16th Oct 2006 12:00
Powerwave Technologies, Inc. (NASDAQ:PWAV) today announced that ithas completed the purchase of the majority of the WirelessInfrastructure division business of Filtronic plc (LSE:FTC). Thespecific product lines purchased in this transaction includetransmit/receive filters, integrated remote radio heads and poweramplifier products, all for use in commercial wireless infrastructurebase station equipment. Powerwave paid a purchase price consisting of17.7 million shares of Powerwave common stock and $185 million incash. Based on Powerwave's closing stock price on Friday, October 13,2006 of $6.28 per share, the transaction value is approximately $296.2million. £ "We are excited to complete the purchase of the Filtronic WirelessInfrastructure division business and we believe that this acquisitionsignificantly enhances our position in the wireless infrastructuremarketplace," stated Ronald J. Buschur, President and Chief ExecutiveOfficer of Powerwave. "This acquisition further strengthens one of thebroadest portfolios of products and services in the wireless industry,while specifically expanding our transmit and received filter productlines, as well as complementing our existing remote radio headproducts and RF conditioning products and significantly strengtheningPowerwave's design and engineering resources." £ This strategic acquisition provides Powerwave with the leadingposition in transmit and receive filter products, as well as broadensPowerwave's RF conditioning and base station solutions productportfolio in addition to adding significant additional technology toits intellectual property portfolio. Filtronic's WirelessInfrastructure business had a total 12-month revenue run rate for theperiod ending May 31, 2006 of approximately GBP 161 million, orapproximately $298 million based on an USD/GBP exchange rate of $1.85on October 13, 2006. £ About Powerwave Technologies £ Powerwave Technologies, Inc., is a global supplier of end-to-endwireless solutions for wireless communications networks. Powerwavedesigns, manufactures and markets antennas, boosters, combiners,filters, repeaters, multi-carrier RF power amplifiers andtower-mounted amplifiers and advanced coverage solutions, all for usein cellular, PCS and 3G networks throughout the world. Corporateheadquarters are located at 1801 E. St. Andrew Place, Santa Ana,Calif. 92705. Telephone 714-466-1000. For more information onPowerwave's advanced wireless coverage and capacity solutions, pleasecall 888-PWR-WAVE (797-9283) or visit our web site atwww.powerwave.com. Powerwave, Powerwave Technologies and the Powerwavelogo are registered trademarks of Powerwave Technologies, Inc. £ Forward-Looking Statements £ This press release contains "forward-looking" statements includingstatements regarding benefits of the proposed acquisition andexpectations for our products. These statements are based onPowerwave's management's current expectations. There are a number ofrisks and uncertainties that could cause actual results to differmaterially. For example, problems may arise in successfullyintegrating the acquired business. The acquisition may involveunexpected costs. We may be unable to achieve cost-cutting synergies.Other potential risks and uncertainties include, but are not limitedto: customer order cancellations or deferrals; delays or cancellationsof wireless network capacity expansions and buildouts for bothexisting 2G and 2.5G networks and 3G networks; we require continuedsuccess in the design of new products and such products must bemanufacturable and of good quality and reliability; our dependence ona limited number of customers for the majority of our revenues exposesus to potential reductions in revenue if such customers ceasepurchasing products from us; our business requires continued favorablebusiness conditions and growth in the wireless communications market.More detailed information on these and additional factors which couldaffect Powerwave's operating and financial results are described inPowerwave's Form 10-K for the fiscal year ended January 1, 2006, andits Form 10-Q for the quarterly period ended July 2, 2006, both ofwhich are filed with the Securities and Exchange Commission, and otherrisks detailed from time to time in the Company's reports filed withthe Securities and Exchange Commission. Powerwave urges all interestedparties to read these reports to gain a better understanding of themany business and other risks that Powerwave faces. Additionally,Powerwave undertakes no obligation to publicly release the results ofany revisions to these forward-looking statements which may be made toreflect events or circumstances occurring after the date hereof or toreflect the occurrence of unanticipated events. Copyright Business Wire 2006Related Shares:
Filtronic