It was last month, the last time mentioned InterCloud Systems Inc (OTCMKTS:ICLD) here on Street Register. We were mentioning some lucrative contracts the company had been awarded, a strategic sale of assets, as well as the reduction of long-term debt and more.
This month, there have been some new press releases coming down the wire that suggest the provider of cloud networking orchestration and automation solutions and services’ prior progress was not fool’s gold. Even more big money contracts and fat-trimming went on the books in recent weeks, and we wanted to pass those updates along to our readers.
First, InterCloud Systems Inc (OTCMKTS:ICLD) revealed the sale of its Training Division for a tidy profit. 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.” (Source: Globe Newswire)
Cost-cutting while also making a quick turnaround on an investment placed just a year ago, is a real slam dunk for ICLD’s management.
Next, it was announced that ICLD was recently awarded over $2 million in new contracts for professional services for new and existing customers, with a majority of the work 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.”
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.” (Source: Globe Newswire)
Munro has taken a firm hand with regard to the rapidity with which he has been moving company forward, and the cloud industry is one of those spaces that is only going to grow as nations around the globe continually move toward the realization that the cloud is central to the future of their economies.
Add in the fact that ICLD is showing a considerable pickup in volume and price per share off of its recently-established three month lows, and it gives us a lot of reasons to continue to keep tabs on the stock.
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Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in ICLD stock, short or long.