PROXIM WIRELESS CORP., a provider of end-to-end broadband wireless systems, released its financial results for the second quarter ended June 30, 2008. GAAP revenues for the quarter ended June 30, 2008 were $15.1, an increase of approximately 47% in total GAAP revenue from $10.2 million for the quarter ended March 31, 2008, and a decrease of 11% from $16.9 million for the quarter ended June 30, 2007. According to Pankaj Manglik, president and CEO of Proxim Wireless, ??The revenue growth we experienced this quarter is the result of actions taken to revamp our sales team and reinvigorate the channel over the last few quarters. In addition, we continue to see growth in broadband wireless access.?
On a GAAP basis, the net loss for the quarter ended June 30, 2008 was $1.4 million, or $0.06 per diluted share, compared to a net loss of $5.3 million, or $0.22 per diluted share, for the quarter ended March 31, 2008, and a net loss of $0.3 million, or $0.02 per diluted share, for the quarter ended June 30, 2007. The primary reasons for the narrowed loss in the second quarter of 2008 versus the first quarter of 2008 were increased revenue, higher gross margins, and the sale of non-core patents. Financial results for the quarter ending June 30, 2007 also included the sale of patents for $2.5 million.
The net loss on a non-GAAP basis, which excludes depreciation of fixed assets, amortization of intangible assets, and stock-based compensation, was $0.1 million, or $0.01 per diluted share, compared to a non-GAAP net loss of $4.1 million, or $0.17 per diluted share, for the quarter ended March 31, 2008, and a net profit of $0.9 million, or $0.04 per diluted share, for the quarter ended June 30, 2007.
The above financial results reflect the recent discontinued operations accounting treatment for a portion of Proxim??s consolidated operations.
Proxim announced its intent to explore strategic alternatives for the Harmonix Div. of its Terabeam Corp. subsidiary. As a result, Proxim will be treating Harmonix as discontinued operations held for sale and break out as appropriate the financial results of Harmonix from the consolidated results of the continuing operations of Proxim Wireless Corp. and subsidiaries moving forward. Subsequent to the end of the second quarter, the company accrued an additional $3 million in debt.
