Powerwave Technologies Inc. (PWAV, Financial) filed Annual Report for the period ended 2012-01-01.
Powerwave Tech has a market cap of $43.7 million; its shares were traded at around $1.42 with a P/E ratio of 2.3 and P/S ratio of 0.1.
For fiscal 2011, total sales to Nokia Siemens Networks, Team Alliance, and Raycom accounted for approximately 16%, 16%, and 11% of sales for the year, respectively. For fiscal 2010, total sales to Nokia Siemens Networks accounted for approximately 24% of sales. Our business remains largely dependent upon a limited number of customers within the wireless communications market, and we cannot guarantee that we will continue to be successful in attracting new customers or retaining or increasing business with our existing customers. We have seen our revenues with these customers decline significantly, which has had a negative effect on our operations and financial results
Our total gross profit and gross profit percentage decreased during fiscal 2011 compared to fiscal 2010, primarily as a result of our decreased revenue and our inability to absorb the resulting overhead and manufacturing costs due to our lower revenue. This resulted in the reduction in our gross margins as a percentage of revenue. We incurred approximately $3.2 million of restructuring and impairment charges in cost of sales during fiscal 2011 primarily related to severance, inventory and facility charges related to our 2011 restructuring activities to reduce our manufacturing costs. We incurred approximately $2.4 million of restructuring and impairment charges in cost of sales during fiscal 2010 primarily related to severance, inventory and facility related charges in Estonia as we closed our manufacturing facility and consolidated the activities into other locations. Included in cost of sales was stock-based compensation expense of $0.8 million and $0.4 million for fiscal 2011 and 2010 respectively for stock options and employee stock purchase plans.
Our net loss for the year ended January 1, 2012 was $77.6 million compared to net income of $3.7 million for the year ended January 2, 2011. Our net loss during fiscal 2011 as compared to our net income during fiscal 2010 is the result of lower revenues combined with lower gross margins due to lower manufacturing absorption which lead to higher manufacturing costs and lower gross profits. While operating expenses were slightly lower in 2011, they did not offset the lower gross profits from the lower revenue when compared to 2010. Other expenses were higher in 2011, due largely to the foreign currency loss of $5.3 million for 2011. For 2010, there was a foreign currency loss of $2.4 million.
Our total gross profit and gross profit percentage increased during fiscal 2010 compared to fiscal 2009, primarily as a result of our increased revenues and the impact of our prior cost reduction and restructuring actions. Our cost reduction activities, which included manufacturing plant consolidations and closures, helped to reduce our fixed costs and manufacturing cost overheads, which contributed to the improved gross margin. The decrease in intangible amortization costs in 2010 is due to our intangible assets being fully amortized in 2009. We incurred approximately $2.4 million of restructuring and impairment charges in cost of sales during fiscal 2010 primarily related to severance, inventory and facility related charges in Estonia as we closed our manufacturing facility and consolidated the activities into other locations. We incurred approximately $1.9 million of restructuring and impairment charges in cost of sales during fiscal 2009, primarily related to severance charges in the United States, Finland, Sweden and the UK. Included in cost of sales was stock-based compensation expense of $0.4 million and $1.1 million for fiscal 2010 and 2009 respectively for stock options and employee stock purchase plans.
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Powerwave Tech has a market cap of $43.7 million; its shares were traded at around $1.42 with a P/E ratio of 2.3 and P/S ratio of 0.1.
Highlight of Business Operations:
We believe that our future success depends upon continued growth in demand for wireless services as well as our ability to broaden our customer base and the markets in which we compete. For the fiscal year ended January 1, 2012 (fiscal 2011), our largest customers included an original equipment manufacturer Nokia Siemens Networks, which accounted for approximately 16% of our sales, and two of our regional resellers, Team Alliance and Raycom which represented 16% and 11% of sales for the year respectively. As a result of the significant amount of business that we conduct with these customers, they have the ability to significantly impact our financial results in several ways, including without limitation, demanding price reductions and reducing or threatening to reduce their business with us, transferring their business to other companies, slowing or reducing their purchases due to market conditions, or internalizing their operations. An example of an original equipment manufacturer customer who has significantly reduced its business with us is Nokia Siemens Networks, which reduced its business with us by 50% as compared to the prior fiscal year. The loss of any of these customers, or a significant loss, reduction or rescheduling of orders from these customers or any other major customer would have a material adverse effect on our business, financial condition and results of operations.For fiscal 2011, total sales to Nokia Siemens Networks, Team Alliance, and Raycom accounted for approximately 16%, 16%, and 11% of sales for the year, respectively. For fiscal 2010, total sales to Nokia Siemens Networks accounted for approximately 24% of sales. Our business remains largely dependent upon a limited number of customers within the wireless communications market, and we cannot guarantee that we will continue to be successful in attracting new customers or retaining or increasing business with our existing customers. We have seen our revenues with these customers decline significantly, which has had a negative effect on our operations and financial results
Our total gross profit and gross profit percentage decreased during fiscal 2011 compared to fiscal 2010, primarily as a result of our decreased revenue and our inability to absorb the resulting overhead and manufacturing costs due to our lower revenue. This resulted in the reduction in our gross margins as a percentage of revenue. We incurred approximately $3.2 million of restructuring and impairment charges in cost of sales during fiscal 2011 primarily related to severance, inventory and facility charges related to our 2011 restructuring activities to reduce our manufacturing costs. We incurred approximately $2.4 million of restructuring and impairment charges in cost of sales during fiscal 2010 primarily related to severance, inventory and facility related charges in Estonia as we closed our manufacturing facility and consolidated the activities into other locations. Included in cost of sales was stock-based compensation expense of $0.8 million and $0.4 million for fiscal 2011 and 2010 respectively for stock options and employee stock purchase plans.
Our net loss for the year ended January 1, 2012 was $77.6 million compared to net income of $3.7 million for the year ended January 2, 2011. Our net loss during fiscal 2011 as compared to our net income during fiscal 2010 is the result of lower revenues combined with lower gross margins due to lower manufacturing absorption which lead to higher manufacturing costs and lower gross profits. While operating expenses were slightly lower in 2011, they did not offset the lower gross profits from the lower revenue when compared to 2010. Other expenses were higher in 2011, due largely to the foreign currency loss of $5.3 million for 2011. For 2010, there was a foreign currency loss of $2.4 million.
Our total gross profit and gross profit percentage increased during fiscal 2010 compared to fiscal 2009, primarily as a result of our increased revenues and the impact of our prior cost reduction and restructuring actions. Our cost reduction activities, which included manufacturing plant consolidations and closures, helped to reduce our fixed costs and manufacturing cost overheads, which contributed to the improved gross margin. The decrease in intangible amortization costs in 2010 is due to our intangible assets being fully amortized in 2009. We incurred approximately $2.4 million of restructuring and impairment charges in cost of sales during fiscal 2010 primarily related to severance, inventory and facility related charges in Estonia as we closed our manufacturing facility and consolidated the activities into other locations. We incurred approximately $1.9 million of restructuring and impairment charges in cost of sales during fiscal 2009, primarily related to severance charges in the United States, Finland, Sweden and the UK. Included in cost of sales was stock-based compensation expense of $0.4 million and $1.1 million for fiscal 2010 and 2009 respectively for stock options and employee stock purchase plans.
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