NEW YORK, Jan. 12, 2016 (GLOBE NEWSWIRE) -- InterCloud Systems, Inc. (the "Company" or "InterCloud") (NASDAQ:ICLD), a leading provider of cloud networking orchestration and automation solutions and services, today released the following letter to Shareholders from the Company's Chief Executive Officer, Mark Munro.
Dear InterCloud Shareholders:
As we begin the New Year, I would like to take this opportunity to reflect upon the milestones achieved in 2015 and our outlook for 2016. I am pleased to say that from an operational perspective, 2015 was a successful year for the Company. Our revenues are up significantly compared to 2014, and we expect to see continued growth in 2016. As previously reported, our pipeline of sales opportunities remains at an all-time high of over $149 million.
I have never been more excited about our business model, growth prospects, and future plans. As one of the largest shareholders in InterCloud, I am as disappointed at our current share price. We are currently trading below our September 30, 2015 book value. I do not believe that our share price accurately reflects the value of our Company, the achievements made to date and our future prospects. During the 4th quarter of 2015, I purchased $100,000 worth of stock at $1.26 per share. I am invested in InterCloud and working diligently to build shareholder value for all shareholders. This is in addition to my 1.4 Million shares previously owned.
In 2015, the Company had the highest revenue in its brief history of existence. For the nine months ended September 30, 2015, we reported that revenue was up 25% over the period in 2014, and our revenue for the nine months ended September 30, 2015 was approximately $65 million. In the fourth quarter of 2015, we built on that momentum and continued to see growth. We expect to achieve record revenue for calendar year 2015.
Shareholders may not remember that not long ago, during fiscal 2011, the Company reported $2.8 million in gross revenue. This Company’s growth, from less than $3 million in annual revenue in 2011 to more than $76 million in revenue in 2014, is impressive and led to the Company’s selection as one of the fastest growing technology companies in Deloitte’s Technology Fast 500 during 2015.
Our balance sheet continues to strengthen as well. We ended 2015 with a cash balance of over $7 million. As of September 30, 2015, the Company had $54.0 million of debt net of debt discount of $5.8 million. Approximately $33.4 million represents related party debt and seller debt which the Company does not pay cash interest on. Approximately $11.5 million of debt is secured by the assets of Vaultlogix and is currently serviced from the cash flow of that subsidiary. The remaining September 30, 2015 balance of $9.0 million is secured by the assets of the Company, including $18.3 million of accounts receivable. Today, this secured balance has been reduced to $7.5 million.
We could not achieve this rapid growth without our employees. We currently have over 400 dedicated employees. These individuals have been recruited by us because we believe they are the best in this business. Our employees are not independent contractors, they work solely for InterCloud and its subsidiaries and are compensated accordingly, and often share in the success of InterCloud, with stock options and other performance-based compensation.
Outlook for 2016
InterCloud has long-term, profitable relationships with some of the world’s largest businesses, including AT&T, Verizon, Crown Castle, Ericsson, Comcast, The New York Times and Sony, to name just a few. In 2015, we continued to develop and grow our relationship with Juniper Networks, and in August 2015, we were featured in a CIO Magazine Juniper Networks special edition. The article described InterCloud’s latest initiatives around cloud, network virtualization and automation via unified orchestration and the solutions developed by InterCloud.
As we enter 2016, we plan to continue to roll out innovative products and form additional strategic partnerships and take advantage of the disruption in the IT sector by marketing our industry leading cloud and automation platforms. We anticipate that our stronger balance sheet, continued expansion, strong partnerships and growth endeavors will produce improved shareholder value in 2016.
Chief Executive Officer
About InterCloud Systems, Inc.
InterCloud Systems, Inc. is a leading provider of cloud networking orchestration and automation, for Software Defined Networking (SDN) and Network Function Virtualization (NFV) cloud environments to the telecommunications service provider (carrier) and corporate enterprise markets through cloud solutions and professional services. InterCloud's cloud solutions offer enterprise and service-provider customers the opportunity to adopt an operational expense model by outsourcing cloud deployment and management to InterCloud rather than the capital expense model that has dominated in recent decades in IT infrastructure management. Additional information regarding InterCloud may be found on InterCloud's website at www.intercloudsys.com.
The above news release contains forward-looking statements. The statements contained in this document that are not statements of historical fact, including but not limited to, statements identified by the use of terms such as "anticipate," "appear," "believe," "could," "estimate," "expect," "hope," "indicate," "intend," "likely," "may," "might," "plan," "potential," "project," "seek," "should," "will," "would," and other variations or negative expressions of these terms, including statements related to expected market trends and the Company's performance, are all "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances, and are subject to a wide range of external factors, uncertainties, business risks, and other risks identified in filings made by the company with the Securities and Exchange Commission. Actual results may differ materially from those indicated by such forward-looking statements. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based except as required by applicable law and regulations.
CONTACT: Investor Relations InterCloud Systems, Inc. 561-988-1988
Source:InterCloud Systems, Inc.