Powerwave Technologies, Inc. (NASDAQ:PWAV), a global supplier of end-to-end solutions for wireless communications networks, today reported preliminary results for its first quarter ended April 1, 2012.
Net sales in the first quarter of fiscal 2012 were $43.3 million, compared with $136.6 million in the first quarter of fiscal 2011. Powerwave also reported a first quarter GAAP net loss of $57.9 million, which includes $0.8 million of non-cash equity based compensation expense and $1.3 million of non-cash debt interest accretion, and $8.8 million of restructuring charges. For the first quarter of 2012, the net loss equates to a basic loss per share of $1.83. This compares to a net loss of $7.0 million, or a loss per share of 21 cents for the prior year period. For the first quarter of fiscal 2012, excluding the debt interest accretion and the non-cash equity based compensation expenses and restructuring charges, on a pro forma basis, Powerwave would have reported a net loss of $39.5 million, or basic loss per share of $1.25.
“Our first quarter revenues were impacted by weakness in several of our markets,” stated Ronald Buschur, President and Chief Executive Officer of Powerwave Technologies. “Network operators continue to be conservative in their spending plans and in several markets operators continued to delay capital spending plans. In addition, we have seen continued reductions in demand in the original equipment manufacturer marketplace, which is due to both our strategic decision to reduce our exposure to low margin OEM business, as well as the current weakness with wireless network operator capital spending. From a global perspective, we believe that the current economic environment has continued to impact wireless network operators’ spending plans while they react to the macro-economic pressures in each individual market. While near term visibility remains extremely difficult in our markets, we continue to believe that eventually the long-term demand for improvements in wireless infrastructure should drive spending by wireless network operators.