InterCloud Systems, Inc. (ICLD) provides cloud networking orchestration and automation solutions to the telecommunications service provider (carrier) and corporate enterprise markets through cloud solutions and professional services.
ICLD's cloud solutions offer enterprise and service-provider customers the opportunity to adopt an operational expense model by outsourcing cloud deployment and management to ICLD rather than the capital expense model that has dominated in recent decades in IT infrastructure management.
ICLD awarded new contracts valued at more than $2.1M
Last month, ICLD announced that it was recently awarded over $2.1M in new contracts for professional services in connection with the deployment of state of the art Distributed Antenna Systems (DAS) and next-gen WiFi networks for existing customers.
"InterCloud's pipeline of new business continues to provide [multi-mln-dollar] business opportunities for our sales organization," said ICLD's CEO Mark Munro in a Feb. 22 press release. "The massive expansion in use of smart mobile devices has increased the demand for carrier and enterprise WiFi usage. This has created security risks and the need for next-gen WiFi and DAS networks with deeper security and agility. InterCloud is in position to capitalize on the growth with our unique cloud managed WiFi offering. Additionally, with the influx of cash from our recently announced asset sale, the Company is well capitalized for our continued growth and now has the ability to strategically seize upon new opportunities."
ICLD kicks off 2016 with $1.3M in new contracts
Last February's news came on the heels of a press release in late January, in which ICLD announced that it was "awarded over [$1.3M] in new contracts for professional and managed services in connection with deployment of next generation network solutions as well as Distributed Antenna Systems (DAS) and WiFi networks for existing enterprise and carrier customers. Included within these new contracts was over $450,000 in professional services to be deployed for a New York State government office."
"As we finished out 2015 and start the calendar 2016 we continue to see an expanding number of opportunities within both the enterprise and service provider markets," Munro said in a Jan. 28 press release. "Our sales organization continues to build upon our pipeline and we are looking forward to a successful 2016."
ICLD strengthens balance sheet with sale of online data backup business
ICLD also recently strengthened its balance sheet through the sale of its online data backup related business assets to KeepItSafe, Inc.
Under the terms of the asset sale, ICLD received $24M in cash, and retained an additional $2.1M, comprised of cash on hand, accounts receivable and net of other closing adjustments, a Feb. 19 press release stated. $2M of the purchase price was placed into an interest bearing escrow account that management expects to be released at the end of twelve months. The divested assets represented approximately 11% of the company's annualized revenue.
"In addition to the added liquidity, this is the first step in InterCloud's commitment to reorganize the Company with continued focus in the emerging market of SDN (Software Defined Networking) and VNF (Virtual Network Function) orchestration and automation," Munro said in the Feb. 19 press release.
He added: "In addition to this reorganization, InterCloud made great strides in 2015. Our team consolidated all acquisitions and concluded integration efforts resulting in approximately $1.5M in payroll reductions during last year. As we previously disclosed, our revenue for the nine months ended September 30, 2015 was at a record high of approximately $65M; and we maintained that momentum through the close of 2015. We are extremely proud of our results, but we have much higher goals and aspirations for 2016. Our goal is to continue to streamline expenses during 2016 and eliminate the cash burn associated with our orchestration and VNF validation group. We also will attempt to reduce debt and build value for our investors moving forward. We appreciate all investor support and look forward to a productive and exciting year ahead."
To learn more about ICLD, visit: http://www.intercloudsys.com
Disclaimer:
Do not base any investment decision upon any of the materials found in this publication or on our Web site.
The information contained on our website or in any of our newsletters is for informational purposes only, and is not intended to be advice, nor a recommendation and/or guidance for investment decisions. In preparing our publications, we rely upon publicly available information including articles written and published by third parties, and press releases which we believe to be reliable, but have not verified. Past performance is not indicative of future results. We are engaged in the business of profiling companies for monetary compensation. All direct and third party compensation received has been disclosed in our newsletter and/or our website in accordance with sect ion 1 7 ( b ) of the Secur ities Act of 19 33.
Compensation: We have not been compensated for this publication. We do not own any shares of InterCloud Systems, Inc.
