iPass Inc. (NASDAQ:IPAS)
iPass Inc. (NASDAQ:IPAS) has teamed up with software and managed services provider, Mobilise, to provide a new global Wi-Fi service to mobilcom-debitel customers. IPAS stock traded lower in Friday’s trading session in response to the news, as short sellers continue to position themselves for lower prices.
A bullish run on iPass Inc. (NASDAQ:IPAS) stock that began in March ended as the stock failed to break through a key resistance level at the $1.50 mark. The stock has since gapped lower from the $1.20 mark and is currently trading near all-time lows.
A decline in investor sentiments on iPass Inc. (NASDAQ:IPAS) has seen the stock trade in a tight $0.51 – $0.57 trading range as it closes in on its 52-week low of $0.51 a share. Positive investor views on the stock are being challenged by a slowdown in the adoption of the company’s new technology and erosion in pay-per-use business continues to compound the issue.
Net Loss- Outlook
iPass Inc. (NASDAQ:IPAS) reported a net loss of (-$5.3) million for the second quarter as revenue came in at $13.5 million. A further indication of a slowdown in the company’s business is a new revenue guidance of $54 million, down from a previous guidance of between $69 million and $73 million. A net loss guidance of between (-$4.5) million and (-$2) million also continues to rattle investors.
“While continuing to achieve progress toward our strategy and goals in the longer term, our performance in the second quarter was disappointing, reflecting delays in execution and timing driven by three significant factors that impacted revenue,” said Gary Griffiths, president, and CEO.
Mobilise Collaboration Synergies
iPass SmartConnect software’s development kit underperformed in the second quarter in terms of revenue generation. The company attributes the poor performance to insufficient technical support and engineering resources to address disparate requirements that emerged during the roll outs. Strategic partners requiring longer evaluation and deployment cycles also affected revenue generation.
A collaboration with Mobilise to provide Wi-Fi services on mobilcom-debitel network should have a positive impact on iPass SmartConnect SDK going forward. Mobilise has agreed to provide the Wi-Fi solution using iPass SmartConnect SDK.
The new Wi-Fi service seeks to enhance connectivity options to mobilcom-debitel 12 million mobile subscribers. The independent German telecommunications company plans to use the collaboration to further enhance connectivity experience of its customers.
“This contract with mobilcom-debitel is further validation of the unique value proposition Mobilise and iPass are bringing to the market,” said iPass Inc. (NASDAQ:IPAS) chief commercial officer Patricia Hume.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.