Nov 16, 2017
OTC Disclosure & News Service
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ICLD streamlines operations
Salaries and Wages decline 54% 3Q 2017 vs. 3Q 2016
Selling, General and Administrative Expenses decline 64% 3Q 2017 vs. 3Q 2016
SHREWSBURY, N.J., Nov. 16, 2017 (GLOBE NEWSWIRE) -- InterCloud Systems, Inc. (the "Company" or "InterCloud") (OTCQB:ICLD), a leading provider of cloud networking orchestration and automation solutions and services, today reported financial results for the third quarter of 2017.
Mark Munro, Chairman and CEO of InterCloud, stated, “The financial results reflect our continued elimination and restructuring of debt; the reduction of expenses and the overall strengthening of the Company’s balance sheet. We are hoping that through these efforts we can restore shareholder value in the future.”
3rd Quarter Financial Highlights:
Revenue for the third quarter ended June 30, 2017 decreased $9.6 million, or 49%, to $10.0 million, as compared to $19.6 million for the third quarter of 2016. This was the result of subsidiaries disposed of during the first and second quarters of 2017. Gross profit percentage was 27% for the third quarter ended September 30, 2017, compared to 29% for the same period in 2016. The overall decrease in gross profit percentage was due to reduced margins within the Company’s professional services segment offset by increased margins in the application and infrastructure segment.
The Company had a loss from operations of $(1.1) million compared to loss from operations of $(3.8) million in the comparable period of 2016. The Company had a net loss attributable to common stockholders of $(5.5) million in the third quarter of 2017 compared to net income of $2.1 million for the comparable period of 2016. The net income in 2016 was the result of a gain on change in derivative of $11.2 million in the third quarter of 2016, compared to a gain on change in derivative of $3.2 million in the comparable period of 2017. The decrease in net loss was an increase in the loss on extinguishment of debt of $4.4 million in the third quarter of 2017 compared to a loss from extinguishment of debt of $1.6 million in the comparable 2016 period. Additionally, there were decreases in salaries and wages and SG&A expenses of $5.1 million and a decrease in interest expense of $1.0 million. These decreases were offset by a decrease in gross profit of $2.9 million.
