Shares of Santa Ana’s Powerwave Technologies Inc., a maker of antennas, filters and other cell phone tower gear, fell Monday after the company reported mixed results for the second quarter and gave a cloudy sales outlook for the current quarter.
Powerwave’s shares were off 6% in afterhours trading on a recent market value of $246 million.
For the three months through July 4, Powerwave saw sales of $145 million, up 7% from a year earlier and short of analysts’ expectation of $148 million.
Excluding charges for restructuring, stock compensation, write-downs on assets and other one-time costs, Powerwave posted $2.5 million in profits, reversing a loss of about $1 million a year earlier and beating analysts’ expectations of $1.3 million in profits.
Powerwave took a top-line hit due to delayed shipments among its suppliers, according to Chief Executive Ronald Buschur.
“We continued to be affected by significant supply-chain constraints that are impacting the global electronics industry and have resulted in delayed shipments for us during the second quarter,” he said. “While global macro economic issues continue to impact our business, we continue to believe that there are signs of improvement as well as increasing North American wireless capital spending for the remainder of this year.”
Powerwave didn’t give financial guidance for the current quarter, but said it expects to “to continue to face long lead times for certain electronic components that may impact our growth,” Buschur said.
Analysts, on average are looking for Powerwave to see third-quarter profits of $4 million, up 60% from the same period a year earlier. Sales are seen coming in at $158 million, up 14%.
The company has been focused on cutting costs.
During the fourth quarter it opened up a 135,000-square-foot factory in Thailand that’s set to have some 500 workers by the end of the year.
Powerwave’s devices capture and boost radio signals between cell phones and base stations inside towers.
The company’s livelihood depends on the boom-and-bust cycles of spending by wireless service providers.
It sells to bigger wireless equipment makers such as Nokia Siemens Networks and Alcatel-Lucent, as well as directly to service providers Verizon Communications Inc. and AT&T Inc., among others.
