Powerwave Shares Plummet on Disappointing Q2Monday, August 13, 2012
Shares of Powerwave Technologies Inc. were hammered Monday, the first trading day after the Santa Ana-based company reported another disappointing quarter of financial results on Friday.
Investors sent Powerwave shares down more than 25% in afternoon trading to a market value of nearly $12 million.
The company, which makes cellular base station gear for wireless networks, recorded revenue of $42.6 million in the June quarter, down 75% from a year earlier and missing Wall Street expectations.
Analysts on average had forecast sales of $53.1 million.
Powerwave reported a loss of $42.6 million, compared to a $7 million profit a year ago.
Consensus estimates called for a loss of $22.5 million.
Powerwave makes antennas, filters and other equipment for cell phone towers.
Its devices capture and boost radio signals between cell phones and base stations inside towers.
The company has been in a free fall since last October when its troubles first surfaced after third quarter sales plummeted 51% from a year earlier to $77.1 million.
Since then the company has been hampered by continued declining sales linked to a significant slowdown in equipment spending by Dallas-based AT&T Inc. and other North American network operators.
In the recently ended quarter, sales fell in North and South America to $16.7 million, down 79%. In Asia-Pacific region, sales fell nearly 74% to $10.9 million. Revenue in Europe was down 77% to $10.5 million.
The cash-strapped company burned through $52.5 million in cash in the June quarter and had about $11.6 million in cash and investments entering this quarter.
Analysts have forecast a loss of nearly $14 million on $61.8 million in sales in the September quarter.