NextWave Wireless Files Third Quarter Fiscal 2009 Results

Thursday, November 05, 2009 4:01 PM

Nov. 5, 2009 (Business Wire) -- 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 third quarter of fiscal 2009, ended September 26, 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)

	September 26, 2009			December 27, 2008
ASSETS
Current assets:
Cash and cash equivalents	$	22,234		$	60,848
Restricted cash and marketable securities		28,091			24,870
Accounts receivable, net of allowance for doubtful accounts of $56 and $95 at September 26, 2009 and December 27, 2008, respectively		2,800			4,530
Wireless spectrum licenses held for sale		60,609			112,741
Deferred contract costs, prepaid expenses and other current assets		4,774			5,734
Current assets of discontinued operations		11,887			24,726

Total current assets		130,395			233,449
Wireless spectrum licenses, net		415,959			442,415
Goodwill		39,235			38,662
Other intangible assets, net		15,847			18,933
Property and equipment, net		4,465			4,206
Other assets, including assets measured at fair value of $1,211 and $4,210 at September 26, 2009 and December 27, 2008, respectively		11,382			19,845
Total assets	$	617,283		$	757,510
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	3,397		$	7,417
Accrued expenses		16,562			24,887
Current portion of long-term obligations		180,493			136,567
Deferred revenue		5,565			17,378
Deferred revenue – related party		8,347			—
Other current liabilities		910			1,890
Current liabilities of discontinued operations		20,377			24,094

Total current liabilities		235,651			212,233
Deferred income tax liabilities		89,070			89,062
Long-term obligations, net of current portion		507,118			496,297
Other liabilities		20,272			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; 106,169 and 103,092 shares issued and outstanding at September 26, 2009 and December 27, 2008, respectively		106			103
Additional paid-in-capital		879,397			838,865
Accumulated other comprehensive income		9,515			5,255
Accumulated deficit		(1,138,645	)		(900,339	)
Stockholders’ deficit attributable to NextWave		(249,627	)		(56,116	)
Noncontrolling interest in subsidiary		14,799			—
Total stockholders’ deficit		(234,828	)		(56,116	)

Total liabilities and stockholders’ deficit	$	617,283		$	757,510


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

	Three Months Ended						Nine Months Ended
	September 26, 2009			September 27, 2008			September 26, 2009			September 27, 2008
Revenues	$	8,113		$	16,876		$	37,063		$	47,989
License fee revenues – related party		3,842			—			3,842			—
Total revenues		11,955			16,876			40,905			47,989
Operating expenses:
Cost of revenues		4,431			4,855			16,151			14,609
Cost of revenues – related party		111			—			111			—
Engineering, research and development		5,069			7,524			16,735			20,633
Sales and marketing		1,824			3,099			6,864			10,873
General and administrative		11,080			17,367			38,417			56,297
Asset impairment charges		13,764			2,244			30,050			2,244
Restructuring charges		1,712			3,185			3,760			3,308
Total operating expenses		37,991			38,274			112,088			107,964
Gain on sale of wireless spectrum licenses		1,597			19,317			2,268			19,317

Loss from operations		(24,439	)		(2,081	)		(68,915	)		(40,658	)
Other income (expense):
Interest income		56			233			363			2,679
Interest expense		(44,664	)		(12,018	)		(120,528	)		(45,940	)
Other income (expense), net		(6,500	)		(1,575	)		(8,118	)		(3,363	)
Total other income (expense), net		(51,108	)		(13,360	)		(128,283	)		(46,624	)
Loss from continuing operations before income taxes		(75,547	)		(15,441	)		(197,198	)		(87,282	)
Income tax benefit (provision)		986			(137	)		732			(594	)
Net loss from continuing operations		(74,561	)		(15,578	)		(196,466	)		(87,876	)
Loss from discontinued operations, net of gains on divestiture of discontinued operations of $3,108, $0, $3,159 and $0 and income tax benefit (provision) of $182, $(804), $174 and $(1,003), respectively		(27,108	)		(217,722	)		(42,869	)		(324,898	)
Net loss		(101,669	)		(233,300	)		(239,335	)		(412,774	)
Less: Net loss attributable to noncontrolling interest in subsidiary:
Continuing operations		1,029			—			1,029			—
Discontinued operations		—			—			—			—

Net loss attributable to NextWave	$	(100,640	)	$	(233,300	)	$	(238,306	)	$	(412,774	)

Amounts attributable to NextWave common shares:
Loss from continuing operations, net of tax	$	(73,532	)	$	(15,578	)	$	(195,437	)	$	(87,876	)
Less: Preferred stock imputed dividends		—			(7,397	)		—			(21,782	)
Accretion of issuance costs on preferred stock		—			(75	)		—			(220	)
Loss from continuing operations, including preferred stock dividends and costs		(73,532	)		(23,050	)		(195,437	)		(109,878	)
Loss from discontinued operations, net of tax		(27,108	)		(217,722	)		(42,869	)		(324,898	)

Net loss attributable to NextWave common shares	$	(100,640	)	$	(240,772	)	$	(238,306	)	$	(434,776	)

Net loss per share attributed to NextWave common share – basic and diluted:
Continuing operations, including preferred stock dividends and costs	$	(0.45	)	$	(0.23	)	$	(1.26	)	$	(1.10	)
Discontinued operations		(0.17	)		(2.11	)		(0.28	)		(3.25	)
Net loss	$	(0.62	)	$	(2.34	)	$	(1.54	)	$	(4.35	)
Weighted average shares used in per share calculation		162,609			103,092			154,551			99,851


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

	Nine Months Ended
	September 26, 2009			September 27, 2008
OPERATING ACTIVITIES
Net loss	$	(239,335	)	$	(412,774	)
Loss from discontinued operations, net of tax		(42,869	)		(324,898	)
Loss from continuing operations		(196,466	)		(87,876	)
Adjustments to reconcile loss from continuing operations to net cash used in operating activities of continuing operations:
Amortization of intangible assets		9,938			11,075
Depreciation		1,076			4,057
Non-cash share-based compensation		4,019			4,309
Non-cash interest expense		111,443			16,663
Gain on sale of spectrum licenses		(2,268	)		(19,317	)
Asset impairment charges		30,050			4,966
Other non-cash adjustments		1,905			321
Changes in operating assets and liabilities:
Accounts receivable		1,785			174
Deferred contract costs, prepaid expenses and other current assets		1,019			840
Other assets		877			(1,563	)
Accounts payable and accrued liabilities		(11,940	)		(5,449	)
Deferred revenue		(3,746	)		(4,806	)
Other current liabilities		3,237			3,403
Net cash used in operating activities of continuing operations		(49,071	)		(73,203	)

INVESTING ACTIVITIES
Proceeds from maturities of marketable securities		—			106,385
Proceeds from sales of marketable securities		—			115,671
Purchases of marketable securities		—			(112,167	)
Proceeds from the sale of noncontrolling interest in PacketVideo to a related party		45,500			—
Proceeds from the sale of wireless spectrum licenses		26,718			35,774
Cash paid for business combinations, net of cash acquired		—			(269	)
Payments for wireless spectrum licenses		—			(44	)
Purchase of property and equipment		(1,766	)		(2,717	)
Other, net		238			(518	)
Net cash provided by investing activities of continuing operations		70,690			142,115

FINANCING ACTIVITIES
Proceeds from long-term obligations, net of costs to issue		13,496			21,463
Net cash released from restricted cash account securing long-term obligations		—			17,763
Proceeds from investment by joint venture partner		—			615
Payments on long-term obligations		(62,320	)		(7,338	)
Proceeds from the sale of common shares		409			1,737
Net cash provided by (used in) financing activities of continuing operations		(48,415	)		34,240
Cash used by discontinued operations:
Net cash used in operating activities of discontinued operations		(13,917	)		(129,523	)
Net cash provided by (used in) investing activities of discontinued operations		2,991			(14,282	)
Net cash used in financing activities of discontinued operations		(45	)		(730	)
Net cash used by discontinued operations		(10,971	)		(144,535	)
Effect of foreign currency exchange rate changes on cash		(751	)		(135	)
Net decrease in cash and cash equivalents		(38,518	)		(41,518	)
Cash and cash equivalents, beginning of period		61,517			53,050
Cash and cash equivalents, end of period		22,999			11,532
Less cash and cash equivalents of discontinued operations, end of period		(765	)		(6,136	)
Cash and cash equivalents of continuing operations, end of period	$	22,234		$	5,396

Noncash investing and financing activities:
Fair value of warrants issued in connection with Second Lien Notes	$	5,179		$	—
Common stock issued for business acquisitions	$	—		$	36,501
Wireless spectrum licenses acquired with lease obligations	$	—		$	8,636

(Source: iStockAnalyst )

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