Friday, May 11, 2012

Towerstream (Nasdaq: TWER) Sags On Deeper Q1 Loss

Towerstream (Nasdaq: TWER) Sags On Deeper Q1 LossNorthern, WI 5/11/12 (StreetBeat) -- Shares of public WiFi provider Towerstream (Nasdaq: TWER) are down a penny, or 0.2%, at $4.35 in late trading after the company this afternoon reported Q1 revenue rose 31%, year over year, to $7.8 million, yielding a net loss per share of 8 cents, double the year-earlier loss.

The stock is followed by only a handful of analysts. The revenue figure beat the average $7.7 million estimate, but the net loss was deeper than the 5-cent loss those analysts were expecting.

For the current quarter, the company sees revenue in a range of $8 million to $8.1 million, while Ebitda is expected in a range of $1.3 million to $1.5 million, the same as last quarter’s $1.4 million.

CEO Jeff Thompson remarked that the company is expanding investment in its WiFi offloadprogram “based on strong interest in these services in major urban areas.”

Customer count rose 24%, year over year, to 3,600, the company said.

The company said its average revenue per user (ARPU) of new customers fell 2% from the year-earlier period, while overall ARPU was up 3%. Churn rate was roughly similar to a year earlier, at 1.58% versus 1.56%, and was within the company’s expected range.

Although sales and marketing expenses rose only 7%, year over year, the company said, on higher payroll costs, Towerstream’s depreciation cost rose 68%, as its base of depreciable assets rose 62%, a reflection of “continued growth in the core business as well as spending on the Wi-Fi network.”

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