Press Release



NextWave Wireless Files Third Quarter Fiscal 2011 Results


SAN DIEGO – November 3, 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 third quarter of fiscal 2011, ended October 1, 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 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)

 

October 1, 2011

January 1, 2011

ASSETS

 

 

Current assets:

 

 

Cash and cash equivalents

                     $             8,739

  $       42,528

Restricted cash

                                         23

                   20

Short-term investment

                                 15,000

                    —

Wireless spectrum licenses held for sale

                                    6,535

              6,535

Deferred financing costs, net

                                       614

              3,262

Prepaid expenses and other current assets

                                       541

              1,092

Current assets of discontinued operations

                                    3,557

              3,632

Total current assets

                                 35,009

           57,069

Wireless spectrum licenses, net

                               430,700

         437,781

Property and equipment, net

                                    1,532

              2,188

Other assets

                                       472

                 115

Total assets

                     $        467,713

  $     497,153

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

Current liabilities:

 

 

Accounts payable

                     $                326

  $             947

Accrued expenses

                                    1,441

              3,427

Current portion of long-term obligations

                               958,287

         784,649

Other current liabilities

                                         11

              1,272

Current liabilities of discontinued operations

                                         54

                 515

Total current liabilities

                               960,119

         790,810

Deferred income tax liabilities

                                 83,243

           84,688

Long-term obligations, net of current portion

                                 17,720

           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; 23,510 and 23,729 shares issued at October 1, 2011 and January 1, 2011, respectively; 23,510 shares outstanding at October 1, 2011 and January 1, 2011

                                       165

                 166

Additional paid-in-capital

                               888,302

         887,676

Accumulated other comprehensive income

                                 21,136

           21,116

Accumulated deficit

                          (1,502,972)

    (1,307,124)

Total stockholders’ deficit

                              (593,369)

        (398,166)

Total liabilities and stockholders’ deficit

                     $        467,713

  $     497,153

 

 

 

 

NEXTWAVE WIRELESS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE LOSS

(in thousands, except per share data)

(unaudited)

 

Three Months Ended

Nine Months Ended

 

October 1, 2011

October 2, 2010

October 1, 2011

October 2, 2010

Operating expenses:

 

 

 

 

General and administrative

                 $          4,809

                 $          9,364

                 $        16,826

                 $        23,223

Restructuring credits

                                  —

                               (247)

                            (1,076)

                               (232)

Total operating expenses

                             4,809

                             9,117

                           15,750

                           22,991

Net gains (losses) on sale of wireless spectrum licenses

                               (195)

                                   (1)

                               (200)

                                  11

Loss from operations

                            (5,004)

                            (9,118)

                          (15,950)

                          (22,980)

Other income (expense):

 

 

 

 

Interest income

                                  13

                                  43

                                  42

                                557

Interest expense

                          (64,762)

                          (56,779)

                        (185,007)

                        (155,042)

Gain on extinguishment of debt

                                  —

                                  —

                                  —

                           37,988

Other income (expense), net

                                   (7)

                                407

                             1,245

                             9,788

Total other expense, net

                          (64,756)

                          (56,329)

                        (183,720)

                        (106,709)

Loss from continuing operations before income taxes

                          (69,760)

                          (65,447)

                        (199,670)

                        (129,689)

Income tax benefit

                                262

                                  —

                             2,082

                                  —

Net loss from continuing operations

                          (69,498)

                          (65,447)

                        (197,588)

                        (129,689)

Income (loss) from discontinued operations before income taxes, net of gains (losses) on divestitures of discontinued operations of $(1), $(1,219), $2,119 and $(5,835), respectively

                                  66

                          (20,978)

                             2,740

                          (32,398)

Income tax benefit (provision)

                                 (24)

                             4,158

                            (1,000)

                             4,051

Net income (loss) from discontinued operations

                                  42

                          (16,820)

                             1,740

                          (28,347)

Net loss attributed to noncontrolling interest in subsidiary

                                  —

                             2,557

                                  —

                             3,794

Net income (loss) from discontinued operations attributed to NextWave

                                  42

                          (14,263)

                             1,740

                          (24,553)

Net loss attributed to NextWave

                 $       (69,456)

                 $       (79,710)

                 $     (195,848)

                 $     (154,242)

Other comprehensive loss:

 

 

 

 

Net loss

                 $       (69,456)

                 $       (82,267)

                 $     (195,848)

                 $     (158,036)

Foreign currency translation adjustment

                            (2,653)

                             2,852

                                  20

                             5,273

Total other comprehensive loss

                          (72,109)

                          (79,415)

                        (195,828)

                        (152,763)

Comprehensive loss attributable to noncontrolling interest in subsidiary

                                  —

                             1,932

                                  —

                             4,134

Other comprehensive loss attributed to NextWave

                 $       (72,109)

                 $       (77,483)

                 $     (195,828)

                 $     (148,629)

Amounts attributed to NextWave common shares:

 

 

 

 

Net loss from continuing operations

                 $       (69,498)

                 $       (65,447)

                 $     (197,588)

                 $     (129,689)

Net income (loss) from discontinued operations

                                  42

                          (14,263)

                             1,740

                          (24,553)

Net loss attributed to NextWave common shares

                 $       (69,456)

                 $       (79,710)

                 $     (195,848)

                 $     (154,242)

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

 

 

Continuing operations

            $           (2.89)

            $           (2.69)

            $           (8.21)

            $           (5.35)

Discontinued operations

                                  —

                         (0.59)

                          0.07

                         (1.01)

Net loss

            $           (2.89)

            $           (3.28)

            $           (8.14)

            $           (6.36)

Weighted-average shares used in per share calculation

                           24,060

                           24,279

                           24,060

                           24,264

 

 

 

 

NEXTWAVE WIRELESS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands) (unaudited)

 

Nine Months Ended

 

October 1, 2011

October 2, 2010

OPERATING ACTIVITIES

 

 

Net loss

  $      (195,848)

  $      (158,036)

Net income (loss) from discontinued operations

               1,740

            (28,347)

Net loss from continuing operations

          (197,588)

          (129,689)

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

 

 

Amortization of intangible assets

               5,709

               5,756

Depreciation

                  656

                  316

Non-cash share-based compensation

                  625

                  855

Paid-in-kind interest

             98,448

             81,527

Amortization of deferred financing costs and discounts

             86,552

             73,224

Gain on extinguishment of debt

                    —

            (37,988)

(Gain) loss on sales of wireless spectrum licenses

                  200

                   (11)

Gains from changes in estimated fair values of embedded derivatives

              (1,261)

              (8,499)

Other non-cash adjustments

              (1,044)

               1,015

Changes in operating assets and liabilities:

 

 

Prepaid expenses and other current assets

                  551

                    91

Other assets

                 (389)

                 (195)

Accounts payable and accrued liabilities

              (2,610)

              (4,903)

Other liabilities and deferred credits

              (1,082)

                 (123)

Net cash used in operating activities of continuing operations

            (11,233)

            (18,613)

 INVESTING ACTIVITIES

 

 

 Purchase of held-to-maturity investment security

            (15,000)

                    —

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

                 (200)

               3,431

 Proceeds from the sale of auction-rate securities

                    —

             24,023

 Payments for the purchase of property and equipment

                    —

              (2,856)

 Other, net

                    —

                    91

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

            (15,200)

             24,689

FINANCING ACTIVITIES

 

 

Payments on long-term obligations

            (10,137)

            (25,442)

Proceeds from long-term obligations

                    —

             25,000

Proceeds from the sale of common shares

                    —

                  141

Payment to restricted spectrum sales cash account used to redeem long-term obligations

                    —

                 (696)

Net cash used in financing activities of continuing operations

            (10,137)

                 (997)

Cash provided (used) by discontinued operations:

 

 

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

                 (906)

             18,170

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

               3,654

                 (790)

Net cash provided by discontinued operations

               2,748

             17,380

Effect of foreign currency exchange rate changes on cash

                      3

                 (685)

Net increase (decrease) in cash and cash equivalents

            (33,819)

             21,774

Cash and cash equivalents, beginning of period

             42,598

             20,512

Cash and cash equivalents, end of period

               8,779

             42,286

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

                   (40)

            (19,633)

Cash and cash equivalents of continuing operations, end of period

  $           8,739

  $         22,653

NONCASH FINANCING ACTIVITIES

 

 

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

  $                —

  $         21,249