Welcome!

Mobile IoT Authors: Sematext Blog, Pat Romanski, Elizabeth White, Liz McMillan, Carmen Gonzalez

News Feed Item

Straight Path Communications Reports Results for Second Quarter Fiscal 2014

GLEN ALLEN, Va., March 17, 2014 /PRNewswire/ -- Straight Path Communications Inc. (NYSE MKT: STRP), a communications asset company that holds an extensive portfolio of 39 and 28 GHz wireless spectrum with coverage across the entire United States as well as a focused intellectual property portfolio, announced today operating results for its second quarter fiscal 2014 ended January 31, 2014.

Fiscal Second Quarter Highlights

  • Total revenues were $454,000 compared to $127,000 for the first fiscal quarter 2014
  • Total costs and expenses were $1.3 million, which includes $341,000 in non-cash equity compensation
  • Net loss attributable to STRP was $868,000
  • Cash and cash equivalents at January 31, 2014 of $14.3 million
  • Confidential license and settlement agreements with Sharp and Bandwidth.com
  • Total license and settlement amounts aggregated $4.6 million at January 31, 2014
  • Additional IP enforcement actions initiated, including patent infringement action against Vonage

Management Commentary

Davidi Jonas, Chief Executive Officer of Straight Path commented, "We have undertaken a series of actions to advance our Spectrum business and position Straight Path as providing a critical element for wireless backhaul solutions.  We've been encouraged by the discussions we've held with key players in the wireless telecom ecosystem, including equipment developers and distributors that service WISPs, wireless carriers, regional service providers and national carriers. We believe that our Spectrum assets represent a compelling option for network build-outs and have identified specific applications to capitalize on our 39 GHz spectrum to provide the market with a viable, cost-effective alternative to fiber and other spectrum bands.  We expect that collaborative go-to-market efforts will bring us closer to monetizing our Spectrum assets.

Mr. Jonas continued, "During the quarter we successfully settled two of our IP enforcement actions as we continue to actively defend our intellectual property portfolio. We're pleased to have demonstrated the strength of our patents through these initial settlements and expect to initiate additional efforts to license our patents.

Mr. Jonas concluded, "While additional IP monetization opportunities will continue to be the near-term driver of revenue, spectrum monetization opportunities are significant and within reach. We remain on track with our 2014 fiscal goals and continue to be optimistic in our outlook going forward."

Investor Conference Call 
Straight Path will host a conference call tomorrow morning, Tuesday March 18th at 9:30am EDT to provide a business update and answer questions from the investment community.  To participate, please call 1-877-300-8521 from the U.S. or + 1-412-317-6026 internationally and use access code: 10042439.  The conference call will also be available via a listen only webcast by accessing the Investors section of Straight Path Communications' website, www.spathinc.com.

A replay of the conference call will also be available approximately two hours after completion of the live conference call at www.spathinc.com. A telephonic replay of the call will be available until March 24, 2014. To access the replay, please dial: 1-877-870-5176 from the U.S. or +1-858-384-5517 internationally. Participants must use the following code to access the replay of the call: 10042439.

About Straight Path Communications Inc. 
Straight Path (NYSE MKT: STRP) holds, leases, and markets its extensive holdings of 39 and 28 GHz fixed wireless spectrum licenses through its Straight Path Spectrum subsidiary. Straight Path holds, licenses, and conducts other business related to certain patents through its Straight Path IP Group subsidiary. Additional information is available on Straight Path's website: http://spathinc.com/

Safe Harbor 
In this press release, all statements that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate, "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those described in our Annual Report on Form 10-K for the fiscal year ended July 31, 2013 and our other periodic filings with the SEC (under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations"). We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.

Contacts
Jonathan Rand
Chief Financial Officer
Straight Path Communications Inc.
804-433-1528
[email protected] 

or

Jeffrey Goldberger / Rob Fink
KCSA Strategic Communications
212-896-1249 / 212-896-1206
[email protected]  

 

STRAIGHT PATH COMMUNICATIONS INC.


COMBINED AND CONSOLIDATED BALANCE SHEETS





January 31,
2014

July 31,
2013


(Unaudited)

(Note 1)


(in thousands)

Assets



Current assets:



Cash and cash equivalents

$     14,295

$    15,000

Trade accounts receivable, net of allowance for doubtful accounts of $4 at January 31, 2014 and 
     July 31, 2013

3,841

60

Other current assets

1,075

90

Total current assets

19,211

15,150

Prepaid expenses

846

239

Intangibles

350

350

Total assets

$     20,407

$     15,739

Liabilities and equity



Current liabilities:



Trade accounts payable

$               7

$               1

Accrued expenses

3,345

1,473

Due to IDT Corporation

159

Deferred revenue

2,224

145

Income taxes payable

15

15

Total current liabilities

5,750

1,634

Deferred revenue—long-term portion

1,589

250

Total liabilities

7,339

1,884

Commitments and contingencies



Equity:



Straight Path Communications stockholders' equity:



Preferred stock, $.01 par value; authorized shares—3,000; no shares issued

Class A common stock, $.01 par value; authorized shares—2,000; 787 shares issued and 
            outstanding at January 31, 2014 and July 31, 2013

8

8

Class B common stock, $.01 par value; authorized shares—40,000; 11,008 and 10,693 shares 
            issued and outstanding at January 31, 2014 and July 31, 2013, respectively

110

107

Additional paid-in capital

14,609

14,114

Accumulated deficit

(1,118)

Total Straight Path Communications stockholders' equity

13,609

14,229

Noncontrolling interests

(541)

(374)

Total equity

13,068

13,855

Total liabilities and equity

$     20,407

$     15,739

 

 

STRAIGHT PATH COMMUNICATIONS INC.






COMBINED AND CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)







Three Months Ended
January 31,


Six Months Ended
January 31,


2014

2013


2014

2013


(in thousands, except per share data)

Revenues

$          453

$            229


$            580

$            697

Costs and expenses:






Direct cost of revenues

283

104


311

410

Selling, general and administrative

1,042

683


1,611

2,319







Total costs and expenses

1,325

787


1,922

2,729

Gain on sale of rights in wireless spectrum

150


150







Loss from operations

(872)

(408)


(1,342)

(1,882)

Interest income

4

3


7

6

Income from IDT Corporation payments of liabilities


50







Loss before income taxes

(868)

(405)


(1,285)

(1,876)

Provision for income taxes

(12)


(12)







Net loss

(868)

(417)


(1,285)

(1,888)

Net loss attributable to noncontrolling interests

141

81


167

291







Net loss attributable to Straight Path Communications Inc

$        (727)

$          (336)


$      (1,118)

$      (1,597)













Basic and diluted loss per share attributable to Straight Path 
     Communications Inc. stockholders

$       (0.07)

$         (0.03)


$        (0.11)

$        (0.14)













Weighted-average number of shares used in calculation of basic and 
     diluted loss per share

10,784

11,425


10,646

11,425







 

STRAIGHT PATH COMMUNICATIONS INC.



COMBINED AND CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)




Six Months Ended
January 31,


2014

2013


(in thousands)

Operating activities



Net loss

$       (1,285)

$       (1,888)

Adjustments to reconcile net loss to net cash used in operating activities:



Stock-based compensation

498

1,226

Change in assets and liabilities:



Trade accounts receivable, net

(3,781)

(18)

Other current assets and prepaid expenses,

(1,592)

(134)

Trade accounts payable and accrued expenses

1,878

(434)

Due to IDT Corporation

159

Deferred revenue

3,418

134

Net cash used in operating activities

(705)

(1,114)

Financing activities



Funding provided by IDT Corporation, net of repayments

720

Net cash provided by financing activities

720

Net (decrease) increase in cash and cash equivalents

(705)

(394)

Cash and cash equivalents at beginning of period

15,000

2,598

Cash and cash equivalents at end of period

$      14,295

$           2,204

Supplemental schedule of non-cash investing and financing activities



Amount due to IDT Corporation contributed to equity

$               —

$            720

 

Note 1—Basis of Presentation

The accompanying unaudited combined and consolidated financial statements of Straight Path Communications Inc. and its subsidiaries ("Straight Path") have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended January 31, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2014. The balance sheet at July 31, 2013 has been derived from Straight Path's audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, please refer to the combined and consolidated financial statements and footnotes thereto included in Straight Path's Annual Report on Form 10-K for the fiscal year ended July 31, 2013, as filed with the U.S. Securities and Exchange Commission (the "SEC").

Straight Path was incorporated in April 2013. Straight Path's businesses consist of 100% ownership of Straight Path Spectrum, Inc. ("Straight Path Spectrum"), which holds, leases and markets fixed wireless spectrum licenses, and 84.5% ownership of Straight Path IP Group, Inc. ("Straight Path IP"), which holds intellectual property primarily related to communications over the Internet and the licensing and other businesses related to this intellectual property. The "Company" in these financial statements refers to Straight Path, Straight Path Spectrum, and Straight Path IP on a combined and consolidated basis as if Straight Path existed and owned the above interests in these entities in all periods presented.

The Company was formerly a subsidiary of IDT Corporation ("IDT"). On July 31, 2013, the Company was spun-off by IDT to its stockholders and became an independent public company (the "Spin-Off"). The Company authorized the issuance of two classes of its common stock, Class A and Class B. The Spin-Off of the Company occurred by way of a pro rata distribution of the Company's Class A common stock and Class B common stock held by IDT to IDT's stockholders. On the distribution date, each IDT stockholder received one share of the Company's Class A common stock for every two shares of IDT Class A common stock and one share of the Company's Class B common stock for every two shares of IDT Class B common stock held on the record date for the Spin-Off. On July 31, 2013, the Company distributed 0.8 million shares of its Class A common stock (based on 1.6 million shares of IDT Class A common stock that were outstanding on the record date) and 10.7 million shares of its Class B common stock (based on 21.4 million shares of IDT Class B common stock that were outstanding on the record date).

The Company's fiscal year ends on July 31 of each calendar year. Each reference below to a fiscal year refers to the fiscal year ending in the calendar year indicated (e.g., fiscal 2014 refers to the fiscal year ending July 31, 2014).

SOURCE Straight Path Communications Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Dave McCarthy, Director of Products at Bsquare Corporation; Alan Williamson, Principal...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, drew together recent research and lessons learned from emerging and established compa...
"IoT is going to be a huge industry with a lot of value for end users, for industries, for consumers, for manufacturers. How can we use cloud to effectively manage IoT applications," stated Ian Khan, Innovation & Marketing Manager at Solgeniakhela, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
"Dice has been around for the last 20 years. We have been helping tech professionals find new jobs and career opportunities," explained Manish Dixit, VP of Product and Engineering at Dice, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"At ROHA we develop an app called Catcha. It was developed after we spent a year meeting with, talking to, interacting with senior citizens watching them use their smartphones and talking to them about how they use their smartphones so we could get to know their smartphone behavior," explained Dave Woods, Chief Innovation Officer at ROHA, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2017 New York. The 20th Cloud Expo and 7th @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Internet to enable us all to im...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
We are always online. We access our data, our finances, work, and various services on the Internet. But we live in a congested world of information in which the roads were built two decades ago. The quest for better, faster Internet routing has been around for a decade, but nobody solved this problem. We’ve seen band-aid approaches like CDNs that attack a niche's slice of static content part of the Internet, but that’s it. It does not address the dynamic services-based Internet of today. It does...
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.