xG Technology Inc. (NASDAQ:XGTI) announced the pricing for the public offering. The effects of this announcement were seen on the share prices for the firm. The shares fell from 60.1 cents to 88 cents immediately, and the shares were heavily traded for the period. The firm had announced a price of $1 per share for the 2.55M Class A units it offers. On the other hand, the company priced the 2.45M Class B units at 99 cents per share. The 2.55M series C warrants as well as the 4.95M series D were priced at 1 cent each.
Hours after the company announced its initial offering, the company also reported the earnings for the second quarter. The revenue for the second quarter was $374,000 as against the $163,000 revenue posted for the same quarter in the previous year. The revenue that was generated from the equipment sales has been recorded at $241,000 as against the consulting revenue, which is recorded at $133,000. There was a delayed revenue generation of about 20% on the equipment sale, which accounts to $188,000. This will be reported over a period of year.
The net loss reported by the firm was $4M or $1.4 per share as against the $4.5M or $1.98 per share. The net loss has reduced over a period of year. The weighted average number of shares for the period 2015 as recorded on 30th June was 4.5M while it was 2.2M for the quarter that ended on 30th June 2014. The firm ended the second quarter with cash of $156,000 as against $758,000 the previous year.
George Schmitt, CEO and Chairman of the Board of xG Technology, said, In second quarter 2015, xG not only gained further traction in planned marketing and uptake by potential customers, we more than doubled last second quarters revenue level and reduced our operating loss. Recently, we accomplished an equity financing that, while dilutive, fuels our growth efforts at a critical moment in our corporate development. We remain focused on leveraging our competitive positioning and on further monetizing our large market opportunity.
The debt to equity ratio for the company was recorded at 0.13 while the quick ratio is recorded at 0.43. The company has a strong debt to equity ratio, but the same cannot be said about the quick ratio.
On Friday, xG Technology, dropped -1.31 points, which is equal to -59.27%. The firm settled at $0.90, hitting its new 52-week low of $0.85.
The stock also slipped at the markets this week. It lost close to -42.68% in the past week, and dropped by -64.43% in the past four weeks. The year to date performance has also slipped by -82.35%.
xG Technology, Inc. (xG) is an IP (Internet Protocol) centric developer of innovative and disruptive communications technologies for wireless networks. The company has built an extensive portfolio of intellectual property that covers a broad range of applications, counting cognitive radio technology that can make wireless networks more flexible, intelligent, accessible, affordable and reliable.