Spectrum Global Solutions (OTC: SGSI), a single-source provider of end-to-end next-generation wireless and wireline network solutions to the service provider (carrier) and corporate enterprise markets, reported more than $4 million in revenue for the first quarter and is expected to exceed $30 million for the full year.
Increased revenue, in combination with decreases in derivative liabilities and other non-cash expenses, had a big impact on net loss for the period, which came in at a loss of just over $100,000, down from a loss of more than $1 million in the first quarter of 2017.
Growing Backlog of Business
A steady stream of contract wins announced over recent months has propelled the company’s backlog to more than $12 million, and according to management, there’s another $127 million in potential deals in their pipeline of opportunities.
While some companies project unrealistic expectations, SGSI’s guidance of $30 million for 2018 seems more than attainable. In fact, their ADEX Corp. subsidiary, which contributed revenue for just over one month in the first quarter, generated more than $20 million in sales in 2017. Just keeping pace with last year’s performance would get SGSI nearly two-thirds of the way to its target.
What Does That Mean for investors?
SGSI trades for a market cap of less than $2 million today.
They are well on-track to reach their $30 million revenue target for 2018.
At just 1x sales, an extremely low valuation for this type of growth, SGSI would trade at a market cap of $30 million, more than 15x where it is today.
With the potential for additional acquisitions, favorable industry trends driving growing demand, and the proven ability to execute, SGSI has the potential to do a lot more.
Read our latest coverage of Spectrum and watch investor presentations and management interviews by visiting SGSIinfo.com now.