pdvWireless Announces Second-Quarter Results
Wednesday, November 08, 2017 | Comments

pdvWireless reported its second quarter results for the period ended Sept. 30.

Revenue for the second quarter was $1.5 million, compared with $1.1 million in the same period of the prior year. The net loss was $8.2 million, or $0.57 per share, versus a net loss of $7.8 million, or $0.54 per share, for the similar period of the prior year.

Revenue for the six months ended Sept. 30 was $3 million, compared with $2.2 million for the same period of the prior year. The net loss for the six months ended Sept. 30 was $16.1 million, or $1.12 per share, versus a net loss of $17.9 million, or $1.24 per share, for the similar period of the prior year.

The company's revenue for the three and six months ended Sept. 30, continued to principally represent its historical software-as-a-service (SaaS) business. The increases in revenue for those periods, however, in comparison to the revenue for the same periods of the prior year, were primarily from its DispatchPlus business.

Cost of revenue for the three months and six months ended Sept. 30, was $1.9 million and $3.6 million respectively, an increase of approximately 10 percent over each of the prior fiscal year's comparable periods. The increased cost for both the three- and six-month periods primarily reflect the greater costs to maintain and operate the company's DispatchPlus networks.

Total operating expenses of $7.3 million for the three months ended Sept. 30 remained relatively flat versus the similar quarter of the prior year. Reduced general and administrative expenses were mostly offset by increased sales and support costs.

Total operating expenses of $14.4 million for the six months ended Sept. 30 decreased by $2.4 million, or 14 percent, from the prior year period. The decrease reflects lower general and administrative (G&A) costs, which decreased by $3.3 million, partially offset by higher sales and support costs. The lower G&A costs were mainly the result of the increased costs in the prior year period associated with the company’s First Responder Network Authority (FirstNet) bid.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter ended was negative $5.6 million versus negative $6.2 million for the similar period of the prior year. Adjusted EBITDA for the six months ended Sept. 30 was negative $11.2 million versus negative $14.4 million for the six months ended Sept. 30, 2016.

pdvWireless has $110.5 million in available cash as of Sept. 30, a decrease of $13.5 million from March 31. The decrease reflects the Company's continued development of its DispatchPlus business and investments in the pursuit of other business and spectrum initiatives.

As previously announced, the FCC issued a notice of inquiry (NoI) in August, which examines whether rule changes proposed by pdvWireless and the Enterprise Wireless Alliance (EWA) are appropriate to increase access to spectrum, improve spectrum efficiency and expand flexibility in the 900 MHz band. Comments on the NoI from different industry organizations and companies were mixed.

"We continue to strongly believe in the merits of the proposal we made to improve the efficiency and utility of the 900 MHz band,” said John C. Pescatore, president and CEO of pdvWireless. “We've worked diligently to address the FCC's queries outlined in the NoI and have made extensive outreach to address the concerns of those opposed.

“While we cannot speculate on how long it will take the commission to review all items on the record, nor when a decision will be made, we continue to be guided by the commission's stated goals of promoting innovation, bringing new spectrum to market, fostering investment, encouraging further rural broadband deployment and increasing the FCC's speed in turning around matters on its docket.”

"We continue to have constructive discussions with interested parties with the hope of identifying a path forward that will enable us to put our licensed 900 MHz spectrum to its best and highest use while at the same time respecting the rights and operations of other licensees in the band,” said Morgan O'Brien, vice chairman of pdvWireless. “Our goal is to modernize the 900 MHz band, with the cornerstone of our proposal being the preservation of narrowband functionality for those who want it, while providing opportunities to improve spectrum efficiency and expand flexibility by enabling the use of newer, more spectrally efficient technologies such as LTE broadband.”

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