Nextwave Wireless (fka WAVE)

[revlis]

NextWave Wireless Files Second Quarter Fiscal 2011 Results

SAN DIEGO, Aug 12, 2011 (BUSINESS WIRE) -- NextWave Wireless Inc. (otcqb:WAVE) 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.
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; 23,729 166 166
shares issued and outstanding at July 2, 2011 and January 1, 2011
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 912 (9,567) 2,674 (11,420)
of gains (losses) on divestitures of discontinued operations of
$465, $(4,617), $2,120 and $(4,616), respectively
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 -- 2,213 -- 2,202
subsidiary
------- ------- -------- -------
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 (5) 683
costs
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 (5,005) 21,311
operations
-------- ---- -------
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 (909) 3,330
operations
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 (378) (2,268)
period
-------- ---- ------- ----
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 $ -- $ 21,249
exchange for debt modification fees




SOURCE: NextWave Wireless Inc.

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