ChinaCache International Holdings Ltd (NASDAQ:CCIH)
ChinaCache International Holdings Ltd (NASDAQ:CCIH) growth prospects in China have received a major boost after the company was awarded a Content Delivery Network (CDN) business operating license. The license, issued by the Ministry of Industry and Information Technology, allows the company to operate four types of value-added telecommunication businesses in the country.
The provider of internet content and application delivery services can now operate CDN businesses all over the country in addition to Internet Data Centers in four municipalities. The company has also been given the go-ahead to set up a VPN businesses in two municipalities and six other cities under the authority of the central government.
“We are pleased to receive the new CDN license that covers both the CDN and the IDC businesses and provides us with a distinct competitive advantage as we further deliver customized total solution services to our customers. We received the first CDN license in China from the Chinese government in 2002 and the new license reaffirms the quality of our service and technology. Starting January 1, 2018, companies without CDN licenses will be prohibited from providing CDN services in China,” said CEO, Mr. Song Wang.
NASDAQ Delinquency Notice
Expansion in China comes at a time when ChinaCache International Holdings Ltd (NASDAQ:CCIH) is facing an uncertain future in the U.S having been hit by a delinquency notification from the NASDAQ market exchange. The delinquency notification is in response to the company’s failure to timely file its annual report for the year ending December 31, 2016.
The company has since been given 60 days to submit a plan on how it plans to regain compliance with the NASDAQ rules. The delinquency notice does not have an immediate impact on the company’s exchange listing. However, the stock could come under scrutiny if shares of CCIH stay below the $1 a share level.
ChinaCache International Holdings Ltd (NASDAQ:CCIH) reported net revenues of $37.9 million for its Q4 2016. Full year net revenue came in at $151.8 million. Net loss for the quarter came in at (-$22.3) million full year net loss, having widened to (-$71.5) million. For the full year FY2017, the company expects net revenue of between $170 million and $178.6 million.
ChinaCache International Holdings Ltd (NASDAQ:CCIH) was a big mover in Friday’s trading session having rallied by 26.12% to close the day at $1.69 a share. The stock is currently trading in a tight range between $1.40 and $1.78 a share, below its 52-week high of $7.44 a share.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.