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
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, 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 opportuni...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, 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. Meanwhile, 94% of enterpri...
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...