Release Date: November 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Anterix Inc (NASDAQ:ATEX) has a strong financial position with over $43 million in cash and no debt.
• The company has a $3 billion pipeline of customer opportunities, indicating significant growth potential.
• Anterix Inc (NASDAQ:ATEX) is enhancing its spectrum asset to be 5G capable, which could increase its market value.
• The company is actively pursuing a share buyback program, which could enhance shareholder value.
• Anterix Inc (NASDAQ:ATEX) has a robust customer base that is transitioning from lab deployments to real-world applications, validating its product offerings.

Negative Points

• The company's market capitalization is perceived to be below the value of its achievements, suggesting potential undervaluation.
• There is a need to revisit and improve the sales process to better capture market opportunities.
• Anterix Inc (NASDAQ:ATEX) is facing challenges in accelerating spectrum transactions, which are crucial for revenue growth.
• The company is under pressure to reduce operating expenses and improve cash flow efficiency.
• There are inherent risks and uncertainties associated with forward-looking statements, which could impact future performance.

Q & A Highlights

• Warning! GuruFocus has detected 3 Warning Signs with ATEX.

Q: Scott, can you elaborate on the transition from old to new technology for utilities, given your experience with Silver Spring Networks? A: Scott Lang, President and CEO: Back in 2004, we pushed the limits of available technology using unlicensed spectrum, which is still in use today. Now, utilities demand more secure and robust solutions, which our 5G capabilities can provide. The transition is about meeting higher expectations and protecting the grid with advanced technology that Anterix offers.

Q: Tim, can you explain the economic logic behind delivering spectrum earlier than contracted? A: Tim Gray, CFO: This is driven by customer demand to accelerate their network deployment. Delivering spectrum earlier results in earlier cash flow, with an expected $35 million to be received in the fourth quarter of this fiscal year, allowing us to be more aggressive with our share buyback program.

Q: Can you share any improvements identified in your sales process? A: Scott Lang, President and CEO: We discovered that our unique positioning and the security and control our 5G platform offers are not fully communicated. We aim to leverage customer testimonials to highlight our advantages and drive market advocacy.

Q: Are there any changes expected from the FCC under a potential Brandon Carr administration regarding the 5x5 LTE offering? A: Chris Gutman McCabe, Chief Regulatory and Communications Officer: Our initial 3x3 approval was unanimous, including Commissioner Carr's support. We expect continued support for our multi-party petition, as it is not political in nature, and Commissioner Carr has been a strong advocate for our initiatives.

Q: What are some of the exciting use cases for AI and intelligence at the grid's last mile? A: Scott Lang, President and CEO: AI chips at the endpoint, enabled by our spectrum, can process millions of data points, enhancing grid security and operational efficiency. This technology transition is crucial for modernizing the grid and protecting it against emerging threats.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.