NextWave Wireless Files Third Quarter Fiscal 2012 Results

  NextWave Wireless Files Third Quarter Fiscal 2012 Results

Business Wire

SAN DIEGO -- November 05, 2012

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 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.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value data)
(unaudited)

                                              September 29,   December 31,
                                               2012             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             725            172        
operations
Total current liabilities                        1,153,377        144,534
Deferred income tax liabilities                  83,937           83,334
Long-term obligations, net of current           15,489         896,568    
portion
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      175              175
outstanding at September 29, 2012 and
December 31, 2011
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,  October 1,    September     October 1,
                                                   29,
                     2012            2011          2012           2011
Operating
expenses:
General and          $  11,056       $ 5,006       $ 21,739       $ 17,281
administrative
Restructuring          —            —           —            (1,076   )
credit
Total operating         11,056         5,006         21,739         16,205
expenses
Net gains on sales
of wireless            1            2           101          255      
spectrum licenses
Loss from              (11,055  )    (5,004  )    (21,638  )    (15,950  )
operations
Other income
(expense):
Interest income         6              13            32             42
Interest expense        (44,773  )     (64,762 )     (129,441 )     (185,007 )
Other income           (1       )    (7      )    (5       )    1,245    
(expense), net
Total other            (44,768  )    (64,756 )    (129,414 )    (183,720 )
expense, net
Loss from
continuing              (55,823  )     (69,760 )     (151,052 )     (199,670 )
operations before
income taxes
Income tax benefit     217          262         614          2,082    
Net loss from
continuing             (55,606  )    (69,498 )    (150,438 )    (197,588 )
operations
Income from
discontinued
operations before
income taxes, net
of gains (losses)
on divestitures of      16             66            20,029         2,740
discontinued
operations of $0,
$(1), $19,862 and
$2,119,
respectively
Income tax             (6       )    (24     )    (1,466   )    (1,000   )
provision
Net income from
discontinued           10           42          18,563       1,740    
operations
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          —              —             (17,578  )     (1,305   )
earnings upon
substantial
liquidation of
foreign entities
Foreign currency
translation            1,451        (2,653  )    1,259        1,325    
adjustment
Total other            (54,145  )    (72,109 )    (148,194 )    (195,828 )
comprehensive loss
Amounts attributed
to net income
(loss) per common
share:
Net loss from
continuing           $  (55,606  )   $ (69,498 )   $ (150,438 )   $ (197,588 )
operations
Net income from
discontinued           10           42          18,563       1,740    
operations
Net loss             $  (55,596  )   $ (69,456 )   $ (131,875 )   $ (195,848 )
Net income (loss)
per common share–
basic and diluted
Continuing           $  (2.30    )   $ (2.89   )   $ (6.24    )   $ (8.21    )
operations
Discontinued           —            —           0.77         0.07     
operations
Net loss             $  (2.30    )   $ (2.89   )   $ (5.47    )   $ (8.14    )
Weighted-average
shares used in per      24,127         24,060        24,107         24,060
share calculation



NEXTWAVE WIRELESS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

                                                 Nine Months Ended
                                                  September 29,  October 1,
                                                  2012            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         5,342          86,552
discounts
Gains on sales of wireless spectrum licenses         (101     )     (255     )
Gains from changes in estimated fair values of       —              (1,261   )
embedded derivatives
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            (12,526  )    (11,688  )
continuing operations
INVESTING ACTIVITIES
Proceeds from the maturity of investment             20,210         —
securities
Purchase of held-to-maturity investment              (10,191  )     (15,000  )
securities
Proceeds from the sale of wireless spectrum         278          255      
licenses, net of selling costs
Net cash provided by (used in) investing            10,297       (14,745  )
activities of continuing operations
FINANCING ACTIVITIES
Payments on long-term obligations                    (4,080   )     (10,137  )
Payments to restricted cash account used to         (647     )    —        
redeem long-term obligations
Net cash used in financing activities of            (4,727   )    (10,137  )
continuing operations
Cash provided (used) by discontinued
operations:
Net cash provided (used) by operating                193            (906     )
activities of discontinued operations
Net cash provided by investing activities of        2,213        3,654    
discontinued operations
Net cash provided by discontinued operations         2,406          2,748
Effect of foreign currency exchange rate            (18      )    3        
changes on cash
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      (661     )    (40      )
operations, end of period
Cash and cash equivalents of continuing           $  5,863       $ 8,739    
operations, end of period


Contact:

Investor Relations:
NextWave Wireless
Francis J. Harding, 619-573-1570
Chief Financial Officer
investinfo@nextwave.com
or
Public Relations:
Finn Partners
Jeff Seedman, 415-249-6763
Partner
jeff.seedman@finnpartners.com
 
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