iPass Inc. (NASDAQ:IPAS) is stopped looking for a buyer but in the meantime has fired its CEO and announced a deal with Microsoft Corporation (NASDAQ:MSFT). The company has decided it will remain independent after completing a review of the benefits and possibilities involved in the potential sale of the company. They also announced they have a pact in place with Microsoft to access WI-Fi at a selection of hotels and airports. The value and the terms of the deal with the software giant were not disclosed. Gary Griffiths was named the new CEO. The change in leadership will take effect March 6.
The company currently has a market cap of $82 million and also posted earnings for the fourth quarter that just missed estimates. Forward guidance was also slightly lower than expected and that has caused some heavy selling in the stock hurting the market cap. Revenue for the quarter was $17 million and iPass Inc. (NASDAQ:IPAS) showed a loss of $2.43 million or 4 per share. The street was expecting a loss of 5 cents. The loss was an improvement over the same period last year of 8 cents per share.
iPass Inc. (NASDAQ:IPAS) also signed an agreement with Regus to offer its customers bundled global access Wi-Fi. Regus operates over 2,000 customer outlets that are in 104 countries. The deal will allow Regus offer access to over 18 million Wi-Fi hotspots around the globe including airports, hotels and many places of business such as restaurants. This agreement coupled with the Microsoft deal will bring an exciting breath of fresh air to the company’s operations. Wi-Fi is an expanding service and customers are demanding it. It allows mobile users to pass data without putting a strain on their cell phone plans.
The stock suffered a serious sell off and needs to settle into a base. Ideally it will move back over $1 quickly and avoid facing delisting issues. iPass Inc. (NASDAQ:IPAS) needs to work out its internal issues before any moves of substance begin.