FTE Networks Inc (NYSE:FTNW) The Next Big Little Company

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FTE Networks Inc (NYSE:FTNW) The Next Big Little Company

FTE Networks Inc. (NYSE:FTNW) is a leading provider of innovative solutions in the technology space. According to its website, the firm prides itself with the capability to create an enabling environment for “adaptive and efficient smart network connectivity platforms, infrastructure and buildings.” Further, it offers services that are founded on “smart design and consistent standards that reduce deployment costs and accelerate delivery of leading edge projects and services.”

In the recently released financial report for the second quarter of 2018, the company notes the strong numbers in the operations and financial sectors while cash flow is on the positive side of the scale.

Operations sector on the upward shift

The operations sector is on an expansion gear given the newly announced infrastructure and technology expansion projects whose valuation is in the region of $240.5 million year-to-date. The management, in its commentary notes the positive development in both the infrastructure and the technology sector.

Mr. Michael Palleschi, President and Chief Executive Officer of FTE, remarks that the strength of the infrastructure segment, led by Benchmark, has enabled the firm to “simultaneously invest in the technology segment.” Further, he adds that the segment is also crucial in the marketing of the CrossLayer solution to the clientele. He also notes the growing momentum of the technology sector as the adoption of the CrossLayer solution notches up.

Positive financial outcomes

The press release has revealed the strengthening cash flow trend for the three months which has seen the total revenue clock $86.4 million for the same period. This represents a 63.4% increase compared to pro forma total revenue of $52.9 million for the quarter ended June 30, 2017, as the Benchmark acquisition was not finalized until April 21, 2017.

Cash Flow from Operations (CFO) was a positive $2.7 million during the quarter, improving from a negative $1.3 million in the first quarter of this year. Meanwhile, the firm reports adjusted EBITDA of $7.6 million, representing an Adjusted EBITDA margin of 8.8%, compared to pro forma Adjusted EBITDA of $2.3 million in the second quarter of 2017. Further, the release reveals an adjusted EPS of ($0.22) per share. This compares to a pro forma adjusted EPS of ($0.04) per share in the second quarter of 2017. 

For the FY 2018 the company expects Net revenue of $350 million and Adjusted EBITDA of $30 million. The strong numbers put the company in a good position that further sharpens its competitive edge in the future. If it achieves the set expectations, the firm will be appropriately angling for the Big Brother status in the industry.

Another Article:

https://www.ftenet.com/news-media/press-releases/detail/128/fte-networks-reports-second-quarter-2018-results