NextWave Wireless continued to struggle in the third quarter, announcing it has discontinued its networks business, which includes Go Networks, IPWireless and Cygnus subsidiaries, as well as its global services and NextWave Network product support strategic business units.
"NextWave believes the completion of the asset divestiture and cost reductions actions contemplated by its Operating Budget, its current cash, cash equivalents and marketable securities, projected revenues from its Multimedia segment, and the proceeds from the issuance of the Second Lien Notes will allow the Company to meet its estimated working capital requirements at least through September 2009," the company said in a release.
NextWave has had its hands in a number of businesses including WiMAX chips and broadband wireless equipment and has struggled with the downturn in the economy. The company reported a loss from operations of $23.6 million for the third quarter, a decrease of $17.9 million or 43 percent over the third quarter of 2007. The loss could have been worse but was offset by increased royalties from its multimedia segment, mainly its PacketVideo business, and a $19.3 million gain on the sale of wireless spectrum in September, which was offset with a $6.1-million asset impairment and restructuring charge.
The company said it intends to divest its network infrastructure business, pursue the sale of other businesses and pursue other cost reductions so it can meet its estimated working capital requirements at least through September 2009. NextWave, which wants to play big in the WiMAX chip market, said it has sought the services of Canaccord Adams to explore strategic transactions to preserve the value of its semiconductor business and eliminate the need for the company to make on-going capital investments in or incur liabilities relating to the business past the end of the first fiscal quarter of 2009.
- read this release
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