FTE Networks Inc (NYSEAMERICAN: FTNW) is having a strong start to the trading session in the pre-market hours this morning, and for good reason. The company announced that it has closed yet another deal, leading to excitement among investors and sending the stock toward the top. Today, we’ll talk about the news, what we’re seeing from FTNW, and what we’ll be watching for ahead
FTNW Closes Another Deal
As mentioned above, FTE Networks is having a relatively strong start to the trading session this morning after announcing that it has closed yet another deal. In a press release that was issued this morning, the company announced that its subsidiary, CrossLayer, Inc., has entered into a 3-year, monthly recurring revenue contract with an entertainment production company. The company supports multi-billion-dollar media outlets according to the release.
FTNW has released multiple announcements of deals like this as of late. In fact, there was a recent announcement that Industry City chose the company’s CrossLayer subsidiary to build and manage an ultra-fast, compute-to-the-edge network which will deliver advanced and secure communications across a 35-acre campus filled with commercial tenants! In a statement, Michael Palleschi, President and CEO at FTNW, had the following to offer:
As a tenant part of the Industry City community, we are proud to have been selected by a premier production company to provide smart technology solutions to an increasingly innovative ecosystem of real estate and technology. This award further validates FTE’s strategy of strengthening its fundamentals with a steady flow of contract and project awards that consist of monthly recurring revenue, re-occurring revenue and/or new customer one-time projects. FTE is delivering on its vision of providing state-of-the-art technology and infrastructure solutions that enable the edge to meet the increasing tenant demands for intelligent work spaces.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dabble in the market is that the news causes moves. In this particular case, the news out of FTE Networks proved to be overwhelmingly positive. After all, the company continues to expand its contractual revenue backlog, and this is a perfect example of them doing just that. So, it’s no surprise to see that the stock is headed for the top this morning. At the moment (8:42), FTNW is trading at $23.04 per share after a gain of $1.08 per share or 4.93% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on FTNW. In particular, we’re interested in following the company’s continued work to closing more deals that will continue to improve its contractual revenue backlog. Nonetheless, we’ll keep following the story and bringing the news to you as it breaks!
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