InterCloud Systems Inc (OTCMKTS:ICLD) has announced that it has won a contract worth $2.4 million to provide professional services to both existing customers and new ones. The leading provider of automation solutions and network orchestration also announced that it would begin executing the contract immediately.
Alluding to the cost cutting steps the company has made including divesting from non-core assets, the chief executive officer of InterCloud Systems, Mark Munro, added that driving revenue growth was also a key measure the company would be taking to strengthen its balance sheet.
“Notwithstanding these belt tightening measures, our subsidiaries continue to drive revenue and receive new contracts from some of the world’s largest service providers and enterprise customers,” said Munro.
This is not the first contract that InterCloud Systems has received this year. Earlier in February, the cloud networking orchestration solutions provider announced that it had been awarded contracts worth more than $400,000. And in early January, the company also announced that it had landed contracts worth approximately $200,000. Towards the end of last year, InterCloud Systems also revealed that it had won two contracts. One was worth more than $600,000 while the other one was worth over $1 million.
Lower secured debt
Earlier in the month, the company disclosed that it sold off one its units in a bid to slash the amount of secured debt that was outstanding. This was with the sale of ADEX Corporation’s High Wire Networks. The unit mainly concentrated on being contracted by manufacturers of telecommunications infrastructure to engage in the installation of their products. ADEX Corporation had bought the firm three years ago for a figure that was slightly under $1 million. Last year, annual revenues from High Wire Networks were about $11 million. The deal will see InterCloud Systems get cash amounts of $4 million. InterCloud Systems will also get extra working capital adjustment valued at just under $1 million.
Since September last year, the debt restructuring plans has seen the company reduce its debt by over $3.9 million.
On Friday shares of InterCloud Systems Inc jumped by 60.57% to close the dy at $0.0448 a share.