LONGWOOD, FL, Dec. 03, 2018 (GLOBE NEWSWIRE) -- Spectrum Global Solutions, Inc. (OTC: SGSI) (the “Company”), a single-source provider of end-to-end, next-generation wireless and wireline network infrastructure services and solutions to the service provider (carrier) and corporate enterprise markets, provides the following update to its shareholders and investors from its CEO, Roger Ponder.
Dear Shareholders and Investors:
As we finish up 2018, I would like to recap our accomplishments for this year, provide some insight into our growth strategy, and draw an outline of what we expect moving forward.
First, l would like to comment on our financial performance. Investors might remember that this Company had zero revenues in early 2017. Through strategic acquisitions and operations, we are now tracking well over $33 million in annual revenues. This is a pattern we expect to continue, as I will later discuss in this letter.
Since the beginning of this year we have achieved increases in revenues and earnings, both organically and by reason of our acquisition of ADEX Corp. ADEX has seen quarterly growth since the acquisition, and the engineering team at our AW Solutions subsidiary has seen consistent year-over-year revenue growth.
In Q1 2018, we posted revenues of approximately $4.3 million. By Q2 our revenues increased to nearly $11 million. In Q3, we reported nearly $10 million in revenues as we tightened our belts and focused more on gross margins and reported net income. Some of the lower margin contracts we inherited via acquisitions were allowed to expire in favor of higher margin work. We intend to focus on the size of the contracts as well as their profitability, at all times.
With this strong base, we will continue to grow Spectrum Global organically and through strategic acquisitions. We will not acquire companies simply to increase revenue; the acquisitions we pursue must be accretive to our earnings, have the ability to expand our services geographically, and provide us with an entrance into a new customer base.
Improving our balance sheet is another focus, as it pertains to our broader growth strategy. We have reduced convertible debt and operating expenses and have obtained a revolving line of credit to help us with working capital at low interest bank rates. Since we completed our reverse split in September, our stock has taken a beating from certain remaining convertible debt holders and others who liquidated their positions.
We are making every attempt to eliminate structured finance that tends to hurt microcap companies. We are working to restructure existing aged paper that has hurt our share price and market cap. However, with our successful reductions in operating expenses and improved cash flow from operations, we believe Spectrum Global will make significant strides in 2019.
Valuation and Market Opportunity
As we strengthen the foundation of the Company, we would like to see the investment community take notice. I am disappointed, as are most of you, with our current share price. I do not believe our share price and market capitalization accurately reflect the value of our Company and our assets. Our proprietary Drone Tower Mapping and Inspection services are not even factored in our current valuation.
Through the development of this patented proprietary technology, we are able, via drones, to structurally map, measure, analyze and video capture towers and associated antenna mounts and equipment. This is an incredible alternative to the industry standard of using tower climbing crews to physically ascend and measure the structural members. Our technology provides the same service with increased safety, consistency and productivity.
In the telecom industry, there is the current deployment of 5G technology, network densification and the development of disruptive technology, including software defined networks (SDN) and network function virtualization (NFV). There is a current need to deploy, expand and enhance the telecom and data networks as well as update infrastructure and enterprise facilities to support this new technology. The modernization of network infrastructure by carriers, enterprises and government entities will keep Spectrum Global and our operating subsidiaries busy for years to come.
Our goal from the beginning has been to create shareholder value and up-list this Company to a national exchange. We believe we are well on our way to achieving those goals and will provide additional updates as they become available.
Spectrum Global, CEO
About Spectrum Global Solutions, Inc.:
Spectrum Global Solutions operates through its subsidiaries AW Solutions and ADEX Corp. The Company is a leading provider of telecommunications engineering and infrastructure services across the United States, Canada, Puerto Rico, Guam and Caribbean. For more information about the Company and its technologies visit the Company’s public filings at SEC.gov.
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.
Spectrum Global Solutions