NextWave Wireless Files Second Quarter Fiscal 2009 Results

Thursday, August 06, 2009 6:14 PM

NextWave Wireless Inc. (NASDAQ: WAVE) today announced that it has filed its Quarterly Report on Form 10-Q with the Securities and Exchange Commission for the second quarter of fiscal 2009, ended June 27, 2009.

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 “Investor Relations – 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 develops, produces and markets mobile multimedia and consumer electronic connectivity products including device-embedded software for mobile handsets, client-server media platforms, media sharing software for consumer electronics and pocket-sized mobile broadcast receivers. The company also manages and maintains worldwide wireless spectrum licenses.


NEXTWAVE WIRELESS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value data) (unaudited)

	June 27, 2009			December 27, 2008
ASSETS
Current assets:
Cash and cash equivalents	$	17,176		$	60,848
Restricted cash and marketable securities		25,243			24,870
Accounts receivable, net of allowance for doubtful accounts of $31 and $95 at June 27, 2009 and December 27, 2008, respectively		5,478			4,530
Wireless spectrum licenses held for sale		113,063			112,741
Deferred contract costs, prepaid expenses and other current assets		4,092			5,734
Current assets of discontinued operations		18,696			24,726
Total current assets		183,748			233,449
Wireless spectrum licenses, net		417,797			442,415
Goodwill		38,662			38,662
Other intangible assets, net		16,612			18,933
Property and equipment, net		3,199			4,206
Other assets, including assets measured at fair value of $1,862 and $4,210 at June 27, 2009 and December 27, 2008, respectively		14,046			19,845
Total assets	$	674,064		$	757,510

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	2,304		$	7,417
Accrued expenses		22,234			24,887
Current portion of long-term obligations		138,563			136,567
Deferred revenue		17,417			17,378
Other current liabilities		1,044			1,890
Current liabilities of discontinued operations		20,708			24,094
Total current liabilities		202,270			212,233
Deferred income tax liabilities		89,605			89,062
Long-term obligations, net of current portion		553,781			496,297
Other liabilities		16,592			16,034
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, $0.001 par value; 400,000 shares authorized; 103,092 shares issued and outstanding at June 27, 2009 and December 27, 2008		103			103
Additional paid-in-capital		843,584			838,865
Accumulated other comprehensive income		6,134			5,255
Accumulated deficit		(1,038,005	)		(900,339	)
Total stockholders’ deficit		(188,184	)		(56,116	)
Total liabilities and stockholders’ deficit	$	674,064		$	757,510


NEXTWAVE WIRELESS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited)

	Three Months Ended						Six Months Ended
	June 27, 2009			June 28, 2008			June 27, 2009			June 28, 2008
Revenues	$	12,035		$	16,563		$	28,950		$	31,113
Operating expenses:
Cost of revenues		5,512			5,125			11,720			9,754
Engineering, research and development		5,571			6,965			11,666			13,109
Sales and marketing		2,206			3,275			5,040			7,774
General and administrative		14,560			17,883			27,337			38,930
Asset impairment charges		83			—			16,286			—
Restructuring charges (credits)		(710	)		123			2,048			123
Total operating expenses		27,222			33,371			74,097			69,690
Gain on sale of wireless spectrum licenses		668			—			671			—
Loss from operations		(14,519	)		(16,808	)		(44,476	)		(38,577	)
Other income (expense):
Interest income		83			405			307			2,446
Interest expense		(39,124	)		(18,767	)		(75,864	)		(33,922	)
Other income (expense), net		79			(471	)		(1,618	)		(1,788	)
Total other income (expense), net		(38,962	)		(18,833	)		(77,175	)		(33,264	)
Loss from continuing operations before provision for income taxes		(53,481	)		(35,641	)		(121,651	)		(71,841	)
Income tax provision		(67	)		(270	)		(254	)		(457	)
Net loss from continuing operations		(53,548	)		(35,911	)		(121,905	)		(72,298	)
Loss from discontinued operations, net of gain (loss) on divestiture of discontinued operations of $51, $0, $(2) and $0 and income tax provision of $8, $155, $8 and $199, respectively		(1,939	)		(48,545	)		(15,761	)		(107,176	)
Net loss		(55,487	)		(84,456	)		(137,666	)		(179,474	)
Less: Preferred stock imputed dividends		—			(7,260	)		—			(14,385	)
Accretion of issuance costs on preferred stock		—			(73	)		—			(145	)
Net loss applicable to common shares	$	(55,487	)	$	(91,789	)	$	(137,666	)	$	(194,004	)
Net loss per common share – basic and diluted:
Continuing operations, including preferred stock dividends and costs	$	(0.35	)	$	(0.42	)	$	(0.81	)	$	(0.88	)
Discontinued operations		(0.01	)		(0.47	)		(0.10	)		(1.09	)
Net loss	$	(0.36	)	$	(0.89	)	$	(0.91	)	$	(1.97	)
Weighted average shares used in per share calculation		156,017			102,765			150,522			98,231


NEXTWAVE WIRELESS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)

	Six Months Ended
	June 27, 2009			June 28, 2008
OPERATING ACTIVITIES
Net loss	$	(137,666	)	$	(179,474	)
Loss from discontinued operations, net of taxes		(15,761	)		(107,176	)
Loss from continuing operations		(121,905	)		(72,298	)
Adjustments to reconcile loss from continuing operations to net cash used in operating activities of continuing operations:
Amortization of intangible assets		6,829			7,328
Depreciation		759			2,674
Non-cash share-based compensation		2,726			3,112
Non-cash interest expense		70,867			11,006
Gain on sale of spectrum licenses		(671	)		—
Asset impairment charges		16,286			1,389
Other non-cash adjustments		(562	)		266
Changes in operating assets and liabilities:
Accounts receivable		(890	)		2,387
Deferred contract costs, prepaid expenses and other current assets		1,710			774
Other assets		(365	)		293
Accounts payable and accrued liabilities		(4,589	)		(3,269	)
Deferred revenue		(323	)		(2,242	)
Other current liabilities		(126	)		522
Net cash used in operating activities of continuing operations		(30,254	)		(48,058	)

INVESTING ACTIVITIES
Proceeds from maturities of marketable securities		—			106,385
Proceeds from sales of marketable securities		—			92,225
Purchases of marketable securities		—			(112,163	)
Proceeds from the sale of wireless spectrum licenses		5,475			—
Proceeds from the sale of other assets		231			—
Cash paid for business combinations, net of cash acquired		—			(5,130	)
Payments for wireless spectrum licenses		—			(4,880	)
Purchase of property and equipment		(203	)		(2,205	)
Other, net		(42	)		(518	)
Net cash provided by investing activities of continuing operations		5,461			73,714

FINANCING ACTIVITIES
Net cash released from restricted cash account securing long-term obligations		—			75,000
Payments on long-term obligations		(6,731	)		(5,938	)
Proceeds from the sale of common shares		—			1,738
Net cash provided by (used in) financing activities of continuing operations		(6,731	)		70,800
Cash used by discontinued operations:
Net cash used in operating activities of discontinued operations		(12,851	)		(99,483	)
Net cash provided by (used in) investing activities of discontinued operations		404			(8,675	)
Net cash used in financing activities of discontinued operations		(39	)		(538	)
Net cash used by discontinued operations		(12,486	)		(108,696	)
Effect of foreign currency exchange rate changes on cash		270			37
Net decrease in cash and cash equivalents		(43,740	)		(12,203	)
Cash and cash equivalents, beginning of period		61,517			53,050
Cash and cash equivalents, end of period		17,777			40,847
Less cash and cash equivalents of discontinued operations, end of period		(601	)		(6,116	)
Cash and cash equivalents of continuing operations, end of period	$	17,176		$	34,731

Noncash investing and financing activities:
Fair value of warrants issued in connection with the Asset Sale Condition of the Second Lien Notes	$	1,719		$	—
Common stock issued for business acquisitions	$	—		$	36,572
Common stock issued under stock plans	$	—		$	7,051
Wireless spectrum licenses acquired with lease obligations	$	—		$	8,624

NextWave Wireless Investor Relations
Fran Harding, (858) 731-5642
fharding@nextwave.com

(Source: Business Wire )

Related Stories