Powerwave Lowers 2nd-Quarter Prediction

Mobile telephone equipment maker Powerwave Technologies Inc. warned Monday that its second-quarter results will be lower than expected because of weaker demand for its products.

The Santa Ana company said it expects revenue of $70 million to $80 million. Powerwave had anticipated this quarter’s revenue would increase 10% to 15% from the first three months to reach $80.3 million to $84 million, Chief Financial Officer Kevin Michaels said.

In last year’s second quarter, Powerwave had net income of $11.4 million on revenue of $110.5 million.

Powerwave stock, which has lost 79% of its value this year, rose 10 cents Monday to $12.10 a share in Nasdaq trading.

“We believe that the global economic slowdown is contributing to the continued slowdown in the wireless communications sector, which is creating slowdowns and delays in purchasing decisions at the network operator level,” said Bruce Edwards, president and chief executive of Powerwave.

The company expects its loss to narrow from the first quarter’s $9.5 million, Michaels said. He declined to be more specific.

The company plans to report second-quarter results July 12.