Anterix(US:ATEX)2019-11-09 21:51Financial Data and Key Metrics Changes - The company reported a net loss of $7.7 million or negative $0.46 per share for the second fiscal quarter, an improvement from a net loss of $11.8 million or negative $0.81 per share in the same quarter of the previous year [29] - Adjusted EBITDA for the second quarter was negative $6.2 million, compared to negative $7.6 million for the same period last year, indicating improved performance due to lower restructuring charges [29] Business Line Data and Key Metrics Changes - The company is focusing on the electric utility industry for its broadband spectrum offerings, which is seen as a compelling opportunity for wide-scale adoption of LTE broadband technology [11][12] - The company has engaged with approximately 400 incumbent licensees that will need to be retuned or relocated to clear the proposed broadband segment [8] Market Data and Key Metrics Changes - There is increasing interest from electric utilities and other industrial sectors in private LTE networks, which are seen as essential for mission-critical communications [15][16] - The company has seen a rise in demand for private LTE solutions, with utilities developing business cases for enhanced telecom capabilities [17] Company Strategy and Development Direction - The company is actively preparing for the regulatory process and has prioritized hiring staff for the retuning process, with a team now in place that has a combined 250 years of experience [7][8] - The company aims to enhance its spectrum position by acquiring MTA agreements, with seven out of eleven licenses in active discussions or signed agreements [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the regulatory process and the potential for a favorable decision from the FCC regarding broadband allocation [5][6] - The company acknowledges the patience required from investors due to the lengthy regulatory process but sees increasing attention on private broadband opportunities as a positive sign [12] Other Important Information - The company completed an equity raise in July, providing $94 million in net proceeds to support its business plans [28] - The company is debt-free and had $157.5 million in available cash as of September 30, 2019 [28] Q&A Session Summary Question: Changes in revenue model expectations for spectrum leases - Management indicated no changes in expectations for revenue models, emphasizing long-term spectrum leases as the core offering [33] Question: Quantification of parties working on retuning - Management confirmed sufficient interest from parties to make retuning worthwhile, with many players in place for discussions [35] Question: Timing of FCC report and order - Management noted uncertainty in predicting the timing of the FCC report, suggesting it could be bundled with other spectrum-related issues [38] Question: Use case examples for utilities with broadband in place - Management discussed enhanced capabilities for fire detection and prevention, as well as improved command and control for power shutoffs [42] Question: Other potential users of the spectrum - Management mentioned interest from sectors such as oil and gas, and railroads, highlighting an awakening to the value of broadband technology [50][52]