Towerstream reports loss, no deal for WiFi network yet
A RENDERING OF Towerstream's WiFi offload network in Manhattan.
By Kimberley Donoghue PBN Web Editor Twitter: @kdonog
MIDDLETOWN – 4G-service provider Towerstream announced its second quarter results late Monday, without having closed a carrier contract for its WiFi offload network.
Towerstream is building an up to 1,500 router network in 7 square miles of Manhattan as a solution to ever-increasing data traffic from smartphones. The company had previously said it would have a major carrier deal by the end of the second quarter.
“We are all disappointed that [the carrier contract] has not happened as of Aug. 15, but I am not disappointed with the progress we have made with the carriers and I am very confident that we will reach our goal on this front in the very near future,” said CEO Jeff Thompson.
Towerstream reported a loss of $1.29 million for the second quarter, slightly lessening the loss of $1.31 million as seen in the same quarter 2010. The net loss per common share for the three months ended June 30 was 3 cents, compared to 4 cents a year earlier.
Revenue was $6.58 million in the quarter, up from $4.87 million, fueled by growth in its customer base to 3,100 customers in the second quarter 2011 from 2,500 customers at the end of second quarter 2010.
For the first six months of 2011, Towerstream reported a loss of $2.81 million, compared to $2.84 million the same period a year earlier. Revenue was $12.53 million, up from $9.11 million.
Customer churn – or the percent of revenue lost on a monthly basis from customers disconnecting from the network or reducing the amount of bandwidth – was 1.56 percent for both the first and second quarters of 2011, up from 1.15 percent in the second quarter 2010.
As for the WiFi offload network, Towerstream spent $1.8 million on the construction of its WiFi offload network, compared to $1.1 million in the first quarter 2011 and $600,000 in the second quarter 2010.
Revenue for Towerstream’s 12 markets was: Boston, $1.71 million; New York, $1.5 million; Los Angeles, $1.05 million; Chicago, $917,000; San Francisco, $386,000; Miami, $342,000; Las Vegas-Reno, $189,000; Seattle, $138,000; Dallas-Fort Worth, $180,000; Providence-Newport, $112,000; Philadelphia, $44,000; and Nashville, $16,000. In total, revenue from all markets was $6.58 million in the second quarter, up from $4.87 million as seen in market revenue in the same quarter 2010.