NextWave Wireless Files Third Quarter Fiscal 2009 Results
Thu Nov 5, 4:10 PMSAN DIEGO--(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.
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NEXTWAVE WIRELESS INC. |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(in thousands, except par value data) |
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(unaudited) |
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September 26, 2009 |
December 27, 2008 |
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| ASSETS | ||||||||
| Current assets: | ||||||||
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Cash and cash equivalents |
$ |
22,234 |
$ |
60,848 |
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| 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 | ||||
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LIABILITIES AND STOCKHOLDERS’ DEFICIT |
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| 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 | ||||
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NEXTWAVE WIRELESS INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(in thousands, except per share data) |
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(unaudited) |
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| Three Months Ended | Nine Months Ended | |||||||||||||||
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September 26, 2009 |
September 27, 2008 |
September 26, 2009 |
September 27, 2008 |
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Revenues |
$ |
8,113 |
$ |
16,876 |
$ |
37,063 |
$ |
47,989 |
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| 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 | ||||||||||||
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NEXTWAVE WIRELESS INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(in thousands) |
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(unaudited) |
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| Nine Months Ended | ||||||||
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September 26, 2009 |
September 27, 2008 |
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| OPERATING ACTIVITIES | ||||||||
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Net loss |
$ |
(239,335 |
) |
$ |
(412,774 |
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| 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 | ||||
NextWave Wireless Investor Relations
Fran Harding,
858-731-5642
fharding@nextwave.com
