Spok(SPOK)2024-07-25 20:02Revenue Performance - Wireless revenue for Q2 2024 was 18,877,000 in Q2 2023[142] - Software revenue for Q2 2024 was 17,586,000 in Q2 2023[142] - Total revenue for Q2 2024 was 36,463,000 in Q2 2023[142] - Total software revenue decreased by 10.8% to 17.586 million in the same period of 2023[201] - Wireless revenue decreased by 3.1% to 18.877 million in the same period of 2023[197] - Maintenance revenue increased by 2.7% to 9.124 million in the same period of 2023[201] Income and Expenses - Operating income for Q2 2024 was 6,215,000 in Q2 2023[142] - Net income for Q2 2024 was 4,733,000 in Q2 2023[142] - Total operating expenses for Q2 2024 were 30,248,000 in Q2 2023[142] - Research and development expenses increased by 11.3% to 2,853,000 in Q2 2023[142] - Selling and marketing expenses decreased by 422,000 (5.0%) compared to the same period in 2023, driven by reductions in facility rent and office costs[217] Cash Flow and Liquidity - As of June 30, 2024, the company held cash and cash equivalents of 9.4 million, a decrease of 11.2 million for the same period in 2023[239] - Net cash used in financing activities was 14.3 million for the same period in 2023, indicating an increase of about 11.9%[163] Assets and Liabilities - Total assets decreased from 216,377 thousand as of June 30, 2024, representing a decline of approximately 5.7%[157] - Current liabilities decreased from 43,356 thousand, a reduction of about 9.3%[157] - Total stockholders' equity decreased from 158,212 thousand, reflecting a decrease of approximately 3.4%[157] Operational Insights - Active transmitters decreased by 5.4% to 3,101 in Q2 2024 from 3,278 in Q2 2023[142] - The number of wireless units in service declined from 806 thousand as of June 30, 2023, to 747 thousand as of June 30, 2024[198] - The company anticipates continued decline in demand for wireless services due to competition from broadband technology[203] - The GenA pager is the only product on the market with advanced capabilities, expected to provide a competitive advantage and slow wireless revenue attrition[193] Dividends and Shareholder Returns - The company declared a quarterly cash dividend of 6.3 million to be paid from available cash[150] - A quarterly cash dividend of 6.3 million, to be paid from available cash on hand[164] Research and Development - Research and development expenses increased due to higher outside services aimed at enhancing software solutions[208] - The company continues to enhance existing software solutions, which is expected to generate additional revenues for license sales and help reduce gross churn levels[166] Other Financial Metrics - The provision for income taxes decreased to 1.7 million in the same period in 2023[230] - Stock-based compensation increased by 0.3 million and $0.8 million for the three and six months ended June 30, 2024, respectively, related to lease terminations[223] Strategic Outlook - The company anticipates continued positive cash flow generation in future operating periods following the successful completion of its restructuring plan[226] - The company continues to review its office and transmitter locations to potentially reduce or consolidate leases[247] - There were no changes to the critical accounting policies reported in the 2023 Annual Report that affect significant judgments and estimates[249] - The company does not have relationships with unconsolidated entities or financial partnerships, mitigating exposure to financing, liquidity, market, or credit risk[237]