Straight Path Communications Reports Results for Fourth Quarter and Year End Fiscal 2015

GLEN ALLEN, Va.--(BUSINESS WIRE)--Straight Path Communications Inc. (NYSE MKT:STRP), a communications asset company, announced today operating results for its fourth quarter of fiscal 2015, and fiscal year ended July 31, 2015. Straight Path holds and leases an extensive portfolio of 39 GHz and LMDS wireless spectrum licenses with deep coverage across the entire United States and owns an intellectual property portfolio focused on communications over computer networks.

Q4 and Fiscal Year 2015 Highlights

Some items in the table may not foot correctly due to rounding

Q4 Fiscal 2015 Highlights

• Total Revenues of $2.8 million compared to $2.9 million in the previous quarter, primarily related to allocation of IP Settlements entered into in prior periods
• Loss from Operations of $1.4 million due in part to non-cash compensation costs of $1.8 million, compared to Income from Operations of $0.2 million in the previous quarter
• Net Loss attributable to SPCI of $3.2 million compared to $0.8 million Net Income attributable to SPCI in prior quarter. The current quarter included an increase in the Company’s valuation allowance of $2.8 million against deferred tax assets generated by Straight Path IP Group (“SPIPG”)
• Cash/cash equivalents of $18.6 million at July 31, 2015, down by $0.4 million from the prior quarter close
• Straight Path entered an agreement with Cambridge Broadband Networks Ltd. (“CBNL”), a leading wireless equipment manufacturer, for CBNL to develop a point-to-multipoint (“PMP”) radio in 39 GHz
• FCC announced open meeting for Oct 22, 2015; expected to release a Notice of Proposed Rulemaking (“NPRM”) regarding use of millimeter wave spectrum for mobility then or soon thereafter
• Revenue from Spectrum leasing trending positive quarter over quarter

Fiscal Year 2015 Highlights

• Total revenues were $13.2 million, versus revenues of $4.8 million in fiscal 2014 on recognition of revenue from SPIPG licensing and settlement agreements entered into in fiscal 2014 and early fiscal 2015
• Income from Operations was $0.2 million, versus a Loss from Operations of $0.7 million in fiscal 2014
• Net Loss attributable to SPCI of $2.0 million compared with a Net Income attributable to SPCI of $2.0 million in fiscal 2014; fiscal 2015 included an increase in the Company's valuation allowance of $2.8 million against deferred tax assets generated by SPIPG

Management Comments

Davidi Jonas, Chief Executive Officer of Straight Path commented, “I am proud to announce that Straight Path delivered on its strategic objectives and adhered to its mission. We realized value and continue to operate efficiently. We made progress in several key areas for our business:

• Consistent with our efforts, the FCC is expected to release an NPRM to allow “flexible spectrum use rules for bands above 24 GHz, including for mobile broadband use” at its October 22^nd open meeting or soon thereafter.
• 3GPP’s working group for 5G has begun standard setting conversations, and the joint proposal of Samsung, Ericsson, Verizon, Qualcomm, Straight Path and others advocates for phase 1 to address frequencies (at least) up to 40 GHz. Goal is to complete phase 1 in 2018.
• We are opening a ‘Gigabit Mobility Lab’ in Plano, Texas to begin development of a 39 GHz transceiver for 5G mobile service. Led by our CTO, Jerry Pi, supported by an expanding team, we expect to demonstrate within 18 months.
• We recently initiated our S-TAB (Strategic Technical Advisory Board), and recruited two of the leading thinkers on mmWave mobility, Dr. Ted Rappaport of NYU, and Gabriel Rebeiz of UCSD. Ted and Gabriel are celebrated academicians who command broad respect and support from the wireless industry.
• Spectrum lease revenue is trending upwards, primarily due to PMP sector leases in our LMDS holdings, and we expect continued quarter over quarter growth. CBNL introduced a best-in-class LMDS PMP radio which has been supporting this growth.
• Straight Path agreed to fund $1 million towards CBNL’s efforts to accelerate the development of 39 GHz PMP radios, expected to be commercially available within 12 months.

Mr. Jonas added, “SPIPG presented oral argument before the Federal Circuit Court of Appeals requesting reversal or remand of the PTAB’s decision to invalidate 17 claims of our ‘704 patent and we await a decision. Our enforcement and licensing activities have been suspended while this appeal has been pending and the decision will impact the future of those efforts. We have had no new settlements since the first quarter of fiscal 2015, and the revenue from the prior efforts will be fully recognized in Q1 Fiscal 2016.”

Mr. Jonas concluded, “We are energized by the progress we have achieved, the value we have created, and the encouragement we have received. With renewed vigor we look forward to delivering on our strategic objectives. We are pleased that the market has continued to gradually recognize the value in our Company and hope to continue to deliver on the efforts that will generate even greater value for our stockholders.”

Investor Conference Call
Straight Path will host a conference call tomorrow afternoon, Thursday, October 15^th at 4:30pm EDT to provide a business update and answer questions from the investment community. To participate, please call 1-888-349-0087 from the U.S. or + 1-412-902-4295 internationally 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 at www.straightpath.com/investors. A telephonic replay of the call will be available until October 22, 2015. To access the replay, please dial: 1-877-870-5176 from the U.S. or +1-858-384-5517 internationally. Participants must use the following code to access the replay of the call: 10074317.

About Straight Path Communications Inc.
Straight Path (NYSE MKT: STRP) holds, leases and markets its extensive holdings of 39GHz and 28GHz fixed wireless spectrum licenses through its Straight Path Spectrum subsidiary. Straight Path holds, licenses and conducts other business related to certain patents through its Straight Path IP Group subsidiary. Additional information via our websites: Corporate:www.straightpath.com Spectrum: www.straightpath39.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, 2014 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.