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iPass Inc. (IPAS) filed Quarterly Report for the period ended 2011-09-30.
Ipass Inc. has a market cap of $76.4 million; its shares were traded at around $1.3 with and P/S ratio of 0.5.
This is the annual revenues and earnings per share of IPAS over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of IPAS.
Highlight of Business Operations:
The decline in network gross margin was in large part driven by the continued erosion of our higher-margin dial-up network revenue and network minimum commitment revenue that contributed approximately 3% and 4%, respectively, to the decline for the three and nine month comparative periods. The erosion in our dial-up revenue is due to the continued migration of customers to alternative faster connectivity technologies while the decline in network minimum commitment revenue is due to terminations and customers renewing their agreements at lower commit levels. These decreases were offset in part by an increase in MNS margin contribution of approximately 2% and 1%, respectively, for the three and nine months ended September 30, 2011 compared to the same periods in 2010. The increase in MNS margin contribution was due to a growth in customer base and our efforts in renegotiating network access costs. In addition, although Wi-Fi margin contribution decreased by less than 1% for the three month comparative periods, there was a 1% increase in Wi-Fi margin contribution for the nine month comparative periods that further offset the decline in dial-up and minimum commitment margin.For the three months ended September 30, 2011 compared to the same period in 2010, network revenue decreased $4.6 million or 18.0% primarily due to the decline in Wi-Fi revenue of $2.0 million and the anticipated decline in minimum commitment, dial-up and 3G revenues of $0.8 million, $0.9 million, and $1.0 million, respectively.
For the three and nine months ended September 30, 2011 compared to the same periods in 2010, the increase in EMS operating loss was primarily due to lower EMS revenues of $4.3 million and $12.9 million, respectively; partially offset by a corresponding reduction in network access costs of $2.2 million and $6.4 million, respectively and lower operating expenses of $1.7 million and $5.8 million, respectively, due to our ongoing cost management efforts that include ongoing headcount reductions.
The decrease in sales and marketing expenses for the three and nine months ended September 30, 2011, compared to the same periods in 2010 was primarily due to the reorganization of our sales function which resulted in lower headcount-related expenses of $0.8 million and $2.3 million, respectively, partially offset, by an increase in expenses for termination payments of $0.3 million and $0.5 million, respectively as a result of the approved elimination of certain positions. In addition, marketing program spending decreased by less than $0.1 million for the three months ended September 30, 2011 but increased by $0.3 million for the nine months ended September 30, 2011 compared to the same periods in 2010.
For the three and nine months ended September 30, 2011 compared to the same periods in 2010, the decrease in general and administrative expenses was primarily due to a decrease in tax-related expenses of $0.6 million and $1.3 million, respectively, as a result of cash collections on invoiced sales taxes or changes to estimates for incremental sales tax liabilities and lower penalties and interest upon settlements with certain state tax authorities. For the three and nine months ended September 30, 2011 compared to the same periods in 2010, bad debt expense also decreased by $0.3 million and $0.7 million, respectively, on improved collections, partially offset by increased headcount-related expense of $0.1 million and $0.5 million, respectively.
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