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Technology Stocks : PWAV- the hot new IPO -- Ignore unavailable to you. Want to Upgrade?

To: Patherzen who wrote (1238)	7/8/1998 6:52:00 PM
From: Doug Robinson	Respond to of 1491

Here's the earnings report and it doesn't look bad. Powerwave Technologies Reports Second Quarter Results IRVINE, Calif.--(BUSINESS WIRE)--July 8, 1998--Powerwave Technologies Inc. (Nasdaq:PWAV) Wednesday reported net sales of $21.1 million for its second quarter ended June 28, 1998, which compares with $27.4 million for the prior year second quarter ended June 29, 1997. Powerwave also reported second quarter net income of $1.9 million, or diluted earnings per share of 11 cents for its fiscal second quarter, compared with net income of $3.4 million, or diluted earnings per share of 20 cents for the prior year period. "Powerwave's second quarter 1998 performance represents continued growth from our customer diversification efforts as well as strong performance of our industry leading multi-carrier power amplifiers," stated Bruce C. Edwards, president and chief executive officer. "During the second quarter of 1998, revenues related to our multi-carrier cellular products accounted for approximately 88% of revenues or $18.6 million, while PCS products accounted for approximately 8% of revenues or $1.8 million. While our South Korean-based revenues continued to be negatively impacted by the ongoing economic crisis in Asia, our non-Korean revenues increased to a total of $14.4 million or 68% of our revenues for the second quarter of 1998. Powerwave is continuing to aggressively pursue our long-term strategy of customer diversification as well as maintaining our investments in new amplifier technology." For the second quarter of 1998, total sales to South Korean-based customers accounted for approximately 32% of revenues or $6.7 million. This compares with 88% of revenues or $24.1 million for the second quarter of 1997 and 45% of revenues or $10.2 million for the first quarter of 1998. As Powerwave has previously stated, the negative 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. The company has experienced postponed, rescheduled and cancelled orders from its South Korean customers. Due to the economic uncertainties in the South Korean marketplace, the company is currently unable to predict when economic conditions will stabilize in the Asian region. Outside of the Asian markets, Powerwave's customer diversification strategy continued to be demonstrated as BellSouth Cellular, Metawave Communications Corp. and Northern Telecom each accounted for over 10% of revenues for the second quarter of 1998. The company also recorded initial shipments to SK Global, a South Korean wireless network operator, during the second quarter of 1998. At June 28, 1998, Powerwave had total cash and cash equivalents of approximately $53.1 million, which represented 57% of the company's total assets of approximately $93.4 million.