FTE Networks Reports Fourth Quarter and Full Year 2017 Results

FTE Networks (NYSE:FTNW), a leading provider of innovative technology-oriented solutions for smart platforms and network infrastructure announced its financial results for the three-month period and year ended December 31, 2017.

The company had a total revenue of $243.4 million in 2017 with its gross margin up by 15 per cent. For the fourth quarter, the company had a revenue of $110.5 million up by 40 per cent as compared to previous quarter.

As quoted in the press release:

“During 2017, FTE laid the foundation for dynamic growth, by expanding its product and service portfolio and positioning itself as a provider of a complementary suite of technology and general contracting solutions that spans multiple high-growth market segments,” commented Michael Palleschi, FTE’s Chief Executive Officer. “We are highly confident in our ability to maximize the synergies between our Benchmark Builders, CrossLayer and Jus-Com units to drive robust top-and-bottom line growth, and sustainable shareholder value.”

Operating profit was approximately $(4.1) million in fourth quarter of 2017, which included approximately $7.0 million in one-time expenses, compared to the prior quarter gain of $4.8 million which included approximately $1.8 million in one-time expenses.

Net income was approximately $(13.5) million for the three months ended December 31, 2017, compared to a gain of $2.5 million for the period ending September 30, 2017.

Adjusted EBITDA was approximately $7.5 million for the three months ended December 31, 2017.*

At the end of 2017, combined backlog totaled approximately $434 million.

“We have already begun to see the benefits of this operating model, as evidenced by our record fourth quarter revenue, a nearly 40% sequential increase from our third quarter results,” Palleschi said. “While we expect some near-term variability in expenses as we integrate CrossLayer as the foundation of our leading technology and infrastructure service suite to Fortune 100/500 companies and top-ranking REITs, we believe that the robust revenue growth and strong backlog of $434 million, and projected pipeline at year-end are a testament to the underlying strength of this model.”

Operational Highlights

• Achieved a combined backlog of approximately $434 million as of December 31, 2017
• Announced new infrastructure and technology expansion projects valued at approximately $133 million year-to-date, as of April 11, 2018
• Successfully uplisted to the New York Stock Exchange (American) in December 2017

“As we near the one year anniversary of the acquisition of Benchmark Builders on April 20^th, I am proud of the tremendous progress we have made over the past year. We have successfully integrated a $300 million revenue generating business into a GAAP compliant, public entity, launched an innovative technology platform into Benchmark’s installed sales channel, and uplisted to a prominent stock exchange, the NYSE American. These accomplishments fuel our optimism as to our ability to capitalize on the growth opportunity that lies before us,” Palleschi said.

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