Towerstream -13.4% AH post-earnings; Q1 guidance in-line

|About: Towerstream Corporation (TWER-OLD)|By:, SA News Editor

Towerstream (TWER) expects Q1 revenue of $8.45M-$8.75M; the sole analyst with an estimate for the quarter is forecasting revenue of $8.53M. Adjusted EBITDA is expected to be in a range of $3.5M-$3.7M, after coming in at -$1.9M in Q4.

Good news: ARPU rose 7% Q/Q to $761. Bad news: In spite of the ARPU jump, revenue only rose 1% Q/Q to $8.5M. Churn rose to 1.9% from 1.81% in Q3 and 1.59% a year ago.

2013 capex was $8.1M (24% of revenue), and net cash flow -$15.9M. The Q4 figures were respectively $3.3M and -$5.3M.

$4.6M in cash was used during Q4, leaving Towerstream with a balance of $28.2M. Fixed wireless gross margin fell to 64% from 66% in Q3 and 69% a year ago.

Of the company's $7.1M in Q4 fixed wireless revenue, $2.1M was from Los Angeles, $2M from New York, and $1.6M from Boston.

Q4 results, PR