Home Tech Q1 Financial Results for InterCloud Systems Inc (OTCMKTS:ICLD) Highlight Continued Cost-Cutting

Q1 Financial Results for InterCloud Systems Inc (OTCMKTS:ICLD) Highlight Continued Cost-Cutting

InterCloud Systems Inc (OTCMKTS:ICLD),
Caution Sign - Cost Cutting Ahead

InterCloud Systems Inc (OTCMKTS:ICLD)

InterCloud Systems Inc (OTCMKTS:ICLD), headquartered in Shrewsbury, NJ, released their Q1 2017 results Friday, May 12, 2017. Results reflected the company’s ongoing efforts to streamline and focus on their core business units. Market reaction to the update has been less than positive. ICLD shares are down over 25% as of 1 PM EST on volumes over ten times their 30-day, daily average.

Chairman and CEO of InterCloud Systems Inc (OTCMKTS:ICLD), Mark Munro, commented on the results. Mr. Munro claimed that the company’s restructuring included the reduction of senior secured debt by $4.2 million and the reduction of subordinated debt by $4.1 million. He further stated that while revenues were sluggish, operating expenses, salaries, and wages were all reduced by 20% and they lowered SG&A expenses by around 10%. Mr. Munro stressed that the company will continue to search for ways to reduce expenses and dispose of non-core assets on the path to becoming a smaller, more efficient operation with a focus on positive cash flow.

InterCloud Systems Inc (OTCMKTS:ICLD) is a cloud computing enterprise that provides end-to-end IT and next-generation network solutions. Their offerings include professional consulting services, as well as voice, data, and optical solutions. Their portfolio of professional services includes application development teams, analytics, project management, telecom network management, and field services. They also design, engineer, and maintain enterprise, fiber optic, ethernet, and wireless networks.

Q1 2017 revenues were $14 million – a drop of 21% from the $17.6 million the company posted in Q1 2016.The revenue decline resulted from lower sales in their managed services business but was mitigated by an increase in their application and infrastructure businesses.

Q1 2017 gross profit was 24% which was slightly worse than the 2016 figure of 25%. Gross profit declined from the Q1 2016 figure of $4.4 million to a Q1 2017 figure of $3.4 million.

For Q1 2017, InterCloud Systems Inc (OTCMKTS:ICLD) had a (-$14.2) million net loss attributable to common stockholders. That loss was significantly wider than the (-$4.3) million loss InterCloud reported for the same quarter last year. According to the financial reporting, this was due to a loss in goodwill and charges on intangible asset impairments as well as a change in the fair value of derivative instruments. On a more positive note, SG&A expenses for InterCloud Systems Inc (OTCMKTS:ICLD) declined $1.2 million from the same quarter of the previous year.

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About the author: Artemis grew up in Boston, MA. After college she talked her way into a job with a leading mutual fund family working as a portfolio analyst. She quickly rose through the ranks and eventually managed several billion dollars spread over three funds. Artemis now devotes her time to raising her twins and consulting to mutual funds.