
Other non-current liabilities 576 507
Total Liabilities 18,258 26,203
Shareholders' Equity:
Common Stock $.0001 par value 65,864 64,801
Retained earnings 33,902 31,695 |
