FTE Networks Inc (NYSEAMERICAN: FTNW) released some pretty big news today. In a press release issued early this morning, the company released its preliminary financial results for the second half of the year 2017, showing strong growth and laying the foundation for a great 2018 year. Today, we’ll talk about:
- What we saw from FTNW earnings;
- why the results are a big win for the company;
- and what we’ll be watching for ahead.
FTNW Announces Financial Results
As mentioned above, FTE Networks announced its earnings for the second half of 2017. The report covers the dates ranging from July 1, 2017 to December 31, 2017. In the report we saw some pretty impressive figures. Here’s what we saw from the preliminary financial data.
- Revenue – FTNW said that it expects for revenue for the period to come in at approximately $189.6 million.
- Gross Margin – In the release, the company said its gross margin came in at approximately 16%.
- Loss – FTE Networks expects that the net loss attributable to shareholders is approximately $6.7 million for the quarter.
- Adjusted Net Income – Adjusted net income came in at approximately $9.6 million.
- Adjusted EBITDA – FTNW said adjusted EBITDA for the six month period came in at approximately $15.1 million.
- Earnings Per Share – Adjusted diluted earnings per share came in at approximately $1.73.
In a statement, Michael Palleschi, CEO at FTNW, had the following to offer:
Our initial six months as a consolidated operation have produced strong results, including our highest quarter of revenue generation since inception, which underscores our confidence in the business as we enter 2018… During the fourth quarter, we successfully launched our CrossLayer technology platform as a foundational service offering to our Benchmark Builders client base, which drove a record backlog of $434 million at year-end, which includes several Master Services Agreements. With our strategically structured and integrated organization that provides both technology and infrastructure services, we have secured both new customers and re-occurring projects with Fortune 100/500 companies and top-ranking REITs.
During 2017, FTE acquired and integrated Benchmark Builders, a tier one firm in the coveted New York City market, which both enhanced our top-and-bottom lines and created an ideal sales channel for our first to market compute-to-the-edge technology powered by CrossLayer. These accomplishments were instrumental in the achievement of a key corporate milestone of uplisting to the New York Stock Exchange (American) in December 2017. This distinction allows for the potential of greater liquidity and access to capital, as well as expanded communications to our investor base.
Why This Was Such A Big Quarter
At the end of the day, the news released surrounding preliminary financial results by FTNW is very big news. After all, it shows that the company is seeing some pretty impressive growth. In fact, the revenue that was seen in this period is the highest amount of revenue that the company has seen since its creation. This, in combination with impressive growth of the company’s contractual revenue backlog shows that the second half of 2017 was a great time for the company!
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 watching the continued growth in the company’s contractual revenue backlog as this is obviously leading to strong growth in revenue. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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