Press Release



NextWave Wireless Files Second Quarter Fiscal 2011 Results


SAN DIEGO – August 12, 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 second quarter of fiscal 2011, ended July 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)

 

July 2, 2011

January 1, 2011

ASSETS

 

 

Current assets:

 

 

Cash and cash equivalents

                     $          22,567

  $       42,528

Restricted cash

                                         27

                   20

Short-term investment

                                    5,000

                    —

Wireless spectrum licenses held for sale

                                    6,535

              6,535

Deferred financing costs, net

                                    1,508

              3,262

Prepaid expenses and other current assets

                                       740

              1,092

Current assets of discontinued operations

                                    4,017

              3,632

Total current assets

                                 40,394

           57,069

Wireless spectrum licenses, net

                               435,942

         437,781

Property and equipment, net

                                    1,751

              2,188

Other assets

                                         83

                 115

Total assets

                     $        478,170

  $     497,153

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

Current liabilities:

 

 

Accounts payable

                     $                500

  $             947

Accrued expenses

                                    2,484

              3,427

Current portion of long-term obligations

                               894,964

         784,649

Other current liabilities

                                         10

              1,272

Current liabilities of discontinued operations

                                         51

                 515

Total current liabilities

                               898,009

         790,810

Deferred income tax liabilities

                                 84,222

           84,688

Long-term obligations, net of current portion

                                 17,403

           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 July 2, 2011 and January 1, 2011

                                       166

                 166

Additional paid-in-capital

                               888,097

         887,676

Accumulated other comprehensive income

                                 23,789

           21,116

Accumulated deficit

                          (1,433,516)

    (1,307,124)

Total stockholders’ deficit

                              (521,464)

        (398,166)

Total liabilities and stockholders’ deficit

                     $        478,170

  $     497,153

 

 

 

 

 

 

 

 

 

 

 

NEXTWAVE WIRELESS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE LOSS

(in thousands, except per share data)

(unaudited)

 

Three Months Ended

Six Months Ended

 

July 2, 2011

July 3, 2010

July 2, 2011

July 3, 2010

Operating expenses:

                   

                   

                   

                   

General and administrative

                 $          5,976

                 $          8,023

                 $        12,017

                 $        13,859

Restructuring charges (credits)

                                  —

                                  22

                            (1,076)

                                  15

Total operating expenses

                             5,976

                             8,045

                           10,941

                           13,874

Net gains (losses) on sale of wireless spectrum licenses

                                  85

                               (152)

                                   (5)

                                  12

Loss from operations

                            (5,891)

                            (8,197)

                          (10,946)

                          (13,862)

Other income (expense):

 

 

 

 

Interest income

                                  14

                                247

                                  29

                                514

Interest expense

                          (61,743)

                          (54,175)

                        (120,245)

                          (98,263)

Gain on extinguishment of debt

                                  —

                                  —

                                  —

                           37,988

Other income (expense), net

                                   (3)

                            (1,151)

                             1,252

                             9,381

Total other expense, net

                          (61,732)

                          (55,079)

                        (118,964)

                          (50,380)

Loss from continuing operations before income taxes

                          (67,623)

                          (63,276)

                        (129,910)

                          (64,242)

Income tax benefit

                             1,659

                                  —

                             1,820

                                  —

Net loss from continuing operations

                          (65,964)

                          (63,276)

                        (128,090)

                          (64,242)

Income (loss) from discontinued operations before income taxes, net of gains (losses) on divestitures of discontinued operations of $465, $(4,617), $2,120 and $(4,616), respectively

                                912

                            (9,567)

                             2,674

                          (11,420)

Income tax provision

                               (333)

                                 (10)

                               (976)

                               (107)

Net income (loss) from discontinued operations

                                579

                            (9,577)

                             1,698

                          (11,527)

Net loss attributed to noncontrolling interest in subsidiary

                                  —

                             1,671

                                  —

                             1,237

Net income (loss) from discontinued operations attributed to NextWave

                                579

                            (7,906)

                             1,698

                          (10,290)

Net loss attributed to NextWave

                 $       (65,385)

                 $       (71,182)

                 $     (126,392)

                 $       (74,532)

Other comprehensive loss:

 

 

 

 

Net loss

                 $       (65,385)

                 $       (72,853)

                 $     (126,392)

                 $       (75,769)

Foreign currency translation adjustment

                                317

                             2,714

                             2,673

                             2,421

Total other comprehensive loss

                          (65,068)

                          (70,139)

                        (123,719)

                          (73,348)

Comprehensive loss attributable to noncontrolling interest in subsidiary

                                  —

                             2,213

                                  —

                             2,202

Other comprehensive loss attributed to NextWave

                 $       (65,068)

                 $       (67,926)

                 $     (123,719)

                 $       (71,146)

Amounts attributed to NextWave common shares:

 

 

 

 

Net loss from continuing operations

                 $       (65,964)

                 $       (63,276)

                 $     (128,090)

                 $       (64,242)

Net income (loss) from discontinued operations

                                579

                            (7,906)

                             1,698

                          (10,290)

Net loss attributed to NextWave common shares

                 $       (65,385)

                 $       (71,182)

                 $     (126,392)

                 $       (74,532)

Net income (loss) per share attributed to NextWave common shares – basic and diluted

 

 

Continuing operations

            $           (2.71)

            $           (2.60)

            $           (5.28)

            $           (2.65)

Discontinued operations

                          0.02

                         (0.33)

                          0.07

                         (0.42)

Net loss

            $           (2.69)

            $           (2.93)

            $           (5.21)

            $           (3.07)

Weighted-average shares used in per share calculation

                           24,279

                           24,279

                           24,279

                           24,256

 

 

 

 

NEXTWAVE WIRELESS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

Six Months Ended

 

July 2, 2011

July 3, 2010

OPERATING ACTIVITIES

 

 

Net loss

  $   (126,392)

  $      (75,769)

Net income (loss) from discontinued operations

              1,698

          (11,527)

Net loss from continuing operations

        (128,090)

          (64,242)

Adjustments to reconcile loss from continuing operations to net cash used in operating activities of continuing operations:

                       

                       

Amortization of intangible assets

              3,832

              3,838

Depreciation

                 438

                 160

Non-cash share-based compensation

                 421

                 611

Paid-in-kind interest

           63,295

           50,962

Amortization of deferred financing costs and discounts

           56,947

           47,019

Gain on extinguishment of debt

                    —

          (37,988)

(Gain) loss on sales of wireless spectrum licenses

                      5

                  (12)

Gains from changes in estimated fair values of embedded derivatives

            (1,261)

            (8,092)

Other non-cash adjustments

            (1,045)

                 929

Changes in operating assets and liabilities:

 

 

Prepaid expenses and other current assets

                 351

                 718

Other assets

                    —

                (226)

Accounts payable and accrued liabilities

            (1,397)

            (3,980)

Other liabilities and deferred credits

                (844)

                  (70)

Net cash used in operating activities of continuing operations

            (7,348)

          (10,373)

 INVESTING ACTIVITIES

 

 

 Purchase of held-to-maturity investment security

            (5,000)

                    —

 Proceeds from the sale of wireless spectrum licenses, net of selling costs

                    (5)

                 683

 Proceeds from the sale of auction-rate securities

                    —

           24,023

 Payments for the purchase of property and equipment

                    —

            (3,803)

 Other, net

                    —

                 408

Net cash provided (used) by investing activities of continuing operations

            (5,005)

           21,311

FINANCING ACTIVITIES

 

 

Payments on long-term obligations

            (9,913)

          (25,256)

Proceeds from long-term obligations

                    —

           25,000

Proceeds from the sale of common shares

                    —

                 141

Net cash used in financing activities of continuing operations

            (9,913)

                (115)

Cash provided (used) by discontinued operations:

 

 

Net cash provided (used) by operating activities of discontinued operations

                (909)

              3,330

Net cash provided by investing activities of discontinued operations

              3,491

                 252

Net cash provided by discontinued operations

              2,582

              3,582

Effect of foreign currency exchange rate changes on cash

                   31

            (1,073)

Net increase (decrease) in cash and cash equivalents

          (19,653)

           13,332

Cash and cash equivalents, beginning of period

           42,598

           20,512

Cash and cash equivalents, end of period

           22,945

           33,844

Less cash and cash equivalents of discontinued operations, end of period

                (378)

            (2,268)

Cash and cash equivalents of continuing operations, end of period

  $       22,567

  $       31,576

NONCASH FINANCING ACTIVITIES

 

 

Senior, Second and Third Lien Notes issued to noteholders in exchange for debt modification fees

  $               —

  $       21,249