Press Release



NextWave Wireless Files Fiscal Year 2010 Financial Results


SAN DIEGO – March 16, 2011 - NextWave Wireless Inc. (OTCQB: WAVE-News) today announced that it has filed its Annual Report on Form 10-K with the Securities and Exchange Commission for the fiscal year 2010, which ended January 1, 2011.
 
The Form 10-K 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-K.
 
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.
 
Source: NextWave Wireless Inc. CONTACT
 
NextWave Wireless Investor Relations
Francis J. Harding
Chief Financial Officer
NextWave Wireless
858.731.5642
investinfo@nextwave.com
 
NextWave Wireless Public Relations
Jeff Seedman
Vice President
Ruder Finn, Inc
310.882.4009
seedmanj@ruderfinn.com
 
 
 
 
NEXTWAVE WIRELESS INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except par value data)
  January 1, 2011 January 2, 2010
Assets    
Current assets:
    Cash and cash equivalents $ 42,528 $ 15,056
    Restricted cash and marketable securities 20 24,088
    Wireless spectrum licenses held for sale 6535 62,868
    Unamortized debt issuance costs 3,262 74
    Prepaid expenses and other current assets 1,092 2,472
    Current assets of discontinued operations 3,632 23,678
        Total current assets 57,069 128,236
Wireless spectrum licenses, net 437,781 409,156
Property and equipment, net 2,188 213
Other assets, including assets measured at fair value of $1,227 at January 2, 2010 115 6,959
Other noncurrent assets of discontinued operations 58,226
    Total assets $ 497,153 $ 602,790
LIABILITIES AND STOCKHOLDERS’ DEFICIT    
Current liabilities:    
    Accounts payable $ 947 $ 1,229
    Accrued expenses 3,427 8,196
    Current portion of long-term obligations 784,649 86,154
    Other current liabilities 1,272 10,283
    Current liabilities of discontinued operations 515 30,371
        Total current liabilities 790,810 136,233
Deferred income tax liabilities 84,688 88,958
Long-term obligations, net of current portion 19,821 641,950
Other liabilities 9,577
Long-term liabilities and deferred credits of discontinued operations 1,729
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 and 22,434 shares issued and outstanding at January 1, 2011 and January 2, 2010, respectively 166 157
    Additional paid-in-capital 887,676 884,321
    Accumulated other comprehensive income 21,116 14,437
    Accumulated deficit (1,307,124) (1,190,520)
        Stockholders’ deficit attributed to NextWave (398,166) (291,605)
    Noncontrolling interest in subsidiary 15,948
        Total stockholders’ deficit (398,166) (275,657)
            Total liabilities and stockholders’ deficit $ 497,153  $ 602,790
     
     
     
     
The accompanying notes are an integral part of these consolidated financial statements.
 
 
 
 
NEXTWAVE WIRELESS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE LOSS
(in thousands, except per share data)
  Years Ended
  January 1, 2011 January 2, 2010
Operating expenses:
    General and administrative $ 28,670 $ 33,185
    Sales and marketing 207
    Asset impairment charges 98 9,550
     Restructuring charges (credits) (581) 3,788
        Total operating expenses 28,187 46,730
    Net gains on sales of wireless spectrum licenses 5,536 2,664
        Loss from operations (22,651) (44,066)
Other income (expense):    
    Interest income 573 458
    Interest expense (211,880) 164,149)
   Gain on extinguishment of debt 37,988
    Other income (expense), net 13,827 (8,211)
        Total other income (expense), net (159,492) (171,902)
          Loss from continuing operations before income taxes (182,143) (215,968)
Income tax benefit 26,737 1,093
          Net loss from continuing operations (155,406) (214,875)
   Income (loss) from discontinued operations before income taxes, net of gains (losses) on         divestiture of discontinued operations of $78,360, and $(22,643), respectively 52,832 (74,588)
          Income tax provision (17,824) (822)
          Net income (loss) from discontinued operations 35,008 (75,410)
          Net loss attributed to noncontrolling interest in subsidiary 3,794 104
               Net income (loss) from discontinued operations attributed to NextWave 38,802 (75,306)
        Net loss attributed to NextWave $ (116,604) $ (290,181)
Other comprehensive loss:    
    Net loss $ (120,398) $ (290,285)
    Foreign currency translation adjustment 6,339 9,384
      Total other comprehensive loss (114,059) (280,901)
Less: other comprehensive income (loss) attributable to noncontrolling interest in subsidiary (4,134) 98
         Other comprehensive loss attributed to NextWave $ (109,925) $ (280,999)
Amounts attributed to NextWave common shares:    
        Loss from continuing operations, net of tax $ (155,406) $ (214,875)
        Income (loss) from discontinued operations, net of tax 38,802 (75,306)
          Net loss attributed to NextWave common shares $(116,604) $ (290,181)
Net income (loss) per share attributed to NextWave common shares – basic and diluted:    
    Continuing operations $ (6.41) $ (9.54)
    Discontinued operations 1.60 (3.34)
        Net loss $ (4.81) $ (12.88)
    Weighted average shares used in per share calculation 24,267 22,535
     
     
The accompanying notes are an integral part of these consolidated financial statements.
 
 
 
 
NEXTWAVE WIRELESS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, except per share data)
  Years Ended
  January 1, 2011 January 2, 2010
OPERATING ACTIVITIES
Net loss $ (120,398) $ (290,285)
Income (loss) from discontinued operations, net of tax 35,008 (75,410)
Loss from continuing operations (155,406) (214,875)
Adjustments to reconcile loss from continuing operations to net cash used in operating activities of continuing operations:    
        Amortization of intangible assets 7,716 7,675
        Depreciation 534 514
        Non-cash share-based compensation 1,078 1,779
        Non-cash interest expense 211,590 153,762
        Gain on extinguishment of debt (37,988)
        Gain on sales of wireless spectrum licenses (5,536) (2,664)
        Asset impairment charges 98 9,550
        (Gains) losses from changes in estimated fair values of embedded derivatives (12,537) 7,359
        Other non-cash adjustments 1,222 (378)
        Changes in operating assets and liabilities:    
        Prepaid expenses and other current assets (107) (1,197)
        Other assets (11) 1,423)
        Accounts payable and accrued liabilities (5,280) (5,514)
        Noncurrent deferred income tax liabilities (26,763) (1,154)
        Other liabilities and deferred credits (73) (4,131)
         Net cash used in operating activities of continuing operations (21,463) (47,851)
INVESTING ACTIVITIES    
Proceeds from the sale of ARS securities 24,023
Proceeds from the sale of wireless spectrum licenses 12,880 26,423
Purchase of property and equipment (2,625)
            Net cash provided by investing activities of continuing operations 34,278 26,423
FINANCING ACTIVITIES    
Proceeds from long-term obligations 25,000 13,496
Payments on long-term obligations (124,138) (62,455)
Proceeds from the sale of common shares 141 426
     Net cash used in financing activities of continuing operations (98,997) (48,533)
Cash provided (used) by discontinued operations:    
        Net cash used in operating activities of discontinued operations (1,694) (18,543)
        Net cash provided by investing activities of discontinued operations 110,666 46,999
        Net cash used in financing activities of discontinued operations (88)
            Net cash provided by discontinued operations 108,972 28,368
Effect of foreign currency exchange rate changes on cash (704) 588
        Net increase (decrease) in cash and cash equivalents 22,086 (41,005)
Cash and cash equivalents, beginning of period 20,512 61,517
Cash and cash equivalents, end of period 42,598 20,512
Less cash and cash equivalents of discontinued operations, end of period (70) (5,456)
        Cash and cash equivalents of continuing operations, end of period $ 42,528 $ 15,056
SUPPLEMENTAL CASH FLOW INFORMATION    
Cash paid for interest $ 2,454 $ 14,999
Cash paid for taxes 48 183
Noncash investing and financing activities:    
    Senior, Second and Third Lien Notes issued to noteholders in exchange for debt modification fees 21,249
    Fair value of warrants issued in connection with Second Lien Notes 5,179
    Common shares issued or arbitration settlement 2,200
    Common shares issued for achievement of IPWireless 2007 revenue milestones 1,615
     
The accompanying notes are an integral part of these consolidated financial statements.