Endwave Reports First Quarter FY 2010 Financial Results

Endwave Corporation (Nasdaq: ENWV), a leading provider of high-frequency RF solutions and semiconductor products that serve markets such as telecommunications, satellite communications, electronic instruments and defense and security, today reported financial results for its first quarter, which ended on March 31, 2010.

On April 30, 2009, Endwave sold its Defense and Security RF module business (D&S). As a result, the Company’s financial statements reflect the D&S business as a discontinued operation.

Revenues for the first quarter of 2010 were $4.8 million. This compares with revenues from these same operations of $3.6 million in the prior quarter and $7.2 million in the first quarter of fiscal 2009. Loss from continuing operations, calculated in accordance with accounting principles generally accepted in the United States (GAAP), for the first quarter of 2010 was $1.3 million, or $0.13 per share. This compares with a loss from continuing operations of $3.4 million, or $0.36 per share in the prior quarter, and a loss from continuing operations of $2.6 million or $0.28 per share in the first quarter of fiscal 2009.

Non-GAAP Results from Continuing Operations

Non-GAAP net loss in the first quarter of 2010 was $966,000, or $0.10 per share. This compares with non-GAAP net loss of $2.0 million, or $0.21 per share in the prior quarter and non-GAAP net loss of $919,000, or $0.10 per share in the first quarter of fiscal 2009.

For the first quarter of 2010, non-GAAP net loss was calculated by excluding non-cash stock-based compensation expense of $331,000 and the reversal of certain restructuring charges that resulted in a gain of $14,000. For the fourth quarter of 2009 non-GAAP net loss was calculated by excluding certain restructuring charges of $1.2 million, inventory reserves and bad debt expense due to a customer liquidation of $191,000 and non-cash stock-based compensation expense of $32,000. For the year ago period, non-GAAP net loss was calculated by excluding restructuring charges of $1.1 million and non-cash stock-based compensation expense of $607,000.