Powerwave Technologies Q3 2009 Earnings Call Transcript

  • download
  • Print
  • Recommend
  • 0

2009-10-29 23:31:08.0

Tags: Revenue, Working Capital, Call Transcript, Earnings, LTE, DSO, Managerial Accounting, WiMAX, Operational Accounting, Wireless And Mobility, Finance, Seeking Alpha, Powerwave Technologies Inc.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions). We have a question from the line of Steve O' Brian of JPMorgan. Please proceed.

Unidentified Analyst

Hi, good afternoon and thanks for taking my question. I know this from the wording of the results today that the revenue breakdown changed from calling it WiMAX to a more generic, calling it 4G contribution. And I was wondering if there is any significance there and if there were -- and if there was any LTE contribution this quarter or in general, when do you anticipate the first waves of LTE spending happening?

Kevin Michaels

Sure I'll start with that, we've started classifying it that way since we do view WiMAX as a 4G technology along with the LTE, the predominant -- most of that revenue there is WiMAX, there is some very small, the amount of LTE is extremely small and really not that measurable. But, we do think over time here, we'll start to see some more revenue as some of the first trials and things start happening here over the next year. We do think that the larger LTE builds will probably be, at best late 2010 and 2011, but you will start seeing some revenues occurring in 2010.

Unidentified Analyst

Great, if I could ask a different one, on the balance sheet, I noticed that both the accounts receivable and payable balances

declined, pretty dramatic, 20 million quarter-over-quarter on flat revenue. So, are these balances sort of running where you see them at this level of demand? DSO's are sort of approaching that ninety days target. In other words, are there any addition working capital efficiencies to be had or should we start think about may be a working capital expense from -- if there is a turnaround in demand.

Kevin Michaels

Sure, I mean, I think these are kind of, you are right in the current demand pattern that they're close to where they'd probably be running at. We do think that there two things in play, we don't think this demand pattern will stay at this level forever, we do think that eventually we will see increases in demand coming through. That will change some of that.

As well as, there are some further working capital things that we are working on to improve that particularly in terms of inventory returns and such, we do overtime expect to see further improvements there. Historically, we have turned at better turns. So there is some additional movement there, but I think generally, your first comment, at the current levels, they are kind of in this area, we're not going to see significant near-term improvement in those.

 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement
Click Here