SAN JOSE, Calif., May 16, 2011 (GLOBE NEWSWIRE) -- Endwave Corporation (Nasdaq:ENWV), a leading provider of high-frequency RF solutions and semiconductor products for the telecommunications, satellite communications, electronic instruments and defense and security markets, today reported financial results for its first quarter, which ended on March 31, 2011. The SEC Form 10-Q for the Company's first quarter has also been filed, and provides additional financial detail on the quarter.
Revenues for the first quarter of 2011 were $1.2 million. This compares with revenues of $4.1 million in the prior quarter and $4.8 million in the first quarter of fiscal 2010. Net loss, calculated in accordance with accounting principles generally accepted in the United States (GAAP), for the first quarter of 2011 was $3.9 million, or $0.39 per share. This compares with a net loss of $2.0 million, or $0.20 per share, in the prior quarter, and a net loss of $1.3 million, or $0.13 per share, in the first quarter of fiscal 2010.
Non-GAAP net loss in the first quarter of 2011 was $2.4 million, or $0.25 per share. This compares with non-GAAP net loss of $2.0 million, or $0.21 per share, in the prior quarter and non-GAAP net loss of $966,000, or $0.10 per share, in the first quarter of fiscal 2010.
For the first quarter of 2011, non-GAAP net loss was calculated by excluding restructuring charges of $804,000, transaction costs associated with the proposed merger with GigOptix, Inc. of $488,000 and non-cash stock-based compensation expense of $135,000. For the prior quarter, non-GAAP net loss was calculated by excluding non-cash stock-based compensation expense of $50,000 and a reversal of certain non-cash stock-based compensation of $74,000. For the year ago period, non-GAAP net loss was calculated by excluding non-cash stock-based compensation expense of $331,000 and the reversal of certain restructuring charges that resulted in a gain of $14,000.
Cash, cash equivalents and investments as of March 31, 2011 were $21.2 million, compared with $23.5 million as of December 31, 2010.
"As anticipated, 2011 began as a challenging year for the company," said John Mikulsky, Endwave's President and Chief Executive Officer. "The fall-off in legacy module product sales that began in 2010 continues to hamper our results.
"We believe, however, that 2011 will be a seminal year for our stockholders as a result of the pending merger transaction with GigOptix," continued Mikulsky. "The transaction remains on schedule to close in the second quarter of 2011. Upon the close and in the years ahead, we look forward to working with the combined company as it pursues a leadership position as a high-speed, high-frequency supplier for optical and wireless communications."
Update on Pending Transaction
On February 7, 2011, GigOptix, Inc. announced that it signed a definitive merger agreement to acquire Endwave Corporation. The SEC has now declared effective the S-4 registration statement relating to the proposed merger transaction. Endwave stockholders must now approve the transaction in a special shareholder meeting that is scheduled for June 17. Details will be sent to those stockholders eligible to vote as of the May 12 record date.
Endwave Corporation designs, manufactures and markets high frequency RF solutions and semiconductor products that enable the transmission, reception and processing of high-frequency signals in the telecommunications, satellite communications, electronic instruments and defense and security markets. Endwave has 43 issued patents covering its core technologies including semiconductor and proprietary circuit designs. Endwave Corporation is headquartered in San Jose, CA, with operations in Folsom, CA and Chiang Mai, Thailand. Additional information about the company can be accessed from the company's web site at .
The Endwave Corporation logo is available at
Use of Non-GAAP Financial Information
To supplement Endwave's condensed consolidated financial statements presented in accordance with GAAP, Endwave uses certain measures of financial performance that are non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. These non-GAAP measures include net income (loss) and net income (loss) per share data that are adjusted from results based on GAAP to exclude certain expenses, gains and losses. These non-GAAP measures are provided to enhance investors' overall understanding of Endwave's current financial performance and Endwave's prospects for the future. Specifically, Endwave believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses that may not be indicative of its core operating results. These measures should be considered in addition to results prepared in accordance with GAAP but should not be considered a substitute for, or superior to, GAAP results. These non-GAAP measures included in this press release have been reconciled to the GAAP results in the attached tables.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
This press release and the conference call referred to in this press release may contain forward-looking statements within the meaning of the Federal securities laws and is subject to the safe harbor created thereby. Any statements contained in this press release or on the conference call that are not statements of historical fact may be deemed to be forward-looking statements. Words such as "plans," "intends," "expects," "believes" and similar expressions are intended to identify these forward-looking statements. Information contained in forward-looking statements is based on current expectations and is subject to change. Actual results could differ materially from the forward-looking statements due to many factors, including the following: the proposed merger with GigOptix, Inc.; market acceptance and growth in revenues of our new semiconductor product line; our suppliers' abilities to deliver raw materials to our specifications and on time; our customer and market concentration; our ability to achieve revenue growth and maintain profitability; our successful implementation of next-generation programs, including inventory transitions; our ability to penetrate new markets; fluctuations in our operating results from quarter to quarter; our reliance on third-party manufacturers and semiconductor foundries; component, design or manufacturing defects in our products; our dependence on key personnel; our ability to develop new or improved semiconductor process technologies; and fluctuations in the price of our common stock. Forward-looking statements contained in this press release and on our conference call should be considered in light of these factors and those factors discussed from time to time in Endwave's public reports filed with the Securities and Exchange Commission, such as those discussed under "Risk Factors" in Endwave's most recent Annual Report on Form 10-K and subsequently-filed reports on Form 10-Q. Endwave does not undertake any obligation to update such forward-looking statements.
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