- SSGI posted more than $10 million in revenues in Q3 2018
- Growth strategy includes both acquisitions and organic growth through operations
- Company expects revenue boost from coming 5G mobile service rollout
- Recently awarded more than $5.7 million in contacts for work on state-of-the-art next-gen communications systems
Spectrum Global Solutions, Inc. (OTC: SGSI), a leading single-source provider of end-to-end, next-generation wireless and wireline network infrastructure and professional service solutions to the service provider (carrier) and corporate enterprise markets, has grown revenues from zero in early 2017 to currently tracking more than $33 million annually, CEO Roger Ponder informed shareholders and investors in a recent 2018 update (http://nnw.fm/4o3YU).
The SGSI revenue growth has come through acquisition and operations. The company posted revenues of approximately $4.3 million in the first quarter of 2018, with an increase to nearly $11 million in Q2. In the third quarter of 2018, SGSI reported almost $10 million in revenue as it focused on gross margins and net income. Some lower margin contracts that the company inherited from its acquisitions were allowed to expire in favor of higher margin projects, Ponder noted.
Spectrum Global’s ADEX Corp. subsidiary, acquired in early 2018, has shown quarterly growth since the acquisition, while another subsidiary, AW Solutions, has experienced consistent year-over-year revenue growth. SGSI operates through subsidiaries to provide telecommunications engineering and infrastructure services across the United States, Canada, Puerto Rico, Guam and the Caribbean. The company provides services directly to carriers, aggregators, utilities, enterprises, Project management organizations and original equipment manufacturer clientele through its subsidiaries.
Ponder said in a news release that Spectrum Global aims to continue growing organically and through acquisitions. The company recently announced that it has been awarded more than $5.7 million in new contracts for professional services, project management, engineering design, network auditing, construction, installation and network upgrade services for various new, state-of-the-art, next-generation communications systems. Work on these new systems commenced during the third quarter, and revenue from these orders will be realized during 2018 and into 2019 (http://nnw.fm/2NrLr).
Future acquisitions will be strategic in nature, Ponder added. “We will not acquire companies simply to increase revenue,” he noted. “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.”
The company also expects a revenue boost from the coming rollout of 5G mobile phone service, which is already underway in some locations.
“We continue to build upon our pipeline of new opportunities as carriers deploy upgrades of their services and technologies across the U.S.,” Ponder stated in a news release (http://nnw.fm/IM1jq). “AT&T recently announced that its true 5G mobile service rollout should start in the coming weeks in Dallas, Atlanta, Waco, Charlotte, Raleigh, and Oklahoma City. As AT&T and other major carriers roll out this upgrade, we are called upon for assistance. To capitalize on these opportunities, we are in active discussions with multiple synergistic entities for merger or acquisition that would be accretive to our earnings.”
For more information, visit the company’s website at www.SpectrumGlobalSolutions.com
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