NextWave sees widening losses on R&D costs, acquisitions

NextWave Wireless Inc., which has been on an acquisition bent this year and remains a steady force in the industry, announced a 98% increase in revenues over the year-ago period in financial results for the first quarter of 2007.
The company raked in $7.7 million during the quarter, up from the $3.9 million it pulled in a year prior, and said much of its success was derived from its PacketVideo subsidiary, which supplies video-playing software to wireless carriers and handset manufacturers.
Despite the market penetration of PacketVideo’s services, NextWave recorded a $41.1 million loss for the quarter, nearly double the amount it lost in the year-ago quarter. The company blamed its loss on an increase in operating expenses related to the expansion of its research and development teams, acquisitions and other growth.
Indeed, the company completed multi-million dollar acquisitions of IPWireless Inc., SDC Secure Digital Container AG and Go Networks Inc. during the quarter.
“Our financial results are consistent with our expectations and reflect the important strategic and product development milestones we achieved during the first quarter of the year,” said Allen Salmasi, chairman and CEO of NextWave. “Our business activities will continue to be focused on providing customers with the leading-edge, cost-effective wireless broadband products and technologies they need to deliver next-generation mobile broadband solutions to businesses and consumers.”
The company’s stock was basically unchanged, up just one penny, on the news.