NextWave Wireless Files First Quarter Fiscal 2011 Results

SAN DIEGO--()--NextWave Wireless Inc. (OTCQB:WAVE) today announced that it has filed its Quarterly Report on Form 10-Q with the Securities and Exchange Commission for the first quarter of fiscal 2011, ended April 2, 2011.

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 - 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 manages and maintains worldwide wireless spectrum licenses.

Additional Information

This press release contains forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. There can be no assurances that forward-looking statements will be achieved. Actual events or results could differ materially from the events or results predicted by such statements. Important factors that could cause actual events or results to differ materially are discussed in greater detail in the filings of NextWave with the Securities and Exchange Commission. All such documents are available through the SEC's website at www.sec.gov. NextWave makes no commitment to update any forward-looking statements in order to reflect subsequent changes in events or circumstances except as may be required pursuant to applicable law.

 

NEXTWAVE WIRELESS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par value data)

(unaudited)

                   
April 2, 2011 January 1, 2011
ASSETS
Current assets:
Cash and cash equivalents

$

31,472

$

42,528

Restricted cash 19 20
Wireless spectrum licenses held for sale 6,535 6,535
Deferred financing costs, net 2,394 3,262
Prepaid expenses and other current assets 780 1,092
Current assets of discontinued operations   3,568     3,632  
Total current assets 44,768 57,069
Wireless spectrum licenses, net 437,622 437,781
Property and equipment, net 1,969 2,188
Other assets   115     115  
Total assets $ 484,474   $ 497,153  
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable $ 798 $ 947
Accrued expenses 2,560 3,427
Current portion of long-term obligations 834,605 784,649
Other current liabilities 11 1,272
Current liabilities of discontinued operations   486     515  
Total current liabilities 838,460 790,810
Deferred income tax liabilities 85,511 84,688
Long-term obligations, net of current portion   17,107     19,821  
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, $0.007 par value; 57,143 shares authorized; 23,729 shares issued and outstanding at April 2, 2011 and January 1, 2011 166 166
Additional paid-in-capital 887,889 887,676
Accumulated other comprehensive income 23,472 21,116
Accumulated deficit   (1,368,131 )   (1,307,124 )
Total stockholders’ deficit   (456,604 )   (398,166 )
Total liabilities and stockholders’ deficit $ 484,474   $ 497,153  
 
 

NEXTWAVE WIRELESS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE LOSS

(in thousands, except per share data)

(unaudited)

 
          Three Months Ended
April 2, 2011           April 3, 2010
Operating expenses:
General and administrative $ 6,041 $ 5,840
Asset impairment charges (4 )
Restructuring credits   (1,076 )   (7 )

Total operating expenses

4,965 5,829
Net gain (losses) on sale of wireless spectrum licenses   (90 )   164  
Loss from operations   (5,055 )   (5,665 )
Other income (expense):
Interest income 15 267
Interest expense (58,502 ) (44,088 )
Gain on extinguishment of debt 37,988
Other income (expense), net   1,255     10,532  
Total other income (expense), net   (57,232 )   4,699  
Loss from continuing operations before income taxes (62,287 ) (966 )
Income tax benefit   161      
Net loss from continuing operations   (62,126 )   (966 )
Income (loss) from discontinued operations before income taxes, net of gains on divestitures of discontinued operations of $1,655 and $1, respectively 1,762 (1,853 )
Income tax provision   (643 )   (97 )
Net income (loss) from discontinued operations 1,119 (1,950 )
Net income attributed to noncontrolling interest in subsidiary       (434 )
Net income (loss) from discontinued operations attributed to NextWave   1,119     (2,384 )
Net loss attributed to NextWave $ (61,007 ) $ (3,350 )
Other comprehensive loss:
Net loss $ (61,007 ) $ (2,916 )
Foreign currency translation adjustment   2,356     (293 )
Total other comprehensive loss (58,651 ) (3,209 )
Less: other comprehensive income attributable to noncontrolling interest in subsidiary       (11 )
Other comprehensive loss attributed to NextWave $ (58,651 ) $ (3,220 )
Amounts attributed to NextWave common shares:
Net loss from continuing operations $ (62,126 ) $ (966 )
Net income (loss) from discontinued operations   1,119     (2,384 )
Net loss attributed to NextWave common shares $ (61,007 ) $ (3,350 )
Net income (loss) per share attributed to NextWave common shares – basic and diluted
Continuing operations $ (2.56 ) $ (0.04 )
Discontinued operations   0.05     (0.10 )
Net loss $ (2.51 ) $ (0.14 )
Weighted average shares used in per share calculation 24,279 24,232
 
 

NEXTWAVE WIRELESS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

                   
Three Months Ended
April 2, 2011 April 3, 2010
OPERATING ACTIVITIES
Net loss $ (61,007 ) $ (2,916 )
Net income (loss) from discontinued operations   1,119     (1,950 )
Net loss from continuing operations (62,126 ) (966 )
Adjustments to reconcile loss from continuing operations to net cash used in operating activities of continuing operations:
Amortization of intangible assets 1,916 1,920
Depreciation 219 81
Non-cash share-based compensation 213 356
Paid-in-kind interest 30,606 21,916
Amortization of deferred financing costs and discounts 27,894 21,963
Gain on extinguishment of debt (37,988 )
Gain (losses) on sales of wireless spectrum licenses 90 (164 )
Asset impairment charges (4 )
Gains from changes in estimated fair values of embedded derivatives (1,261 ) (9,469 )
Other non-cash adjustments (1,076 ) (74 )
Changes in operating assets and liabilities:
Prepaid expenses and other current assets 312 418
Other assets (337 )
Accounts payable and accrued liabilities (735 ) (4,504 )
Other liabilities and deferred credits   448     (95 )
Net cash used in operating activities of continuing operations   (3,500 )   (6,947 )
INVESTING ACTIVITIES
Proceeds from (payments for) the sale of wireless spectrum licenses   (90 )   164  
FINANCING ACTIVITIES
Payments on long-term obligations (9,711 ) (3,707 )
Proceeds from the sale of common shares       141  
Net cash used in financing activities of continuing operations   (9,711 )   (3,566 )
Cash provided (used) by discontinued operations:
Net cash used in operating activities of discontinued operations (888 ) (1,684 )
Net cash provided by investing activities of discontinued operations   3,046     61  
Net cash provided (used) by discontinued operations 2,158 (1,623 )
Effect of foreign currency exchange rate changes on cash   63     (359 )
Net decrease in cash and cash equivalents (11,080 ) (12,331 )
Cash and cash equivalents, beginning of period   42,598     20,512  
Cash and cash equivalents, end of period 31,518 8,181
Less cash and cash equivalents of discontinued operations, end of period   (46 )   (4,816 )
Cash and cash equivalents of continuing operations, end of period $ 31,472   $ 3,365  
 
NONCASH FINANCING ACTIVITIES
Senior, Second and Third Lien Notes issued to noteholders in exchange for debt modification fees $ $ 21,249

Contacts

NextWave Wireless Investor Relations
NextWave Wireless
Francis J. Harding, Chief Financial Officer
619-573-1570
investinfo@nextwave.com
or
NextWave Wireless Public Relations
Ruder Finn, Inc
Jeff Seedman, Vice President
310-882-4009
seedmanj@ruderfinn.com

Release Summary

NextWave Wireless Inc. today announced that it has filed its Quarterly Report on Form 10-Q with the Securities and Exchange Commission for the first quarter of fiscal 2011.

Contacts

NextWave Wireless Investor Relations
NextWave Wireless
Francis J. Harding, Chief Financial Officer
619-573-1570
investinfo@nextwave.com
or
NextWave Wireless Public Relations
Ruder Finn, Inc
Jeff Seedman, Vice President
310-882-4009
seedmanj@ruderfinn.com