Core Viewpoint - Anterix announced its fiscal 2025 fourth quarter and full year financial results, highlighting significant operational developments and financial metrics [1]. Full Year FY2025 Financial and Operational Highlights - Spectrum revenue for the year ended March 31, 2025, was $6.031 million, an increase from $4.191 million in the previous year, representing a growth of 43.9% [14]. - The company reported a net loss of $11.372 million for the fiscal year, compared to a loss of $9.128 million in the prior year [14]. - Total assets as of March 31, 2025, were $333.104 million, up from $324.894 million a year earlier [12]. Fourth Quarter FY2025 Financial Highlights - In the fourth quarter, spectrum revenue was $1.389 million, compared to $1.260 million in the same quarter of the previous year, marking a 10.2% increase [14]. - The net income for the fourth quarter was $9.208 million, a significant recovery from a net loss of $9.411 million in the same quarter of the previous year [14]. - Operating expenses for the fourth quarter were $12.237 million, down from $13.755 million year-over-year [15]. Liquidity and Balance Sheet - As of March 31, 2025, Anterix had no debt and cash and cash equivalents of $47.4 million, down from $60.578 million a year earlier [4][11]. - The company had a restricted cash balance of $7.7 million in escrow deposits [4]. - The total stockholders' equity was $156.601 million, a decrease from $161.032 million in the previous year [12]. Share Repurchase Program - Anterix has an authorized share repurchase program for up to $250 million, with $227.7 million remaining as of March 31, 2025 [5][21]. - In the fourth quarter, the company repurchased shares totaling $1.955 million, and for the full fiscal year, the total was $8.398 million [5][21]. Strategic Developments - The company executed new spectrum sale agreements totaling $116 million with Oncor Electric Delivery Company and Lower Colorado River Authority [7]. - Anterix launched the AnterixAccelerator™ initiative to promote utility adoption of private broadband networks, which is currently oversubscribed [7]. - The company has a pipeline of approximately $3 billion in prospective contract opportunities across over 60 potential customers [7].

Industry Overview - The Zacks Communication - Infrastructure industry is facing challenges due to high capital expenditures for infrastructure upgrades, unpredictable raw material prices, supply-chain disruptions, and high customer inventory levels [1][4][6] - Despite these challenges, the increasing demand for digital innovations is expected to benefit the industry in the long run [1] Key Trends - High raw material prices and extended lead times for components are negatively impacting operations and profitability [4][6] - The industry is moving towards network convergence, combining voice, video, and data communications into a single network, which is expected to reduce service delivery costs and expand coverage [5] - Short-term profitability is at risk due to the need for significant infrastructure investments to meet the growing demand for mobile broadband and home Internet solutions [6] Market Performance - The Zacks Communication - Infrastructure industry has outperformed the broader Zacks Computer and Technology sector and the S&P 500 over the past year, with a growth of 67% compared to 9.1% for the S&P 500 and 6.2% for the sector [9] Valuation Metrics - The industry is currently trading at a trailing 12-month enterprise value-to-EBITDA (EV/EBITDA) ratio of 3.45X, significantly lower than the S&P 500's 16.87X and the sector's 16.83X [12] Notable Companies - Anterix Inc. (ATEX) is positioned to benefit from solid demand for scalable infrastructure and holds the largest licensed spectrum in the 900 MHz band [2][15] - Bandwidth Inc. (BAND) operates as a Communications Platform-as-a-Service (CPaaS) provider and is focused on continuous innovation to support high user volumes [2][18]

Group 1: Enovix Corporation - Enovix Corp. specializes in lithium-ion batteries for electric vehicles, grid storage, and consumer electronics, with a current stock price of $8.70 and a 12-month price forecast of $17.27, indicating a potential upside of 98.54% [3][6] - The company has a significant short interest of nearly 46 million shares, representing over 28% of its float, which could lead to a short squeeze due to a recent 16% rise in stock price [4] - Analysts are largely bullish on Enovix, with eight ratings as Buy and three as Hold, suggesting strong future growth potential [5] Group 2: Anterix Inc. - Anterix Inc. provides private wireless broadband services primarily to utility and critical infrastructure customers, with a current stock price of $27.14 and a 12-month price forecast of $67.00, indicating a potential upside of 146.87% [8][10] - The AnterixAccelerator project is expected to drive significant revenue growth, with estimates suggesting a 48% revenue improvement for the current year [9] - The company has received two Buy ratings from analysts, reflecting confidence in its growth prospects [10] Group 3: Xperi Inc. - Xperi Inc. offers pay-TV services and UX solutions, with a current stock price of $7.97 and a 12-month price forecast of $19.00, indicating a potential upside of 138.39% [11][13] - The company has shown a 37% year-over-year revenue improvement, primarily driven by its connected car business, and has swung to non-GAAP earnings per share of 16 cents [11][12] - Analysts have rated Xperi shares as Buy, with expectations of significant growth if the company continues to focus on customer base expansion and efficiency [13]

Company Announcement - Anterix will hold a conference call on June 25, 2025, at 9:00 a.m. ET to discuss its fourth quarter fiscal 2025 results [1] - A press release regarding the results will be issued after the market closes on June 24, 2025 [1] Participation Details - Participants interested in the live Q&A session must pre-register to obtain a dial-in number and unique PIN [2] - It is recommended to join the call at least 10 minutes early, and the call will also be webcast live on Anterix's Investor Relations website [2] Company Overview - Anterix collaborates with leading utilities and technology companies to utilize 900 MHz broadband for modernized grid solutions [3] - The company is the largest holder of licensed spectrum in the 900 MHz band across the contiguous United States, Hawaii, Alaska, and Puerto Rico [3] - Anterix aims to enable private LTE solutions that support advanced communications for a cleaner and more secure energy future [3]

Core Insights - The communication services sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1][2] Company Summaries - **Fubotv Inc (FUBO)**: Reported a revenue of $405.96 million for the quarter, an 8.1% year-over-year increase, but missed the analyst consensus estimate of $415.45 million. The stock fell approximately 20% in the past five days, with a 52-week low of $1.10. The RSI value is 26.9, and shares closed at $2.42, down 17.4% [7] - **Cable One Inc (CABO)**: Announced disappointing first-quarter results, with a significant drop in residential data subscribers. The stock decreased around 43% over the past five days, reaching a 52-week low of $150.00. The RSI value is 12.2, and shares closed at $152.51, down 42.4% [7] - **Anterix Inc (ATEX)**: Launched the AnterixAccelerator initiative with an investment of up to $250 million. The stock fell about 9% over the past month, with a 52-week low of $27.37. The RSI value is 28.6, and shares closed at $29.84, down 0.4% [7]

Core Insights - Anterix is collaborating with major companies like Ericsson, GE Vernova, and Nokia to enhance the deployment of 900 MHz private wireless networks for utilities, offering bundled services to accelerate adoption [1][2][3] - The AnterixAccelerator initiative aims to facilitate the digital transformation of the power grid, with participation from over 15 leading utilities and members of the Anterix Active Ecosystem [2][3] Company Overview - Anterix is the largest holder of licensed spectrum in the 900 MHz band across the contiguous United States, Alaska, Hawaii, and Puerto Rico, positioning itself to provide private wireless broadband solutions for modernized grid applications [5] - The company leads an ecosystem of more than 100 members focused on utility-first solutions to address current challenges faced by utilities [5] Industry Impact - The collaboration is seen as a significant step towards a smarter and more connected energy future, enhancing the resilience and sustainability of utility operations [3] - The initiative supports utilities in modernizing their communication infrastructure, which is critical for integrating advanced technologies and improving operational reliability [3]

Industry Overview - The Zacks Communication - Infrastructure industry is benefiting from increased user demand for digital innovations, leading to fiber densification and extensive 5G deployment [1] - Industry players provide various infrastructure solutions for communication networks, including high-speed network access solutions and fiber-to-home equipment [3] Current Trends - Network convergence is a key trend, with operators combining voice, video, and data communications into a single network, which minimizes service delivery costs and expands coverage [4] - There is a focus on higher average revenue per user as firms transition from legacy systems to technology-driven models, enhancing customer service and data traffic management [6] Challenges - High capital expenditures for infrastructure upgrades and soaring raw material prices due to geopolitical tensions are significant threats to the industry [1][5] - Supply chain disruptions from the Russia-Ukraine war and high customer inventory levels are also impacting operations [1] Market Performance - The Zacks Communication - Infrastructure industry has outperformed the broader Zacks Computer and Technology sector and the S&P 500, with a growth of 60.2% over the past year compared to 10.6% for the S&P 500 [10] - The industry currently trades at a trailing 12-month EV/EBITDA of 3.48X, significantly lower than the S&P 500's 17.08X and the sector's 16.28X [12] Notable Companies - IHS Holding Limited operates over 40,000 towers across 11 markets and has seen a stock gain of 36.4% in the past year, with upward revisions in earnings estimates [15] - Anterix Inc. holds the largest licensed spectrum in the 900 MHz band and has experienced an 11.3% stock gain over the past year, with significant upward revisions in earnings estimates [17]

The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Anterix (ATEX) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.Anterix is one of 604 companies in the Computer and Technology group. The Computer and Technology group currently sits at #5 within the Zacks Sector Rank. ...

Core Insights - Anterix has launched the AnterixAccelerator initiative with an investment of up to $250 million to support utilities in deploying 900 MHz private LTE networks, reflecting a strong commitment to enhancing private wireless broadband in the utility sector [1][2] - The initiative has garnered significant interest from over 15 utilities and current Anterix customers, indicating a pressing need for reliable and scalable private networks [1] - Anterix holds a unique position in the market with extensive expertise, a valuable 900 MHz spectrum asset, and a robust ecosystem of over 120 technology and solution providers, which positions the company to lead in making private wireless networks more accessible for utilities [2][3] Company Positioning - Anterix is recognized as the market leader in private wireless broadband, with seven leading utility customers and nearly $400 million in contracts for deploying 900 MHz private wireless broadband networks [3] - The company has zero debt, which strengthens its financial position and ability to accelerate technological evolution in the utility industry [3] - Anterix's extensive partnerships with leading utilities and technology companies aim to modernize grid solutions and address current challenges faced by utilities [4] Industry Context - The utility sector is increasingly recognizing the importance of private wireless networks for enhancing communication systems, which is critical for modernizing infrastructure [2][4] - Anterix's leadership in the 900 MHz spectrum band positions it uniquely to support advanced communications capabilities, contributing to a cleaner and more secure energy future [4]

Financial Data and Key Metrics Changes - Anterix reported an incremental cash increase of $34 million due to strategic initiatives with select customers, received at the end of January [32] - The company has approximately $29 million in cash on its balance sheet as of December 31, 2024, and is scheduled to receive roughly $80 million during the fiscal year ending March 31, 2026 [33] - A 20% reduction in operational expenses has been identified, enhancing efficiency and increasing cash flows [34] Business Line Data and Key Metrics Changes - The company announced a $13.5 million expansion agreement with the Lower Colorado River Authority, extending broadband coverage to 102 counties in Texas [7] - The total coverage across 15 states where Anterix has contracted with utilities now exceeds that of US Cellular [8] Market Data and Key Metrics Changes - Anterix has signed contracts to deploy 900 megahertz private wireless broadband networks valued at nearly $400 million, with a strong pipeline of opportunities [24][106] - The company is positioned to serve a significant portion of the U.S. population, with previous deals covering approximately 43 million people [61] Company Strategy and Development Direction - Anterix aims to lead the private wireless broadband market for utilities, focusing on expanding its ecosystem and partnerships [17][19] - The company has launched a strategic review process with Morgan Stanley to explore opportunities that will accelerate growth [23] - Anterix is committed to delivering value to shareholders and customers while improving operational efficiency [10][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's business strategy and the potential for aggressive pricing and new contracts [11] - The leadership emphasized the urgency and interest from utilities to adopt private broadband solutions, driven by successful use cases [50][114] - The company is optimistic about the future, citing a strong financial position and a robust pipeline of contracts [24][106] Other Important Information - Anterix has returned approximately $4 million to shareholders through its share repurchase program in the third quarter [11] - The FCC has proposed a rulemaking to expand the 900 megahertz broadband segment from a three by three configuration to a five by five configuration, which is seen as a significant milestone [27][28] Q&A Session Summary Question: What is the genesis of external interest in Anterix? - Management believes the interest stems from the company's large ecosystem, successful customer deployments, and the pathway to five by five spectrum [41] Question: What motivates utilities to move quicker in adopting private broadband? - Management noted that successful use cases and performance from existing customers are driving urgency among utilities to adopt these solutions [50] Question: How should investors think about CapEx and the value of the deal pipeline? - Management indicated that the current contracts represent a small fraction of the total potential value, with significant room for growth as more utilities adopt the technology [106][107]