Revenue for the quarter was $8.5 million compared to $11.6 million in the second quarter of 2000 and $11.6 million in the first quarter of 2001. Reported results exclude $5.9 million of GSM orders booked in the quarter, as these shipments were postponed to the third quarter of this year due to the fire that destroyed Metawave’s manufacturing facility in Taiwan in May.

Pro forma gross profit for the second quarter of 2001 was $2.4 million, or 28.0 percent, compared to $3.5 million, or 30.5 percent, in the same period last year and $2.3 million, or 20.2 percent, in first quarter of 2001.

Pro forma net loss for the second quarter was $10.0 million, or $0.22 per share, compared to a net loss of $6.3 million, or $0.24 per share, in the second quarter of 2000 and $9.7 million, or $0.23 per share, in the first quarter of 2001. The reported net loss for the quarter was $24.0 million, which primarily includes amortization of goodwill and deferred stock compensation from last year’s acquisition of Adaptive Telecom Inc., one-time charges related to the outsourcing of manufacturing operations, and reserves associated with the fire in the Taiwan facility.

For the six months ended June 30, 2001, revenue was equal to $20.1 million compared to $20.8 million in the first half of 2000. The company reported a pro forma net loss for the six-month period of $19.8 million or $0.45 per share compared to $15.0 million or $1.04 per share in the same period a year ago.

We’re pleased with our progress during the quarter, particularly the new contract we signed with Verizon Wireless for our CDMA smart antennas and the new GSM orders from Asia, commented Bob Hunsberger, Metawave’s chairman and chief executive officer. These GSM orders indicate increasing demand and acceptance for our recently introduced GSM smart antennas. Because of this, we anticipate improved results in the second half of the year. We have recovered quickly from the loss of our Taiwan manufacturing facility and expect that our manufacturing operations will return to normal by the end of Q3.

The company is well capitalized to support our operations, we raised an additional $10 million during the quarter to provide us with additional flexibility, and our balance sheet is healthy, said Stu Fuhlendorf, Metawave’s chief financial officer.

SOURCE: COMPANY PRESS RELEASE