InterCloud Systems Reports Full Year 2016 Results
Mar. 14, 2017 10:32 AM
* Long term debt reduced by $27.4 million since June 2016
* 2016 Revenue of $78.0 Million Compared to $74.1 Million in 2015
* 2016 Operating Expenses reduced by $7.8 million
SHREWSBURY, N.J., March 14, 2017 (GLOBE NEWSWIRE) -- InterCloud Systems, Inc. (ICLD) (the "Company" or "InterCloud") (OTC:ICLD), a leading provider of networking orchestration and automation solutions for IOT, SDN and NFV and services, today reported financial results for the full year 2016.
Full Year 2016 Financial Highlights:
Mark Munro, Chairman and CEO of InterCloud, stated, “In 2016, the Company began a systematic restructuring. The changes included the sale of certain assets to generate cash and reduce senior debt. Our senior debt now totals only $5.7 Million; which is down from $25.7 Million in June of 2016. The senior debt reduction along with the subordinated debt reductions since June 2016 now total over $27.4 Million. This is a significant and important reversal.
Our team remains focused on eliminating or restructuring the remaining subordinated debt in order to reduce interest expense and increase the shareholder equity of the Company."?
In addition, Mark Munro, Chairman and CEO of InterCloud stated, "InterCloud will continue to deleverage, sell assets that do not have significant upside for the long term and focus on deeper cost cutting measures to achieve positive cash flow. Our focus is on driving our cost of goods sold down as well as reducing future operating expenses. Corporate costs are also being reduced as our employees are focused on achieving more with less overhead.
"In 2016, InterCloud’s SDN and NFV related revenue increased from zero in 2015 to almost $5 million in 2016. This market has been slower to adopt than most experts predicted but clearly the virtualization of the network has begun and future opportunities remain robust and exciting for InterCloud. Our team has focused on several highly remarkable use cases in healthcare security and analytics, tier two carrier orchestration and automation, and deep machine learning analytics and automation for IOT applications. Recently, two companies with similar software platforms to InterCloud's have sold for over $100 million each. These events give us even more confidence we are in the right space at the right time. We have streamlined costs but our platform remains robust and the team continues to develop use cases with near term revenue opportunities. We have focused on strategic partnerships to help lower our costs of sales and deliver our solutions into large enterprise customers that already have existing relationships with our brand name partners. I look forward to reporting news around this market during 2017."
In conclusion, Mark Munro, Chairman and CEO stated, "2016 was a solid growth year for InterCloud. Revenue increased, costs lowered and debt was significantly reduced. We look forward to driving efficiencies deeper in 2017 and the continued growth and maturity in the new markets of IOT, SDN and NFV.”
Full Year 2016 Financial Results:
Revenue for the year ended December 31, 2016 increased by 5% to $78.0 million, compared to $74.1 million for 2015. This was the result of increased revenue from our professional services business segment offset by a decline in our managed services segment.
Gross profit was 25% for the year ended December 31, 2016 and 27% for 2015. Gross profit stayed relatively flat at $19.8 million for 2016 compared to $20.2 million in 2015. Increases in gross profit in our professional services segment were offset by decreases in our other segments. The gross profit percentage in the professional services segment was 28% for the year ended December 31, 2016. ?
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