Powerwave Has Loss on Acquisition Costs, Lower Sales
Powerwave Technologies Inc. (PWAV), a maker of wireless communication gear, reported a fourth-quarter loss on acquisition costs and lower sales.
The net loss was $114.9 million, or 90 cents a share, compared with profit of $19.2 million, or 15 cents, a year earlier, Santa Ana, California-based Powerwave said in a statement sent today by Business Wire. Analysts polled by Bloomberg estimated, on average, a loss of 4.8 cents. Sales fell 32 percent to $169.8 million.
Powerwave in the fourth quarter completed its $335.9 million acquisition involving most of Filtronic Plc's wireless infrastructure business. Acquisition and amortization charges widened the loss by about 66 cents a share, the company said.
``Consolidation among several of the major original equipment manufacturers'' reduced demand, President and Chief Executive Officer Ronald J. Buschur said in the statement. The acquisition ``was also significantly impacted by reductions in demand due to the industry consolidation.''
Excluding the acquisition and amortization costs, Powerwave's fourth-quarter loss was $28.3 million, or 22 cents a share, according to the statement. Chief Financial Officer Kevin Michaels didn't immediately respond to a call seeking comment.
The shares fell 18 cents, or 3.1 percent, to $5.57 at 6:30 p.m. New York time in Nasdaq Stock Market trading.
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