intercloud systems, inc. (nasdaqcm: icld) company overviewauto, on demand provisioning of cloud...
TRANSCRIPT
Market Data
Fiscal Year December 31
Industry IT Services
Market Cap $142.4
Price/Earnings (ttm) N/A
Price/Book (mrq) 9.6x
Price/Sales (ttm) 2.6x
ROE (ttm) N/A
Institutional Ownership 4.6%
Insider Ownership 20.2%
Shares Outstanding 10.9M
Float 3.9M
Avg. Daily Vol. (3 mos.) 722,749
As of March 12, 2014
Income Snapshot
TTM
Revenue $85.0M
EBITDA $8.2M
*ProForma following acquisitions
Balance Sheet Snapshot
MRQ
Cash $3.4M
Debt* $20.2M
*Debt following recent company acquisitions and elimination of $12.6 million of MidMarket debt
March 13, 2014 Target Price: $47.10 Recent Price: $13.10
InterCloud Systems, Inc. (NASDAQCM: ICLD)
Company Overview
InterCloud Systems is a single-source provider of end-to-end IT technology
solutions to the enterprise, service provider, and Government markets
through “Cloud Platforms” and professional services. “Cloud Computing” is
defined as the use of computing resources that are delivered as a managed
service over a network. InterCloud offers its service provider customers the
ability to utilize “cloud” solutions inside their existing network footprint as
well as in a “white label environment” so they can offer a suite of cloud
products under their own brand, delivered over the broadband services they
presently sell. ICLD’s cloud services include infrastructure as a service
(IaaS), platform as a service (PaaS), and software as a service (SaaS).
Valuation
We are valuing ICLD using a forward multiple EV/S of 5.4x (equal to the
average EV/S of our peer group). We apply this multiple to our FY14E
revenue per share projection of $9.14 and derive a price target of $47.10.
Investment Highlights
Explosive growth: 423% YoY revenue growth and 13% QoQ revenue
growth in 3Q13.
Longstanding customer relationships provide strong, recurring revenue
base and in-depth understanding of customer networks.
ICLD is uniquely positioned to provide managed services that efficiently
transition clients to SDDC.
Announced RentVM acquisition expands ICLD’s technology portfolio
and service offerings.
Acquisitions build customer/revenue base and provide client specific
network expertise necessary to transition to cloud-based infrastructure.
The cloud services industry is still in its infancy and is currently growing
at 20% - 40% per year.
Managed Services industry projected to grow to $256.1 billion by 2018.
Investment Highlights
Explosive growth: 423% YoY revenue growth and 13% QoQ revenue
growth in 3Q13. For 9M13, ICLD reported $42.9 million in revenue, an
increase of approximately 630% YoY. Primarily through acquisitions, the
Company has grown its proforma revenue and adjusted EBITDA to
approximately $85.0 million and $8.2 million, respectively. These figures
provide a strong base of recurring business and cash flow for ICLD.
Longstanding customer relationships provide strong, recurring revenue
base and in-depth understanding of customer networks. ICLD has long-
term relationships (10+ years) with many of its clients. The Company’s
existing service provider relationships and its in-depth understanding of their
networks (from onsite engineering by ICLD’s professional services group)
gives ICLD a distinct competitive advantage.
The Company’s in-depth understanding of networks in the telecom and cable
industry gives ICLD the knowledge needed to easily transition a client from a
hardware-based infrastructure to a cloud-based infrastructure. According to
Nicolas Fischbach, director of network and IT platform strategy and
architecture at Colt, an international IT services company, upgrading a client
to a cloud-based infrastructure “starts with the understanding of customer
requirements and how to translate them into a system and a commercial and
technical service wrap. Executives need experience across networks, systems
and applications to operate software defined data centers (SDDC) and there
cannot be single skills/operations team silos.”
We believe more companies will switch to services like ICLD’s due to ease
of service (deal with only one vendor) and the growing trend for companies
to shift from hardware-based network and apps to software-based network
and apps.
ICLD is uniquely positioned to provide managed services that efficiently
transition clients to SDDC. With a large number of enterprises currently
experiencing rapid increases in data growth, driving high demands for a well-
structured cloud services, ICLD is positioned to be in the foreground of one
of the next major advancements in technology. We believe ICLD’s advanced
lead time in the enterprise market will help it procure clients during the
market’s early stages, allowing the Company to grow with its clients as IT
infrastructure continues to shift to the cloud.
We believe ICLD’s understanding of its clients’ networks, gained through
years of onsite engineering work for major carriers, is unrivaled and gives the
Company the necessary expertise to transition businesses from hardware to
cloud-based infrastructures.
An example of this expertise was seen recently when ICLD helped a global
retailer, who owns eight top brands, integrate and consolidate its IT
infrastructure into a private cloud architecture. By providing elastic, highly-
scalable resources, ICLD enabled the retailer to realize millions of dollars in
savings.
Similar to IBM’s onsite engineering strategy, ICLD’s longstanding client
relationships also strongly position the Company to sell new products to its
clients. The similarity to IBM’s strategy serves as an ideal business model for
ICLD. IBM is currently in the process of expanding its cloud computing
business, having invested $2 billion in acquiring SoftLayer Technologies and
committing to spend an additional $1.2 billion for 15 new data centers.
IBM’s growing focus on the cloud is another indicator of the ongoing shift in
IT from hardware to cloud-based infrastructure.
Co-located in the biggest carrier hotels (NYC, San Francisco, and Santa
Clara; along with planned expansion to Atlanta, Chicago, Ireland, Asia,
Dubai, and Europe), ICLD’s cloud services provide highly customizable,
replicable, and scalable architecture to meet a customer’s unique
requirements. Carrier hotels are colocation facilities where many carriers are
present, resulting in economies of scale and increased value to customers.
ICLD compliments this framework with extensive professional services,
providing the building blocks that enable its customers to reduce costs
(scalable, virtualized, low-cost software offered on a pay-per-use basis),
increase efficiencies (data center is transformed into an on-demand service
rather than a rigid, complex, and resource draining set of technology silos)
and take advantage of emerging cloud applications (ICLD’s 100% open-
source architecture ensures an increasing and superior set of apps). ICLD’s
cloud infrastructure is built on Tier 1 technology from vendors such as HP,
Brocade, Intel and more, ensuring that ICLD will provide top-notch service
to its clients.
Announced RentVM acquisition expands ICLD’s technology portfolio
and service offerings. Following a recent run of acquisitions that expanded
ICLD’s revenues and client base, the Company has also begun to add to its
cloud technology. RentVM, which delivers Infrastructure-as-a-Service
technology, expands ICLD’s cloud and managed services capabilities
through its SDDC platform, which offers a self-service portal that allows for
auto, on demand provisioning of cloud assets through a hierarchy system
supported by enterprise-level security, providing clients a streamlined
process to virtualize existing infrastructure and integrate cloud solutions. The
proposed price for the acquisition is 400,000 ICLD common shares.
We anticipate ICLD will continue to expand its SDDC offering, both through
internal development and other potential acquisitions, driving increased
cloud-based recurring revenue, while improving the Company’s technology
offerings.
Acquisitions build customer/revenue base and provide client specific
network expertise necessary to transition to cloud-based infrastructure.
ICLD’s acquisitions include: IPC-NY, an outsourced infrastructure service
provider who provides comprehensive, single-source solutions to design,
construct, implement, operate, and maintain wireless, wireline, fiber optic,
and DAS multi-site networks as well as providing services to IT networks for
enterprise and service provider networks; ADEX, a leading provider of
permanently-outsourced network infrastructure services to Original
Equipment Manufacturers and wireless and wireline carriers, offering
customers a broad portfolio of services that encompass the major elements of
any network buildout; Rives-Monteiro Engineering, a telecommunications
company who provides specialized maintenance, consultation, and project
management; TNS, an integrator of commercial communication system
infrastructure specializing in the design, installation, and maintenance of
structured cabling systems; and Tropical Communications, a licensed
electrical and underground utility contractor who specializes in all types of
communications wiring, low-voltage and underground utility contracting, as
well as fiber optic systems, splicing, testing and wireless capabilities. Each
acquisition has provided ICLD customers with on-going services while
increasing revenue for the Company. The acquisition of IPC-NY expanded
the Company’s customer base into large Fortune 100 and 500 enterprises. We
expect large enterprises to shift more of their IT infrastructure to the cloud
and drive organic revenue growth for ICLD over the next few years.
Revenues 2011 2012 2013
RME 2,651,711
Tropical 2,284,321
ERFS 146,036
TNS 1,042,367
ADEX 10,577,197
IPC-NY 25,000,000
Acquisitions
The companies that ICLD acquired all specialize in having an understanding
of a part or all of a client’s networks and infrastructure. This is crucial when
transitioning a client to an SDDC. Cross-selling and upselling of this client
base can substantially increase revenue growth for ICLD. Additionally,
increased scalability will allow the Company to manage larger contracts
which should drive further growth in operating results.
InterCloud awarded up to $7 million in new professional services
contracts. The Company’s Professional Services Group has signed multiple
contracts that are projected to generate revenue of $3.5 million to $7.0
million in 2014. One of the contracts is for the management of a 4G/LTE
wireless network upgrade and expansion, as well as maintenance services, for
a wireless original equipment manufacturer. A second contract award allows
ICLD to provide professional services for network engineering, project
management, and other various senior technical classifications required to
support a major carrier’s network expansions. According to Jake Saunders,
VP at ABI Research, "In 2013, mobile capital expenditure is likely to surge
4.9% to $10.5 billion as North American operators continue upgrading their
networks."
ICLD is expected to see higher demand for its services as wireless carriers
continue to upgrade their cloud infrastructure and increase virtualization as
part of their expansion strategies. Telecom companies are continuing to
heavily invest in wireless networks, providing large advantages for
experienced companies like ICLD.
Market
The cloud services industry is still in its infancy and is currently growing
at 20% - 40% per year. The global market for the cloud in 2011 was $40.7
billion (Forrester), and is forecasted to reach $130 billion by 2015 (Gartner)
and $241 billion by 2020 (Forrester). “Approximately 59% of all new
spending on cloud computing services originates from North American
enterprises, a trend projected to accelerate through 2016” (Gartner).
Managed Services industry projected to grow to $256.1 billion by 2018.
Managed services provide enterprises with data center architecture, servers,
networks, mobility, infrastructure, communications, and security. The
importance of managed services is its ability to reduce costs and manage
complex infrastructure. Managed services allow companies to scale their
resources as needed, rather than buying and maintaining similar resources,
thus providing flexibility while saving money. According to Scott Samborn,
chief business development officer for Vantage Point Solutions Group LLC,
“businesses can save 30 to 40 percent on their IT costs by switching to a
managed service provider, which is especially significant for small
businesses.”
CRN, the top news source for solution providers and the IT channel, believes
the size of the managed services industry is expected to grow from $142.75
billion in 2013 to $256.05 billion in 2018, while Philbert Shih of Structure
Research expects managed services to grow at 23% - 27% per year.
Infrastructure as a Service is projected to be the fastest growing segment
of cloud computing. Infrastructure as a Service (IaaS) is a standardized,
highly-automated offering, where computer resources, complemented by
storage and networking capabilities, are owned and hosted by a service
provider and offered to customers on-demand. Customers are able to self-
provision this infrastructure through web-based user interfaces that serve as
IT operations management consoles.
With more enterprises shifting focus towards cloud-based platforms, aiming
to utilize years’ worth of stored data, the importance of integrating legacy
systems of record to cloud-based platforms is now vital to a company’s
success. Small and medium-sized businesses are benefiting greatly from the
cheaper costs and increased security. A recent study from Gartner estimates
that IaaS will be the fastest growing area of public cloud computing,
projecting a 41.3% CAGR with the total market expected to reach $24 billion
in 2016.
Platform as a Service is projected to grow at a 26.6% CAGR to $6.45
billion in 2016. Platform as a service (PaaS) offers a cloud computing
platform and a solution stack as a service by providing a broad collection of
application infrastructure services. This unique method to utilize hardware,
operating systems, storage and network capacity over the Internet allows
businesses to develop and run applications at a lower cost. Enterprises adopt
PaaS because of its efficiency, scalability, secure multi-tenancy, and
comprehensive solution. A large number of businesses are adopting PaaS at
high rates, and Gartner estimates a 26.6% CAGR for the market, reaching
$6.45 billion in 2016. Companies like Amazon, Google, IBM, etc. have
already adopted PaaS to further strengthen their businesses. Even Netflix has
shifted to PaaS to sustain a faster data center for its customers, due to high
user demand.
http://www.forbes.com/sites/louiscolumbus/2013/02/19/gartner-predicts-infrastructure-services-will-
accelerate-cloud-computing-growth/
Software defined data center (SDDC) market expected to grow at a
68.7% CAGR to $5.41 billion in 2018. With the growing advantages of
productivity and cost effective performance, companies all over the country
are progressively adopting cloud computing services, driving high demands
for companies like ICLD, who have the capabilities to expand into SDDC.
Understanding the importance of hardware configuration being sustained
through software is vital to public and private cloud adopting companies. “It
can bring a high degree of agility and flexibility to the infrastructure,” says
Tony Lock, analyst at Freeform Dynamics. According to PRWeb, the
software defined data center market is expected to be worth $5.41 billion by
2018, representing a 68.7% CAGR from 2013 to 2018. Companies like Cisco
Systems, Hewlett-Packard, IBM, and VMWare, have all become key players
in this industry. ICLD’s acquisition of RentVM and its expertise in SDDC
provides substantial value for ICLD and its clients.
Gartner projects the cloud-based security services market to reach $3.1
billion by 2015. "The cloud-based security market remains a viable one,
offering providers many opportunities for expansion," said Ruggero Contu,
research director at Gartner. Such a large adoption of cloud-based services is
driving many organizations to implement cloud-based security controls.
Gartner expects acceptance of, and reliance on, cloud-based security-as-a-
service offerings to increase, based on organizations gaining more experience
with SaaS and more consumer-grade technology being made available to
corporate systems as a result of trends.
Valuation
We are valuing ICLD using the average forward multiple EV/S of 5.4x.
While there are no direct public comps available, we believe that ICLD
deserves a premium to our peer group due to its strong position in one of the
fastest growing areas in technology. This is due to both the Company’s
strong client base and advanced technological position.
Although currently a smaller-sized company, we recognize ICLD’s superior
growth relative to the majority of our peer group. We apply this multiple to
our FY14E revenue per share projection of $9.14 and derive a price target of
$47.10.
We conservatively project ICLD to generate $101 million and $130 million
in revenue in 2014 and 2015, respectively, driven by growth in its recurring
cloud business. Given a higher percentage of revenue generated by cloud
based managed services we are projecting increases in gross margins over
time. We also expect increases in salaries and wages, both on an absolute and
percentage of revenue basis given our belief that the Company will be
investing heavily in sales and marketing.
ICLD
MA
RCH
JUN
ESE
PTD
EC.
MA
RCH
JUN
ESE
PTD
EC.
1Q13
2Q13
3Q13
4Q13
E20
13E
1Q14
E2Q
14E
3Q14
E4Q
14E
2014
E1Q
15E
2Q15
E3Q
15E
4Q15
E20
15E
REV
ENU
ES12
,401
,933
14,3
56,4
80
16
,158
,045
16,4
81,2
06
59
,397
,664
22,7
31,2
06
24
,322
,390
26,0
24,9
58
27
,846
,705
100,
925,
259
28,4
14,0
07
30
,971
,268
33,7
58,6
82
36
,796
,964
129,
940,
921
YoY
Reve
nue
Gro
wth
716%
923%
448%
45%
245%
83%
69%
61%
69%
70%
25%
27%
30%
32%
29%
QoQ
Rev
enue
Gro
wth
9%16
%13
%2%
7%7%
7%7%
9%9%
9%9%
9%
OPE
RATI
NG
EXP
ENSE
S
Cost
of R
even
ues
8,76
6,30
3
10
,107
,015
10,6
59,1
88
10
,877
,596
40,4
10,1
02
14
,593
,434
15,3
23,1
06
16
,083
,424
16,8
75,1
03
62
,875
,067
Gro
ss P
rofi
t3,
635,
630
4,24
9,46
5
5,49
8,85
7
5,
603,
610
18
,987
,562
8,13
7,77
2
8,99
9,28
4
9,94
1,53
4
10,9
71,6
02
38
,050
,192
11
,536
,087
12,9
45,9
90
14
,516
,233
16,2
64,2
58
55
,262
,568
Gro
ss M
argi
ns29
.32%
29.6
0%34
.03%
34.0
0%31
.97%
35.8
0%37
.00%
38.2
0%39
.40%
37.7
0%40
.60%
41.8
0%43
.00%
44.2
0%42
.53%
Dep
reci
atio
n an
d A
mor
tiza
tion
197,
610
302,
448
317,
632
320,
808
1,13
8,49
8
324,
016
327,
257
330,
529
333,
834
1,31
5,63
7
33
7,17
3
34
0,54
4
34
3,95
0
34
7,38
9
1,
369,
057
Sala
ries
and
Wag
es1,
661,
769
1,70
5,33
0
1,81
7,45
2
1,
812,
933
6,
997,
484
2,
727,
745
2,
918,
687
3,
383,
244
3,
620,
072
12
,649
,748
3,
693,
821
4,
026,
265
4,
388,
629
4,
783,
605
16,8
92,3
20
S&W
as
% o
f Rev
enue
13%
12%
11%
11%
12%
12%
12%
13%
13%
13%
13%
13%
13%
13%
13%
Gen
eral
and
Adm
inis
trat
ive
1,17
0,76
6
1,
704,
436
1,
302,
074
1,81
2,93
3
5,99
0,20
9
2,50
0,43
3
2,67
5,46
3
2,73
2,62
1
2,92
3,90
4
10,8
32,4
20
2,98
3,47
1
3,25
1,98
3
3,54
4,66
2
3,86
3,68
1
13
,643
,797
G&
A a
s a
% R
even
ue9.
44%
11.8
7%8.
06%
11%
10%
11%
11%
11%
11%
11%
11%
11%
11%
11%
11%
TOTA
L O
PERA
TIN
G E
XPEN
SES
3,03
0,14
5
3,
712,
214
3,
437,
158
3,94
6,67
4
14,1
26,1
91
5,
552,
194
5,
921,
406
6,
446,
394
6,
877,
810
24
,797
,804
7,
014,
465
7,
618,
792
8,
277,
240
8,
994,
676
31,9
05,1
73
Ope
rati
ng In
com
e60
5,48
5
53
7,25
1
2,
061,
699
1,65
6,93
6
4,86
1,37
1
2,58
5,57
8
3,07
7,87
8
3,49
5,14
0
4,09
3,79
2
13,2
52,3
87
4,52
1,62
2
5,32
7,19
8
6,23
8,99
3
7,26
9,58
2
23
,357
,395
Ope
ratin
g M
argi
n4.
88%
3.74
%12
.76%
10.0
5%8.
18%
11.3
7%12
.65%
13.4
3%14
.70%
13.1
3%15
.91%
17.2
0%18
.48%
19.7
6%17
.98%
OTH
ER (I
NCO
ME)
EXP
ENSE
S
Unr
ealiz
ed g
ain
on fa
ir v
alue
of d
eriv
ativ
e 15
,629
(910
,494
)
482,
857
-
(412
,008
)
-
-
-
-
-
-
-
-
-
-
Inte
rest
Exp
ense
(1,3
36,5
79)
(759
,965
)
(1,0
21,9
45)
(1,4
28,7
84)
(4,5
47,2
73)
(1,4
21,6
29)
(752
,671
)
(7
52,6
71)
(752
,671
)
(3
,679
,641
)
(752
,671
)
(752
,671
)
(752
,671
)
(752
,671
)
(3,0
10,6
83)
Goo
dwill
Impa
irm
ent
-
80,0
00
113
-
80,1
13
-
-
-
-
-
-
-
-
-
-
TOTA
L O
THER
(IN
COM
E) E
XPEN
SE(1
,320
,950
)
(1
,590
,459
)
(5
38,9
75)
(1
,428
,784
)
(4
,879
,168
)
(1
,421
,629
)
(7
52,6
71)
(752
,671
)
(7
52,6
71)
(3,6
79,6
41)
(7
52,6
71)
(7
52,6
71)
(7
52,6
71)
(7
52,6
71)
(3
,010
,683
)
NET
LO
SS(4
94,7
65)
(1
,004
,142
)
1,
509,
788
228,
153
(17,
796)
1,16
3,94
9
2,32
5,20
7
2,74
2,46
9
3,34
1,12
1
9,57
2,74
6
3,
768,
952
4,
574,
527
5,
486,
322
6,
516,
911
20,3
46,7
12
Net
Mar
gin
-4%
-7%
9%1%
0%5%
10%
11%
12%
9%13
%15
%16
%18
%16
%
Net
Los
s A
ttri
buta
ble
to N
on-C
ontr
ollin
g In
tere
st34
,982
(47,
382)
(44,
810)
-
-
-
-
-
-
-
-
-
-
-
-
Net
Los
s A
ttri
buta
ble
to IC
LD(4
59,7
83)
(1
,051
,254
)
1,
464,
978
228,
153
(17,
796)
1,16
3,94
9
2,32
5,20
7
2,74
2,46
9
3,34
1,12
1
9,57
2,74
6
3,
768,
952
4,
574,
527
5,
486,
322
6,
516,
911
20,3
46,7
12
Less
Div
iden
ds o
n Pr
efer
red
Stoc
k(5
91,0
85)
(2
62,5
81)
(6
7,09
8)
(6
7,09
8)
(6
7,09
8)
-
-
-
-
-
-
-
-
-
-
Net
Los
s A
ttri
buta
ble
to IC
LD C
omm
on S
hare
hold
ers
(1,0
50,8
68)
(1,3
14,1
05)
1,29
7,88
0
16
1,05
5
(8
4,89
4)
1,
163,
949
2,
325,
207
2,
742,
469
3,
341,
121
9,
572,
746
3,76
8,95
2
4,57
4,52
7
5,48
6,32
2
6,51
6,91
1
20
,346
,712
LOSS
PER
CO
MM
ON
SH
ARE
Basi
c (0
.50)
(1
.33)
0.26
0.03
(0.0
2)
0.
12
0.
21
0.25
0.
31
0.91
0.
35
0.
42
0.
50
0.
60
1.
87
Dilu
ted
(0.5
0)
(1.3
3)
0.
12
0.
02
(0
.02)
0.11
0.20
0.
24
0.29
0.
87
0.33
0.40
0.48
0.57
1.79
Basi
c W
eigh
ted
Avg
num
ber o
f Com
mon
Sha
res
2,10
3,95
7
98
9,12
5
4,
947,
737
6,64
4,51
4
3,67
1,33
3
9,66
2,19
4
10,8
66,6
04
10
,866
,604
10,8
66,6
04
10
,565
,502
10
,866
,604
10,8
66,6
04
10
,866
,604
10,8
66,6
04
10
,866
,604
Dilu
ted
Wei
ghte
d A
vg n
umbe
r of C
omm
on S
hare
s2,
103,
957
989,
125
6,85
2,44
8
8,
549,
225
5,
576,
044
10
,141
,777
11,3
46,1
87
11
,346
,187
11,3
46,1
87
11
,045
,085
11
,346
,187
11,3
46,1
87
11
,346
,187
11,3
46,1
87
11
,346
,187
Name Ticker PriceMarket
Cap
Rev
(ttm)
EBITDA
(ttm)EV
EV/EBITDA
(ttm)
EV/Sales
(ttm)
CALLIDUS SOFTWARE INC CALD 12.99 596.41 112.34 -1.10 583.63 N/A 5.20
BRIGHTCOVE BCOV 11.03 353.18 109.90 -1.56 312.59 N/A 2.84
MIX TELEMATICS LTD-SP ADR MIXT 12.07 378.59 132.01 32.61 371.30 11.39 2.81
CARBONITE INC CARB 10.71 284.38 107.19 2.36 218.99 92.79 2.04
CVENT INC CVT 42.35 1721.14 111.12 5.74 1547.12 269.39 13.92
Average 17.83 666.74 114.51 7.61 606.73 124.52 5.36
Median 12.07 378.59 111.12 2.36 371.30 92.79 2.84
INTERCLOUD SYSTEMS INC ICLD 13.10 142.35 54.28 8.04 159.37 19.82 2.94
As of March 12, 2014
Source: Bloomberg, RedChip
Peer Comparison
Risks
There is no guarantee that ICLD will be able to effectively integrate either
completed or possible future acquisitions. ICLD has made multiple
acquisitions, meaning the Company will have to integrate multiple different
offices, along with cloud-based technologies. If they cannot properly integrate
these acquisitions, growth and profitability may be hindered. Prior to
completing many of its acquisitions, ICLD worked with some of these
companies for a year or longer, which should help ease potential integration
issues.
ICLD must continue to adapt to changing technology. Failure to adapt to
changes in technology may cause the Company to lose customers and market
share. ICLD has shown the ability to make acquisitions to improve its
technology, as indicated by the announced acquisition of RentVM.
ICLD is competing against larger companies with greater resources. Better
capitalized companies may be able to devote a greater amount of resources
toward the products/markets that ICLD operates in. ICLD’s long standing
relationships should help it compete against larger competitors.
This report reflects our current beliefs, with respect to future events and
involves known and unknown risks, uncertainties and other factors, including,
but not limited to, economic, competitive, regulatory, technological, key
employees, and general business factors affecting the Company’s operations,
markets, growth, services, products, licenses and other factors.
Management Team
Mark Munro, Chairman of the Board, Chief Executive Officer
Mr. Munro has served as our Chief Executive Officer and as the Chairman of
our Board since December 2011. Mr. Munro is also the Founder and has been
President of Munro Capital Inc., a private equity investment firm, since 2005.
Mr. Munro has been the Chief Executive Officer and owner of 1112 Third Ave
Corp., a real estate holding company, since October 2000. He has also been an
investor in private companies for the last seven years, including Vaultlogix,
LLC, a provider of online data backup solutions for business data. Prior to
forming Munro Capital, Mr. Munro founded, built and sold Eastern Telcom
Inc., a telecommunication company, from 1990 to 1996. Mr. Munro has been
directly involved in over $150 million of private and public transactions as
both an investor and entrepreneur. Mr. Munro sat on the board of Vaultlogix,
LLC from March 2004 to February 2008. Mr. Munro also has experience as a
former Chairman of the Board of BiznessOnline.com Inc., a NASDAQ-listed
internet access, web design and e-commerce hosting company, from May 1999
to August 2002. Mr. Munro received his B.A. in economics from Connecticut
College. Mr. Munro brings extensive business experience, including years as a
successful entrepreneur and investor, to our board of directors and executive
management team.
Frank Jadevaia, President
Frank Jadevaia has been successful in high technology for 25 years. He
became a managing partner and co-founder at Integration Partners Corp-NY
(“IPC-NY”) effective January 2007. IPC-NY, recently acquired by InterCloud,
is a leading elite status value added reseller, specializing in consulting, services
and hardware, across competencies in data, voice and optical networks.
Prior to joining IPC-NY, Mr. Jadevaia was Vice President of sales for Nortel,
from November 2001 to November 2006. Jadevaia lead Nortel's largest
enterprise region with an approximate $350 million in sales and just under 200
employees. In addition, his organization was responsible for all verticals,
including finance and global accounts, making his responsibilities
multinational in nature.
Before joining Nortel again in 2001, Mr. Jadevaia spent time at multiple
venture-backed start-ups, in leadership roles. In addition, he formed and led a
Service Provider group at Nortel that sold into the tier two and three markets
including; CLEC's, MSO’s and bandwidth wholesalers. Revenues were
approximately $200 million in sales.
Roger M. Ponder, Chief Operating Officer
Roger Ponder served as President and CEO of Time Warner Cable Kansas City
Midwest Division from 2005 to 2009 where he drove a multi-state division to
increased profitability and operational efficiency. His people-oriented
management style and ability to address integration and performance issues
resulted in a dramatic improvement in operational metrics, customer retention
and satisfaction, placing the Kansas City division among the Top 5 in key
operational metrics within all of Time Warner. From 1996 to 2004, Mr. Ponder
was Vice President/General Manager of Commercial Operations and Business
Development at Oceanic Time Warner Cable in Hawaii. Previously, Mr.
Ponder held a number of key senior management positions with Sprint
Corporation, United/Sprint Management Company and Time Warner Telecom.
Mr. Ponder has served in a number of industry and community leadership
positions including as past Chairman of the Missouri Cable and
Telecommunications Association and as past Chairman of the Kansas Cable
and Telecommunications Association, and is currently Chairman of the Board
of Trustees for the Greater Kansas City United Way.
Daniel J. Sullivan, Chief Financial Officer
Mr. Sullivan has served as our Chief Financial Officer since December 2011
and as a member of our board of directors from 2011 to November 2012. Mr.
Sullivan has been the Chief Financial Officer for Munro Capital Inc., a
diversified finance company, since August 2010. Prior to that, he served as
Chief Financial Officer for Vaultlogix LLC, an Internet vaulting company,
from January 2003 to July 2010. Mr. Sullivan received his B.S. in accounting
from the University of Massachusetts and his M.B.A. from Southern New
Hampshire University (formerly New Hampshire College). Mr. Sullivan brings
extensive experience in finance for both publicly-traded and private companies
to our executive management team.
Lawrence M. Sands, Senior Vice President, Corporate Secretary
Mr. Sands has served as our Senior Vice President since January 2010 and was
appointed our Corporate Secretary in August 2010. From January 2009 to
September 2010, Mr. Sands was a finance manager at Vista BMW, an
automobile retailer located in Coconut Creek, Florida. From March 2010 until
September 2010, he was Vice President, Secretary and a director of Omni
Ventures, Inc., a development-stage company that planned to provide equity
funding for commercial and recreational projects in the Mid-west and Western
areas of the United States. From June 2008 to January 2010, Mr. Sands
provided strategic merger and acquisition consulting services to Digital Comm,
Inc., a provider of turnkey services and solutions to the communications
industry that we acquired in January 2010. From January 2008 until December
2008, he was Chief Executive Officer of Paivis Corp., a public company
engaged in long distance telecommunications. From September 2003 until
April 2008, Mr. Sands was a finance manager at JM Lexus, an automobile
retailer located in Margate, Florida. Mr. Sands received a B.S. in Technology
and Industrial Arts from New York University and a J.D. from Whittier
College, School of Law. Mr. Sands brings business and finance experience to
our executive management team.
Additional Information
Legal: Pryor Cashman LLP
Auditor: BDO USA, LLP
Transfer Agent: Corporate Stock Transfer
Company Information
About RedChip
RedChip Companies, an Inc. 5000 company, is an international small -cap research, investor
relations, and media company headquartered in Orlando, Florida; with affiliate offices in San
Francisco, Seoul, Hong Kong and Singapore. RedChip delivers concrete, measurable results for
its clients through its extensive global network of small -cap institutional and retail investors.
RedChip has developed the most comprehensive platform of products and services for small -cap
companies, including: RedChip Research(TM), Traditional Investor Relations, Digital Investor
Relations, Institutional and Retail Conferences, "The RedChip Money Report"(TM) television
show, Shareholder Intelligence, Social Media and Blogging Services, and Webcasts. RedChip is
not a FINRA member or registered broker/dealer.
None of the profiles issued by RedChip Companies, Inc., constitute a recommendation for any
investor to purchase or sell any particular security or that any security is suitable for any
investor. Any investor should determine whether a particular security is suitable based on the
investor’s objectives, other securities hold ings, financial situation needs, and tax status.
RedChip Companies, Inc., employees and affiliates may maintain positions and buy and sell the
securities or options of the issuers mentioned herein. All materials are subject to change without
notice. Information is obtained from sources believed to be reliable, but its accuracy and
completeness are not guaranteed. InterCloud Systems Inc. (“ICLD”) is a client of RedChip
Companies, Inc. ICLD agreed to pay RedChip Companies, Inc., 7,500 shares of common stock
under Rule 144, and a monthly cash fee for six (6) months of RedChip investor awareness
services. Investor awareness services and programs are designed to help small -cap companies
communicate their investment characteristics. RedChip investor awareness serv ices include the
preparation of a research profile(s), multimedia marketing, and other awareness services.
Additional information about the subject security or RedChip Companies Inc. is available upon
request. To learn more about RedChip’s products and se rvices, visit
http://www.redchip.com/visibility/productsandservices.asp, call 1 -800-RedChip (733-2447), or
email [email protected].
Company Contact Info:
InterCloud Systems, Inc.
331 Newman Springs Road
Building 1, Suite 104
Red Bank, NJ 07701
Phone: (561) 988-1988
www.intercloudsys.com
Investor Contact Info:
RedChip Companies, Inc.
500 Winderley Place, Suite 100
Maitland, FL 32751
(407) 644-4256
www.redchip.com