InterCloud Systems Inc (OTC:ICLD) is a seemingly perpetual turnaround candidate and a chronic debt story. ICLD stock has been in another steady fear-of-dilution drive lower over the past couple months, but that rhythm has been broken in recent days with a bit of a spark, so we thought it was a opportune time to take another look at InterCloud. The main recent catalyst was the company’s announcement that it was recently awarded over $2 million in new contracts for professional services from new and existing customers. According to the release, the majority of the work is expected to begin immediately.
Mark Munro, CEO of InterCloud Systems stated, “Over the last six months, we have divested ourselves of non-core assets and strengthened our balance sheet. The Company’s remaining assets produced over $52 million in revenue during 2016. In addition to our divestments, we have significantly reduced our operating expenses with the goal of operating on a cash flow positive basis.”
InterCloud Systems Inc (OTCMKTS:ICLD) offers cloud data and network management and security to telecommunications companies. That’s the gist here.
As the company tells the story, it provides “end-to-end IT and network solutions to the telecommunications service provider and corporate enterprise markets through cloud platforms and professional services in the United States and internationally.”
InterCloud operates through four segments: Applications and Infrastructure, Professional Services, Managed Services, and Cloud Services.
ICLD offers various services, including platform as a service, infrastructure as a service, database as a service, and software as a service; and network management, 24x7x365 monitoring, security monitoring, and storage and backup services.
It also provides software-defined networking (SDN) training, SDN software development, and integration, virtualized network functions validation in a multi-vendor environment, unified communications, interactive voice response, and session initiation protocol based call centers, as well as structured cabling and other field installations.
As noted above, ICLD shares have started to fight for new life on the back of the company’s recent presser on its reported $2 million in new contracts for professional services for new and existing customers. Mark Munro added, “Notwithstanding these divestments and cost-cutting measures, we are continuing to drive revenue through our remaining subsidiaries and develop partnerships for our NFVgrid platform. As we complete our business restructuring, we will soon be in a position to partner with and acquire new assets that are better suited for growth in a cash flow positive environment.”
That announcement follows last month’s revelation that the company announced the sale of its Training Division.
According to that release, the Company’s training division provided professional services focused on education and training in the network arena. The asset was originally acquired by InterCloud in 2016 for $1.0 million in common stock. Under the terms of this asset sale, InterCloud received $1.4 million in cash, additional working capital adjustment and the elimination of approximately $215 thousand in net accrued liabilities.
Mark Munro, CEO of InterCloud stated, “the sale of this non-core business asset is a continued realignment of InterCloud’s business strategy and reduction of our outstanding liabilities. This sale enables InterCloud to focus on areas of growth and profitability; continue to improve our balance sheet and reduce the exposure to convertible debentures.”