Spectrum Global (OTC: SGSI) Reports $5.8M+ Revenue for 7-Months Ended December 2017
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 $5.8 million in revenue for the 7-month transition period for its new fiscal year ended December 31, 2017 (up from $0 in the prior year period).
Why it Matters:
SGSI entered the telecom landscape in 2017 through the acquisition of established service providers. One of its most recent acquisitions isn't even reflected in its 2017 performance. Revenues for this subsidiary (ADEX Corp.) were $20 million last year. While the company was required to report 7-month results due to a change in the its fiscal year period, looking at what the full year would have been for its currently owned subsidiaries, revenue would have exceeded $30 million last year. Today the stock trades for a market cap of under $3 million.
"In addition to organic growth of current operations, we continue to vigorously pursue strategic, accretive acquisition opportunities to further improve long-term shareholder value."" - Roger Ponder, CEO
Covering markets across the US, Canada, and the Caribbean, for an extensive list of Tier 1 telecom providers and large enterprise customers, SGSI is well-positioned for continued growth. As Wall Street sees the performance of SGSI's growing portfolio of subsidiaries in the upcoming quarters, interest will grow, and a more realistic valuation could be seen. Peers in the space often trade for as much as 2x sales.