Concentration of Customers and Gain on Sale of Rights in Wireless Spectrum

6 Months Ended

Jan. 31, 2014

Concentration of Customers and Gain on Sale of Rights in Wireless Spectrum [Abstract]

Concentration of Customers and Gain on Sale of Rights in Wireless Spectrum

Note 6—Concentration of Customers and Gain on Sale of Rights in Wireless Spectrum

Concentration of Customers

Straight Path Spectrum’s revenues from transactions with a single customer that amounted to 10% or more of total revenues were as follows:

	Six Months Ended January 31,
	2014		2013
	(in thousands)
TelePacific Communications	$	83	$	83
AT&T		59	na

na-less than 10% of total revenues in the period

The loss of either of these major customers may have a material adverse effect on the Company’s results of operations and cash flows.

Gain on Sale of Rights in Wireless Spectrum

In March and April 2012, Straight Path Spectrum closed on the sale of rights in wireless spectrum partitioned and/or disaggregated from eight of its spectrum licenses covering metropolitan areas from its nationwide portfolio. In fiscal 2012, Straight Path Spectrum received cash of $6.8 million in exchange for the rights in the spectrum and recorded a gain of $5.3 million. In fiscal 2013, Straight Path Spectrum settled certain claims made by the Former Chief Executive Officer of Straight Path Spectrum (the “Former SPSI CEO”) and parties related to the Former SPSI CEO in connection with the March and April 2012 sale of rights in wireless spectrum. In the three months ended January 31, 2013, the Company reversed accrued amounts due to the settlement of the claims and recorded a gain of $0.2 million that was included in “Gain on sale of rights in wireless spectrum” in the combined and consolidated statement of operations.