Business
InterCloud Systems Reports First Quarter 2017 Results
InterCloud Systems Reports First Quarter 2017 Results.
About this update from Intercloud Systems Inc
[{"type":"text","content":"\n\n Cost cutting continues as ICLD focuses on core business unitsSalaries and Wages decline 20%Selling, General and Administrative Expenses decline 10% SHREWSBURY, N.J., May 12, 2017 (GLOBE NEWSWIRE) -- InterCloud Systems, Inc. (the \"Company\" or \"InterCloud\") (OTCQB:ICLD), a leading provider of cloud networking orchestration and automation solutions and services, today reported financial results for the First Quarter of 2017.\n Mark Munro, Chairman and CEO of InterCloud, stated, “InterCloud continues to restructure.  During the first quarter of 2017, the Company reduced senior secured debt by approximately $4.2 million and reduced subordinated debt by $4.1 million for total quarterly debt reduction of more than $8.3 million.  Although our revenues declined during the Quarter while we restructured, we substantially reduced our operating expenses, as salaries and wages were reduced by 20% and our SG&A declined by approximately 10%.  We will continue to focus on cutting costs, selling non-core assets and becoming a smaller but cash flow positive company.\" 1st Quarter Financial Highlights: Revenue for the first quarter ended March 31, 2017 declined 21% to $14.0 million, compared to $17.6 million for 2016. This was the result of a decline in our managed services business segment offset by a small increase in our application and infrastructure segment.     Gross profit was 24% for the quarter ended March 31, 2017 and 25% for 2016.  Gross profit declined slightly to $3.4 million compared to $4.4 million in 2016.  Decreases in gross profit in our managed services segment were offset by increases in our application and infrastructure segment.  The gross profit percentage in the managed services and application and infrastructure segments were 21% and 27%, respectively, for the quarters ended March 31, 2017 and 2016. The Company had a net loss attributable to common stockholders of $(14.2) million for the quarter ended March 31, 2017 compared to a net loss of $(4.3) million for the comparable period of 2016.  The increase in net loss during the quarter ended March 31, 2017 compared to the comparable period of 2016 resulted from goodwill and intangible asset impairment charges of $3.9 million in 2017 compared to no charges in 2016.  Additionally, the increase resulted f...