Business
Proxim Wireless Reports First Quarter 2009 Financial Results
Proxim Wireless Reports First Quarter 2009 Financial Results.
About this update from Proxim Wireless Corporation
[{"type":"text","content":"For Further Information Contact:Dave RenauldVice President, Corporate AffairsProxim Wireless(413) [email protected] PROXIM WIRELESS REPORTS FIRST QUARTER 2009 FINANCIAL RESULTS First Quarter of Operating Income Since Quarter Ending December 31, 2005 San Jose, CA, May 14, 2009 – Proxim Wireless Corporation (OTCQX: PRXM), a leading provider of end-to end broadband wireless systems that deliver the quadruple play, today released financial results for the first quarter ended March 31, 2009. Financial Highlights On a GAAP basis, revenues for the quarter ended March 31, 2009 were $7.9 million, a decrease of approximately 32% from revenue of $11.6 million for the quarter ended December 31, 2008, and a decrease of approximately 23% from revenue of $10.2 million for the quarter ended March 31, 2008. These decreases were attributable to a combination of the continuing impact of the worldwide economic slowdown on broadband wireless sales and the first quarter typically being the weakest quarter of the year for Proxim. In the first quarter ended March 31, 2009, gross margins were 55.1%, compared to 38.4% for the quarter ended December 31, 2008, and 42.2% for the quarter ended March 31, 2008. The margin improvement for the first quarter consisted primarily of a 14% increase due to one-time benefits, including catch up billings and the release of inventory reserves. On a GAAP basis, the net loss for the quarter ended March 31, 2009 was $0.2 million or $0.01 per diluted share, compared to a net loss of $1.7 million, or $0.07 per diluted share, for the quarter ended December 31, 2008, and a net loss of $5.4 million, or $0.23 per diluted share, for the quarter ended March 31, 2008. The net income was $0.6 million, or $0.02 per diluted share, on a non-GAAP basis for the quarter ended March 31, 2009, which excludes depreciation of fixed assets, amortization of intangible assets, and stock based compensation, compared to a non-GAAP net loss of $1 million or $0.04 per diluted share for the quarter ended December 31, 2008, and a non-GAAP net loss of $4.1 million or $0.17 per diluted share for the quarter ended March 31, 2008. The financial results above reflect discontinued operations accounting treatment for a portion of Proxim’s consolidated operations. The discontinued operations...