pdvWireless Reports Financials, Lays Off 20% of Staff
Wednesday, June 06, 2018 | Comments

pdvWireless reported its fourth quarter and fiscal year end results for the period ended March 31 and said it would lay off 20 percent of its staff.

Revenue for the company's fourth fiscal quarter was $1.8 million compared with $1.3 million for the same period of the prior year. Net loss for the company's fourth quarter was $8.8 million, versus $14 million for the same period of the prior year.

Revenue for the company's year ended March 31, 2018, was $6.4 million compared with $4.8 million for the prior year. Net loss for the year was $30.6 million versus $39.2 million for the prior year.

The company's revenues for the three and 12 months ended March 31, 2018, 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 growth in its TeamConnect business.

Cost of revenue for the three and 12 months ended March 31 was $2.2 million and $7.9 million, respectively. Cost of revenue for the same periods of the prior year was $2 million and $7 million, respectively. The increases over the prior periods primarily reflect the costs to maintain and operate the Company's TeamConnect networks.

Operating expenses for the three months ended March 31 increased by $1.2 million, or 18 percent, to $8.1 million from $6.9 million for the three months ended March 31, 2017. For the 12 months ended March 31, operating expenses decreased by $300,000, or 1 percent, to $30.2 million from $30.5 million for the 12 months ended March 31, 2017.

The increase for the three months ended period was principally driven by increased stock compensation costs. The decrease for the full year reflects lower general and administrative costs, which decreased by $1.7 million, partially offset by higher sales and support costs. The lower general and administrative costs were mainly the result of the higher costs in the prior year period associated with the company's First Responder Network Authority (FirstNet) bid.

"Our prospects have never looked better for becoming a unique and invaluable part of the wireless infrastructure of the United States,” said Morgan O'Brien, CEO of pdvWireless. “The hard work by our talented team executing a disciplined strategy has brought us closer to bringing to market a crucial piece of broadband spectrum for which many of the nation's critical infrastructure players have been clamoring."

The pdvWireless board of directors approved an initial plan to restructure the company's TeamConnect and pdvConnect businesses. As part of the restructuring plan, the company eliminated about 20 positions, or roughly 20 percent of its workforce.

"With the substantial progress we have made toward achieving a broadband future, our opportunity now is to accelerate our momentum and build on our strengths,” O’Brien said. “The decisions we have announced today have been difficult, but will enable us to further invest in the initiatives that can fuel our future growth and allow us to pursue our corporate goal of establishing pdvWireless as a leader in solving the essential and valuable broadband network needs of critical infrastructure entities.”

The company has $98.3 million in available cash as of March 31, a decrease of $25.8 million from March 31, 2017, as the company continued to further develop its TeamConnect business and invested in the pursuit and development of its other business and spectrum initiatives. TeamConnect is an application, offering GPS worker location and status updates along with voice communications, that works on MOTOTRBO radios, the company’s website said.

Last month, pdvWireless revised its 900 MHz band realignment proposal in a new filing with the FCC.

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