Towerstream Corporation (NASDAQ:TWER) continued to be plagued by low investor confidence, post its management announcing 4th quarter and full year operation results on 17th March. The results announcement was divided into two halves. The first was related to its stand alone subsidiary HetNets Tower Corporation, which reported an increase in revenue to $0.7 million in 4Q as against the $0.5 million it had brought in during 4Q12. Operationally, the firm achieved a major milestone when it managed to successfully execute on its Wi-Fi lease arrangement with other cable operators.
The second part of the earnings call was spent on discussing the operational and financial updates from the parent company Towerstream Corporation (NASDAQ:TWER). It reported that its average revenue per user had gone up to hit $752 in 4Q, as against the $684 million it had generated in 3Q13. The cash balance for the 4Q came in at $28 million in spite of the firm launching new offerings to users in specific locations.
Towerstream Corporation Lists Out Fy13 Accomplishments
Listing out the various achievements of the firm over the past 12 month period under his leadership, Towerstream Corporation (NASDAQ:TWER) President and Chief Executive Officer Jeffrey M. Thompson has been quoted to have said that, “We achieved a major milestone in the second quarter of last year, when our Manhattan Network became one of the first to be certified next-generation hotspot or Passpoint 2.0 compliant by the WBA’s interoperability compliance program. This effort has helped speedy adoption of the common set of requirements for seamless Wi-Fi user experience and put our Hetnets Network one step closer to being integrated to the radio access networks of carriers”.
Reshaping Business Model
The firm also disclosed that it is in the middle of discussions with various customers who are subscription based and are trying to convince them into moving into a lease based business arrangement. The company hopes to leverage the additional cash flow from this arrangement to help improve its financial performance.