Spok Releases Second Quarter Financial Results
Thursday, July 28, 2016 | Comments

Spok Holdings announced operating results for the second quarter ended June 30.

In the 2016 second quarter, consolidated revenue was $44.6 million compared with $48 million in the second quarter of 2015. Software revenue was $16.8 million in the second quarter of 2016 compared with $17.7 million in the second quarter of 2015. Wireless revenue totaled $27.8 million in the second quarter compared with $30.3 million in the prior-year quarter.

Net income for the second quarter of 2016 was $3.5 million, up from $3.4 million in the second quarter of 2015.

The quarterly rate of paging unit erosion slowed to 0.8 percent in the second quarter of 2016 compared with 1.6 percent in the year-earlier quarter. Net paging unit losses were 9,000 in the second quarter of 2016, down from 19,000 in the second quarter of 2015 and less than half of net pager losses in the prior quarter. Paging units in service at June 30 totaled 1.144 million compared with 1.211 million at the end of the prior year quarter.

Spok’s cash balanceon June 30 was $117.1 million, unchanged from June 30, 2015, and up from $111.3 million on Dec. 31.

In the first half of 2016, consolidated revenue was $90 million compared with $96.1 million in the first half of 2015. Software revenue was $34 million in the first half of 2016 compared with $35.2 million in the prior year period. Wireless revenue totaled $56 million in the first half of 2016, compared to $60.9 million in the year-to-date 2015 period.

Net income for the first half of 2016 was $6.9 million compared with $7.3 million in the 2015 year-to-date period.

“We are pleased with our performance in the second quarter of 2016 and believe that we are beginning to see the benefits from the investments that we made to enhance and upgrade our product development team and tools, as well as our sales infrastructure and management,” said Vincent D. Kelly, Spok Holdings CEO. “We saw strong performance in a number of key operating measures and solid sequential improvements in sales bookings and backlog levels, operating expense management, cash flow and subscriber retention. Our ability to generate healthy cash flows allowed us to execute against our capital allocation strategy, returning capital to shareholders while adding more than $5 million to our cash balances.”

The company expects 2016’s total revenue to range from $174 million to $192 million, operating expenses (excluding depreciation, amortization and accretion) to range from $153 million to $159 million, and capital expenditures to range from $6 million to $8 million.

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