Revenues and Gain on Sale of Rights in Wireless Spectrum

12 Months Ended

Jul. 31, 2014

Revenues and Gainon Sale Of Wireless Spectrum Rights [Abstract]

Revenues and Gain on Sale of Rights in Wireless Spectrum

Note 9—Revenues and Gain on Sale of Rights in Wireless Spectrum

Revenues

In fiscal 2014 and 2013, Straight Path Spectrum’s revenues from transactions with a single customer that amounted to 10% or more of total revenues were as follows:

Year ended July 31  (in thousands)	2014		2013
Customer:
TelePacific Communications	$	165	$	165
AT&T		114		134
UNSI		53		-

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

Revenue From Patent Infringement

As discussed above, the Company has filed a series of lawsuits claiming infringement of a number of its key patents and was seeking both damages and injunctive relief.  Many of the actions have been settled. In connection with the settlements, Straight Path IP Group recognized revenue of approximately $4.4 million in fiscal 2014 and $605,000 in fiscal 2013. The total settlement amounts aggregated $16.7 million, excluding contingent amounts for which collectability is not reasonably assured. These settlement agreements include license fees for the duration of the license term. The license term is through the expiration of the licenses in September 2015.

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 LMDS and 39 GHz EA 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 of 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 and recorded an additional gain of $150,000 (see Note 7).