FTE Networks (FTNW) Stock: Snags Contract Valued At $36 Million

FTE Networks announced on Thursday that the company had been awarded a new contract to provide state-of-the-art technology, infrastructure, and fit-out services for one of the oldest and largest financial institutions in the United States. The $36 million contract, taking place in Manhattan, New York,  will support the enablement of future-ready smart and innovative workspaces and is expected to begin before the end of the first quarter with a planned completion date by the end of Q2 2019.

CNA Finance covered FTNW in an early January report and noted that FTNW is leveraging its unique ability to extend its innovative and forward-thinking infrastructure design services to meet the needs of data-focused businesses that require substantial connectivity infrastructure development and connectivity solutions. You can read the full report here.

FTNW Is Transforming Global Companies

Michael Palleschi, President, and CEO of FTE Networks, commented on the new deal by stating, “Our team continues to meet and exceed the expectations of our valued customers. Being awarded the contract by a marquee firm strengthens our ability to secure additional engagements with notable global companies located in one of the foremost markets.” He added, “This award furthers our mission to transform tenant experiences and address increasing tenant demands for advanced technology solutions and high-speed internet. FTE is well positioned to meet the new design and future-ready requirements for smart building infrastructure. We continue to bolster our backlog, and these new contract awards are a testament to the hard work and dedication of the employees of FTE and its subsidiaries.”

FTE Networks was founded in 2017 and has been active in building shareholder value through strategic business decisions that take advantage of proprietary technology that can fit both large and small scale infrastructure development. FTNW is ideally positioned to implement specific client demands from their scalable solutions targeted toward the IT and telecommunications industries. As noted in prior coverage, FTNW provides latency reduced, end-to-end solutions that enable their clients to connect with their customers, utilizing cutting-edge technology to allow a fast and reliable connection for digital content.

Concentrating On A Half-Trillion Dollar Market

The significant growth at FTNW stems from its ability to provide specialized service in the industries of commercial construction, data-center buildout, network infrastructure and fiber installation, developing globally positioned smart-buildings, and in-building wireless technology. Together, these five targeted markets offer an estimated $576 billion market and revenue opportunity by 2021. And, if the recent influx of new contracts serves as an indicator of the firming market position of FTNW, strengthened by recent strategic acquisitions, investors may expect that FTNW can exploit the opportunities to generate substantial revenue streams from each of these markets in both the near and lon-term.

Facilitating its growth to take advanatge of market opportunity, FTNW will benefit from Crosslayer, the company’s single integrated communications platform that can provide business owners with an ultra-fast and reliable network for their building or campus. Crosslayer is tooled with the most advanced solutions in networking technology and serves to eliminate redundancy problems that exist within many of the dated networks installed by competitors. CrossLayer’s platform is built upon some of the most notable breakthroughs in networking technology, which provides noticeably faster speeds at a much lower cost – highlighted by the ability to offer 1G of service for the same price as a typical 20MB connection.

New Contract Deserves Valuation Respect

Investors met the news of the new $36 million contract with enthusiasm, bidding the stock higher by more than 5% to close at $18.05 per share on Thursday. But, keeping in mind that  FTE Networks generated roughly $177.9 million in revenues in 2017, coupled with the company’s recent acquisitions, FTNW may attract further attention from a market starving for infrastructure and technology-driven updates. Despite the recent gains of more than 12% since late January, there appears to be much more room to run for FTNW as the company continues to execute on its near and long-term strategy to maintain and grow its customer base, taking advantage of a market that is closing in on a trillion dollar global opportunity within the next decade.

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