Subject: [NEXTEL-1] Wireless Facilities, Inc. Posts Third Quarter Earnings of $0.09 per Diluted Share With Year Over Year Net Income Growth of 164%

From: [email-masked]
Date: Thu, 30 Oct 2003 16:59:01 -0500

Wireless Facilities, Inc. Posts Third Quarter Earnings of $0.09 per
Diluted Share With Year Over Year Net Income Growth of 164%

Revenue Increased 39.7% Year Over Year to $68.6 Million
SAN DIEGO, Oct. 30 /PRNewswire-FirstCall/ -- Wireless Facilities, Inc.
(WFI) (Nasdaq: WFII), a global leader in the design, deployment,
integration and management of wireless telecommunications networks and
security systems, today released financial results for the third quarter
ended September 30, 2003.
Revenue for the third quarter of 2003 totaled $68.6 million, an increase
of $19.5 million or 39.7 % compared to the $49.1 million reported in the
same quarter last year and an increase of $11.8 million or 20.8 %
compared to the $56.8 million reported in the second quarter of 2003.
Net income of $6.6 million for the third quarter of 2003 was 164.0%
higher than the $2.5 million for the third quarter of 2002.  Net income
for the third quarter of 2003 increased $1.8 million or 37.5 % compared
to net income of $4.8 million sequentially.
Earnings per share of $0.09 for the third quarter 2003 was 125.0% higher
than $0.04 year over year and sequentially increased $0.02 or 28.6 %.
"Our financial strategies and operational execution continue to deliver
a very high level of performance," said Terry Ashwill, Executive Vice
President and Chief Financial Officer of WFI.  Highlights of the
financial results for the third quarter of 2003 are as follows:
*  Revenue, gross profit, operating income and net income increased for
the sixth consecutive quarter.
*  Excluding capital lease obligations totaling $1.0 million, WFI
continues to have no outstanding debt at September 30, 2003.
*  Stockholders' equity increased to $221.0 million and now represents
approximately 80.0 % of WFI's total balance sheet.
*  Revenue for the nine months ended September 30, 2003 increased $43.3
million or 31.8 % over the nine months ended September 30, 2002.

"Both our Wireless Network Services (WNS) and our Enterprise Solutions
businesses delivered strong results in a challenging but improving
environment," said Dr. Masood Tayebi, Chief Executive Officer and
Chairman of WFI.  "Also, as we look ahead to the fourth quarter and the
year 2004, we are feeling increasingly optimistic about our ability to
achieve improving financial performance."
WFI will discuss third quarter results on a conference call at 1:30
p.m.  Pacific Time (4:30 p.m. Eastern Time) today.  To access the call,
please dial (212) 346-6529.  To ensure your participation, the Company
suggests that you dial in 5 to 10 minutes prior to the scheduled start
time.  The call will also be webcast and can be accessed at WFI's
website at http://www.wfinet.com .  A replay of the call will be
available from 3:30 p.m. Pacific Time on October 30, 2003 through 3:30
p.m. Pacific Time on November 3, 2003 by dialing (800) 633-8284
(Reservation #21160901).
About Wireless Facilities
As a global leader in telecommunications outsourcing, Wireless
Facilities, Inc. designs, deploys, integrates and manages wireless
networks and specialized security systems for some of the largest
wireless telecommunication carriers, wireless equipment vendors and
general contractors worldwide.  Specializing in network architecture and
dimensioning of mobile and high speed wireless data systems, including
third generation (3G) networks, WFI provides a complete range of network
services -- from business and market planning to RF engineering, fixed
network engineering, IP and data engineering, site acquisition and
development, installation, optimization and maintenance.
WFI is headquartered in San Diego and has performed work in over 100
countries since the Company was founded in late 1994.  The Company has
offices in Dallas, Chicago, Seattle, Reston, London, Gothenburg,
Stockholm, Mexico City, Sao Paulo, and Beijing.  News and information
are available at http://www.wfinet.com .
Notice Regarding Forward-Looking Statements
This news release contains certain forward-looking statements including,
without limitation, express or implied statements concerning the
Company's expectations regarding future financial performance and market
developments that involve risks and uncertainties.  Such statements are
only predictions, and the Company's actual results may differ
materially.  Factors that may cause the Company's results to differ
include, but are not limited to: changes in the scope or timing of the
Company's projects; continued and additional slowdowns in
telecommunications infrastructure spending in the United States and
globally, which could delay network deployment and reduce demand for the
Company's services; the timing, rescheduling or cancellation of
significant customer contracts and agreements, or consolidation by or
the loss of key customers; the adoption rate of new wireless data
services; potential losses or lost opportunities arising from the
Company's operation of its variable cost model; potential write-offs of
goodwill and other long-lived assets; financial constraints on our
customers that could cause us to write off accounts receivable or
terminate contracts; failure to successfully consummate acquisitions or
integrate acquired operations; changes in the Company's effective income
tax rate; the rate of adoption of telecom outsourcing by network
carriers and equipment suppliers; the rate of growth of adoption of WLAN
and wireless security systems by enterprises; and competition in the
marketplace which could reduce revenues and profit margins.  The Company
undertakes no obligation to update any forward-looking statements.
These and other risk factors are more fully discussed in the Company's
Annual Report on Form 10-K filed on March 21, 2003 and in other filings
made with the Securities and Exchange Commission.
For further information, please contact Gina Aven, Director of Investor
Relations of Wireless Facilities, Inc., +1-858-228-2589,
[email-masked] .

WIRELESS FACILITIES, INC.
Unaudited Condensed Consolidated Statements of Operations
(In millions, except per share amounts)
Three months ended,
June 30, 2003    September 30, 2003

Revenues                                 $56.8                $68.6
Cost of revenues                          39.8                 49.9
Gross profit                            17.0                 18.7

Selling, general and
administrative expenses                  11.2                 11.9
Provision for doubtful accounts           (0.9)                (0.9)
Depreciation and amortization              1.7                  1.6
Operating income                         5.0                  6.1
Other income (expense)                    (0.2)                 0.5
Income before income taxes               4.8                  6.6
Provision for income taxes                  --                   --
Net income                              $4.8                 $6.6

Net income per common share:
Basic                                  $0.09                $0.12
Diluted                                $0.07                $0.09

Weighted-average common
shares outstanding:
Basic                                   51.1                 53.8
Diluted                                 72.3                 75.7

WIRELESS FACILITIES, INC.
Unaudited Condensed Consolidated Statements of Operations
(In millions, except per share amounts)
Nine months ended,
September 30, 2002  September 30, 2003
Revenues                               $136.0              $179.3
Cost of revenues                        101.4               128.7
Gross profit                           34.6                50.6

Selling, general and
administrative expenses                 56.2                34.4
Provision for doubtful accounts           8.5                (3.1)
Depreciation and amortization             6.0                 5.0
Impairment charges                       21.1                  --
Operating income (loss)               (57.2)               14.3
Other income, net                         0.3                 1.1
Income (loss) before income
taxes                                (56.9)               15.4
Provision for income taxes               10.1                  --
Net income (loss)                    $(67.0)              $15.4

Net income (loss) per common share:
Basic                                $(1.40)              $0.30
Diluted                              $(1.40)              $0.21

Weighted-average common shares
outstanding:
Basic                                  48.0                51.4
Diluted                                48.0                72.3

WIRELESS FACILITIES, INC.
Unaudited Condensed Consolidated Balance Sheets
(In millions)
June 30, 2003 September 30, 2003 Assets Current assets:
Cash and cash equivalents                 $104.2           $87.7
Short-term investments                      13.0            28.4
Accounts receivable, net                    61.3            78.5
Accounts receivable-related party, net       0.7             0.9
Contract management receivables, net         1.2             0.4
Prepaid expenses                             1.5             1.7
Employee loans and advances                  0.6             0.7
Other current assets                         4.3             5.2
Total current assets                    186.8           203.5

Property and equipment, net                   12.6            12.4
Goodwill and other intangibles, net           47.7            48.1
Deferred tax assets, net                       4.0             4.0
Investments in unconsolidated affiliates       8.1             8.1
Other assets                                   0.3             0.4
Total assets                           $259.5          $276.5

Liabilities and Stockholders' Equity Current liabilities:
Accounts payable                           $10.3           $11.0
Accrued expenses                            19.8            22.6
Accounts payable-related party               0.3             0.2
Contract management payables                 2.5             2.0
Billings in excess of costs                  5.0             6.7
Income taxes payable, net                    2.7             2.6
Capital lease obligations                    1.2             0.7
Accrual for unused office space              1.6             1.5
Total current liabilities                43.4            47.3

Capital lease obligations, net of
current portion                               0.5             0.3
Accrual for unused office space, net
of current portion                            6.7             6.2
Other liabilities                              1.4             1.4
Total liabilities                        52.0            55.2

Minority interest in subsidiary                0.3             0.3

Stockholders' equity                         207.2           221.0
Total liabilities and stockholders'
equity                                   $259.5          $276.5

SOURCE Wireless Facilities, Inc.
Web Site: http://www.wfinet.com