GTT to offload assets to cut mounting debts
Senior management at American network operator GTT Communications have admitted that they are seeking to sell-off non-core assets in order to reduce the firm's $3.2 billion debt burden.
The asset sell-offs would also allow it to focus on cloud networking services, president and CEO Rick Calder said during the firm's latest quarterly earnings call.
The great sell-off
GTT Communications (formerly Global Telecom & Technology) is headquartered in McLean, Virginia. The company operates a Tier 1 network and provides IP transit and MPLS transport services to enterprise, government, and carrier customers in over 100 countries.
The company's second-quarter results released last week, however, showed the firm was struggling, with revenue coming in well below analyst expectations, as well as losses growing above anticipated levels.
In the second quarter, GTT reported a net loss of $33.3 million compared to a net loss of $136.3 million the same time last year. This year's Q2 loss was up from its net loss of $27.3 million in the first quarter, and the growing loss was “primarily the result of non-recurring costs.”
Second-quarter sales also disappointed coming in at $433.8 million. Whilst this was up 32.7 per cent from last year, it declined 3.6 per cent compared to the first quarter.
GTT's total liabilities rose to $4.5bn, with a hefty $3.2bn debt burden.
These grim figures resulted in a big drop in GTT's share price to just $4.90, although its shares did recover to $8.11 on Monday after the telco company revealed it was seeking financial advice on selling off non-core assets in an attempt to pay down some of its obligations.
CEO Calder did not identify which businesses would be up for sale, but he said that GTT has engaged an advisor to explore options.
Some of GTT's troubles have stemmed from its recent acquisition spree.
“From the beginning of 2017 until now, we have closed and integrated 10 acquisitions and nearly quadrupled the size of the firm,” Calder said. At the time of publication, GTT had a market cap of $457m.
These acquisitions included GTT buying British network and infrastructure specialist Interoute for $2.3 billion in cashback in February 2018, and last month it also said it was acquiring telco and IT provider KPN International for $56m in cash.
“Each of the companies we acquired had a flat or declining trajectory at the close,” Calder said in the earnings call. “And while we have not yet returned to growth, we have assembled all the right components to return to growth in the future.”
GTT's troubles may not be entirely over, however.
On Monday, Pomerantz LLP, lawyers specializing in securities issues, announced it is investigating claims on behalf of investors of GTT Communications.
“The investigation concerns whether GTT and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices,” the law firm said.
- Sales Engineer (Telecoms & Cloud Services)
- Upto £85,000 + 20% bonus + benefits
Sales Engineer / Presales Consultant to focus on Cloud services is needed for this Global Tier 1 carrier. You will be working with Enterprise customers helping to design Cloud solutions. You will be responsible for working alongside sales providing presales technical consultancy around my client's cloud services. You will be responsible for providing support for new business opportunities in terms of responding to RFIs & RFPs, understanding customer network requirements, high-level network architecture & design (including supplier selection on a global basis) and technical handover to network implementation teams. This is a great opportunity to join a global player who are growing their Cloud services. You will require a successful track record in the telecommunications arena ideally from a global tier 1 ISP or network provider, with a demonstrable track record in designing complex enterprise solutions. A Sales Engineer needs to be technically astute and has had experience in the design, presentation, and implementation of Wide Area Networks (WAN). They need to understand a range of Layer 1, 2, and 3 technologies (Ethernet, SDH, MPLS, IP, etc) and build a solution based on the best technology to meet a customer’s requirements. In addition, they should have an understanding and experience in Infrastructure solution design for optimising end-user experience when interacting with enterprise platforms notably MS O365, SFDC, Azure and AWS Unified threat Management security solutions (i.e. firewall, IPS/IDS, web filtering and proxy) Network routing and switching protocols and technologies (esp. Cisco) SD-WAN and SDN technologies Skilled Experience in designing and deploying hybrid cloud architectures and managing migrations from physical to virtual environments If you have any questions about this role, give us a call on 0044208 663 4030 or contact/send your CV to firstname.lastname@example.org Ref RA7292 (Telecommunications Jobs, Telecoms Jobs, Cloud Computing Jobs, Cloud Jobs, Presales Jobs, Sales Engineer Jobs, Sales Engineering Jobs)
- Data Scientist (Analytics)
- Up to £50,000 Base
Data Scientist - Analytics London Up to £50,000 Base Ref: PG7641 We are currently working with a Services business who are currently looking for a Data Scientist (Analytics) who has client-facing experience within the insurance industry. The Data Scientist (Analytics) will be responsible for tasks such as; Developing, deploying & testing state of the art Machine learning technology Framing business questions, testing hypothesis, and demonstrating analytical models. Stakeholder Engagement Pricing Optimisation. BAU Experience Required Client Facing experience within Insurance business's Pricing Optimisation Machine Learning; Clustering, Regression, Decision trees etc. Strong background in Python including modelling knowledge, ideally Pyspark AWS Cloud (Data Processing & Cleaning)
- Sales Director (Telecommunications)
- Up to £150,000 Package
Our client is looking for a proven, enthusiastic, roll-your-sleeves-up, customer connected Sales Director who is committed to coaching the team, aggressively growing the business and personally engaging and owning New Logo opportunities to accelerate the step change in our client’s business. You will define and implement a sales strategy to meet and exceed annual revenue and operating profit targets and achieve this with a passion for excellence, and commitment to coaching your team of 5 heads. Also, you will get to execute a world-class acquire strategy and personally engage and influence key buyer stakeholders primarily across EMEA to secure Net New logo wins in the enterprise vertical. Requirements Knowledge in the following areas Wide Area Network (WAN) Technologies (IPLC, ATM, IP); and Managed Cloud / Hosting Services At least 2 years’ experience in managing a sales team with Global accounts ideally with a major carrier. Leadership qualities to lead and manage the sales team to achieve the sales target. Ability to work with internal stakeholders and resources in various departments and in various positions in order to deliver revenue objectives. Ensure global accounts are retained and have robust defence, service, engagement, and account development plans to deliver in year and sustainable growth If you have any questions about this role, give us a call on 0208 663 4030 or contact/send your CV to email@example.com Location: London Salary: Up to £150.000 package Ref: BD7637
- Cloud Overlay Sales, Azure/AWS
- Up to £55,000 Base + OTE
Cloud Overlay Sales needed in London. This new overlay role will give a successful salesperson the opportunity to be tagged to all Cloud sales in the UK business, with the ability to sell into any and all accounts. MUST have experience selling Cloud (Azure or AWS) and MUST be commutable to London. This is a new position and has been created to drive and give focus to cloud-based sales. Blend between working within existing accounts with some new logo focus. All details kept in the strictest of confidence. (Cloud Sales Specialist, Azure Jobs, Cloud Overlay Jobs, Overlay Sales Jobs, Cloud Sales Jobs. Cloud Computing Jobs) Candidates must be UK based, out client are unfortunately unable to sponsor. Ref: CH7576