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ORANGE COUNTY BRIEFLY

Powerwave Shares Off 7.5%

January 08, 1998| Dow Jones

IRVINE — Powerwave Technologies Inc.'s shares fell 7.5% Wednesday amid ongoing concerns about the firm's large exposure in South Korea, analysts said.

Powerwave, which supplies radio frequency power amplifiers used in wireless communications networks, derives 75% to 80% of its annual revenue from South Korea, analysts said. The company's stock fell $1.25 a share to $15.56. The stock dropped 5.9% Tuesday.

Analyst Albert Lin of Soundview Financial Group said the shares may now be oversold and suggests there may be a good buying opportunity.

"Fear has taken over a lot of investors," he said.

Lin said there is no question that South Korea's woes will continue to impact the company, but Powerwave is diversifying its sales in the U.S., which will cushion the blow from declining South Korean revenue.

Lin predicted that the company's fourth-quarter earnings will be 28 cents a share, higher than Wall Street's expectations. Powerwave reported earnings of 15 cents a share a year earlier.

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