Technology

InterCloud Systems Inc. (OTCMKTS:ICLD) Explodes On $2 Million Contract

InterCloud Systems Inc. (OTCMKTS:ICLD)

InterCloud Systems Inc. (OTCMKTS:ICLD)

InterCloud Systems Inc. (OTCMKTS:ICLD) is moving higher in the market on news that it has been awarded new professional service contracts worth more than $2 million.

Intercloud’s Financial Improvement Plan

The contracts should go a long way in strengthening the current revenue base. InterCloud Systems Inc. (OTCMKTS:ICLD) has also embarked on a cost-cutting mission as it looks to generate maximum shareholder value from its remaining subsidiaries. Lastly, Intercloud is aggressively pursuing new partnerships for its NFVgrid platform as it looks expand its customer base.

“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,” said CEO, Mark Munro.

Restructuring Intercloud’s Business

According to Munro, restructuring should allow the company to acquire new assets that will fuel business growth. Pursuing positive cash flow is at the top on the agenda as the company diversifies its streams of revenues and trims its expenditures.

The restructuring push has already resulted in the spinoff of the company’s Training Division. InterCloud Systems Inc. (OTCMKTS:ICLD) says it received $1.4 million in cash from the sale of the unit, which provides professional services focused on education and training in the network arena. The company had acquired the unit in 2016 for $1 million worth of common stock.

The sale, according to Mr. Munro, is part of an ongoing realignment of InterCloud’s business strategy that has until now focused on reducing outstanding liabilities. InterCloud Systems Inc. (OTCMKTS:ICLD) should now be able focus on its core areas of growth and profitability as focus shifts to improving the balance sheet and reducing exposure to convertible debentures.

Separately, the provider of cloud services and solutions has sued its former auditor, Grant Thornton, in the New York Supreme Court. The company accuses the auditor of breach of contract and fraudulent inducement which had a domino effect leading to the delisting from the NASDAQ.

InterCloud Systems Inc. (OTCMKTS:ICLD) stock was up by 33.73% in Monday’s trading session, ending the day at $0.0266 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.

Don’t miss out! Stay informed on $ICLD and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Previous ArticleNext Article
James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Leave a Reply

Your email address will not be published. Required fields are marked *