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SeeThruEquity Issues Update on FTE Networks, Inc. (FTNW)

Wednesday, November 23, 2016 7:30 AM

NEW YORK, NY / ACCESSWIRE / 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.

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.

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SOURCE: SeeThruEquity

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