Towerstream narrows loss in 2Q

TOWERSTREAM CORP. reported $6.9 million in revenue in the second quarter that ended June 30, compared with $7 million in revenue in the prior-year quarter.
TOWERSTREAM CORP. reported $6.9 million in revenue in the second quarter that ended June 30, compared with $7 million in revenue in the prior-year quarter.

MIDDLETOWN – Towerstream Corp., a provider of wireless communication services, recently reported a 2.2 percent decline in revenue in the second quarter, but narrowed its loss by 46.5 percent.
Towerstream, which was allowed in July by the Nasdaq Hearings Panel to continue its listing as a publicly traded company on the Nasdaq Capital Market on a conditional basis, reported $6.9 million in revenue in the second quarter that ended June 30, compared with $7 million in revenue in the prior-year quarter.
However, the company said revenue increased 2 percent when compared with first-quarter revenue of $6.7 million, marking Towerstream’s first quarter-over-quarter increase since the fourth quarter of 2013.
The company launched OnNet fixed wireless service two years ago. It said OnNet customers increased 48 percent in the second quarter compared with the first quarter. Forty-two OnNet buildings were added in the second quarter, bringing the total to 265.
The net loss for the company was $4.7 million, or $1.38 per share, smaller than the loss reported for the 2015 second quarter of $8.9 million, or $2.65 per share.
Adjusted EBITDA – or earnings before interest, taxes, depreciation and amortization – totaled $414,000 in the second quarter. That compares to an adjusted EBITDA loss of $3.3 million a year ago.
Towerstream’s stock was trading at $2.37 Monday at 11:55 a.m. In mid-August last year, the stock was trading at $36 per share.

Nasdaq notified the company in November that it no longer satisfied a minimum $1 per share closing bid for 30 consecutive days, and that it was at risk of becoming delisted from the U.S. stock exchange.
Now, Towerstream in September and October must provide Nasdaq an update on its progress toward completion of its compliance plan. If the company fails to demonstrate compliance by Nov. 22, Nasdaq will issue a final delisting determination, according to a federal filing.

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