Company profile

Ticker
SPOK
Exchange
Website
CEO
Vincent D. Kelly
Employees
Incorporated in
Location
Fiscal year end
Former names
USA Mobility, Inc, Wizards-Patriots Holdings, Inc.
SEC CIK
IRS number
161694797

SPOK stock data

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FINRA relative short interest over last month (20 trading days) ?

Calendar

27 Feb 20
28 Feb 20
31 Dec 20

News

Company financial data Financial data

Quarter (USD) Dec 19 Sep 19 Jun 19 Mar 19
Revenue 39.55M 39.45M 39.53M 41.76M
Net income -9.51M -1.33M -670K 742K
Diluted EPS -0.5 -0.07 -0.03 0.04
Net profit margin -24.05% -3.36% -1.70% 1.78%
Operating income -12.24M -2.69M -1.99M 1.12M
Net change in cash -1.96M 1.49M -15.1M -20.42M
Cash on hand 47.36M 49.32M 47.83M 62.93M
Cost of revenue 8.05M 7.19M 7.24M 7.59M
Annual (USD) Dec 19 Dec 18 Dec 17 Dec 16
Revenue 160.29M 169.47M 171.18M 179.56M
Net income -10.77M -1.48M -15.31M 13.98M
Diluted EPS -0.56 -0.08 -0.76 0.68
Net profit margin -6.72% -0.87% -8.94% 7.79%
Operating income -15.81M -3.17M 10.71M 22.15M
Net change in cash -35.98M -19.84M -18.65M 12.49M
Cash on hand 47.36M 83.34M 103.18M 121.83M
Cost of revenue 30.07M 32.41M 28.42M 30.65M

Financial data from Spok earnings reports

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Financial report summary

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Risks
  • Our estimates of market opportunity for our software solutions are subject to significant uncertainty and, even if the markets in which we compete meet or exceed our size estimates, we could fail to increase our revenue or market share.
  • The rate of wireless subscriber and revenue erosion could exceed our ability to reduce wireless operating expenses in order to maintain overall positive operating cash flow.
  • Our transition to a SaaS based business model may negatively impact our revenue, and if we fail to successfully manage the transition, our business, financial condition and operating results may be adversely affected.
  • We may be unable to effectively develop, introduce and deploy our integrated communications platform and collaboration platform, Spok Go, which is the basis for our future growth.
  • Technical problems and higher costs may affect our product development initiatives.
  • If we are unable to retain key management personnel, we might not be able to find suitable replacements in a timely manner, or at all, and our business could be disrupted.
  • We depend on highly skilled personnel and, if we are unable to retain or hire additional qualified personnel, we may not be able to achieve our strategic objectives.
  • Growth in our software revenue and bookings, and maintenance of our wireless revenue and subscriber base is dependent on the productivity of our sales organization.
  • If we are unable to deliver effective customer support, it could harm our relationships with our existing customers and adversely affect our ability to attract new customers.
  • We may experience a long sales cycle for our software products.
  • Undetected defects, bugs, or security vulnerabilities in our products could adversely affect the market acceptance of new products, damage our reputation with current or prospective customers, and materially and adversely affect our operating costs.
  • Wireless service to our customers could be adversely impacted by network rationalization.
  • We may be unable to find vendors able to supply us with wireless paging equipment based on future demands.
  • We may be unable to maintain successful relationships with our channel partners.
  • We may be unable to realize the benefits associated with our deferred income tax assets.
  • Our wireless products are regulated by the FCC and, to a lesser extent, state and local regulatory authorities. Changes in regulation could result in increased costs to us and our customers.
  • Certain of our software products are regulated by the FDA. The application of or changes in regulations could impact our ability to market new or revised software products to our customers.
  • We may experience litigation claiming intellectual property infringement by us, and we may not be able to protect our rights in intellectual property that we own and develop.
  • Our use of open source software, third-party software and other intellectual property may expose us to risks.
  • We may encounter issues with privacy and security of personal information.
  • System disruptions and security threats to our computer networks, satellite control or telecommunications systems could have a material adverse effect on our business.
  • General economic conditions that are largely out of our control may adversely affect our financial condition and statement of operations.
  • If our long-lived assets, intangible assets subject to amortization or goodwill become impaired, we may be required to record a significant charge to earnings.
  • We have investigated potential acquisitions and may not be able to identify an opportunity at favorable terms or have the ability to close on the financing necessary to consummate the transaction.
  • We have investigated potential acquisitions and may be unable to successfully integrate such acquisitions into our business and may not achieve all or any of the operating synergies or anticipated benefits of those acquisitions.
Management Discussion
  • Total revenue declined by 5.4% or $9.2 million during 2019 compared to 2018, primarily as a result of the continued and expected decline in wireless revenue along with a decrease in license revenues. The rate of decline in wireless revenues continues to trend favorably over the last several years as we saw the lowest level of erosion in the last five years, declining at a rate of only 6.5%.
  • In the fourth quarter of 2019, we recognized non-cash pre-tax goodwill impairment charges of $8.8 million. Excluding the goodwill impairment, our operating expenses decreased by 3.1% or $5.4 million during 2019 compared to 2018, driven primarily by savings in cost of revenue and general and administrative.
  • While we continued investment in our development of Spok Go, we anticipate costs will begin to normalize in 2020. We saw growth in development costs decline from 30.8% between 2017 and 2018 to 12.6% from 2018 to 2019. We anticipate the rate of growth will continue to decline through 2020 as we balance the mix of staffing and outside service resources with internal development needs. We made significant progress in our development efforts related to Spok Go and expect to have a product ready for public release in 2020.
Content analysis ?
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