Press Release



NextWave Wireless Files First Quarter Fiscal 2011 Results


SAN DIEGO – May 13, 2011 - NextWave Wireless Inc. (OTCQB: WAVE-News) 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. Contact:

NextWave Wireless Investor Relations           NextWave Wireless Public Relations
Francis J. Harding                                            Jeff Seedman
Chief Financial Officer                                      Vice President
NextWave Wireless                                         Ruder Finn, Inc
619.573.1570                                                 310.882.4009
investinfo@nextwave.com                              seedmanj@ruderfinn.com 

 

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