Spok Holdings (NASDAQ: SPOK) reported Q1 EPS of $0.04, versus $0.02 reported last year. Revenue for the quarter came in at $41.76 million, versus $43.11 million reported last year.

Management Commentary:

“We are encouraged with our performance in the first quarter of 2019, as it was in-line with our seasonal expectations, and believe it provides a solid basis for continued improvement through the remainder of the year,” said Vincent D. Kelly, president and chief executive officer. “We were particularly pleased with the record-high level of first quarter software revenue and the sustained performance in our wireless business.”

In the first quarter of 2019, Spok paid $4.5 million in capital to stockholders. During the quarter, the Company paid approximately $2.7 million in regular quarterly dividends and repurchased 131,012 shares of common stock, totaling approximately $1.8 million. “In the first quarter of 2019, we were proud to be able to execute against our capital allocation strategy, returning capital through dividends and share repurchases," continued Kelly. "This quarter represents our 51st consecutive quarter of paying a dividend. We have been able to achieve this milestone while continuing to invest in the evolution of our integrated communication platform, Spok Care Connect®, and remaining a debt-free company."

Kelly noted that in addition to the financial performance the Company was able to achieve in the first quarter of 2019, progress was made in several other areas, including product development, sales strategy and key strategic partnership agreements. “Spok continues to build an industry-leading reputation,” commented Kelly. “During the quarter, we added more than a dozen new customers to the Spok family. We intend to carry that momentum throughout 2019 to stimulate long-term growth."

Michael W. Wallace, chief financial officer, said: “Expense management and strong financial discipline have allowed us to continue to invest in our business for long-term growth. In the first quarter, adjusted operating expenses were down on both a sequential and year-over-year basis, with improvements in most expense categories. Spok’s balance sheet remains strong, with a cash, cash equivalents and short-term investment balance of $81.8 million at March 31, 2019.”

GUIDANCE:

Spok Holdings sees FY2019 revenue of $156-174 billion.

Commenting on the Company’s previously provided financial guidance for 2019, Wallace noted: “We are pleased that the first quarter results are in line with the full year 2019 guidance we had provided last quarter and we are reiterating those expectations." Regarding financial guidance for 2019, Wallace said the Company expects total revenue to range from $156 million to $174 million. Included in that total, the Company expects software revenue to comprise $75 million to $85 million. Also, Spok expects adjusted operating expenses (excludes depreciation, amortization and accretion) to range from $155 million to $165 million, and capital expenses to range from $3 million to $7 million.

For earnings history and earnings-related data on Spok Holdings (SPOK) click here.