InterCloud Systems Inc (NASDAQ:ICLD) recently made public, a certain part of its financial results for the full year 2015.
Higher revenues and gross profit
The company was able to report revenues substantially higher than the previous year. Alongside revenue growth, the company also posted an increase in its gross profit margins year-over-year. The company’s Chairman and CEO, Mark Munro, said that the sale of data storage assets back in February 2016 provided the much-needed liquidity to the company while it was able to generate roughly $77.5 million of revenues. The stated numbers do not include revenues worth $9.9 million achieved from the data storage assets.
From hereon, InterCloud Systems sims to focus on growing its cloud revenues by banking on its cash liquidity. Dpod private cloud solutions, Virtual Network Function (VNF) and NFVgrid will be the central focus of the company. The company maintains that it is positioned well to deliver on its both near term and long term outlooks.
In 2015, the company’s gross profit percentage jumped 7% to $19.3 million versus $18.0 million in 2014. Overall, there is a 25% rise in the gross profit percentage as compared to 24% in 2014. These numbers exclude gross profit of $8.2 million and gross profit percentage of 83%, which was realised from data storage assets.
While the company has reported impressive financial performance, it continues to receive new contracts. The company bagged contracts worth $3.6 million in March, which relates to next generation network upgrades for both the new and existing customers. It is to be noted that NYS Government Offices are among the customers, the contract of which amounts to more than $800,000.
On receipt of the contract, Mr. Munro said that the company is well capitalised to bank upon the new opportunities, which will lead the growth of the company both organically and strategically. He reiterated that the new purchase orders and contracts of the company continue to grow in scale and number.