SeeThruEquity Issues Update on FTE Networks, Inc. (FTNW)
November 23 2016 - 7:54AM
InvestorsHub NewsWire
SeeThruEquity Issues
Update on FTE Networks, Inc. (FTNW)
NEW YORK, NY / November 23, 2016 /
SeeThruEquity, a leading independent equity research and corporate
access firm focused on smallcap and microcap public companies,
today announced it has issued an update on FTE Networks, Inc.
(OTCQX: FTNW).
The report is available here: FTNW
November 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
On November 17, 2016, FTE Networks announced a significant new
infrastructure deal in New York, with highlights as follows:
- FTE Networks was awarded a $1.2mn contract with a leading
broadband communications company for MDUs in NYC
The contract is the first project of what the company estimates to
be a $10mn opportunity over the next 12 months
The opportunity is incremental to LTE's last publicly stated
backlog of $55mn and a $166mn pipeline over the next three
years.
New deal reflects continued sales execution
We were pleased to see FTE Networks announced a new award of a
$1.2mn contract for a communications service provider in the
competitive New York market. The deal is intended to be the first
stage in a project intended to bring advanced network
infrastructure services to multi-dwelling units (MDUs) in New York.
Management has highlighted the sale of new network infrastructure
services as a key strategic goal for the company, and therefore we
view the announcement as supporting progress and execution in this
area. Importantly, the initial $1.2mn contract is the first step in
what management anticipates is a $10mn opportunity for FTE over the
next 12 months.
Several catalysts on the horizon for FTE
We see several potential catalysts ahead for FTE Networks in
coming months. The company's significant backlog of $55mn and
$166mn three-year pipeline suggests robust growth over the next 1-3
years, versus to estimated revenues of $16.4mn in 2016E.
Additionally, the company is in the midst of raising its position
on the industry value chain with the introduction of innovative new
Managed Network Services platform, which carry more attractive
contract terms marked by recurring revenues and high incremental
margins. On the corporate development front, management has stated
that it is seeking to uplist shares to a national exchange, which,
if successful, would elevate its prestige in the industry and
potentially make accessible institutional investors who may be
interested in the company but are restricted from investing in OTC
markets.
Maintain $1.20 price target at this time
We are maintaining our price target of $1.20 at this time. We
will review our estimates and forecast following the release of
3Q16 results and guidance
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, and Wireless Integration, Network
Engineering, Compute to the Edge, FTE Networks is headquartered in
Naples, Florida, with offices throughout the United States and
Europe. www.ftenet.com.
About SeeThruEquity
Since its founding in 2011, SeeThruEquity has been committed to
its core mission: providing impactful, high quality research on
underfollowed smallcap and microcap equities. SeeThruEquity has
pioneered an innovative business model for equity research that is
not paid for and is unbiased. SeeThruEquity is the host of
acclaimed investor conferences that are the ultimate event for
publicly traded companies with market capitalizations less than $1
billion.
SeeThruEquity is approved to contribute its research reports and
estimates to Thomson One Analytics (First Call), the leading
estimates platform on Wall Street, as well as Capital IQ and
FactSet. SeeThruEquity maintains one of the industry's most
extensive databases of opt-in institutional and high net worth
investors. The firm is headquartered in Midtown Manhattan in New
York City.
For more information visit www.seethruequity.com.
Contact:
SeeThruEquity
info@seethruequity.com
SOURCE: SeeThruEquity
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