Nextwave Wireless (fka WAVE)

[revlis]

NextWave Wireless Files First Quarter Fiscal 2010 Results

Next Wave Wireless, Inc. (NASDAQ:WAVE) 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 2010, ended April 3, 2010.

Results for the first quarter generated net losses attributable to Next Wave of $3.4 million for the three months ended April 3, 2010, compared to a loss of $82.2 million for the three months ended March 28, 2009. Net income from continuing operations was $0.3 million for the three months ended April 3, 2010, which included a $38.0 million noncash gain resulting from the debt modification of the Third Lien Subordinated Secured Convertible Notes due 2011 (the “Third Lien Notes”) in March 2010, which was treated as an extinguishment of debt for accounting purposes. Without this one time gain, the Company would have reported a loss from continuing operations of $37.7 million for the three months ended April 3 2010, compared to a loss of $60.6 million for the first quarter of 2009. This one time gain will be amortized as interest expense each quarter until maturity of the Third Lien Notes in accordance with US GAAP, which will significantly increase the Company’s interest expense for financial reporting purposes.

Total revenues from continuing operations for the first quarter of 2010 were $17.9 million, as compared to $16.9 million for 2009, an increase of $1.0 million. Total revenues for both periods consist of revenues generated by the Company’s Multimedia segment. The increase in revenues was attributable to an increase in royalties and nonrecurring engineering revenue from mobile carrier customers.

Total cost of revenues from continuing operations as a percentage of the associated revenues for the first quarter of 2010 was 30.5%, as compared to 36.7% for the first quarter of 2009. The increase in gross margin in the current quarter is primarily attributable to an increase in the product mix of royalty revenues as compared to service revenues, which generally have lower margins.

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