Pareteum Corp (NYSEAMERICAN: TEUM) had some big news break yesterday that sent the stock toward the top. The company closed a deal that came with a value of $1.5 million to be added to their contractual backlog. Today, we’ll talk about the deal, what this means for the company, and what we’ll be watching for with regard to TEUM ahead.
TEUM Closes $1.5 Million Deal
As mentioned above, Pareteum Corporation announced yesterday that the company was awarded a 3-year contract to provide its Global Cloud Platform for a Connected Home and Office Project. The service will take place in the United Kingdom.
In the press release, the company announced that once the service is fully operational, it will be provided to a quarter million homes and offices, adding $1.5 million to the company’s 36-month contractual backlog. TEUM also said that additional revenue opportunities are also part of this deal. Additional revenues may come from connections for data to the established provider of smart home and office automated systems. In a statement, Vic Bozzo, CEO at TEUM, had the following to offer:
The market is expanding for IoT and the most important aspect for the service providers is to be able to offer the service plans the customers want and let the market drive the requirements as opposed to that being driven by the limitations of the network billing systems. We are proud of our sales team for this latest win and we see the IoT and smart metering market as a robust growth area for us moving forward.
What This Means For The Company
Recently, CNA Finance Chief Strategic Analyst, Kenny Soulstring, covered TEUM in depth. One of the key aspects that Soulstring pointed to in his article had to do with the company’s impressive contractual backlog. At the time of that analysis, TEUM had a contractual revenue backlog of $162 million. This project, once complete, will bring that figure to $163.5 million. More importantly, it shows that the company is consistently working to toward growth in its CRB. While the CRB isn’t designed to serve as a guarantee to produce 100% on these results, but many investors believe strongly that the company will execute on a significant portion of these revenues over the next 3 years.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on TEUM. In particular, we’re interested in the continued growth of the company’s CRB as it works to execute further agreements expanding the horizons ahead. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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