NEW YORK, Dec. 14, 2017 /PRNewswire/ -- Pareteum
Corporation (NYSE American: TEUM), ("Pareteum" or the
"Company"), the rapidly growing mobile Cloud Communications
Platform company, announced today the issuance of a shareholder
update letter from its Executive Chairman and Principal Executive
Officer, Hal Turner.
Dear Pareteum family, partners and shareholders,
We wish to start by thanking our TEUM, partners and shareholders
for all your dedication and support. While we know there are ups
and downs as an employee or a shareholder of a small emerging
growth company, we strongly believe in our actions over the past
two years and more specifically, recently, in building a strong and
valuable company for the future.
These past two years, since I was appointed as Executive
Chairman and Principal Executive Officer of Pareteum in
November 2015, have been extremely
eventful and successful. Our restructuring and repositioning in
2016 has led to solid growth in 2017, and has defined our
innovation in both services and market positioning, establishing a
strong outlook for our success in 2018 and beyond. We again thank
you for your patience.
When Marconi invented the "wireless"... radio, it changed the
world and lifestyles by enabling information to be widely
broadcast. Pareteum's Global Mobility Cloud now has the capability
to enable virtually any type of content and information (or
transaction) by moving connectivity (via wireless mobility network
access) to most elements of our lives, from home to work and all
forms of interaction in between, like shopping, travel,
entertainment, and sports. Pareteum's Global Mobility Cloud
Platform enables our Mobile Network Operator and Communication
Service Provider customers to manage these data information
transactions and scale their businesses affordably.
Through TEUM's accretion of the current $129 million 36 Month Contractual Revenue Backlog
(see definition below), our customer base increased from 4 as of
year-end 2016 to currently 21 customers. This is the result of a
strong TEUM effort by all our TEUMates, across all departments,
including Vic Bozzo, Rob Mumby, Nick
Barter, Eduardo Gimeno,
Ali Davachi, Ted O'Donnell and many others that carry on
every day, doing their jobs to serve our customers and create
profitable growth. We have expanded into new markets and have
provided new services as a result of the complete overhaul of our
software and platform in order to fully support our Software as a
Service business model, which we converted to in 2016.
Our decisions in 2016 to significantly reduce headcount and
evolve our software and services offerings were difficult choices.
These decisions were the right decisions for our business and were
necessary for our survival. Our new business model facilitated
better market positioning for Pareteum and accelerated growth in
the beginning of Q4 2016. Our revenue per employee metric
increased to a record $222,139 in the
third quarter of 2017, a 4-fold increase from the end of 2015, when
we started tracking this metric and demonstrating our improved
efficiencies and scale.
We believe we have developed a leaner, more effective leadership
and operational team with strong experiences in having successfully
built software services and connection platforms. This
resulted in value creation for stakeholders. We have streamlined
our operations and processes and have seen the net positive effects
throughout 2017. For the trailing twelve months ending September 30, 2017, Pareteum has generated
positive adjusted EBITDA. Additionally, our third quarter 2017
operating results approached breakeven in both EBITDA and net
earnings.
Our recent capital raises, aggregating to approximately
$20 million, will address specific
long-term strategies that we are executing, and, we believe, will
establish Pareteum as the dominant player in this space. We expect
to be able to announce these initiatives over the next several
weeks. We believe these fundamental plans will lead to increased
long term shareholder value. In addition, the capital raised
increased our shareholders' equity and resulted in TEUM regaining
compliance with the NYSE listing standards.
We are extremely proud of our TEUM and partners in developing
our platform. Our innovation is an ongoing evergreen continuum. We
expect that innovations will take us into new geographies, with new
services and applications, and the ability to be in the ecosystem
for the infinite directions available from connectivity among
networks. Our ability to successfully scale and securely manage the
geometrically exploding data and information generated by the
simple acts of using mobility in our daily lives defines a great
part of our bringing value to our customers and it is why they buy
from us… at home, at work and in the cities where we live and
shop.
All good wishes for a healthy, happy and prosperous 2018 to our
families, partners and stakeholders,
Hal
Robert H. Turner
Executive Chairman
Principal Executive Officer
Pareteum Corporation (NYSE American: TEUM)
About Pareteum Corporation
The mission of Pareteum Corporation (NYSE American: TEUM) is to
connect "every person and everything." Organizations use Pareteum
to energize their growth and profitability through cloud
communication services and complete turnkey solutions featuring
relevant content, applications, and connectivity worldwide. By
harnessing the value of communications, Pareteum serves retail,
enterprise and IoT customers. Pareteum currently has offices in
New York, Sao Paulo, Madrid, Barcelona, Bahrain and the
Netherlands. For more information please visit:
www.pareteum.com.
Forward Looking Statements:
Certain statements contained herein constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements may include, without
limitation, statements with respect to Pareteum's plans and
objectives, projections, expectations and intentions. These
forward-looking statements are based on current expectations,
estimates and projections about Pareteum's industry, management's
beliefs and certain assumptions made by management. Readers are
cautioned that any such forward-looking statements are not
guarantees of future performance and are subject to certain risks,
uncertainties and assumptions that are difficult to predict.
Because such statements involve risks and uncertainties, the actual
results and performance of Pareteum may differ materially from the
results expressed or implied by such forward-looking statements.
Given these uncertainties, readers are cautioned not to place undue
reliance on such forward-looking statements. Unless otherwise
required by law, Pareteum also disclaims any obligation to update
its view of any such risks or uncertainties or to announce publicly
the result of any revisions to the forward-looking statements made
here. Additional information concerning certain risks and
uncertainties that could cause actual results to differ materially
from those projected or suggested in Pareteum's filings with the
Securities and Exchange Commission, copies of which are available
from the SEC or may be obtained upon request from Pareteum
Corporation.
Contractual Revenue Backlog
Definition:
Contractual revenue backlog is measured on
a forward looking 36 month snapshot view monthly, and, is
generated by each of the Company's Managed Services, Global
Mobility Cloud, and Application Exchange & Developer's Platform
customers. The Pareteum multi-year Software-as-a-Service
agreements include service establishment and implementation fees,
guaranteed minimum monthly recurring fees, as well as contractually
scheduled subscribers, in some cases including subscriber usage,
during the term of the agreement, and, their resulting monthly
recurring revenue. There can be no assurances that we reach the
total revenue backlog. The revenue backlog assumes timing of
revenue recognition that may vary from actual results.
Pareteum Investor Relations Contacts:
Ted O'Donnell
Chief Financial Officer
(212) 984-1096
InvestorRelations@pareteum.com
Hayden IR
(917) 658-7878
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SOURCE Pareteum Corporation