Straight Path Communications (STRP) Swings to Q1 Loss

Straight Path Communications (NYSE: STRP) reported Q1 EPS of ($0.05), versus $0.06 reported last year. Revenue for the quarter came in at $1.7 million, versus $4.8 million reported last year.

Management Comments

Davidi Jonas, Chief Executive Officer of Straight Path commented, “Straight Path delivered on its strategic objectives and adhered to its mission. We continue to operate efficiently and made continued progress in several key areas of our business:

• The FCC has released its NPRM for four mmWave bands, including two exclusive licensed bands 39 and 28 GHz. The FCC and industry leaders seem to believe in the long-term value of our spectrum and its future prospects. While the NPRM is not the final step in the regulatory process, we believe the content of the NPRM is a major milestone for us.
• The 3rd Generation Partnership Project (3GPP), which unites 7 telecommunications standard development organizations, has a working group for 5G which has begun standard setting conversations, and the joint proposal of industry leaders advocates for phase 1 to address frequencies (at least) up to 40 GHz. The goal is to complete phase 1 in 2018.
• The 37-40 GHz band was one of those chosen for study for mobile services to be presented at WRC-19. World Radio Communications conferences are held every three to four years. It is the job of WRC to review and, if necessary, revise the international treaty governing Radio Regulations.
• We opened our ‘Gigabit Mobility Lab’ in Plano, Texas and began development of a 39 GHz transceiver for 5G mobile service. Led by our CTO, Jerry Pi, supported by an expanding team, we believe we are on track to demonstrate within 14 months.
• Our collaboration with CBNL continues to broaden, and contributed to our securing of a leading national wireless provider as a spectrum lease customer, demonstrating the benefits for major wireless operators to increase their reach efficiently to enterprise and other end-users. We are exploring other cities with this provider for expansion in both LMDS and 39 GHz bands.”

Mr. Jonas added, “Our Straight Path IP Group won its appeal. The U.S. Court of Appeals of the Federal Circuit reversed the PTAB’s cancellation of all challenged claims of the ’704 Patent, rejected the PTAB’s claim construction of a key claim term, and remanded the case back to PTAB for further proceedings consistent with the corrected construction. The same key claim term is at issue in other Inter Partes Reviews brought by different parties against this patent.”

Mr. Jonas concluded, “We are energized by the progress we have achieved towards our strategic objectives. We hope to continue to deliver on the efforts that will generate maximal value for our stockholders.”

For earnings history and earnings-related data on Straight Path Communications (STRP) click here.

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