Spectrum Sales and Agreements - The company executed a spectrum sale agreement with Oncor Electric Delivery Company LLC for a total of $102.5 million in June 2024[41]. - An additional spectrum sale agreement with Lower Colorado River Authority was executed for a total of $13.5 million in January 2025[41]. - The company received milestone payments of $8.5 million from Ameren Corporation and $44.0 million from Oncor[41]. - The company entered into an agreement with LCRA to sell 900 MHz Broadband Spectrum for total payments of $30.0 million, with an initial payment of $15.0 million received during the year ended March 31, 2024[67]. - The LCRA Expansion Agreement, effective January 9, 2025, involves selling 900 MHz Broadband Spectrum covering 34 additional counties for total estimated consideration of $13.5 million[68]. - The Oncor Agreement, signed in June 2024, includes selling 900 MHz Broadband Spectrum covering 95 counties for total estimated consideration of $102.5 million, with an initial payment of $10.0 million received[70]. - During the year ended March 31, 2025, the company transferred the 900 MHz Broadband Spectrum and associated licenses for four counties to Oncor, resulting in a milestone payment of $34.0 million[71]. Financial Performance and Capital Management - The company repurchased 245,292 shares of its stock for a total of $8.4 million to return capital to stockholders[41]. - The company has had net losses each year since its inception and may not achieve or maintain profitability in the future[35]. - The company has entered into long-term lease agreements for 900 MHz Broadband Spectrum with Ameren, covering approximately 7.5 million people, with scheduled prepayments totaling $47.7 million over 30 years[60]. - The Evergy Agreement allows for a 20-year lease of 900 MHz Broadband Spectrum, covering a population of approximately 3.9 million, with a total prepayment of $30.2 million received in October 2021[61]. - The Xcel Energy Agreement provides a 20-year lease for 900 MHz Broadband Spectrum across eight states, with scheduled prepayments totaling $80.0 million, including milestone payments of $21.2 million received in July and November 2023[62]. - The TECO Agreement, signed in November 2023, covers a 20-year lease of 900 MHz Broadband Spectrum in West Central Florida, with scheduled prepayments totaling $34.5 million, of which $6.9 million was received in December 2023[63]. - The SDG&E Agreement involves a total payment of $50.0 million for 900 MHz Broadband Spectrum, supporting a PLTE network for approximately 3.6 million people in California[65]. Regulatory and Market Environment - Recent FCC broadband spectrum auctions have exceeded valuation estimates, generating the first and third highest auction proceeds ever for the U.S. Treasury, indicating strong demand for licensed broadband spectrum[54]. - The company is actively working with federal and state agencies to promote the benefits of private broadband wireless networks for utilities, aiming to secure regulatory approvals for investments[52]. - The electric utility industry is undergoing transformation, necessitating new communication systems to support grid modernization and the integration of distributed energy resources[57]. - The FCC adopted a Notice of Proposed Rulemaking (NPRM) on January 15, 2025, to expand the 900 MHz Broadband Segment to a paired 5 x 5 MHz broadband segment, supporting demand for private wireless broadband networks[79]. - The FCC's Report and Order established a 6 MHz broadband segment and two narrowband segments, enhancing the usability and capacity of the 900 MHz band for broadband networks[80]. - The company is subject to competition from major wireless network providers and potential new entrants, which could impact its ability to secure agreements for leasing or selling spectrum[75]. Strategic Initiatives and Customer Base Expansion - The company aims to convert its nationwide narrowband 900 MHz spectrum position into valuable broadband spectrum as part of its two-pronged strategy[38]. - The company has negotiated and contracted approximately three quarters of the transactions required to clear the licensed 900 MHz Broadband Segment channels[45]. - The company launched the AnterixAccelerator initiative to expedite the deployment of 900 MHz private wireless broadband networks[50]. - The company is focused on expanding its customer base beyond electric utilities to include ports, railroads, and other critical infrastructure sectors, recognizing the demand for private wireless broadband networks[54]. - The company has developed a roadmap for expanded services to meet customer needs in implementing PLTE networks, leveraging internal expertise and industry partnerships[53]. Operational and Market Risks - Recent increases in inflation have led to a rise in operating expenses for the company[250]. - The current macroeconomic environment, including inflation, may adversely affect target customers' businesses, impacting commercialization efforts and revenues[250]. - Continued high inflation could materially affect the company's business, operating results, and financial condition if operating costs are not controlled[250]. - The company is actively monitoring market risk exposure, including impacts from health pandemics and significant market volatility[251]. Employee and Corporate Structure - The company employs a hybrid working model, with employees required to be onsite nine days a month[124]. - As of March 31, 2025, the company had 84 total employees, with 83 being full-time[124]. - The company does not currently face market risk from foreign currency fluctuations as all transactions are in U.S. dollars[249]. Licensing and Compliance - The company is pursuing broadband licenses based on customer opportunities and strategic initiatives, with a focus on satisfying eligibility requirements set by the FCC[87]. - The broadband applicant must surrender 240 channels to the FCC to obtain a broadband license, with the option to make an Anti-Windfall Payment if insufficient channels are available[3]. - The average cost for channels in smaller markets requiring Anti-Windfall Payments is expected to be lower than the nationwide average of $0.93 per MHz of population covered from the FCC's 600 MHz auction[98]. - To satisfy the 240 Channel Requirement, the broadband applicant can utilize existing licensed channels, acquire additional channels, or make Anti-Windfall Payments[101]. - Spectrum purchases began in 2015, targeting additional channels in the 900 MHz band in anticipation of regulatory changes[103]. - Retuning of channels with incumbents started in 2015 to facilitate compliance with the 90% Broadband Segment Test[105]. - The FCC regulates the issuance of broadband licenses in the 900 MHz band, with licenses typically issued for a fixed period of 10 to 15 years[109]. - The company has no current claims or litigation regarding its intellectual property, which is protected through various legal means[107].

Financial Performance - Anterix reported a net income of $9.2 million for Q4 FY2025, compared to a net loss of $9.4 million in Q4 FY2024, marking a significant turnaround [14]. - Total spectrum revenue for FY2025 was $6.0 million, an increase of 43.9% from $4.2 million in FY2024 [14]. - For the three months ended March 31, 2025, the net income was $9.208 million, a significant improvement compared to a net loss of $9.411 million in the same period of 2024 [16]. - The company experienced a gain on the sale of spectrum amounting to $40.935 million during the three months ended March 31, 2025 [16]. - Depreciation and amortization expenses for the year ended March 31, 2025, totaled $548 million, compared to $844 million in the previous year [16]. - The company reported a loss from disposal of long-lived assets of $3 million for the three months ended March 31, 2025 [16]. Cash and Assets - As of March 31, 2025, Anterix had cash and cash equivalents of $47.4 million, down from $60.6 million a year earlier [12]. - The company reported a total cash and cash equivalents and restricted cash of $55.024 million as of March 31, 2025, down from $68.124 million a year earlier [17]. - Anterix's total assets increased to $333.1 million as of March 31, 2025, compared to $324.9 million a year earlier [12]. Share Repurchase and Capital Management - The company has a remaining share repurchase authorization of $227.7 million as of March 31, 2025, after repurchasing $8.4 million worth of shares in FY2025 [5]. - The total cost to repurchase shares in the three months ended March 31, 2025, was $1.955 million, with an average price paid per share of $38.63 [19]. - As of March 31, 2025, there is $227.7 million remaining under the share repurchase program [20]. - The number of shares repurchased and retired in the three months ended March 31, 2025, was 50, compared to 173 shares in the same period of 2024 [19]. Strategic Initiatives and Opportunities - The company executed new spectrum sale agreements totaling $116 million, including $102.5 million with Oncor and $13.5 million with LCRA [7]. - Anterix has approximately $147 million of contracted proceeds outstanding, with about $80 million expected to be received in FY2026 [7]. - The company initiated a strategic review process in February 2025, following inbound interest, which is still ongoing [7]. - Anterix launched the AnterixAccelerator™ initiative in March 2025, which is now oversubscribed with utilities engaged in discussions for $250 million in spectrum incentives [7]. - The company has a pipeline of approximately $3 billion in prospective contract opportunities across over 60 potential customers [7]. Cash Flow - Cash flows from operating activities resulted in a net cash used of $16.555 million for the three months ended March 31, 2025, compared to a net cash provided of $6.140 million in the same period of 2024 [16]. - The net cash provided by investing activities for the three months ended March 31, 2025, was $35.415 million, a significant increase from a net cash used of $2.262 million in the same period of 2024 [16].

Core Viewpoint - Anterix announced its fiscal 2025 fourth quarter and full year financial results, highlighting significant operational developments and financial metrics [1]. Full Year FY2025 Financial and Operational Highlights - Spectrum revenue for the year ended March 31, 2025, was $6.031 million, an increase from $4.191 million in the previous year, representing a growth of 43.9% [14]. - The company reported a net loss of $11.372 million for the fiscal year, compared to a loss of $9.128 million in the prior year [14]. - Total assets as of March 31, 2025, were $333.104 million, up from $324.894 million a year earlier [12]. Fourth Quarter FY2025 Financial Highlights - In the fourth quarter, spectrum revenue was $1.389 million, compared to $1.260 million in the same quarter of the previous year, marking a 10.2% increase [14]. - The net income for the fourth quarter was $9.208 million, a significant recovery from a net loss of $9.411 million in the same quarter of the previous year [14]. - Operating expenses for the fourth quarter were $12.237 million, down from $13.755 million year-over-year [15]. Liquidity and Balance Sheet - As of March 31, 2025, Anterix had no debt and cash and cash equivalents of $47.4 million, down from $60.578 million a year earlier [4][11]. - The company had a restricted cash balance of $7.7 million in escrow deposits [4]. - The total stockholders' equity was $156.601 million, a decrease from $161.032 million in the previous year [12]. Share Repurchase Program - Anterix has an authorized share repurchase program for up to $250 million, with $227.7 million remaining as of March 31, 2025 [5][21]. - In the fourth quarter, the company repurchased shares totaling $1.955 million, and for the full fiscal year, the total was $8.398 million [5][21]. Strategic Developments - The company executed new spectrum sale agreements totaling $116 million with Oncor Electric Delivery Company and Lower Colorado River Authority [7]. - Anterix launched the AnterixAccelerator™ initiative to promote utility adoption of private broadband networks, which is currently oversubscribed [7]. - The company has a pipeline of approximately $3 billion in prospective contract opportunities across over 60 potential customers [7].

Industry Overview - The Zacks Communication - Infrastructure industry is facing challenges due to high capital expenditures for infrastructure upgrades, unpredictable raw material prices, supply-chain disruptions, and high customer inventory levels [1][4][6] - Despite these challenges, the increasing demand for digital innovations is expected to benefit the industry in the long run [1] Key Trends - High raw material prices and extended lead times for components are negatively impacting operations and profitability [4][6] - The industry is moving towards network convergence, combining voice, video, and data communications into a single network, which is expected to reduce service delivery costs and expand coverage [5] - Short-term profitability is at risk due to the need for significant infrastructure investments to meet the growing demand for mobile broadband and home Internet solutions [6] Market Performance - The Zacks Communication - Infrastructure industry has outperformed the broader Zacks Computer and Technology sector and the S&P 500 over the past year, with a growth of 67% compared to 9.1% for the S&P 500 and 6.2% for the sector [9] Valuation Metrics - The industry is currently trading at a trailing 12-month enterprise value-to-EBITDA (EV/EBITDA) ratio of 3.45X, significantly lower than the S&P 500's 16.87X and the sector's 16.83X [12] Notable Companies - Anterix Inc. (ATEX) is positioned to benefit from solid demand for scalable infrastructure and holds the largest licensed spectrum in the 900 MHz band [2][15] - Bandwidth Inc. (BAND) operates as a Communications Platform-as-a-Service (CPaaS) provider and is focused on continuous innovation to support high user volumes [2][18]

Group 1: Enovix Corporation - Enovix Corp. specializes in lithium-ion batteries for electric vehicles, grid storage, and consumer electronics, with a current stock price of $8.70 and a 12-month price forecast of $17.27, indicating a potential upside of 98.54% [3][6] - The company has a significant short interest of nearly 46 million shares, representing over 28% of its float, which could lead to a short squeeze due to a recent 16% rise in stock price [4] - Analysts are largely bullish on Enovix, with eight ratings as Buy and three as Hold, suggesting strong future growth potential [5] Group 2: Anterix Inc. - Anterix Inc. provides private wireless broadband services primarily to utility and critical infrastructure customers, with a current stock price of $27.14 and a 12-month price forecast of $67.00, indicating a potential upside of 146.87% [8][10] - The AnterixAccelerator project is expected to drive significant revenue growth, with estimates suggesting a 48% revenue improvement for the current year [9] - The company has received two Buy ratings from analysts, reflecting confidence in its growth prospects [10] Group 3: Xperi Inc. - Xperi Inc. offers pay-TV services and UX solutions, with a current stock price of $7.97 and a 12-month price forecast of $19.00, indicating a potential upside of 138.39% [11][13] - The company has shown a 37% year-over-year revenue improvement, primarily driven by its connected car business, and has swung to non-GAAP earnings per share of 16 cents [11][12] - Analysts have rated Xperi shares as Buy, with expectations of significant growth if the company continues to focus on customer base expansion and efficiency [13]

Company Announcement - Anterix will hold a conference call on June 25, 2025, at 9:00 a.m. ET to discuss its fourth quarter fiscal 2025 results [1] - A press release regarding the results will be issued after the market closes on June 24, 2025 [1] Participation Details - Participants interested in the live Q&A session must pre-register to obtain a dial-in number and unique PIN [2] - It is recommended to join the call at least 10 minutes early, and the call will also be webcast live on Anterix's Investor Relations website [2] Company Overview - Anterix collaborates with leading utilities and technology companies to utilize 900 MHz broadband for modernized grid solutions [3] - The company is the largest holder of licensed spectrum in the 900 MHz band across the contiguous United States, Hawaii, Alaska, and Puerto Rico [3] - Anterix aims to enable private LTE solutions that support advanced communications for a cleaner and more secure energy future [3]

Core Insights - The communication services sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1][2] Company Summaries - **Fubotv Inc (FUBO)**: Reported a revenue of $405.96 million for the quarter, an 8.1% year-over-year increase, but missed the analyst consensus estimate of $415.45 million. The stock fell approximately 20% in the past five days, with a 52-week low of $1.10. The RSI value is 26.9, and shares closed at $2.42, down 17.4% [7] - **Cable One Inc (CABO)**: Announced disappointing first-quarter results, with a significant drop in residential data subscribers. The stock decreased around 43% over the past five days, reaching a 52-week low of $150.00. The RSI value is 12.2, and shares closed at $152.51, down 42.4% [7] - **Anterix Inc (ATEX)**: Launched the AnterixAccelerator initiative with an investment of up to $250 million. The stock fell about 9% over the past month, with a 52-week low of $27.37. The RSI value is 28.6, and shares closed at $29.84, down 0.4% [7]

Core Insights - Anterix is collaborating with major companies like Ericsson, GE Vernova, and Nokia to enhance the deployment of 900 MHz private wireless networks for utilities, offering bundled services to accelerate adoption [1][2][3] - The AnterixAccelerator initiative aims to facilitate the digital transformation of the power grid, with participation from over 15 leading utilities and members of the Anterix Active Ecosystem [2][3] Company Overview - Anterix is the largest holder of licensed spectrum in the 900 MHz band across the contiguous United States, Alaska, Hawaii, and Puerto Rico, positioning itself to provide private wireless broadband solutions for modernized grid applications [5] - The company leads an ecosystem of more than 100 members focused on utility-first solutions to address current challenges faced by utilities [5] Industry Impact - The collaboration is seen as a significant step towards a smarter and more connected energy future, enhancing the resilience and sustainability of utility operations [3] - The initiative supports utilities in modernizing their communication infrastructure, which is critical for integrating advanced technologies and improving operational reliability [3]

Industry Overview - The Zacks Communication - Infrastructure industry is benefiting from increased user demand for digital innovations, leading to fiber densification and extensive 5G deployment [1] - Industry players provide various infrastructure solutions for communication networks, including high-speed network access solutions and fiber-to-home equipment [3] Current Trends - Network convergence is a key trend, with operators combining voice, video, and data communications into a single network, which minimizes service delivery costs and expands coverage [4] - There is a focus on higher average revenue per user as firms transition from legacy systems to technology-driven models, enhancing customer service and data traffic management [6] Challenges - High capital expenditures for infrastructure upgrades and soaring raw material prices due to geopolitical tensions are significant threats to the industry [1][5] - Supply chain disruptions from the Russia-Ukraine war and high customer inventory levels are also impacting operations [1] Market Performance - The Zacks Communication - Infrastructure industry has outperformed the broader Zacks Computer and Technology sector and the S&P 500, with a growth of 60.2% over the past year compared to 10.6% for the S&P 500 [10] - The industry currently trades at a trailing 12-month EV/EBITDA of 3.48X, significantly lower than the S&P 500's 17.08X and the sector's 16.28X [12] Notable Companies - IHS Holding Limited operates over 40,000 towers across 11 markets and has seen a stock gain of 36.4% in the past year, with upward revisions in earnings estimates [15] - Anterix Inc. holds the largest licensed spectrum in the 900 MHz band and has experienced an 11.3% stock gain over the past year, with significant upward revisions in earnings estimates [17]

The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Anterix (ATEX) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.Anterix is one of 604 companies in the Computer and Technology group. The Computer and Technology group currently sits at #5 within the Zacks Sector Rank. ...