Endwave’ s Revenues Continue to Plummet
Endwave Corporation a global provider of high-frequency RF solutions and semiconductor products for the telecommunications and military markets, has reported financial results for its second quarter, which ended on June 30, 2010.
Revenues for Q2 FY 2010 were $3.8 million. This compares with revenues from these same operations of $4.8 million in the prior quarter and $5.6 million in the second quarter of fiscal 2009.
GAP Loss from continuing operations for the second quarter of 2010 was $2.8 million, or $0.29 per share. Loss from continuing operations for the second quarter of 2010 included a $1.5 million write-down of inventory primarily related to a key customer's legacy product line.
This compares with a loss from continuing operations of $1.3 million, or $0.13 per share in the prior quarter, and a loss from continuing operations of $2.0 million or $0.21 per share in the second quarter of fiscal 2009. On April 30, 2009, Endwave sold its Defense and Security RF module business (D&S). As a result, the Company's financial statements reflect the D&S business as a discontinued operation.
Cash, cash equivalents and investments as of June 30, 2010 were $27.5 million, compared with $29.4 million as of March 31, 2010.
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"We are disappointed that the fall-off in demand for a key legacy product was more abrupt than anticipated. This demand shortfall is expected to continue to impact our revenues over the next few quarters. However, demand for our new module designs supporting next generation, high capacity, IP-based radios has continued to improve, and we see positive signs from our new microwave and millimeter wave integrated circuit (MMIC) product line," said John Mikulsky, Endwave's President and CEO.Endwave Corporation held a conference call on 27 July 2010 discussing its financial results.
A replay of the call is available until August 3. To access the recording, dial (303) 590-3030 begin_of_the_skype_highlighting (303) 590-3030 end_of_the_skype_highlighting (Access Code: 4320727).
The webcast of the call is available on the investor relations section of the Company's website at www.endwave.com . The webcast replay will be available for 90 days.
