Earnings Review and Free Research Report: Straight Path Communications Reports Quarterly Results below Expectations
Research Desk Line-up: BlackBerry Post Earnings Coverage
LONDON, UK / ACCESSWIRE / June 29, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Straight Path Communications Inc. (NYSE: STRP), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=STRP, following the Company's release of its third quarter fiscal 2017 financial results on June 09, 2017. The wireless spectrum license Company which was acquired by Verizon reported an increase in net loss. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at: http://protraderdaily.com/register/.
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Earnings Reviewed
For the quarter ended April 30, 2017, Straight Path Communications reported revenues of $0.17 million compared to revenues of $0.22 million in Q3 FY16.
Straight Path Communication's loss from operations was $4.01 million in Q3 FY17 compared to loss from operations of $25.8 million in Q2 FY17 and $1.90 million in Q3 FY16. The current quarter's loss included $144,000 of R&D expenses and $1.0 million in non-cash compensation related to the issuance and vesting of equity grants.
Net loss attributable to Straight Path Communications was $5.99 million in Q3 FY17 compared to $1.86 million in Q3 FY16. The Glen Allen, Virginia-based Company posted loss of $0.49 per share compared to $0.15 per share in the prior year's same period. On an adjusted basis, Straight Path Communications' net loss totaled $0.40 per share, missing Wall Street's expectations for a loss of $0.28 per share.
As of April 30, 2017, Straight Path Communications' cash and cash equivalents were $14.6 million, up by $6.8 million from the prior quarter close.
Strategic Update
On May 11, 2017, Straight Path Communications entered into an agreement and plan of merger with Verizon Communications Inc., pursuant to which Verizon will acquire Straight Path for $184.00 per share (reflecting an enterprise value of approximately $3.1 billion) in an all-stock transaction that is intended to qualify as a tax-free reorganization.
Davidi Jonas, Chief Executive Officer of Straight Path commented:
"I am proud to announce that Straight Path has delivered on its strategic objectives and adhered to its mission. We have been able to maximize the value of our spectrum in a merger with Verizon at a very significant premium to our market price prior to [the] announcement of the merger."
Mr. Jonas concluded:
"We are energized by this success, and enthusiastic about the role our spectrum will play in the 5G ecosystem. We are proud to have helped in this major development in the wireless telecommunications industry while delivering significant value for our stockholders."
The Company also signed a binding term sheet to settle claims with IDT that includes a payment of $10 million to Straight Path Communications and the sale of its IP group for $6 million. The Company noted that its stockholders will maintain a 22% interest in the net proceeds of the IP Group's patent enforcement activities.
Straight Path Communications stated that due to the acquisition it will not host an investor conference call this quarter.
Stock Performance
On Wednesday, June 28, 2017, the stock closed the trading session at $179.75, marginally rising 0.16% from its previous closing price of $179.47. A total volume of 80.02 thousand shares have exchanged hands. Straight Path Communications' stock price skyrocketed 419.36% in the last three months, 417.56% in the past six months, and 601.87% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have soared 430.08%. At Wednesday's closing price, the stock's net capitalization stands at $2.28 billion.
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