Company Reiterates $55 Million Guidance for 2017
NAPLES, FL -- November 22, 2016 -- InvestorsHub NewsWire -- FTE
Networks, Inc. (OTCQX:FTNW) ("FTE" or the "Company"), a leading
network infrastructure solutions provider to the technology and
communications service provider industries, provided a business
update for the third quarter ending September 30, 2016.
Third Quarter 2016 Highlights:
- Telecommunications revenue increased 119% to $3.8 million
compared to the same period last year
- Gross profit increased 159% to $1.4 million compared to the
same period last year
- Gross margin improved to 37% compared to 14% for the same
period last year
- Achieved positive income from operations for the third quarter
of 2016
- $55 Million revenue guidance for 2017
- Awarded contract valued up to $12 million by a global
telecommunications company over the next 12 months to support a
fiber network
- Signed a services agreement with a competitive local exchange
carrier (CLEC) to expand fiber infrastructure services in the East
and Midwest regions
- Launched new network service platform powered by
Compute-to-the-Edge
2016: A Successful Turnaround
FTE has continued its upward trajectory by increasing telecom
revenue by 119% to $3.8 million compared to the same period last
year, and a total revenue increase of 17% quarter over quarter,
stated Mr. Michael Palleschi, Chairman and Chief Executive Officer
of FTE Networks. Our growth was due to managements continued focus
on expanding our high margin, recurring infrastructure services
revenues reflecting the deliberate shift away from our legacy
staffing business. Weve improved gross margins quarter over quarter
with a 23% increase during the same period last year. As a result,
we have achieved positive income from operations, a major turning
point for our company. We anticipate that we will finish the year
strong and continue incremental growth quarter over quarter
throughout 2017 and beyond. We continue to add new contracts and
expand into new markets, in order to support our revenue guidance
of $55 million for 2017.
Mr. David Lethem, Chief Financial Officer of FTE Networks,
added, Our strategy to target high-margin, recurring lines of
business combined with an aggressive cost-cutting campaign served
as catalysts to achieving operating profitability. Going forward,
we will continue to pursue accretive growth opportunities through
mergers and acquisitions designed to solidify our position as a
leader in the infrastructure solutions business segments, as well
as accelerate the launch of our new Managed Services platform.
Looking Ahead to a New Phase of Growth: Meeting the New
Data Curve
Mr. Palleschi, continued, The past few years have been a time of
dramatic technological change for our industry with the explosive
growth of data usage powered by video and new technologies, such as
augmented reality, that are causing significant strain on the
capacity of todays networks. To drive the next generation of our
business and capitalize on expertise of designing and building
networks, in September we announced a first-in-kind managed network
services platform powered by compute-to-the-edge. The new platform,
designed to address constrained network capacity and high latency
associated with current network infrastructure, provides customers
with future modernization capabilities, multiple ways to create and
monetize new services, and control of the network to directly
influence customer satisfaction.
The first pillar of this new managed services platform will be
tailored for the REIT and developer market, enabling a real-time
connected experience for residents, employees and
visitors. The platform is purpose-designed to provide a
base infrastructure for smart building conversion, including the
automation of building management systems, such as HVAC and
utilities, while supporting new applications and IoT devices that
require extremely low latency and reliable network availability.
FTE plans to introduce a similar edge computing service for
the commercial data market in 2017.
About FTE Networks, Inc.
FTE Networks is on the leading edge of network transformation
helping communications service providers, government and enterprise
customers evolve their networks to meet advancing technology
requirements via network infrastructure, and edge computing
solutions to quickly enhance service innovation and deliver new
revenue streams. With a focus on smart design, open architectures
and consistent standards, along with expertise in building,
operating, and maintaining networks, FTE solves complex network and
system challenges that reduce costs and deployment time to
accelerate delivery and optimize performance of network
infrastructure. Operating five (5) industry segments; Data Center
Infrastructure, Fiber Optics, Wireless Integration, Network
Engineering, and Compute to the Edge, FTE Networks is headquartered
in Naples, Florida, with offices throughout the United States and
Europe. For more information, please visit: www.ftenet.com.
Forward Looking Statements
This release may contain forward-looking statements relating to
the business of FTE. All statements other than historical facts are
forward-looking statements, which can be identified by the use of
forward-looking terminology such as "believes," "expects" or
similar expressions. These statements involve risks and
uncertainties that may cause actual results to differ materially
from those anticipated, believed, estimated or expected. These
risks and uncertainties are described in detail in our filings with
the Securities and Exchange Commission. Forward-looking statements
are based on FTE's current expectations and beliefs concerning
future developments and their potential effects on FTE. There is no
assurance that future developments affecting FTE will be those
anticipated by FTE. FTE undertakes no obligation to publicly update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, except as required
under applicable securities laws.
Contacts:
FTE Networks, Inc.
999 Vanderbilt Beach Rd., Suite 601
Naples, FL 23108
(877) 850-4308
ir@ftenet.com
OTCQX:FTNW
Investor Relations:
Natalya Rudman
Crescendo Communications, LLC
(212) 671-1020, Ext: 304
ftnw@crescendo-ir.com