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Anterix(ATEX) - 2026 Q1 - Earnings Call Transcript
2025-08-13 14:00
Financial Data and Key Metrics Changes - The company ended Q1 of fiscal 2026 debt-free with a healthy cash position of approximately $41 million [13] - During the quarter, the company recorded a total gain of $35 million, which included $34 million from the exchange of narrowband for broadband licenses [14] - The company has removed approximately 20% of its cost base over the last year, enhancing efficiency and long-term cash flow [14] Business Line Data and Key Metrics Changes - The accelerator program has been oversubscribed, with engagements exceeding $500 million in potential contract value, indicating strong market interest [5] - More than 15 utilities engaged in the initial launch of the accelerator program, representing over $2 billion in potential contract value [6] Market Data and Key Metrics Changes - The company has cleared over 80% of incumbents within its spectrum band and has licenses or applications for broadband licenses in approximately 90% of all counties in the United States [15] - The actual network utilization is only a fraction of the total available capacity, with long-term simulations confirming significant headroom for scaling [10] Company Strategy and Development Direction - The company is focused on scaling effectively and delivering lasting value through its accelerator program, financial strength, and utility validation of 900 megahertz private broadband [4] - The company aims to push towards a 10 megahertz offering to meet and anticipate utilities' needs [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's long-term value and market position, emphasizing the importance of methodical utility decision-making [34] - The company sees significant upside potential and is not in serious negotiations for strategic alternatives due to its strong market position [42] Other Important Information - The company plans to return capital to shareholders through various methods, including dividends classified as return of capital and share buybacks [13] - The company is engaged with the FCC to continue clearing spectrum and delivering licenses to meet regulatory commitments [15] Q&A Session Summary Question: Potential gain from remaining narrowband broadband license exchanges - Management clarified that gains from broadband licenses could represent over $1 billion over time, but timing is dependent on the FCC's approval process [22][23] Question: Plan for spectrum where utilities drop out of the pipeline - Management indicated that the drop of a utility from the scorecard does not reflect a loss of commitment, and they will continue to build relationships with replacements [30] Question: Market perception of the company's value - Management highlighted that the lack of announcements does not indicate a lack of progress, emphasizing the methodical nature of utility contracts [34][35] Question: Strategic alternatives process - Management confirmed that the strategic alternatives process is active but passive, as they see significant upside potential in the company [42]