Powerwave Technologies ( PWAV) Q4 2011 Earnings Call February 14, 2012 5:00 p.m. ET Executives Tom Spaeth – VP, Treasurer Ron Buschur – President and CEO Kevin Michaels – CFO and Secretary Analysts Michael Walkley – Canaccord Steve O'Brien – JPMorgan Jason North - Jefferies Arun Seshadri - Credit Suisse Matt [Swope] - Gleacher Presentation Operator
These statements are subject to numerous risks and uncertainties that could cause Powerwave's actual results to be materially different from those projected or implied. Some of the risks and uncertainties include our ability to accurately forecast and anticipate customer orders; our ability to increase sales and conserve cash; our reliance on a limited number of customers; our ability to control operating costs and conserve cash; our ability to realize anticipated cost savings and synergies; execute restructuring activities in a timely fashion without negatively impacting our business; the negative impact on demand for our products due to the macroeconomic environment; reduced demand due to industry consolidation among our major customers; delays or cancellations of wireless network capacity expansions and buildouts for both existing networks and new 4G networks; fluctuations in foreign currencies; the ability to accurately forecast cash flows and credit collections; the ability to enter into new markets for our products and solution; the impact of competitive products and pricing; economic and political conditions; and the loss of one or more significant customer accounts.Please refer to our press release, Powerwave's annual report on Form 10-K for the fiscal year ended January 2, 2011, our quarterly report our Form 10-Q for the quarterly period ended October 2, 2011, and other filings, which are on file with the Securities and Exchange Commission for additional information on factors which could cause our actual results to be different from those projected or implied. In addition, on this call we will discuss non-GAAP financial information. A reconciliation of the non-GAAP financial information to our financial statements as prepared under GAAP is included in our press release dated today, which can be found at our website at powerwave.com and on Business Wire. The press release also has detailed information concerning several of the significant items impacting our results and we urge you to review that information.
Now I'm going to turn the call over to Kevin Michaels, Powerwave's chief financial officer.Kevin Michaels Thank you Tom. With all these risk factors in mind, I would like to start by reviewing our financial results, which are also summarized in our press release. Net sales for the fourth quarter of 2011 were $60.1 million, and we reported a GAAP net loss of $42.6 million, which equates to a basic loss per share of $1.34. This includes a total of $1.3 million of net cash debt discount amortization and interest accretion expense related to certain of our outstanding convertible notes, $1.6 million of net cash pre-tax stock based compensation expense, and $4.7 million of restructuring expense in the quarter. All of these charges and amortization totaled approximately $7.6 million for the fourth quarter. On a pro forma basis, excluding the restructuring charges, the debt-related charges, and the stock-based compensation expenses for the quarter, our pro forma net loss was $30 million, which equates to a pro forma net loss of $0.95 per share. I do want to note that our per share amounts reflect the impact of the one for five reverse common stock split that was effective as of October 28, 2011. The total shares outstanding for the fourth quarter were approximately 31.7 million shares. Read the rest of this transcript for free on seekingalpha.com