Anterix(ATEX)2023-11-14 16:25Financial Data and Key Metrics - The company launched a share repurchase program in September, allowing the repurchase of up to 53 million in proceeds from existing contracts during the remainder of the fiscal year [6] - Currently, 16 utilities representing approximately 250 million to deliver shareholder value [6][14] - Anterix is actively involved in industry forums and panels, such as the EEI Foundation wildfire mitigation panel, to promote the adoption of 900 megahertz private LTE networks [10] Management Commentary on Operating Environment and Future Outlook - Management remains highly confident in the company's ability to deliver value to shareholders, citing industry movement towards 900 megahertz, utility progress on the demonstrated intent scorecard, and the share repurchase program [14] - The company sees near-term opportunities in excess of 250 million, underpinning its confidence in future growth [6][14] Other Important Information - Wassim Akhdar joined Anterix as Senior Vice President of Product Innovation, bringing extensive experience in delivering innovative solutions to utilities [13] - The company's CatalyX solution, a turnkey subscriber management and roaming solution, was demonstrated at the UBBA Summit, showcasing its potential to enhance private broadband networks [9] Q&A Session Summary Question: Quantification of investment by utilities and ecosystem partners - Anterix estimates that its spectrum represents roughly a third of the spend in network deployment costs, with utilities spending upwards of 150 billion annually on capital projects [17][18] - The company tracks 23 companies with commercial-ready products for 900 megahertz, indicating significant third-party investment in the ecosystem [19] Question: Impact of the Hawaii situation on utility boards - Wildfire mitigation has become a critical focus for utilities, with private LTE 900 megahertz networks being deployed to address these risks [21][22] - The discussion at the EEI Foundation panel highlighted the importance of technology solutions, such as falling conductor protection, in mitigating wildfire risks [23][24] Question: Milestones with Evergy and other contract proceeds - Anterix expects 16 million from Xcel and 50 million licensing opportunity has moved above the demonstrated intent threshold in the last three months [28] Question: Cash balances, liquidity, and buyback strategy - The company plans to keep 50 million in cash to cover annual OpEx, with excess liquidity directed towards the buyback program [30] - The buyback program reflects the company's confidence in near-term opportunities exceeding $250 million [34] Question: Interest in 800 megahertz spectrum and 5G adoption - Anterix is opportunistic about spectrum opportunities, including potential partnerships or acquisitions related to 800 megahertz spectrum [32][33] - Utilities are currently focused on LTE, with future compatibility for 5G through software upgrades, as highlighted by ecosystem partners like Ericsson and Nokia [36][37] Question: Demonstrated Intent (DI) scorecard and Phase III progress - The DI scorecard tracks utilities' progress towards 900 megahertz contracts, with 16 utilities currently above the threshold [12][40] - The DI scorecard provides granularity on utility progress, including contract negotiations and other indicators of intent [41][43] Question: Government spectrum policy and shared spectrum - Anterix is monitoring potential spectrum opportunities, including shared spectrum models like CBRS, but emphasizes the need for control and certainty in utility networks [50][53] - The company believes both shared and exclusive license models will continue to play a role in the spectrum landscape [54] Question: Interest from the satellite industry - Anterix is engaged with leading vendors on potential hybrid terrestrial-satellite solutions, viewing 900 megahertz as a foundational element for future network expansions [56]