Press Release



NextWave Wireless Files Third Quarter Fiscal 2012 Results


 NextWave Wireless Files Third Quarter Fiscal 2012 Results

SAN DIEGO – November 5, 2012 - 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 2012, ended September 29, 2012

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
Francis J. Harding
Chief Financial Officer
NextWave Wireless
619.573.1570
investinfo@nextwave.com

 

NextWave Wireless Public Relations
Jeff Seedman
Partner
Finn Partners
415.249.6763
jeff.seedman@finnpartners.com


CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par value data)

(unaudited)

 

September 29,

2012

December 31,

2011

ASSETS

 

 

Current assets:

 

 

Cash and cash equivalents

                     $             5,863

                     $          11,087

Restricted cash

                                    1,696

                                    1,047

Marketable securities

                                          —

                                 10,000

Prepaid expenses and other current assets

                                       248

                                       827

Current assets of discontinued operations

                                    4,162

                                    3,511

Total current assets

                                 11,969

                                 26,472

Wireless spectrum licenses, net

                               431,397

                               435,522

Property and equipment, net

                                       721

                                    1,313

Other assets

                                         50

                                       362

Total assets

                     $        444,137

                     $        463,669

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

Current liabilities:

 

 

Accounts payable

                     $                250

                     $                     5

Accrued expenses

                                    3,959

                                    2,328

Current portion of long-term obligations

                            1,148,434

                               142,019

Other current liabilities

                                            9

                                         10

Current liabilities of discontinued operations

                                       725

                                       172

Total current liabilities

                            1,153,377

                               144,534

Deferred income tax liabilities

                                 83,937

                                 83,334

Long-term obligations, net of current portion

                                 15,489

                               896,568

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; 24,938 shares issued and outstanding at September 29, 2012 and December 31, 2011

                                       175

                                       175

Additional paid-in-capital

                               888,800

                               888,505

Accumulated other comprehensive income

                                    5,486

                                 21,805

Accumulated deficit

                          (1,703,127)

                          (1,571,252)

Total stockholders’ deficit

                              (808,666)

                              (660,767)

Total liabilities and stockholders’ deficit

                     $        444,137

                     $        463,669

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

September 29,

2012

October 1,

2011

September 29,

2012

October 1,

2011

Operating expenses:

                    

                    

                    

                    

General and administrative

                 $       11,056

                 $         5,006

                 $       21,739

                 $       17,281

Restructuring credit

                                  —

                                  —

                                  —

                           (1,076)

Total operating expenses

                          11,056

                            5,006

                          21,739

                          16,205

Net gains on sales of wireless spectrum licenses

                                    1

                                    2

                               101

                               255

Loss from operations

                        (11,055)

                           (5,004)

                        (21,638)

                        (15,950)

Other income (expense):

 

 

 

 

Interest income

                                    6

                                  13

                                  32

                                  42

Interest expense

                        (44,773)

                        (64,762)

                      (129,441)

                      (185,007)

Other income (expense), net

                                   (1)

                                   (7)

                                   (5)

                            1,245

Total other expense, net

                        (44,768)

                        (64,756)

                      (129,414)

                      (183,720)

Loss from continuing operations before income taxes

                        (55,823)

                        (69,760)

                      (151,052)

                      (199,670)

Income tax benefit

                               217

                               262

                               614

                            2,082

Net loss from continuing operations

                        (55,606)

                        (69,498)

                      (150,438)

                      (197,588)

Income from discontinued operations before income taxes, net of gains (losses) on divestitures of discontinued operations of $0, $(1), $19,862 and $2,119, respectively

                                  16

                                  66

                          20,029

                            2,740

Income tax provision

                                   (6)

                                (24)

                           (1,466)

                           (1,000)

Net income from discontinued operations

                                  10

                                  42

                          18,563

                            1,740

Net loss

                 $     (55,596)

                 $     (69,456)

                 $   (131,875)

                 $   (195,848)

Other comprehensive loss:

 

 

 

 

Net loss

                 $     (55,596)

                 $     (69,456)

                 $   (131,875)

                 $   (195,848)

Foreign currency translation adjustment transferred to earnings upon substantial liquidation of foreign entities

                                  —

                                  —

                        (17,578)

                           (1,305)

Foreign currency translation adjustment

                            1,451

                           (2,653)

                            1,259

                            1,325

Total other comprehensive loss

                        (54,145)

                        (72,109)

                      (148,194)

                      (195,828)

Amounts attributed to net income (loss) per common share:

 

 

 

Net loss from continuing operations

                 $     (55,606)

                 $     (69,498)

                 $   (150,438)

                 $   (197,588)

Net income from discontinued operations

                                  10

                                  42

                          18,563

                            1,740

Net loss

                 $     (55,596)

                 $     (69,456)

                 $   (131,875)

                 $   (195,848)

Net income (loss) per common share– basic and diluted

 

 

Continuing operations

            $          (2.30)

            $          (2.89)

            $          (6.24)

            $          (8.21)

Discontinued operations

                                    —

                                    —

                          0.77

                          0.07

Net loss

            $          (2.30)

            $          (2.89)

            $          (5.47)

            $          (8.14)

Weighted-average shares used in per share calculation

                          24,127

                          24,060

                          24,107

                          24,060

 

 

 

 

 

 

 

 

 

 

 

 

 

NEXTWAVE WIRELESS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

Nine Months Ended

 

September 29,

2012

October 1,

2011

OPERATING ACTIVITIES

 

 

Net loss

  $  (131,875)

  $ (195,848)

Net income from discontinued operations

          18,563

            1,740

Net loss from continuing operations

      (150,438)

      (197,588)

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

                    

                   

Amortization of intangible assets

            5,574

            5,709

Depreciation

                592

               656

Non-cash share-based compensation

                295

               625

Paid-in-kind interest

        124,080

         98,448

Amortization of deferred financing costs and discounts

            5,342

         86,552

Gains on sales of wireless spectrum licenses

              (101)

              (255)

Gains from changes in estimated fair values of embedded derivatives

                  —

          (1,261)

Deferred income tax benefit

              (607)

          (1,082)

Other non-cash adjustments

                    3

          (1,044)

Changes in operating assets and liabilities:

 

 

Prepaid expenses and other current assets

                572

               551

Other assets

                290

              (389)

Accounts payable and accrued liabilities

            1,872

          (2,610)

Net cash used in operating activities of continuing operations

         (12,526)

        (11,688)

 INVESTING ACTIVITIES

 

 

Proceeds from the maturity of investment securities

          20,210

                  —

 Purchase of held-to-maturity investment securities

         (10,191)

        (15,000)

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

                278

               255

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

          10,297

        (14,745)

FINANCING ACTIVITIES

 

 

Payments on long-term obligations

           (4,080)

        (10,137)

Payments to restricted cash account used to redeem long-term obligations

              (647)

                  —

Net cash used in financing activities of continuing operations

           (4,727)

        (10,137)

Cash provided (used) by discontinued operations:

 

 

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

                193

              (906)

Net cash provided by investing activities of discontinued operations

            2,213

            3,654

Net cash provided by discontinued operations

            2,406

            2,748

Effect of foreign currency exchange rate changes on cash

                 (18)

                    3

Net decrease in cash and cash equivalents

           (4,568)

        (33,819)

Cash and cash equivalents, beginning of period

          11,092

         42,598

Cash and cash equivalents, end of period

            6,524

            8,779

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

              (661)

                (40)

Cash and cash equivalents of continuing operations, end of period

  $        5,863

  $       8,739