NEW YORK, NY -- March 21, 2017 -- InvestorsHub NewsWire --
SeeThruEquity, a leading independent equity research and corporate
access firm focused on small-cap and micro-cap public companies,
today announced it has issued an update on FTE Networks Inc.
(FTNW).
The report is available here: FTNW Update Note.
Based in Naples, FL, FTE Networks Inc. (OTCQX: FTNW, "FTE
Networks") is a provider of network infrastructure services and
solutions. The company has nearly a decade of experience providing
end to end network infrastructure solutions for Tier 1 and Tier 2
communications service providers, government agencies, OEMs, and
network infrastructure providers. FTE Networks is focused on
helping customers build smarter networks, which are more capable of
handling the increasing complexity and bandwidth needs of services
provided over wireless and wired data networks. FTE is led by a
seasoned leadership team with deep experience at industry
technology leaders such as Zayo, Level3, and Qwest, among
others.
Investment Highlights
Transformative announcements to start 2017
FTE has made several significant corporate announcements in
1Q17, which have the potential to be very positive for the company.
These include an application to list shares on the Nasdaq Capital
Markets, and what appears to be a transformative announcement that
it will acquire Benchmark Builders, Inc. ("Benchmark") - a move
that will expand service capabilities while adding marquee
customers and more than doubling its three-year backlog.
Benchmark acquisition augments backlog, service capabilities
On March 9, 2017, FTE announced the acquisition of privately
held Benchmark Builders, Inc. in a $75mn cash and stock
transaction. Based in New York, Benchmark was founded in 2008 and
provides construction management services in the Northeastern
United States. Benchmark specializes in what the company describes
as "technologically complex work" and large projects in the
telecommunications, commercial real estate, industrial, broadcast,
technology, infrastructure, healthcare, and education industries.
We are enthused about the potential from this deal given the boost
to backlog - Benchmark is expected to add $300mn to the combined
company's 3-year backlog - and an impressive customer list.
Benchmark's website lists Google, Cushman & Wakefield,
Colliers, and Fox, among others, as representative customers.
Pending financing, the deal is expected to close in calendar
2Q17.
Nasdaq CM application, new orders show progress
FTE has also shown progress in its core business, as the company
looks to execute on management's bullish topline guidance for 2017
of $55mn in revenues. In a March press release, the company
reiterated that its 3-year organic pipeline was $170mn and that it
received follow-on orders in a $10mn project in Midtown Manhattan,
which would imply powerful annual growth versus the 2016 estimate
of $16.4mn. Additionally, FTE has applied for a listing on the
Nasdaq CM, which, if approved, would be a significant development
for the company.
Raising target to $2.75 on deal announcement
We are increasing the price target for FTE Networks to $2.75 per
share at this time. We see several possible catalysts ahead for the
company, with results and guidance for 2017 upcoming, the pending
acquisition of Benchmark, and the company's February application to
uplist to the Nasdaq Capital Market.
Please review important disclosures on our website
at www.seethruequity.com.
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. www.ftenet.com.
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