InterCloud Completes the Sale of ADEX Subsidiary
Continues to Restructure and Reduce Balance Sheet Liabilities
NEW YORK, March 01, 2018 (GLOBE NEWSWIRE) -- InterCloud Systems, Inc. (the "Company" or "InterCloud") (OTC:ICLDD), a leading provider of cloud networking orchestration and automation solutions and services, today announced the Closing on the sale of ADEX Corporation. Under the terms of this asset sale, InterCloud will received $5Million in a combination of cash and seller’s note.
Mark Munro, CEO of InterCloud stated, “the sale of this asset enabled us to immediately reduce a substantial amount of our senior convertible debt and dramatically improved our balance sheet. This is a very important step in the total restructuring of InterCloud. We are focused on developing our Netlayer.io customer base. Over the next month we will be launching a new Go-To-Market strategy based on our restructuring and successes over the past year. We have made tremendous strides with the product feature development, strategic partnerships, and most importantly new customers. We look forward to a 2018 where this entire team is cash flow positive. We are very excited to show potential shareholders our value proposition in the market and our success with our new customers during our 2018 road shows.
Additionally, I want to discuss our success in moving toward positive EBITDA and ultimately earnings per share in our future. Our corporate management team is now only 4 employees in total. We have lowered our operating costs by millions annually and lowered our debt footprint by over $50M in the past 2 years. These are massively important changes to our balance sheet and profit landscape. Our remaining subsidiary has been one of InterCloud’s most consistently profitable companies since the company began operating as InterCloud in 2013. This fact along with the success at Netlayer.io, its lower expense footprint and recurring revenue generation has given InterCloud a pathway to positive EBITDA. Our goal in 2018 is to show income per share.
The recent reverse split has shaken the confidence in some of our shareholders as seen by a recent drop in the company valuation. A $1M market cap at today's stock price seems to challenge all logic but we understand it is our job to rebuild confidence in existing shareholders and develop new shareholders of record. In early Q-2 2018 we will again go back on the road to present our new and improved company, our Go-To-Market Strategy, and explain the successes we have had and what our future with our NFVgrid and SD-WAN platform holds. The entire focus for 2018 will be to accelerate our recurring revenue growth from our sales channel and from our strategic partnerships with our software. We look forward to earning back the market’s confidence and delivering on our plans in 2018.
About InterCloud Systems, Inc.
InterCloud Systems, Inc. is a leading provider of cloud networking orchestration and automation, for Software Defined Networking (SDN) and Network Function Virtualization (NFV) cloud environments to the telecommunications service provider (carrier) and corporate enterprise markets through cloud solutions and professional services. InterCloud's cloud solutions offer enterprise and service-provider customers the opportunity to adopt an operational expense model by outsourcing cloud deployment and management to InterCloud rather than the capital expense model that has dominated in recent decades in IT infrastructure management. Additional information regarding InterCloud may be found on InterCloud's website at www.intercloudsys.com.
The above news release contains forward-looking statements. The statements contained in this document that are not statements of historical fact, including but not limited to, statements identified by the use of terms such as "anticipate," "appear," "believe," "could," "estimate," "expect," "hope," "indicate," "intend," "likely," "may," "might," "plan," "potential," "project," "seek," "should," "will," "would," and other variations or negative expressions of these terms, including statements related to expected market trends and the Company's performance, are all "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances, and are subject to a wide range of external factors, uncertainties, business risks, and other risks identified in filings made by the company with the Securities and Exchange Commission. Actual results may differ materially from those indicated by such forward-looking statements. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based except as required by applicable law and regulations.
InterCloud Systems, Inc.