Anterix(US:ATEX)2019-08-15 04:01Financial Data and Key Metrics Changes - The company successfully raised $100 million in equity funding, which is expected to accelerate efforts to clear the spectrum and monetize this asset [5][20] - As of June 30, 2019, the company had $69 million in available cash and is debt-free, with a cash position decrease of $7.7 million from the previous quarter [36][37] - The net proceeds from the equity raise provided additional strength to the balance sheet, allowing for opportunistic retuning in advance of the FCC's final order [35] Business Line Data and Key Metrics Changes - The company is focused on serving critical infrastructure needs through advanced private broadband solutions using its 900 megahertz spectrum [19][31] - The customer pipeline has expanded to nearly 40 potential customers, with growing interest from various sectors including electric utilities, water, oil and gas, and transportation [22][60] - The pilot program with Ameren has demonstrated 14 different use cases, showcasing the value of utilizing a private broadband network [23] Market Data and Key Metrics Changes - The company is actively engaging with incumbent licensees to clear the proposed 900 megahertz broadband allocation, prioritizing markets with the earliest commercial opportunities [7][21] - Support for the FCC's proposal has been noted from various stakeholders, including Southern California Edison and the National Rural Electric Cooperative Association, indicating a strong market interest [9][11] Company Strategy and Development Direction - The company aims to enable transformative broadband capabilities needed to modernize critical infrastructure for energy, transportation, and logistics [20][32] - The strategic focus includes building a network of networks to support advanced capabilities and addressing the convergence of telecommunications needs in the utility sector [33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the FCC proceeding, noting strong support and the absence of unanticipated issues [8][16] - The company anticipates a final order from the FCC before the end of the year, which would facilitate the monetization of its spectrum [17][36] Other Important Information - The company has launched the Utilities Broadband Alliance (UBBA) to promote the advancement of private broadband networks for critical infrastructure [25][26] - The first members summit of UBBA is planned for October, focusing on the challenges and opportunities for utilities [27] Q&A Session Summary Question: What incentives exist for early adopters like Southern and Ameren? - Management noted that while the utility industry is generally conservative, there are ways to incentivize early adopters through lease terms [39][40] Question: Is the recent filing by Florida Power & Light a positive sign? - Management confirmed that the filing suggests a consideration of moving to 800 megahertz as 900 megahertz becomes more available for broadband [44] Question: What is the likelihood of the FCC ruling being finalized? - Management expressed confidence in the process, noting that the FCC has shown unanimous support for the proposed rulemaking [46][47] Question: Are there links between the 900 megahertz process and other FCC spectrum matters? - Management indicated that while there are no explicit linkages, the prioritization of the 900 megahertz proceeding is essential for attention from the FCC [51] Question: What is the status of the retuning process? - Management confirmed that the retuning process has started, with hiring underway and a focus on completing the task efficiently [56][57] Question: How is the customer acceptance of the revenue model progressing? - Management reported good traction with the long-term leasing model, emphasizing the need for education on spectrum costs [62][64]