interWAVE Announces First-Quarter Fiscal 2002 Results.Business Editors/Technology MENLO PARK Menlo Park. 1 Residential city (1990 pop. 28,040), San Mateo co., W Calif.; inc. 1874. Electronic equipment and aerospace products are manufactured in the city. Menlo College and a Stanford Univ. research institute are there. 2 Uninc. , Calif.--(BUSINESS WIRE)--Nov. 1, 2001 interWAVE Communications International, Ltd. -- Revenues Increase 87% to $9.8 Million from Prior Quarter's Revenues of $5.2 Million -- Pro Forma Net Loss Declines 57% to $0.20 Per Share from Prior Quarter's Loss of $0.45 Per Share interWAVE(R) Communications International, Ltd. (Nasdaq:IWAV), a pioneer in compact wireless voice communications systems In telecommunication, a communications system is a collection of individual communications networks, transmission systems, relay stations, tributary stations, and data terminal equipment (DTE) usually capable of interconnection and interoperation to form an integrated whole. and broadband wireless See wireless broadband. data networks, today announced financial results for the first fiscal quarter of 2002, which ended September September: see month. 28, 2001. These results reflect the integration and consolidation of the operations of Wireless, Inc., a global provider of broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). fixed wireless solutions acquired by interWAVE in June June: see month. 2001. interWAVE's total revenues for the first quarter of fiscal 2002 were $9.8 million, up 87% from the $5.2 million reported for the fourth quarter ended June 28, 2001. Total revenues for the first quarter ended September 29, 2000 were $10.5 million. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net loss for the first quarter of fiscal 2002 declined 57% to $0.20 per share, or a loss of $10.9 million, compared with a pro forma net loss of $0.45 per share, or a loss of $22.9 million, for the fourth quarter ended June 28, 2001. Pro forma net loss for the first quarter ended September 29, 2000 was $0.16 per share, or a loss of $7.8 million. Pro forma net loss excludes amortization of intangibles, deferred stock compensation, in-process research and development, asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. , and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. . Net loss for the first quarter of fiscal 2002, including amortization of intangibles, deferred stock compensation, in-process research and development, asset impairment, and restructuring charges, was $0.24 per share, or a loss of $13.2 million, compared with a net loss of $1.07, or a loss of $54.0 million, for the fourth quarter ended June 28, 2001. Net loss for the first quarter ended September 29, 2000 was $0.22 per share, or a loss of $10.3 million. "Our 87% sequential revenue growth reflected the acceleration of network installations using equipment that we had shipped in prior quarters," said Dr. Priscilla Priscilla (prĭsĭl`ə) [diminutive of Lat. Prisca=ancient], in the New Testament, wife of Aquila. Lu, chairman and chief executive officer of interWAVE. "More than 45% of our first-quarter sales came from new customers in both the GSM (Global System for Mobile Communications) A digital cellular phone technology based on TDMA that is the predominant system in Europe, but also used worldwide. Developed in the 1980s, GSM was first deployed in seven European countries in 1992. cellular and wireless broadband High-speed wireless transmission of data. What is "high" speed is always a changing number. Wireless systems are typically slower than land-based, wireline networks. In the past, wireless broadband started at 250 Kbps, whereas land-based broadband was generally considered to start at T1 markets, and included significant wins in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , Africa and the Middle East. We expanded our customer base with sales to three new operators. "During the first quarter, we completed the integration of Wireless, Inc. and saw the positive impact of cost-cutting measures and organizational streamlining that we had implemented in the fourth quarter, with the goal of driving toward break-even and positioning the company for renewed growth," Lu continued. "Through a sharper focus on account management and collections, we reduced our days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). sequentially to 115 days from over 250 days at the end of June. With a strong global market presence, we have been able to continue growing the business in an increasingly challenging economic environment. "We plan to maintain our vigilance VIGILANCE. Proper attention in proper time. 2. The law requires a man who has a claim to enforce it in proper time, while the adverse party has it in his power to defend himself; and if by his neglect to do so, he cannot afterwards establish such claim, the in tightly managing cash and resources, while focusing on sales of small to medium-size Adj. 1. medium-size - intermediate in size medium-sized, moderate-size, moderate-sized sized - having a specified size community networks, where we are highly competitive," Lu added. "We have begun the new fiscal year with a healthy balance of direct sales and sales through strong distributors and partners, and with a global customer base, which minimizes the risk of geographically specific economic downturns. We look forward to sustaining our first-quarter momentum through 2002." Gross product margin for the first quarter ended September 28, 2001 was 38%, compared with a negative gross product margin for the fourth quarter ended June 28, 2001. Gross product margin for the first quarter ended September 29, 2000 was 47%. Gross margin for the first quarter ended September 28, 2001, which reflected increased investment in the company's service infrastructure, was 22%. This compared with a negative gross margin for the fourth quarter ended June 28, 2001. Gross margin for the first quarter ended September 29, 2000 was 43%. Business Highlights The company's business highlights during and beyond the first quarter of fiscal 2002 included: -- A five-year strategic supplier contract with Telstra Corporation Limited (ASX ASX See: Australian Stock Exchange :TLS (1) (Transport Layer Security) A security protocol from the IETF that is based on the Secure Sockets Layer (SSL) 3.0 protocol developed by Netscape. TLS uses digital certificates to authenticate the user as well as authenticate the network (in a wireless ), the largest telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. and mobile operator in Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , for the delivery of interWAVE products for wireless office networks to Telstra's corporate customers in Australia and Asia-Pacific -- Continued network installations under a $9.8-million contract with Comunicaciones Personales S.A., a GSM cellular carrier in Paraguay and a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Hutchison Telecommunications International Ltd. -- Expansion of interWAVE's relationship with Safaricom, a Vodafone affiliate and the leading mobile telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. provider in Kenya, beginning with a $1-million follow-on order for multi-site deployment of interWAVE's containerized con·tain·er·ize v.tr. con·tain·er·ized, con·tain·er·iz·ing, con·tain·er·iz·es 1. To package (cargo) in large standardized containers for efficient shipping and handling. 2. network, following a successful initial deployment at the Kenya marathon event -- Completion of type approval and successful launch in China of interWAVE's large-capacity, fully redundant gateway switch, WAVEloop, which can support over 120,000 subscribers -- The strengthening of interWAVE's management team with the appointments of industry veterans Cal R. Hoagland as chief financial officer and William T. Carlin car·line or car·lin n. Scots A woman, especially an old one. [Middle English kerling, from Old Norse, from karl, man.] as vice president of worldwide sales and customer services. The Company interWAVE Communications International, Ltd. (Nasdaq:IWAV) is a global provider of compact network solutions and services that offer the most innovative, cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. and scalable networks allowing operators to "reach the unreached." interWAVE solutions provide economical, distributed networks that minimize capital expenditures while accelerating customers' revenue generation. These solutions feature a product suite for the rapid and simple deployment of end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. compact cellular systems and broadband wireless data networks that deliver scalable IP, ATM broadband networks  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. . interWAVE's highly portable, mobile cellular networks and broadband wireless solutions provide vital and reliable wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. capabilities for customers in over 50 countries. The company's U.S. subsidiary is headquartered at 312 Constitution Drive, Menlo Park, California Menlo Park is a city in San Mateo County, California in the United States of America. It is located at latitude 37°29' North, longitude 122°9' East. Menlo Park had 30,785 inhabitants as of the 2000 U.S. Census. , and can be contacted at www.iwv.com or at (650) 838-2100. Editor's Note Editor's Note (foaled in 1993 in Kentucky) is an American thoroughbred Stallion racehorse. He was sired by 1992 U.S. Champion 2 YO Colt Forty Niner, who in turn was a son of Champion sire Mr. Prospector and out of the mare, Beware Of The Cat. Trained by D. : interWAVE is a registered trademark of interWAVE Communications International, Ltd. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that represent the company's expectations or beliefs concerning future events. Actual results could differ materially from those projected, as a result of known and unknown risks and uncertainties, including the risks relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc interWAVE's history of losses, the expectation of future losses, difficulties in introducing new or enhanced products, long sales cycles, management of global operations Global Operations is a first-person shooter computer game developed by Barking Dog Studios and published by both Crave Entertainment and Electronic Arts. It was released in March of 2002, following its public multiplayer beta version which contained only the Quebec map. , the ability to retain and motivate key employees, the ability to integrate acquired companies, the effect of a natural disaster, and the Risk Factors discussed in the filings and reports made from time to time by interWAVE with the Securities and Exchange Commission.
interWAVE Communications International, Ltd.
Pro Forma Condensed Consolidated Statement of Operations
Excluding Amortization of Intangibles, Deferred Stock Compensation,
In-Process Research & Development, Asset Impairment,
and Restructuring Charges
(In thousands, except per-share amounts; unaudited)
Three Months Ended
September 30,
2001 2000
--------- ---------
Total revenues $ 9,796 $10,460
Total cost of revenues 7,688 5,924
--------- ---------
Gross profit 2,108 4,536
--------- ---------
Pro forma operating expenses:
Research and development 6,130 6,717
Selling, general and administrative 7,324 7,478
--------- ---------
Total pro forma operating expenses 13,454 14,195
Pro forma loss from operations (11,346) (9,659)
Interest income, net 541 2,002
Other losses, net (60) (138)
--------- ---------
Pro forma net loss before income taxes (10,865) (7,795)
Income taxes (77) (9)
--------- ---------
Pro forma net loss ($10,942) ($7,804)
--------- ---------
Basic and diluted net loss per share ($0.20) ($0.16)
--------- ---------
Weighted average common shares
outstanding, basic and diluted 55,602 47,682
--------- ---------
interWAVE Communications International, Ltd.
Condensed Consolidated Statement of Operations
(In thousands, except per-share amounts; unaudited)
Three Months Ended
September 30,
2001 2000
--------- ---------
Total revenues $ 9,796 $10,460
Total cost of revenues 7,688 5,924
--------- ---------
Gross profit 2,108 4,536
--------- ---------
Operating expenses:
Research and development 6,130 6,717
Selling, general and administrative 7,324 7,478
Deferred compensation expense 220 1,294
Amortization of intangible assets 1,579 758
In-process research and development -- 407
Restructuring charges 442 --
--------- ---------
Total operating expenses 15,695 16,654
Loss from operations (13,587) (12,118)
Interest income, net 541 2,002
Other losses, net (60) (138)
--------- ---------
Net loss before income taxes (13,106) (10,254)
Income taxes (77) (9)
--------- ---------
Net loss (13,183) (10,263)
--------- ---------
Basic and diluted net loss per share ($0.24) ($0.22)
--------- ---------
Weighted average common shares
outstanding, basic and diluted 55,602 47,682
--------- ---------
interWAVE Communications International, Ltd.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
September 30, June 30,
2001 2001
-------- --------
Assets:
Current assets:
Cash, cash equivalents and short-term
investments (including restricted cash) $31,718 $47,475
Trade receivables, net 12,513 14,775
Inventory, net 27,322 27,263
Prepaid and other current assets 3,494 3,287
-------- --------
Total current assets 75,047 92,800
Property and equipment, net 11,609 12,634
Intangible assets 22,925 23,421
Other assets 1,957 2,019
-------- --------
Total assets $111,538 $130,874
-------- --------
Liabilities and shareholders' equity:
Current liabilities:
Accounts payable $8,544 $12,232
Accrued expenses 17,518 19,885
Current portion of notes payable 399 453
Deferred revenue 1,263 1,578
Income taxes payable 390 337
-------- --------
Total current liabilities 28,114 34,485
Other long-term liabilities 3,028 3,178
-------- --------
Total liabilities 31,142 37,663
Shareholders' equity:
Common stock, net 327,760 327,407
Accumulated deficit (247,505) (234,322)
Other 141 126
-------- --------
Total shareholders' equity 80,396 93,211
-------- --------
Total liabilities and shareholders' equity $111,538 $130,874
-------- --------
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