Monday, October 17, 2011

Powerwave Misses on Q3 Revenue Citing Delayed Wireless Rollouts

Powerwave Technologies released preliminary revenue estimates for its fiscal third quarter ended October 2, 2011, saying that it now anticipates that revenues will be in the range of $75 million to $79 million -- well below market expectations.

Powerwave makes antennas and base station components for network equipment manufacturers.

The cited a number of several factors, including a significant slowdown in spending by North American network operators, a significant reduction in activity with original equipment manufacturing customers, coupled with further weakness in several international markets, including Western and Eastern Europe, and the Middle East.

Ronald Buschur, President and Chief Executive Officer of Powerwave Technologies, stated that "From a global perspective, we believe that the current economic environment has caused operators to reduce or postpone their spending plans for the near term while they evaluate the macro-economic pressures in each individual market. The Middle East market has been significantly impacted by the political unrest throughout the region. In addition, in the North American market we believe that the uncertainty arising from the government's recent opposition to the proposed merger of AT&T and T-Mobile, has led to delays in spending as these operators re-evaluate their capital spending plans."

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