Exhibit 99.1
Straight Path Communications Reports Results for First Quarter Fiscal 2017
GLEN ALLEN, VA— December 12, 2016— Straight Path Communications Inc.(“SPCI”) (NYSE MKT: STRP),a communications asset company, announcedtoday operating results for its first quarter of fiscal 2017, the three months ended October 31, 2016. Straight Path holds and leases an extensive portfolio of 39 GHz and LMDS wireless spectrum licenses with deep coverage across the entire United States, is developing next generation wireless technology, and owns an intellectual property portfolio focused on communications over computer networks.
Q1 Fiscal Year 2017 Highlights
| (In millions of USD) | | Fiscal 2017 – Q1 | | | Fiscal 2016 – Q1 | | | Fiscal 2016 – Q4 | |
| Total Revenues | | $ | 0.2 | | | $ | 1.7 | | | $ | 0.1 | |
| Total Costs and Expenses | | $ | 4.4 | | | $ | 2.4 | | | $ | 4.0 | |
| Loss from Operations | | $ | -4.3 | | | $ | -0.7 | | | $ | -3.9 | |
| Net Loss attributable to SPCI | | $ | -4.1 | | | $ | -0.6 | | | $ | -3.8 | |
Some items in the table may not foot correctly due to rounding
| ● | Total Revenues of $0.2 million compared to $0.1 million in the prior fiscal quarter and $1.7 million in first quarter fiscal 2016. |
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| ● | Loss from Operations of $4.3 million compared to Loss from Operations of $3.9 million in the prior fiscal quarter and $0.7 million in first quarter 2016. This quarter’s loss includes $160 thousand of R&D expenses and $2.5 million in non-cash compensation related to the issuance and vesting of equity grants during this quarter. |
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| ● | Net Loss attributable to SPCI of $4.1 million compared to $3.8 million in the prior fiscal quarter and $0.6 million in first quarter fiscal 2016. |
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| ● | Cash and cash equivalents of $9.6 million at October 31, 2016, down by $1.8 million from the prior quarter close. |
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| ● | The FCC approved Cambridge Broadband Networks’ (“CBNL”) 39 GHz VectaStar®600 point-to-multipoint (“PMP”) radios for full commercial use in the U.S. |
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| ● | Spectrum lease revenue rose 30% over the prior quarter, based primarily on Windstream leasing our 39 GHz spectrum in four cities – the first locations in its announced rollout of the CBNL VectaStar 600 to 40 markets. |
Management Comments
Davidi Jonas, Chief Executive Officer of Straight Path commented, “I am proud to announce that Straight Path continues to deliver on its strategic objectives and adhere to its mission. We maintain our commitment to operating efficiently in the face of serious challenges. We made progress in several key areas for our businesses:
| ● | The FCC published in the Federal Register its Upper Microwave Flexible Use Report and Order that was adopted on July 14, 2016. The Report and Order adopted many rules in line with Straight Path’s goals and advocacy. Straight Path continued its advocacy by participating in the FCC’s Further Notice of Proposed Rule Making. |
| ● | Our Gigabit Mobility Lab in Plano, Texas continues to refine our recently demonstrated prototype 39 GHzGigarray®5G transceiver. We expect an outdoor demo in calendar 2017. |
| ● | The FCC’s mid-November approval of CBNL’s 39 GHz VectaStar 600 PMP radios for commercial use is a significant event that enables us to take next steps with CBNL, including increased marketing and testing, as U.S. wireless operators can now begin to deploy the live radios utilizing our spectrum. |
| ● | We continue to cooperate with the ongoing FCC investigation.” |
Mr. Jonas added, “We have begun attempts at resolution and/or furthering the progress of our IP enforcement actions.”
Mr. Jonas concluded, “We are energized by our progress to date, while still cognizant of the challenges we face. As we look to the future, we hope to continue to deliver on our strategic objectives and generate increased value for our stockholders.”
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Investor Conference Call
Straight Path will host a conference call this afternoon, Monday, December 12th at 4:30pm ET to provide a business update. To participate, please call1-855-327-6837 from the U.S. or +1-631-891-4304internationally and request to join the Straight Path Communications Inc. earnings call. The conference call will also be available via a listen-only webcast by accessing the Investors section of Straight Path Communications’ website,www.straightpath.com/investors. A replay of the conference call will also be available approximately two hours after completion of the live conference call atwww.straightpath.com/investors. A telephonic replay of the call will be available until December 19, 2016. To access the replay, please dial: 1-844-512-2921 from the U.S. or +1-412-317-6671 internationally. Participants must use the following code to access the replay of the call: 10002146.
About Straight Path Communications Inc. (STRP)
Straight Path Communications Inc. (NYSE MKT: STRP) holds, leases, and markets its extensive holdings of 39 GHz and 28 GHz wireless spectrum licenses through its Straight Path Spectrum subsidiary. Straight Path is developing next generation wireless technology through its Straight Path Ventures subsidiary. Straight Path holds, licenses, and conducts other business related to certain patents through its Straight Path IP Group subsidiary. Additional information is available on Straight Path’s website: www.straightpath.com.
Safe Harbor
In this press release, all statements that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate, "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those described in our Annual Report on Form 10-K for the fiscal year ended July 31, 2016 and our other periodic filings with the SEC (under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations"). We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.
Contact: Yonatan Cantor, Straight Path Communications Inc. 804-433-1523yonatan.cantor@straightpath.com
STRAIGHT PATH COMMUNICATIONS INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, except per share data)
| | | October 31,
2016 | | | July 31,
2016 | |
| | | (Unaudited) | | | | |
| | | | | | | |
| Assets | | | | | | |
| Current assets: | | | | | | |
| Cash and cash equivalents | | $ | 9,561 | | | $ | 11,361 | |
| Trade accounts receivable, net of allowance for doubtful accounts of $0 and $0, respectively | | | 47 | | | | 40 | |
| Prepaid expenses and other current assets | | | 1,634 | | | | 1,627 | |
| Total current assets | | | 11,242 | | | | 13,028 | |
| Intangible assets | | | 365 | | | | 365 | |
| Other assets | | | 105 | | | | 104 | |
| Total Assets | | $ | 11,712 | | | $ | 13,497 | |
| | | | | | | | | |
| Liabilities and Equity | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Trade accounts payable | | $ | 1,067 | | | $ | 684 | |
| Accrued expenses | | | 522 | | | | 1,042 | |
| Deferred revenue | | | 174 | | | | 73 | |
| Income taxes payable | | | 223 | | | | 225 | |
| Total current liabilities | | | 1,986 | | | | 2,024 | |
| Deferred revenue - long-term portion | | | 86 | | | | 92 | |
| Total liabilities | | | 2,072 | | | | 2,116 | |
| Commitments and contingencies | | | | | | | | |
| Equity | | | | | | | | |
| Straight Path Communications Inc. stockholders’ equity: | | | | | | | | |
| Preferred stock, $0.01 par value; 3,000 shares authorized; no shares issued and outstanding | | | - | | | | - | |
| Class A common stock, $0.01 par value; 2,000 shares authorized; 787 shares issued and outstanding | | | 8 | | | | 8 | |
| Class B common stock, $0.01 par value; 40,000 shares authorized; 11,716 and 11,431 shares issued, 11,676 and 11,391 shares outstanding as of October 31, 2016 and July 31, 2016 | | | 117 | | | | 114 | |
| Additional paid-in capital | | | 24,100 | | | | 21,589 | |
| Accumulated deficit | | | (12,356 | ) | | | (8,225 | ) |
| Treasury stock, 40 shares at cost | | | (428 | ) | | | (428 | ) |
| Total Straight Path Communications Inc. stockholders’ equity | | | 11,441 | | | | 13,058 | |
| Noncontrolling interests | | | (1,801 | ) | | | (1,677 | ) |
| Total equity | | | 9,640 | | | | 11,381 | |
| Total liabilities and equity | | $ | 11,712 | | | $ | 13,497 | |
STRAIGHT PATH COMMUNICATIONS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In Thousands, except per share data)
| | | Three Months Ended | |
| | | October 31, | |
| | | 2016 | | | 2015 | |
| | | | | | | |
| Revenues | | $ | 159 | | | $ | 1,703 | |
| | | | | | | | | |
| Costs and expenses: | | | | | | | | |
| Direct cost of revenues | | | 41 | | | | 782 | |
| Research and development | | | 160 | | | | - | |
| Selling, general and administrative | | | 4,235 | | | | 1,612 | |
| | | | | | | | | |
| Total costs and expenses | | | 4,436 | | | | 2,394 | |
| | | | | | | | | |
| Loss from operations | | | (4,277 | ) | | | (691 | ) |
| | | | | | | | | |
| Other income: | | | | | | | | |
| Interest income | | | 7 | | | | 10 | |
| Other income | | | 22 | | | | - | |
| | | | | | | | | |
| Total other income | | | 29 | | | | 10 | |
| | | | | | | | | |
| Loss before income taxes | | | (4,248 | ) | | | (681 | ) |
| Provision for income taxes | | | (7 | ) | | | (6 | ) |
| | | | | | | | | |
| Net loss | | | (4,255 | ) | | | (687 | ) |
| Net loss attributable to noncontrolling interests | | | 124 | | | | 55 | |
| | | | | | | | | |
| Net loss attributable to Straight Path Communications Inc. | | $ | (4,131 | ) | | $ | (632 | ) |
| | | | | | | | | |
| Loss per share attributable to Straight Path Communications Inc. stockholders: | | | | | | | | |
| Basic and diluted | | $ | (0.34 | ) | | $ | (0.05 | ) |
| | | | | | | | | |
| Weighted-average number of shares used in calculation of loss per share: | | | | | | | | |
| Basic and diluted | | | 12,018 | | | | 11,810 | |
STRAIGHT PATH COMMUNICATIONS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In Thousands)
| | | Three Months Ended | |
| | | October 31, | |
| | | 2016 | | | 2015 | |
| | | | | | | |
| Operating activities: | | | | | | |
| Net loss | | $ | (4,255 | ) | | $ | (687 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | |
| Common stock issued for compensation | | | 2,417 | | | | 598 | |
| Stock-based compensation | | | 97 | | | | - | |
| Changes in assets and liabilities: | | | | | | | | |
| Trade accounts receivable, net | | | (7 | ) | | | (2 | ) |
| Prepaid expenses – related to settlements and licensing | | | - | | | | 783 | |
| Prepaid expenses and other current assets | | | (7 | ) | | | (81 | ) |
| Prepaid expenses – development agreement | | | - | | | | (1,000 | ) |
| Other assets | | | (1 | ) | | | 5 | |
| Trade accounts payable | | | 383 | | | | (94 | ) |
| Accrued expenses | | | (520 | ) | | | (232 | ) |
| Deferred revenue | | | 95 | | | | (1,603 | ) |
| Income taxes payable | | | (2 | ) | | | - | |
| Net cash used in operating activities | | | (1,800 | ) | | | (2,313 | ) |
| | | | | | | | | |
| Net decrease in cash and cash equivalents | | | (1,800 | ) | | | (2,313 | ) |
| Cash and cash equivalents at beginning of period | | | 11,361 | | | | 18,620 | |
| Cash and cash equivalents at end of period | | $ | 9,561 | | | $ | 16,307 | |
| | | | | | | | | |
| Supplemental cash flow information | | | | | | | | |
| Cash paid during the period for income taxes | | $ | 7 | | | $ | 3 | |
5
