World News: 13:00 GMT Wednesday 14th August 2019. [Spectrum Global Solutions, Inc via Globe Newswire via SPi World News]
LONGWOOD, Fla., Aug. 14, 2019 (GLOBE NEWSWIRE) -- Spectrum Global Solutions, Inc. (the "Company" or "Spectrum") (OTCQB: SGSI), a leading single-source provider of next-generation communications network infrastructure and maintenance solutions, has reported financial results for the fiscal period ended June 30, 2019.
“The second quarter of 2019 was highlighted by our definitive agreement to acquire WaveTech GmbH, an innovative energy management technology company that we believe will allow us to better monetize our existing customer base throughout North America and the Caribbean,” said Roger Ponder, Chief Executive Officer of Spectrum Global Solutions. “This acquisition, which we expect to close sometime in the fourth quarter of this year, will be transformational for our platform, enabling us to more easily scale our operations to other tier-1 customers in key international markets. “
“While we saw strong revenue growth of 29% to $19.7 million in the first half of the year, the second quarter saw some significant projects pushed into the third and fourth quarter as a result of delayed customer deployments. We expect that this work will resume in the third quarter and fourth quarter of 2019, and into early 2020. These major network infrastructure projects are focused to support high bandwidth next generation wireless technology with hyper-speed 5G services. These 5G services will provide numerous enhancement from engineering to real estate, Virtual Reality (VR) applications, streaming services, health care and telemedicine for real-time data streams from devices, networked self-driving vehicles to connecting homes, utilities and energy management of the energy grid.”
“We fortified our balance sheet in the second quarter of 2019, removing $3.7 million in debt and accrued interest through conversions by noteholders at a substantial premium to the market. We expect this to result in $.3 million in annual interest expense savings, expediting our path to sustainably generate cash flow from operations.”
“Taken together, we look forward to leveraging our strong foundation to execute on our significant backlog, win new contacts, and expand into several key international markets over the next twelve months. Ultimately, we expect these strategic steps to create long-term value for our shareholders," concluded Ponder.
Gross profit in the second quarter of 2019 was $1.2 million, or 13.9% of revenues, compared to $1.6 million, or 14.5% of revenues in the second quarter of 2018. This change in gross margins is primarily attributable to minor fluctuations of margins in our existing contracts.
General and administrative expenses for the second quarter of 2019 decreased 38% to $0.9 million, compared to $1.5 million in the second quarter of 2018. This decrease is primarily due to a decrease in legal fees.
Operating loss for the second quarter of 2019 decreased 21% to $1.0 million, compared to an operating loss of $1.3 million in the second quarter of 2018.
Net loss attributable to common stockholders in the second quarter of 2019 totaled $0.1 million, or $(0.00) per share, compared to net loss of $3.0 million, or $(1.90) per share, in the second quarter of 2018. This improvement was primarily attributable to a gain on change in fair value of derivatives of $1,840,317 for the three months ended June 30, 2019.
Cash and cash equivalents and short-term deposits were $0.6 million as of June 30, 2019, compared with $0.6 million as of as of December 31, 2018.
Our operating results for the Period ended June 30, 2019 and 2018 are summarized in the below tables.: For complete financial statements, please refer to the Company’s SEC filings.
Greg Falesnik or Luke Zimmerman
MZ Group – MZ North America
Globe Newswire: 13:00 GMT Wednesday 14th August 2019
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