Spectrum Global Solutions, Inc. (OTCMKTS:SGSI) (f.k.a. Mantra Venture Group, Ltd.) is the holding company for next generation technology companies specializing in Telecommunications across the US, Canada and in the Caribbean.
Through the company’s Subsidiaries, AW Solutions, Inc., AW Solutions Puerto Rico, LLC., Tropical Communications, Inc., ADEX Corporation and ADEX Puerto Rico, LLC, it has become a leading provider of comprehensive outsourced services, professional project staffing services and solutions for the turn-key deployment and maintenance of next generation and legacy wireless and wired telecommunication networks and infrastructure.
We have most recently been attracted to Spectrum Global Solutions, Inc. (OTCMKTS:SGSI) following the company’s announcement of the results of its fiscal quarter ended September 30th. Chief among them was a dramatic rise in quarterly revenue over the same operating period in 2017, as well as roughly doubled net income attributable to common shareholders. The addition of two of the aforementioned subsidiaries which were acquired earlier this year added vastly increased gross profits as well.
Revenue was $9,671,990 compared to $2,336,376. Gross profit was $1,604,763 attributable to the subsidiaries acquired in April 2017 and February 2018. The Company had net income attributable to common stockholders of $414,485 during the period ended September 30, 2018 compared to net income of $214,910 for the comparable period of 2017.
Roger Ponder, CEO of the Company stated, “We are experiencing consistent revenue growth from our AW Solutions and ADEX subsidiaries, that is much stronger than the prior year and expect to continue this growth pattern both organically and through strategic, accretive acquisitions.” (Source: Globe Newswire)
Being a provider of telecommunications engineering and infrastructure services spanning the United States, Canada, Puerto Rico, Guam and the Caribbean, the Company continues seeing an increase in client orders, both domestically and in the Caribbean, for preconstruction and construction services that are needed to support future small cell densification, distributed antennas systems (DAS), fiber network expansions and 5G wireless technology projects. Spectrum additionally anticipates a further increased demand for its services due to recovery efforts from recent storms.
It’s certainly no secret that the 2018 hurricane season was a particularly active one, with multiple storms making landfall in the Caribbean and/ or United States as major hurricanes. Hurricanes Michael and Florence, in particular in the US and Puerto Rico, as well as other locales throughout the Gulf and Caribbean regions, caused untold damage that is still in the process of recovery. As terrible as such natural disasters can be, they do present business opportunities for company’s like SGSI and its subsidiaries.
The company received more than $5.7 million in new contract awards during the third quarter of 2018 alone. These new orders included providing professional services, project management, engineering design, network auditing, construction, installation and network upgrade services for various new, state-of-the-art, next-generation communications systems. Work on these new systems commenced during the third quarter, and revenue from these orders will be realized during 2018 and into 2019.
Spectrum Global also announced last week that it had received over $1 Million in new purchase orders from a Tier 1 national carrier. This new business is the result of an industry-wide increase in demand for services and solutions associated with network upgrades to the 5G standard. The work has reportedly commenced and the revenue will be realized in Q4 2018 and Q1 2019. We’ll be interested to follow SGSI stock as well as monitor the company’s news feed for any further developments that might occur, but in any case, it seems safe to say that SGSI is closing out 2018 on a very high note.
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