Welcome!

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.

Latest Stories
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor – all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Join IBM November 2 at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how to go beyond multi-speed it to bring agility to traditional enterprise applications. Technology innovation is the driving force behind modern business and enterprises must respond by increasing the speed and efficiency of software delivery. The challenge is that existing enterprise applications are expensive to develop and difficult to modernize. This often results in what Gartner calls ...
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 ...
The age of Digital Disruption is evolving into the next era – Digital Cohesion, an age in which applications securely self-assemble and deliver predictive services that continuously adapt to user behavior. Information from devices, sensors and applications around us will drive services seamlessly across mobile and fixed devices/infrastructure. This evolution is happening now in software defined services and secure networking. Four key drivers – Performance, Economics, Interoperability and Trust ...
“DevOps is really about the business. The business is under pressure today, competitively in the marketplace to respond to the expectations of the customer. The business is driving IT and the problem is that IT isn't responding fast enough," explained Mark Levy, Senior Product Marketing Manager at Serena Software, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
Translating agile methodology into real-world best practices within the modern software factory has driven widespread DevOps adoption, yet much work remains to expand workflows and tooling across the enterprise. As models evolve from pockets of experimentation into wholescale organizational reinvention, practitioners find themselves challenged to incorporate the culture and architecture necessary to support DevOps at scale. In his session at @DevOpsSummit at 20th Cloud Expo, Anand Akela, Senior...
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).