NextWave Wireless Files Third Quarter Fiscal 2010 Results
SAN DIEGO--(BUSINESS WIRE)-- NextWave Wireless Inc. (OTCQB: WAVE) today announced that it has filed its Quarterly Report on Form 10-Q with the Securities and Exchange Commission for the third quarter of fiscal 2010, ended October 2, 2010.
The Form 10-Q is available on the web site maintained by the Securities and Exchange Commission at www.sec.gov and on the NextWave Web site at www.nextwave.com under the heading - Financial Information - SEC Filings. The financial information accompanying this press release should be reviewed together with the Notes to Condensed Consolidated Financial Statements, Management’s Discussion and Analysis of Financial Condition and Results of Operations and Risk Factors contained in the Form 10-Q.
About NextWave Wireless
NextWave Wireless Inc. is a wireless technology company that manages and maintains worldwide wireless spectrum licenses.
Additional Information
This press release contains forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. There can be no assurances that forward-looking statements will be achieved. Actual events or results could differ materially from the events or results predicted by such statements. Important factors that could cause actual events or results to differ materially are discussed in greater detail in the filings of NextWave with the Securities and Exchange Commission. All such documents are available through the SEC's website at www.sec.gov. NextWave makes no commitment to update any forward-looking statements in order to reflect subsequent changes in events or circumstances except as may be required pursuant to applicable law.
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NEXTWAVE WIRELESS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value data) (unaudited) |
||||||||||
| October 2, 2010 | January 2, 2010 | |||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
|
Cash and cash equivalents |
$ |
22,653 |
$ | 15,056 | ||||||
| Restricted cash and marketable securities | 5,504 | 24,088 | ||||||||
| Wireless spectrum licenses held for sale | 6,535 | 62,868 | ||||||||
| Prepaid expenses and other current assets | 1,055 | 2,546 | ||||||||
| Current assets of discontinued operations | 86,134 | 23,678 | ||||||||
| Total current assets | 121,881 | 128,236 | ||||||||
| Wireless spectrum licenses, net – continuing operations | 442,469 | 409,156 | ||||||||
| Property and equipment, net | 2,638 | 213 | ||||||||
| Other assets, including assets measured at fair value of $0 and $1,227 at October 2, 2010 and January 2, 2010, respectively | 4,172 | 6,959 | ||||||||
| Other noncurrent assets of discontinued operations | — | 58,226 | ||||||||
| Total assets | $ | 571,160 | $ | 602,790 | ||||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 1,077 | $ | 1,229 | ||||||
| Accrued expenses | 8,394 | 8,196 | ||||||||
| Current portion of long-term obligations | 218,748 | 86,154 | ||||||||
| Other current liabilities | 77 | 10,283 | ||||||||
| Current liabilities of discontinued operations | 44,084 | 30,371 | ||||||||
| Total current liabilities | 272,380 | 136,233 | ||||||||
| Deferred income tax liabilities | 89,246 | 88,958 | ||||||||
| Long-term obligations, net of current portion | 628,413 | 641,950 | ||||||||
| Other liabilities | 5,263 | 9,577 | ||||||||
| Long-term liabilities and deferred credits of discontinued operations | — | 1,729 | ||||||||
| Commitments and contingencies | ||||||||||
| Stockholders’ deficit: | ||||||||||
| Preferred stock, $0.001 par value; 25,000 shares authorized; 355 shares designated as Series A Senior Convertible Preferred Stock; no other shares issued or outstanding | — | — | ||||||||
| Common stock, $0.007 par value; 57,143 shares authorized; 22,494 and 22,434 shares issued at October 2, 2010 and January 2, 2010, respectively | 157 | 157 | ||||||||
| Additional paid-in-capital | 887,460 | 884,321 | ||||||||
| Accumulated other comprehensive income | 20,050 | 14,437 | ||||||||
| Accumulated deficit | (1,344,762 | ) | (1,190,520 | ) | ||||||
| Stockholders’ deficit attributed to NextWave | (437,095 | ) | (291,605 | ) | ||||||
| Noncontrolling interest in subsidiary | 12,953 | 15,948 | ||||||||
| Total stockholders’ deficit | (424,142 | ) | (275,657 | ) | ||||||
| Total liabilities and stockholders’ deficit | $ | 571,160 | $ | 602,790 | ||||||
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NEXTWAVE WIRELESS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) |
||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| October 2,
2010 |
September 26, 2009 |
October 2,
2010 |
September 26,
2009 |
|||||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| General and administrative | $ | 9,266 | $ 7,458 |
|
$ | 23,125 | $ | 28,117 | ||||||||||||
| Sales and marketing | — | — | — | 207 | ||||||||||||||||
| Asset impairment charges | 98 | (1 |
) |
98 | 9,561 | |||||||||||||||
| Restructuring charges (credits) | (247 | ) | 1,683 |
|
(232 | ) | 3,721 | |||||||||||||
| Total operating expenses | 9,117 | 9,140 |
|
22,991 | 41,606 | |||||||||||||||
| Gain (loss) on sales of wireless spectrum licenses | (1 | ) | 1,597 |
|
11 | 2,268 | ||||||||||||||
| Loss from operations | (9,118 | ) | (7,543 | ) | (22,980 | ) | (39,338 | ) | ||||||||||||
| Other income (expense): | ||||||||||||||||||||
| Interest income | 43 | 51 |
|
557 | 355 | |||||||||||||||
| Interest expense | (56,779 | ) | (44,664 |
) |
(155,042 | ) | (120,527 | ) | ||||||||||||
| Gain on extinguishment of debt | — | — | 37,988 | — | ||||||||||||||||
| Other income (expense), net | 407 | (6,161 |
) |
9,788 | (7,510 | ) | ||||||||||||||
| Total other income (expense), net | (56,329 | ) | (50,774 |
) |
(106,709 | ) | (127,682 | ) | ||||||||||||
| Loss from continuing operations before income taxes | (65,447 | ) | (58,317 |
) |
(129,689 | ) | (167,020 | ) | ||||||||||||
| Income tax benefit | — | 1,123 |
|
— | 1,093 | |||||||||||||||
| Net loss from continuing operations | (65,447 | ) | (57,194 |
) |
(129,689 | ) | (165,927 | ) | ||||||||||||
| Loss from discontinued operations before income taxes, net of gains (losses) on divestiture of discontinued operations of $(1,219), $3,108, $(5,835) and $3,159, respectively | (20,978 | ) | (44,520 |
) |
(32,398 | ) | (73,221 | ) | ||||||||||||
| Income tax benefit (provision) | 4,158 | 45 |
|
4,051 | (187 | ) | ||||||||||||||
| Net loss from discontinued operations | (16,820 | ) | (44,475 |
) |
(28,347 | ) | (73,408 | ) | ||||||||||||
| Net loss attributed to noncontrolling interest in subsidiary | 2,557 | 1,029 |
|
3,794 | 1,029 | |||||||||||||||
| Net loss from discontinued operations attributed to NextWave | (14,263 | ) | (43,446 |
) |
(24,553 | ) | (72,379 | ) | ||||||||||||
| Net loss attributed to NextWave | $ | (79,710 | ) | $ (100,640 |
) |
$ | (154,242 | ) | $ | (238,306 | ) | |||||||||
| Amounts attributed to NextWave common shares: | ||||||||||||||||||||
| Loss from continuing operations, net of tax | $ | (65,447 | ) | $ (57,194 |
) |
$ | (129,689 | ) | $ | (165,927 | ) | |||||||||
| Loss from discontinued operations, net of tax | (14,263 | ) | (43,446 |
) |
(24,553 | ) | (72,379 | ) | ||||||||||||
| Net loss attributed to NextWave common shares | $ | (79,710 | ) | $ (100,640 |
) |
$ | (154,242 | ) | $ | (238,306 | ) | |||||||||
| Net loss per share attributed to NextWave common shares – basic and diluted | ||||||||||||||||||||
| Continuing operations | $ | (2.69 | ) | $ (2.46 |
) |
$ | (5.35 | ) | $ | (7.51 | ) | |||||||||
| Discontinued operations | (0.59 | ) | (1.87 |
) |
(1.01 | ) | (3.28 | ) | ||||||||||||
| Net loss | $ | (3.28 | ) | $ (4.33 |
) |
$ | (6.36 | ) | $ | (10.79 | ) | |||||||||
| Weighted average shares used in per share calculation | 24,279 | 23,230 |
|
24,264 | 22,079 | |||||||||||||||
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NEXTWAVE WIRELESS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) |
||||||||||
| Nine Months Ended | ||||||||||
| October 2,
2010 |
September 26,
2009 |
|||||||||
| OPERATING ACTIVITIES | ||||||||||
|
Net loss |
$ |
(158,036 |
) |
$ | (239,335 | ) | ||||
| Loss from discontinued operations, net of tax | 28,347 | (73,408 | ) | |||||||
| Loss from continuing operations | (129,689 | ) | (165,927 | ) | ||||||
| Adjustments to reconcile loss from continuing operations to net cash used in operating activities of continuing operations: | ||||||||||
| Amortization of intangible assets | 5,756 | 5,757 | ||||||||
| Depreciation | 316 | 134 | ||||||||
| Non-cash share-based compensation | 855 | 1,435 | ||||||||
| Non-cash interest expense | 154,751 | 111,443 | ||||||||
| Gain on extinguishment of debt | (37,988 | ) | — | |||||||
| Gain on sales of wireless spectrum licenses | (11 | ) | (2,268 | ) | ||||||
| Asset impairment charges | 98 | 9,562 | ||||||||
| Other non-cash adjustments | 928 | 1,944 | ||||||||
| Changes in operating assets and liabilities: | ||||||||||
| Prepaid expenses and other current assets | 91 | 1,555 | ||||||||
| Other assets | (195 | ) | 196 | |||||||
| Accounts payable and accrued liabilities | (4,903 | ) | (10,525 | ) | ||||||
| Other current liabilities | (8,622 | ) | 2,729 | |||||||
| Net cash used in operating activities of continuing operations | (18,613 | ) | (43,965 | ) | ||||||
| INVESTING ACTIVITIES | ||||||||||
| Proceeds from the sale of ARS securities | 24,023 | — | ||||||||
| Payments received on notes receivable from PacketVideo subsidiary | 7,100 | — | ||||||||
| Investment in PacketVideo subsidiary | (2,000 | ) | — | |||||||
| Proceeds from the sale of wireless spectrum licenses | 3,431 | 26,718 | ||||||||
| Purchase of property and equipment | (2,856 | ) | — | |||||||
| Proceeds from the sale of PacketVideo stock to related party | — | 45,500 | ||||||||
| Other, net | 1,356 | 280 | ||||||||
| Net cash provided by investing activities of continuing operations | 31,054 | 72,498 | ||||||||
| FINANCING ACTIVITIES | ||||||||||
| Proceeds from long-term obligations | 25,000 | 13,496 | ||||||||
| Payments on long-term obligations | (25,442 | ) | (62,320 | ) | ||||||
| Proceeds from the sale of common shares | 141 | 409 | ||||||||
| Payment to restricted spectrum sales cash account used to redeem long-term obligations | (696 | ) | — | |||||||
| Net cash used in financing activities of continuing operations | (997 | ) | (48,415 | ) | ||||||
| Cash provided (used) by discontinued operations: | ||||||||||
| Net cash provided by (used in) operating activities of discontinued operations | 18,170 | (19,022 | ) | |||||||
| Net cash provided by (used in) investing activities of discontinued operations | (2,055 | ) | 1,183 | |||||||
| Net cash used in financing activities of discontinued operations | (5,100 | ) | (45 | ) | ||||||
| Net cash provided (used) by discontinued operations | 11,015 | (17,884 | ) | |||||||
| Effect of foreign currency exchange rate changes on cash | (685 | ) | (751 | ) | ||||||
| Net increase (decrease) in cash and cash equivalents | 21,774 | (38,517 | ) | |||||||
| Cash and cash equivalents, beginning of period | 20,512 | 61,517 | ||||||||
| Cash and cash equivalents, end of period | 42,286 | 23,000 | ||||||||
| Less cash and cash equivalents of discontinued operations, end of period | (19,633 | ) | (6,253 | ) | ||||||
| Cash and cash equivalents of continuing operations, end of period | $ | 22,653 | $ | 16,747 | ||||||
CONTACT:
NextWave Wireless Investor Relations
NextWave Wireless
Francis J. Harding
Chief Financial Officer
619-573-1570
investinfo@nextwave.com
or
NextWave Wireless Public Relations
Ruder Finn, Inc
Jeff Seedman
Vice President
310-882-4009
seedmanj@ruderfinn.com
KEYWORDS: United States North America California
INDUSTRY KEYWORDS: Technology Mobile/Wireless
MEDIA:
