InterCloud Systems Inc (OTCMKTS:ICLD) has been recently awarded more than $200,000 in new contracts to begin the new year. Most of the work is projected to begin immediately. Mark Munro, the CEO of InterCloud Systems, said that they have noted higher volume in their stock lately, as lenders exercise rights to turn their debt into equity.
This bring pressure on the shares price, which is not always a reflection on the businesses of the firm. As they have previously reported, the firm is working aggressively to secure conventional asset based funding to help minimize these conversions. They are even working on the non-core assets sales to reduce some of this convertible debt.
InterCloud continue to have a promising outlook for FY2017 and expect that a robust balance sheet, minimized operating costs and continued marketing of their more profitable services and products will produce better shareholder value in the imminent period.
The financial performance
InterCloud reported that its net income in third quarter came at $2.1 million against a net loss of $2.9 million. The revenue in same period surged 11% to $19.6 million while gross profit jumped 15% to $5.6 million. Gross Profit Margin came at 29% in 3Q2016 compared to 28% in 3Q2015
Commenting on the third quarter performance, the CEO of InterCloud, said that notwithstanding the challenges they have seen this year in the equity markets, they have witnessed revenue growth over the same period in 2015. They have noted the results of their measures taken to minimize 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
These drop in SG&A costs while establishing on industry leading automated SDN solutions and professional services segment leads them on the path to profitability. They will continue on this course as they restructure their debt, reduce costs, divest of non-core assets and continue to record higher margin revenue around Network Function Virtualization and SDN.
