NextWave Wireless Files First Quarter Fiscal 2012 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 2012, ended March 31, 2012.

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 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)

 
March 31,

2012

December 31,

2011

ASSETS
Current assets:
Cash and cash equivalents

$

8,580

$

11,087

Restricted cash 1,597 1,047
Marketable securities 6,289 10,000
Prepaid expenses and other current assets 590 827
Current assets of discontinued operations   4,197     3,511  

Total current assets

21,253 26,472
Wireless spectrum licenses, net 434,445 435,522
Property and equipment, net 1,095 1,313
Other assets   346     362  
Total assets $ 457,139   $ 463,669  
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable $ 347 $ 5
Accrued expenses 1,277 2,328
Current portion of long-term obligations 1,061,636 142,019
Other current liabilities 9 10
Current liabilities of discontinued operations   789     172  
Total current liabilities 1,064,058 144,534
Deferred income tax liabilities 84,148 83,334
Long-term obligations, net of current portion   14,854     896,568  
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; 24,938 shares issued and outstanding at March 31, 2012 and December 31, 2011 175 175
Additional paid-in-capital 888,697 888,505
Accumulated other comprehensive income 4,944 21,805
Accumulated deficit   (1,599,737 )   (1,571,252 )
Total stockholders’ deficit   (705,921 )   (660,767 )
Total liabilities and stockholders’ deficit $ 457,139   $ 463,669  
 
 
   
 

NEXTWAVE WIRELESS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE LOSS

(in thousands, except per share data)

(unaudited)

 
Three Months Ended
March 31,

2012

  April 2,

2011

Operating expenses:
General and administrative $ 5,596 $ 6,133
Restructuring credit       (1,076 )
Total operating expenses 5,596 5,057
Net gains on sales of wireless spectrum licenses   29     2  
Loss from operations   (5,567 )   (5,055 )
Other income (expense):
Interest income 16 15
Interest expense (41,557 ) (58,502 )
Other income       1,255  
Total other expense, net   (41,541 )   (57,232 )
Loss from continuing operations before income taxes (47,108 ) (62,287 )
Income tax benefit   187     161  
Net loss from continuing operations   (46,921 )   (62,126 )
Income from discontinued operations before income taxes, net of gains on divestitures of discontinued operations of $19,859 and $1,655, respectively 19,842 1,762
Income tax provision   (1,406 )   (643 )
Net income from discontinued operations   18,436     1,119  
Net loss $ (28,485 ) $ (61,007 )
Other comprehensive loss:
Net loss $ (28,485 ) $ (61,007 )
Foreign currency translation adjustment transferred to earnings upon substantial liquidation of foreign entities (17,578 ) 1,305
Foreign currency translation adjustment   717     1,051  
Total other comprehensive loss   (45,346 )   (58,651 )
Amounts attributed to net income (loss) per common share:
Net loss from continuing operations $ (46,921 ) $ (62,126 )
Net income from discontinued operations   18,436     1,119  
Net loss $ (28,485 ) $ (61,007 )
Net income (loss) per common share– basic and diluted
Continuing operations $ (1.95 ) $ (2.56 )
Discontinued operations   0.77     0.05  
Net loss $ (1.18 ) $ (2.51 )
Weighted-average shares used in per share calculation 24,067 24,279
 
 
   
 

NEXTWAVE WIRELESS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 
Three Months Ended
March 31,

2012

  April 2,

2011

OPERATING ACTIVITIES
Net loss $ (28,485 ) $ (61,007 )
Net income from discontinued operations   18,436     1,119  
Net loss from continuing operations (46,921 ) (62,126 )
Adjustments to reconcile loss from continuing operations to net cash used in operating activities of continuing operations:
Amortization of intangible assets 1,858 1,916
Depreciation 218 219
Non-cash share-based compensation 192 213
Paid-in-kind interest 39,784 30,606
Amortization of deferred financing costs and discounts 1,772 27,894
Gains on sales of wireless spectrum licenses (29 ) (2 )
Gains from changes in estimated fair values of embedded derivatives (1,261 )
Other non-cash adjustments 8 (1,076 )
Changes in operating assets and liabilities:
Prepaid expenses and other current assets 236 312
Other assets 9
Accounts payable and accrued liabilities (717 ) (735 )
Other liabilities and deferred credits   (189 )   448  
Net cash used in operating activities of continuing operations   (3,779 )   (3,592 )
INVESTING ACTIVITIES
Proceeds from the maturity of investment securities 10,000
Purchase of held-to-maturity investment securities (6,289 )
Proceeds from the sale of wireless spectrum licenses, net of selling costs   177     2  
Net cash provided by investing activities of continuing operations   3,888     2  
FINANCING ACTIVITIES
Payments on long-term obligations (3,651 ) (9,711 )
Payments to restricted cash account used to redeem long-term obligations   (543 )    
Net cash used in financing activities of continuing operations   (4,194 )   (9,711 )
Cash provided (used) by discontinued operations:
Net cash used by operating activities of discontinued operations (29 ) (888 )
Net cash provided by investing activities of discontinued operations   2,293     3,046  
Net cash provided by discontinued operations 2,264 2,158
Effect of foreign currency exchange rate changes on cash   3     63  
Net decrease in cash and cash equivalents (1,818 ) (11,080 )
Cash and cash equivalents, beginning of period   11,092     42,598  
Cash and cash equivalents, end of period 9,274 31,518
Less cash and cash equivalents of discontinued operations, end of period   (694 )   (46 )
Cash and cash equivalents of continuing operations, end of period $ 8,580   $ 31,472  
 

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 Files First Quarter Fiscal 2012 Results

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