M-Wave announces Q4 and FY 2004 results
Feb 28, 2005
M-Wave, Inc. (NASDAQ: MWAV) announced unaudited financial results from continuing operations for the fourth quarter and full-year ended December 31, 2004. Total revenue for the fourth quarter ended December 31, 2004 is expected to be approximately $3.89 million, an increase of approximately 17% compared to revenues in the fourth quarter of 2003 of approximately $3.32 million. Gross margin for the fourth quarter of 2004 is expected to be approximately 21%, up from the prior level of approximately 8% for the fourth quarter 2003. M-Wave is also expected to announce approximately $17.46 million in total revenue for fiscal year 2004, approximately a 23% increase from 2003 results of $14.19 million. Gross margins for the full year are also estimated to show improvement, increasing from a loss of approximately 12% in 2003 to a profit of approximately 18% for 2004. The growth in revenue reflects an improvement in most sectors of the electronics assembly and manufactured products market and the Company's effectiveness of its Asian supply chain in meeting demand both in the digital and telecom sectors. The Company is expected to report a net loss attributed to common stockholders of approximately $2.24 million or approximately $0.49 per share in 2004 compared to a loss of approximately $12.05 million or approximately $2.71 per share in 2003. Included in the 2004 results was a one-time charge of approximately $1.90 million related to the beneficial conversion feature on the preferred stock issued to the Mercator Group in the third quarter of 2004. In addition, the Company recorded other income related to vendor debt forgiveness of approximately $1.01 million and received 1.5 million shares of stock in Integrated Performance Systems, Inc. (OTC BB: IPFS), in consideration for a defaulted promissory note that had been fully reserved for in a prior year. The shares were recorded with a net realizable value of approximately $0.23 million in the fourth quarter of 2004. M-Wave expects to release its audited fourth quarter and year-end results and host a conference call for investors in late March 2005.
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