InterCloud Systems Inc (OTCMKTS:ICLD) has been awarded almost $1 million in new deals for managed and professional services pertaining to next-gen network services for existing and new customers. A big percentage of the work is projected to begin soon. Separately, the firm posted on the continued decline of debt by over $3.9 million in last couple of months. Since end of June 2016, the debt has declined more than $20.6 million, as the firm followed its strategies to further bolster its balance sheet.
Mark Munro, the CEO of InterCloud Systems, said that they have continued to show their ability to overcome problems in the equity markets and their commitment to restore value to their shareholders. They will continue to work for achieving positive cash flow, profitability, a strengthened balance sheet and organic growth.
The financial performance
In 3Q2016, InterCloud Systems reported revenue of $19.6 million compared to revenue of $17.6 million for in the same period, a year earlier. This increase in revenue can be accredited to professional services operating division performance offset by a decline in infrastructure and application segment.
The gross profit percentage came at 29% in 3Q2016 against 28% for the same period in FY2015. Gross profit surged to $5.6 million in the reported period versus $4.9 million in 2015. This growth in gross profit was due to the strong performance of professional services segment.
InterCloud Systems posted net income of $2.1 million for 3Q2016 against a net loss of $(2.9) million for the same period of 2015. This increase in net income was a result of increase in the profits from the change in the derivative instruments fair value amounting to $10.3 million.
The CEO commented that notwithstanding the challenges they have faced in FY2016 in the equity markets, they have recorded revenue growth over the same period in 2015. They have witnessed the results of their measures taken to lessen operating expenditures.
THE MORNING REPORT
Start your workday the right way with the news that matters most.
Your information is 100% secure with us and will never be shared Disclaimer & Privacy Policy
