Interview With CEO Keith Hayter
Question: Let's start off the interview with a brief overview of your business...
Answer: Well, Spectrum Global Solutions is an OTC public company. We work in two main industry sectors, the first being telecommunications, and the second being energy. Now, we're a national provider of services and solutions to Tier 1 carriers, such as AT&T, Verizon, T-Mobile, and Sprint.
Question: What's the essential value proposition? Why should investors take an interest in your stock today?
Answer: Well, we're extremely undervalued, for one. You know, we trade at one-tenth of our market cap, which is very, very low considering the industry norm would be about two times revenue. Secondly, we've installed a fantastic management team. Many years of experience, capabilities, and demonstrated performance. And then thirdly, growth. Our growth opportunities, both organic and through acquisitions, will create a company much larger than what it is today.
Question: How exactly do you make money? Who are some of your customers and what is some of the work that you're currently doing?
Answer: Well, as a service provider for the deployment of networks for these telecommunication carriers. Again the Tier 1s being AT&T, Verizon, T-Mobile, and Sprint. There's also a lot of other associated network infrastructure out there to deploy. So, there's fiber networks, there's inside-plant networks within buildings, airports, hotels, convention centers, and then outside plant where you see the towers and antennas on buildings. So, all of these need some form of connectivity, even if they're wireless.
Question: Can you tell us about some of the work you are doing in Chicago?
Answer: Yeah, certainly. Chicago is a great area where we've worked in for many years. Currently, what we're performing is some network auditing. So we'll go out and look at the existing plant, and come back with an assessment of that plant. And how it looks, how it's performing, what conditions it's in. And then that lets our customer to make a decision on how to improve it, how to acquire it if they desire to do that, or look to expand it.
Question: How big is the market opportunity for your services?
Answer: Well, if you look just purely in the U.S., over a hundred billion is spent each year by the carriers in capex. So, with the pending technology deployments that are coming up, which you may have heard of the 5G, which is replacing 4G, you got the first network that's coming out which is the states signing up to a nationwide, uniform network for first responders and public safety, and then you got the internet of things, and currently there's a massive push on small-cell identification.
Question: Now, in the first quarter of 2017, you did 3.1 million in revenues. And second quarter, a little softer due to some of the weather. Can you maybe talk to us a little bit about the second quarter, and what are some of the milestones that investors can look forward to in the next six to twelve months?
Answer: Certainly. Well, without a doubt, we were impacted in the second quarter, mainly due to the hurricanes that came through the Southeast and across the Caribbean. We have a large operation in Puerto Rico, and that suffered heavily during that time, and subsequently, loss of power and other infrastructure and services. However, we are still on track for what we thought we would do over a 12-month period. So we're approximately 50% into our 10 million that we had projected for the 12 months. So, we feel we're good. We feel that there's going to be a snapback. And actually, while it's not good for the community, there will be more work to get that infrastructure back up and running. As for the next six to 12 months, the milestones, I think I just need to step back there a second, and say well the first significant milestone we had was the acquisition of AW Solutions. That gave us our platform company to grow upon within Spectrum Global Solutions. Secondly, there was the proxy vote that took place where we rebranded ourselves and renamed the company to Spectrum Global Solutions. And then thirdly, we've got an S4 registration in that allows us to now re-domicile to Nevada from Canada, British Columbia. And that will create a better alignment with our customers in the U.S. and it will also increase greater business flexibility. Going ahead, we have, again as I mentioned before, some aggressive plans in the, in acquisitions. And we have a number of companies lined up that we're looking at, and we expect to have some favorable news on that in the near future.
Question: Can you tell us a little bit about your background and maybe another executive that works with the team?
Answer: Yes, certainly. I'll start with our CEO, Roger Ponder. Roger Ponder has got many years of experience. He was the Mid-West Time Warner Division Manager, and he also ran the Hawaii market for Oceanic. So he's got a wealth of knowledge, and I look at him, upon him as my mentor at times. He's a very valuable resource with the business, and he will drive us forward. Myself, I worked in telecommunications in the U.K. with British Telecom International. And then I emigrated to the U.S. and have worked in public and private environments in telecommunications since I came over here.
Question: What's the main takeaway? Why should investors invest in the company today?
Answer: Well, the company's got great potential. It's already gone leaps and bounds from where it was. The management team that's installed is very proven, and experienced, and demonstrated capabilities. Secondly, we're only trading at one-tenth of our revenue when we should be at 2x. And thirdly, we've got fantastic growth plans, both organically and through acquisitions that we intend to close on in a relatively near future to primarily drive shareholder value.