MIDDLETOWN – Towerstream Corp., a company that provides fixed wireless broadband services to commercial customers, reported a first-quarter loss of $2.8 million, compared with a loss of $3.8 million one year prior. Loss per diluted share for the quarter was $7.16, compared with $14.50 last year.
The company reported revenue of $6.4 million for the first three months of the year, slightly less than $6.6 million in the first quarter of 2017.
The company noted in its earnings release that its deficit and continued losses “raise substantial doubt” about its ability to continue. It also said that it intends to raise additional capital. It noted that in the case that it is not successful raising funds, the company “may need to curtail or cease its operations and implement a plan to extend payables or reduce overhead until sufficient additional capital is raised to support further operations.”
It said that by the end of March 2018, cash and cash equivalents totaled approximately $5.3 million, a drop from $7.6 million a year earlier, and it had working capital deficiency of approximately $32.8 million. As of March 31, the company had an accumulated deficit of $191.9 million.
However, the company’s management does believe that Towerstream Corp. will be successful in its ability to raise said funds.
It also noted that in March, its board of directors commenced an evaluation of strategic repositioning of the company, which could possibly include the sale of some or all of the company’s business or assets.
The company currently has markets in Boston, Chicago, Dallas-Fort Worth, Houston, Las Vegas-Reno, Los Angeles, Miami, New York, Philadelphia, San Francisco, Seattle and the Providence-Newport area.
Chris Bergenheim is the PBN web editor.