Our latest issued announcements

  • chevron-right-orange

    Press Releases

pdvWireless Reports Second Quarter Results

11/03/16

WOODLAND PARK, N.J., Nov. 3, 2016 /PRNewswire/ -- pdvWireless, Inc., (NASDAQ: PDVW) (the "Company" or "pdvWireless"), a private wireless communications carrier and provider of mobile workforce management solutions, reported today its second fiscal quarter results for the period ended September 30, 2016.

pdvWireless logo

"As we enter the second half of our fiscal year, we continue to build upon our core initiatives and further define and enhance our position for long-term growth," said John C. Pescatore, President and CEO of pdvWireless. "We remain disciplined in our approach to investing strategically in our business, while identifying, creating and implementing wireless solutions for the many industry verticals we serve."

During the second fiscal quarter, the Company continued to see an increase in its DispatchPlus sales activity across its initial seven markets, and remains focused on enhancing its service offerings and further developing its business to meet its sales goals.

The Company's Joint Petition for Rulemaking, filed together with the Enterprise Wireless Alliance, continues to make progress, as an item was circulated to the FCC Commissioners' offices in September. While it believes the item to be a draft Notice of Inquiry, or NOI, the Company cannot confirm its contents until it has been formally voted on and, if approved, then publicly released. Mr. Pescatore added, "Although we see this as a positive forward step by the FCC, we are mindful that the process of moving this item through the Commissioners' offices could take some time, especially given numerous issues at the FCC, including the potential transition of the administration as a result of the upcoming election and the Broadcast incentive auction."

Additionally, as previously disclosed, the Company received written notice from the U.S. Department of the Interior that its proposal for the First Responder Network Authority's National Public Safety Broadband Network is no longer being considered for the award. "While we are disappointed to receive this news, we are also cognizant of the fact that actively participating in the FirstNet bidding process has afforded us long-term benefits," said Morgan O'Brien, Vice Chairman of pdvWireless. "These benefits include the ability to directly utilize the business, technical and other information developed for the FirstNet proposal in planning and preparing for the 900 MHz broadband facilities we plan to deploy, building valuable relationships with the wireless and technology companies who participated in our FirstNet consortium, and raising our profile within the wireless and technology industries. We have already realized benefits from our FirstNet efforts, and we expect to continue to reap rewards from this exposure in the future."

Financial Results

Revenue for the Company's second fiscal quarter ended September 30, 2016 was $1.1 million compared with $0.8 million for the quarter ended September 30, 2015. For the second quarter of this year, the Company reported a net loss of ($7.8 million), or ($0.54) per share, compared with a net loss of ($5.5 million), or ($0.38) per share, for the same quarter in the previous year. 

Revenue for the six months ended September 30, 2016 was $2.2 million compared with $1.7 million for the six months ended September 30, 2015. The Company reported a net loss of ($17.9 million), or ($1.24) per share, for the six-month period compared with ($9.8 million), or ($0.70) per share, for the six months ended September 30, 2015.

The Company's revenues for the three and six months ended September 30, 2016 continued to principally represent its historical software as-a-service ("SaaS") business. The increases in revenues for each of those periods, however, were primarily from its DispatchPlus business. 

The operating results for the three and six months ended September 30, 2016 also include costs and expenses related to developing the Company's broadband spectrum strategies, including the FirstNet bid, and operating, selling and marketing costs of implementing and deploying its DispatchPlus business.

Cost of revenue for the three months ended September 30, 2016 increased to $1.7 million from $0.5 million for the three months ended September 30, 2015. For the six months ended September 30, 2016, cost of revenue increased to $3.3 million from $0.9 million for the six months ended September 30, 2015. The increases for the three and six month periods primarily reflect the costs to maintain and operate the Company's DispatchPlus networks.

Operating expenses for the three months ended September 30, 2016 increased by $1.5 million, or 26%, to $7.3 million from $5.8 million for the three months ended September 30, 2015. For the six months ended September 30, 2016, operating expenses increased by $6.2 million, or 58%, to $16.8 million from $10.6 million for the six months ended September 30, 2015. The increases for the three and six month periods were principally driven by: 

  • General and administrative expenses increased by $0.9 million, or 19%, for the three months ended September 30, 2016 and increased by $4.9 million, or 59%, for the six months ended September 30, 2016. The increases resulted primarily from $1.1 million and $4.3 million for the three and six month periods, respectively, for consulting services related to the Company's strategic initiatives, including principally the FirstNet bid process. The additional increase for the six months ended September 30, 2016 resulted from $0.5 million for increased headcount and related costs.
  • Sales and support expenses increased by $0.3 million, or 38%, and $0.7 million, or 44%, for the three and six months ended September 30, 2016. The increases were driven primarily by an increase in headcount and related costs of $0.2 million and $0.4 million, respectively, along with $0.1 million and $0.3 million, respectively, for indirect commissions provided to the Company's third-party sales representatives to support its DispatchPlus business.

Adjusted EBITDA for this year's second quarter was a negative ($6.2 million) as compared with a negative ($4.3 million) for the same quarter in the prior year. Adjusted EBITDA for the six months ended September 30, 2016 was a negative ($14.4 million) as compared with a negative ($7.3 million) for the same six months ended September 30, 2015. The decreases in Adjusted EBITDA in the second quarter and first six months of the fiscal year resulted from higher cost of revenue and higher selling and general and administrative costs as the Company increased its spending and headcount to support and implement its business initiatives.

Strong Cash Position

The Company has a strong cash position, with $137.0 million in available cash as of September 30, 2016, a decrease of $16.5 million from March 31, 2016 as the Company continued to further develop its DispatchPlus business and invested in the pursuit and development of its spectrum strategies.

Conference Call

The Company will host a conference call at 4:45 p.m. EDT today, November 3, 2016, to discuss its second quarter fiscal 2017 financial results and update investors on its other strategic initiatives. Investors in the United States can participate in the earnings call by dialing into the conference line at 888-267-2845 using the conference code 410788. The earnings call will be available for replay until November 24, 2016 and can be accessed through the pdvWireless Investor Relations website at http://corp.pdvwireless.com/investors/events/

 

About pdvWireless

pdvWireless, Inc. is a private wireless communications carrier and provider of mobile workforce management solutions that increase the productivity of field-based workers and the efficiency of their dispatch and call center operations. pdvWireless has launched and is operating private push-to-talk networks in seven major markets within the United States. Its patented and industry-validated SaaS technology improves team communication and field documentation across a wide array of industries, including transportation, distribution, construction, hospitality, waste management and field service.

pdvWireless' Chairman, Brian McAuley and Vice Chairman, Morgan O'Brien, were the co-founders of Nextel Communications and have over 60 years of combined experience in two-way radio operations and FCC regulatory matters. pdvWireless is headquartered in Woodland Park, New Jersey.

Non-GAAP Financial Information

This press release and the information contained herein present a non-GAAP financial measure, Adjusted EBITDA, which excludes certain amounts. The Company defines Adjusted EBITDA as net income (loss) with adjustments for depreciation and amortization, interest income (expense)-net, other income (expense)-net, income taxes and stock-based compensation. The Company has included below a reconciliation of net loss, the most directly comparable GAAP financial measure, to Adjusted EBITDA. The Company's management uses Adjusted EBITDA to evaluate the Company's performance and provides this financial measure to investors as a supplement to the Company's reported results because management believes this information provides additional insight into the Company's operating performance by disregarding certain nonrecurring or non-cash items or items that are not reflective of the day-to-day offering of its services. Adjusted EBITDA should not be considered in isolation, as a substitute for, or as superior to, financial measures calculated in accordance with GAAP, and the Company's financial results calculated in accordance with GAAP and any reconciliation to those financial statements should be carefully evaluated. The non-GAAP financial measure used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.

Forward-Looking Statements

Any statements contained in this press release that do not describe historical facts are forward-looking statements as defined under the Federal securities laws. These forward-looking statements include statements regarding the Company's DispatchPlus business and its sales and marketing initiatives, the regulatory status and timing of the Company's Joint Petition for Rulemaking and the Company's spectrum and other initiatives and opportunities. Any forward-looking statements contained herein are based on the Company's current expectations, but are subject to a number of risks and uncertainties that could cause its actual future results to differ materially from its current expectations or those implied by the forward-looking statements. These risks and uncertainties include, but are not limited to: the Company has a limited operating history with respect to its recently launched DispatchPlus business; the Company has had net losses each year since its inception and may not achieve or maintain profitability in the future; the Company's indirect sales model may not be successful; customers may not adopt the Company's technology or service offerings as quickly as anticipated or in sufficient numbers; the Company's spectrum and other initiatives and opportunities, including its Joint Petition for Rulemaking, may not be successful on a timely basis or at all, may cost more than anticipated, and may continue to require significant time and attention from its senior management team and the expenditure of significant resources; the wireless communication industry is highly competitive and the Company may not be able to compete successfully; and government regulation could adversely affect the Company's business and prospects. These and other factors that may affect the Company's future results or operations are identified and described in more detail in its filings with the Securities and Exchange Commission, (the "SEC"), including its Annual Report on Form 10-K for the fiscal year ended March 31, 2016, filed with the SEC on June 13, 2016 and its quarterly report on Form 10-Q for the quarter ended September 30, 2016, filed with the SEC on November 3, 2016. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by applicable law, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results, later events or circumstances or to reflect the occurrence of unanticipated events.

 


Investor relations contacts:




Natasha Vecchiarelli


Joele Frank, Wilkinson Brimmer Katcher

Investor Relations Manager



pdvWireless, Inc.


Joe Millsap

973-531-4397


415-869-3950

ir@pdvwireless.com


jmillsap@joelefrank.com






Adam Pollack



212-355-4449



apollack@joelefrank.com

 

 

pdvWireless, Inc.

Consolidated Statements of Operations
















Three months ended


Six months ended



September 30,


September 30,



2016


2015


2016


2015

Operating revenues



(Unaudited)



(Unaudited)



(Unaudited)



(Unaudited)

Service revenue


$

885,271


$

622,019


$

1,650,576


$

1,270,681

Spectrum lease revenue



182,186



182,186



364,372



364,372

Other revenue



74,050



7,253



172,341



17,265

Total operating revenues



1,141,507



811,458



2,187,289



1,652,318

Cost of revenue













Sales and service



1,674,941



490,585



3,258,722



865,759

Gross profit (loss)



(533,434)



320,873



(1,071,433)



786,559

Operating expenses













General and administrative



5,476,566



4,588,841



13,222,566



8,311,247

Sales and support



1,219,744



885,007



2,435,985



1,696,682

Product development



621,923



336,200



1,194,844



641,097

Total operating expenses



7,318,233



5,810,048



16,853,395



10,649,026

Loss from operations



(7,851,667)



(5,489,175)



(17,924,828)



(9,862,467)

Interest expense



(1,363)





(2,727)



Interest income



25,529



29,293



48,058



51,513

Other income (expense)



(4,793)



1,250



(4,793)



1,250

Net loss


$

(7,832,294)


$

(5,458,632)


$

(17,884,290)


$

(9,809,704)

Net loss per common share basic and diluted


$

(0.54)


$

(0.38)


$

(1.24)


$

(0.70)

Weighted-average common shares used to compute
basic and diluted net loss per share



14,383,224



14,379,082



14,379,366



13,938,243

 

The table below reconciles Adjusted EBITDA to the Company's GAAP disclosure of net loss.

 
















Three months ended


Six months ended



September 30,


September 30,



2016


2015


2016


2015



(Unaudited)


(Unaudited)


(Unaudited)


(Unaudited)

Adjusted EBITDA:













Net loss


$

(7,832,294)


$

(5,458,632)


$

(17,884,290)


$

(9,809,704)

Interest income (expense) - net



(24,166)



(29,293)



(45,331)



(51,513)

Other income (expense) - net



4,793



(1,250)



4,793



(1,250)

Depreciation - Cost of revenue



504,824



50,236



948,371



83,185

Depreciation and amortization - Operating expenses



49,920



29,123



93,079



45,263

Stock-based compensation expense



1,073,840



1,105,976



2,439,423



2,455,611

Adjusted EBITDA


$

(6,223,083)


$

(4,303,840)


$

(14,443,955)


$

(7,278,408)














 

 

pdvWireless, Inc.

Consolidated Balance Sheets




September 30,


March 31,



2016


2016



(Unaudited)




ASSETS

Current Assets







Cash and cash equivalents


$

136,958,632


$

153,462,865

Accounts receivable, net of allowance for doubtful accounts



652,564



528,283

Inventory



37,984



93,203

Prepaid expenses and other current assets



547,879



906,952

Total current assets



138,197,059



154,991,303

Property and equipment, net



14,760,039



15,119,766

Intangible assets



104,427,183



103,655,459

Capitalized patent costs, net



217,005



222,359

Other assets



328,346



60,073

Total assets


$

257,929,632


$

274,048,960

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities







Accounts payable and accrued expenses


$

2,954,924


$

3,780,697

Accounts payable - officers



18,808



44,159

Current portion of note payable



494,545



494,545

Deferred revenue



791,375



744,605

Total current liabilities



4,259,652



5,064,006

Long-term portion of note payable



497,265



497,265

Deferred revenue, net of current portion



5,421,159



5,647,773

Other liabilities



1,011,043



654,536

Total liabilities



11,189,119



11,863,580

Commitments and contingencies







Stockholders' equity







Preferred stock, $0.0001 par value per share, 10,000,000 shares authorized
and no shares outstanding at September 30, 2016 and March 31, 2016





Common stock, $0.0001 par value per share, 100,000,000 shares authorized
and 14,324,779 shares issued and outstanding at September 30, 2016 and
14,300,790 issued and outstanding at March 31, 2016



1,441



1,438

Additional paid-in capital



328,108,508



325,669,088

Accumulated deficit



(81,369,436)



(63,485,146)

Total stockholders' equity



246,740,513



262,185,380

Total liabilities and stockholders' equity


$

257,929,632


$

274,048,960

 

 

pdvWireless, Inc.

Consolidated Statement of Cash Flows

(Unaudited)










Six months ended



September 30,



2016


2015

CASH FLOWS FROM OPERATING ACTIVITIES







Net loss


$

(17,884,290)


$

(9,809,704)

Adjustments to reconcile net loss to net cash used by operating activities







Depreciation and amortization



1,041,450



128,448

Stock-based compensation expense



2,439,423



2,455,611

Bad debt expense



13,727



(229)

Changes in operating assets and liabilities







Accounts receivable



(138,008)



(4,065)

Inventory



55,219



Prepaid expenses and other assets



90,800



95,515

Accounts payable and accrued expenses



(825,773)



(2,717,517)

Accounts payable - officers



(25,351)



1,617

Deferred revenue



(393,319)



(356,198)

Other liabilities



336,938



139,597

Net cash flows used by operating activities



(15,289,184)



(10,066,925)

CASH FLOWS FROM INVESTING ACTIVITIES







Purchases of intangible assets



(503,491)



(1,141,986)

Purchases of equipment



(710,497)



(4,211,917)

Payments for patent costs



(1,061)



(5,640)

Net cash used by investing activities



(1,215,049)



(5,359,543)

CASH FLOWS FROM FINANCING ACTIVITIES







Net proceeds from follow-on offering





64,792,220

Proceeds from option exercise





40,001

Net cash provided from financing activities





64,832,221

Net change in cash and cash equivalents



(16,504,233)



49,405,753

CASH AND CASH EQUIVALENTS







Beginning of the period



153,462,865



119,873,668

End of the period


$

136,958,632


$

169,279,421

 

Logo - http://photos.prnewswire.com/prnh/20160531/373940LOGO

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/pdvwireless-reports-second-quarter-results-300357043.html

SOURCE pdvWireless, Inc.