pdvWireless, Inc. Earnings Analysis: Q2, 2016 By the Numbers

pdvWireless, Inc. reports financial results for the quarter ended September 30, 2015.

pdvWireless, Inc. has an earnings momentum score of 16.54 and has a relative valuation rating of NEUTRAL.

Earnings Momentum Score

Highlights

  • Summary numbers: Revenues of USD 0.81 million, Net Earnings of USD -5.46 million, and Earnings per Share (EPS) of USD -0.38.
  • Gross margins narrowed from 72.82% to 36.27% compared to the same period last year, operating (EBITDA) margins now -666.68% from -424.04%.
  • Year-on-year change in operating cash flow of -167.00% is about the same as the change in earnings, likely no significant movement in accruals or reserves.
  • Narrowing of operating margins contributed to decline in earnings.
  • Cash and Cash equivalents were up this period to 169.28 compared to 125.27 in the same period last year. Debt to Equity this period is 0 compared to last period.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income growth:

2014-09-30 2014-12-31 2015-03-31 2015-06-30 2015-09-30
Relevant Numbers (Quarterly)
Revenues (mil) 0.62 0.84 0.82 0.84 0.81
Revenue Growth (%YOY) N/A N/A -14.11 -6.68 30.98
Earnings (mil) -3.02 -3.53 -5.58 -4.35 -5.46
Earnings Growth (%YOY) N/A N/A -1552.59 -68.15 -80.8
Net Margin (%) -487.33 -421.94 -684.52 -517.45 -672.69
EPS -0.24 -0.28 -0.44 -0.32 -0.38
Return on Equity (%) -5.81 -6.49 -10.38 -7.1 -7.97
Return on Assets (%) -5.62 -6.23 -9.84 -6.78 -7.69

Access our Ratings and Scores for pdvWireless, Inc.

PDVW-US‘s change in revenue this period compared to the same period last year of 30.98% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that PDVW-US is holding onto its market share. Also, for comparison purposes, revenues changed by -3.50% and earnings by -25.45% compared to the immediate last period.

Revenues History
Earnings History

The company’s decline in earnings has been influenced by the following factors: (1) Decline in operating margins (EBIT margins) from -426.40% to -676.46% and (2) one-time items that contributed to a decrease in pretax margins from -487.33% to -672.69%

EBIT Margin History
Cash & ST Investments

PDVW-US‘s change in operating cash flow of -167.00% compared to the same period last year is about the same as its change in earnings this period. Additionally, this change in operating cash flow is about average among its peer group. This suggests that the company did not use accruals or reserves to manage earnings this period, and that, all else being equal, the earnings number is sustainable.

Operating Cash Flow Growth Versus Earnings Growth

Access our Ratings and Scores for pdvWireless, Inc.


Company Profile

pdvWireless, Inc. provides mobile workforce communications and location based solutions that increase the productivity of field-based workers and the efficiency of their dispatch and call center operations. Its patented and industry-validated technology improves team communication and field documentation across a wide array of industries including transportation, distribution, construction, hospitality, waste management and field service. The company is run by Brian McAuley, Morgan O’Brien and John Pescatore and is headquartered in Woodland Park, NJ.

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