iPass (IPAS) Tops Q1 EPS by 3c

iPass (NASDAQ: IPAS) reported Q1 EPS of ($0.05), $0.03 better than the analyst estimate of ($0.08). Revenue for the quarter came in at $16.6 million versus the consensus estimate of $16.7 million.

iPass sees Q2 2015 revenue of $15.4-17.4 million, versus the consensus of $17.4 million.

"On the last earnings call, I said that you should expect change across many fronts, and to expect that we would consume less cash, accelerate the time to profitability, and initiate new product offerings to fuel our growth," said Gary Griffiths, iPass president and CEO. "Since that time, we've launched iPass UNLIMITED, which will be sold on a per-user-per month fixed fee, for unlimited usage, primarily to sales and marketing teams, the typical users of our service. UNLIMITED is a hosted SaaS product that significantly increases our addressable market, and is expected to have shorter sales cycles and shorter times to deploy. We're already seeing new deals close in days -- not months. Second, we've expanded our activity in reaching end users by bundling our product into products of companies who have massive consumer audiences -- including previously announced partnerships with HP and Microsoft. We call this iPass EVERYWHERE, and today we are announcing a new partnership with Huawei, allowing Huawei Smart Phones to access the iPass global Wi-Fi network. We believe these and continued deals of this kind will allow us to spread virally. Third, we are making significant enhancements to the product reflective of a lean, nimble mobile application. We call this iPass INVISIBLE -- working behind the scenes to keep our customers connected."

"Finally, this new vision includes a new cost structure, which we believe will lead to a faster path to profitability. As you've seen in our adjusted EBITDA, we've already significantly reduced spending in Q1'15, and with the restructuring announced today, plan on further reducing our operating expenses by $2 million per quarter, which we believe will accelerate positive EBITDA from our targeted $100 million annual revenue run rate to $80 million. We have increased our deferred revenues from $0.6 million at December 31, 2014, to $1.5 million at March 31, 2015, which we believe is a sign of things to come. We believe that our vision of and focus on Unlimited, Everywhere, and Invisible, combined with a streamlined expense structure, will accelerate both top and bottom line growth."

For earnings history and earnings-related data on iPass (IPAS) click here.

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