“500+ Days & Counting…” Vista Partners Weekly Market Update 11-18-2017

Vista Partners has published its Weekly Market Update for the week of November 11, 2017, titled “500+ Days & Counting…” Vista Partners Weekly Market Update 11-18-2017 and is accessible on our Newsletters Page. Each issue is written by Managing Director, John Heerdink and speaks to the activities of the market, influencers and specific featured stories from Vista’s Coverage Universe that spans the Dow 30 and Select Emerging Growth Companies.

Each issue is written by Managing Director, John Heerdink and speaks to the activities of the market, influencers and specific featured stories from Vista’s Coverage Universe that spans the Dow 30 and Select Emerging Growth Companies.

Each weekly update issue is sent out via email directly to the thousands of investors around the world that have freely elected to be updated each week.  Please “Join us” to Stay Informed and Stay Competitive. It’s Free & Easy to sign up.

Have a great weekend!




Cloud Services Provider Fusion (FSNN) Reports Q3 Results & Highlights

Matthew Rosen, New York, NY based Cloud Services Provider Fusion’s (NasdaqCM: FSNN) CEO stated with the release of their Q3 results, “Fusion continued to deliver solid financial performance during the third quarter of 2017, with nearly 40% growth in Business Services revenue and nearly 150% growth in Adjusted EBITDA, thanks to the contribution from the Apptix acquisition as well as solid sales bookings and installations, customer novations, and continued low churn. These results clearly demonstrate the power of our compelling strategy as the single source for the cloud. Since we announced our definitive agreement to acquire the Cloud and Business Services business of Birch in late August, both companies have been planning for the integration of our people, products, networks, and systems to ensure that the combined company – which will be one of the largest cloud services providers in North America – is positioned to begin realizing the benefits of the combination immediately after closing. We have also made substantial progress on the steps required to complete the transaction, including antitrust filings and filings with the FCC and a number of state regulatory agencies, and we expect to file the preliminary proxy this week. Given the upcoming holiday season, we believe that the process of obtaining regulatory approvals will take the close of the acquisition into the first quarter of 2018.”

Michael Bauer, Fusion’s CFO, stated, “We are very excited to complete the Birch transaction. The combined company is projected to have approximately $575 million in pro forma annual revenue and over $150 million in pro forma annual Adjusted EBITDA, including over $20 million in expected cost synergies.”

FSNN Reported the following Q3 Results & Highlights:

  • Fusion’s consolidated revenue grew 21% in Q3 2017 to $36.4 million, compared to $30.2 million in Q3 2016, due to an increase in the Company’s Business Services segment revenue. Business Services segment revenue grew 38% to $29.3 million, compared to $21.3 million in Q3 2016, primarily due to the acquisition of Apptix which closed in November 2016. Carrier Services segment revenue was $7.1 million, down 20% compared to $8.9 million in Q3 2016.
  • Consolidated gross margin was 45.7%, compared to 42.2% in Q3 2016. The increase was due to a higher mix of Business Services revenue, which generates a substantially higher margin than Carrier Services revenue, in 2017 as compared to 2016. Business Services gross margin was 55.5% in Q3 2017, compared to 58.0% in Q3 2016, primarily due to the addition of lower margin revenue from certain new customers the Company began servicing during the first half of 2017. Carrier Services gross margin was 5.0% compared to 4.3% in Q3 2016.
  • Net loss attributable to common shareholders in Q3 2017 was $(3.9) million, or ($0.18) per share on a basic and diluted basis, compared to net loss in Q3 2016 of $(3.4) million, or ($0.23) per share on a basic and diluted basis.
  • Adjusted EBITDA grew 147% to $4.2 million, compared to $1.7 million in Q3 2016, due primarily to revenue growth and a continued focus on cost controls.
  • Capital expenditures in Q3 2017 totaled $1.6 million, or 4.4% of revenue. Capital expenditures in the first nine months of 2017 totaled $3.9 million, or 3.6% of revenue.
  • Unlevered free cash flow was $2.6 million in Q3 2017, compared to $0.2 million in Q3 2016.
  • Cash at September 30, 2017, totaled $2.3 million, compared to $7.2 million at December 31, 2016. During 2017, the Company made $2.4 million in senior debt principal payments, and reduced its revolving credit facility balance by $1.5 million.
  • The Company’s $5.0 million revolving credit facility had an outstanding balance of $1.5 million at September 30, 2017, compared to $3.0 million outstanding at December 31, 2016.
  • Business Services segment revenue grew 38% year-over-year to $29.3 million, over 90% of which was recurring, and grew 10% year-over-year excluding the contribution from last year’s Apptix acquisition
  • Consolidated revenue grew 21% year-over-year to $36.4 million
  • Consolidated gross margin increased approximately 350 basis points to 45.7%, compared to 42.2% in Q3 2016
  • Net loss attributable to common shareholders totaled $(3.9) million, or $(0.18) per share on a basic and diluted basis in Q3 2017, compared to $(3.4) million, or $(0.23) per share on a basic and diluted basis in Q3 2016
    Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) grew 147% year-over-year to $4.2 million, and grew 13% sequentially (see definition and further discussion about the presentation of Adjusted EBITDA, a non-GAAP measurement, below)
    Unlevered Free Cash Flow, defined as Adjusted EBITDA less capital expenditures, was $2.6 million, compared to $0.2 million in Q3 2016
  • New monthly recurring revenue (“MRR”) bookings were approximately $296,000, up 8% year-over-year and up 13% sequentially, while the total contract value in backlog was $13.1 million at September 30, 2017
    Ended the quarter with approximately 13,300 Business Services customers with an average monthly revenue per customer (“ARPU”) of $731, compared to $568 at September 30, 2016
  • Monthly churn was 0.9% at the end of the quarter, compared to 1.1% at the end of Q3 2016
  • Announced the signing of a definitive agreement to acquire the Cloud and Business Services business of Birch Communications Holdings, Inc., and made significant progress toward obtaining the approvals and securing the capital required to complete the deal
  • Completed the formation of Fusion Global Services, a joint venture which combined Fusion’s Carrier Services division with the Carrier Services business of XComIP, LLC

To learn more about Fusion (NasdaqCM: FSNN) and stay abreast of its future developments please visit its Coverage Page at Vista Partners.

Fusion Reports Third Quarter 2017 Financial Results

NEW YORK, Nov. 13, 2017– Fusion, a leading cloud services provider, today announced financial results for the third quarter ended September 30, 2017….

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Cloud Solutions Provider Fusion (FSNN) Q3 2017 Financial Results Conference Call for Monday, Nov. 13

Fusion (FSNN), is a leading provider of integrated cloud solutions to small, medium and large businesses.  Fusion’s advanced, proprietary cloud services platform enables the integration of leading-edge solutions in the cloud, including cloud communications, contact center, cloud connectivity, and cloud computing. Fusion’s innovative cloud solutions lower their customers’ cost of ownership and deliver new levels of security, flexibility, scalability, and speed of deployment.

Fusion CEO Matthew Rosen and CFO Michael Bauer will host a conference call, followed by a question and answer period on Monday, November 13, 2017 at 4:30 p.m. ET to discuss its results for the third quarter ended September 30, 2017.

To access the call in US dial 1-888-857-6932 or if calling International the dial-in number is  1-913-312-1473. The Conference ID is 2969072.

Fusion Sets Third Quarter 2017 Financial Results Conference Call for Monday, November 13, 2017 at 4:30 p.m. ET

Fusion , a leading provider of cloud services, will hold a conference call on Monday, November 13, 2017 at 4:30 p.m. Eastern time to discuss its results for the third quarter ended September 30, 2017. …..

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Fusion Selected to Provide Cloud Communications Solution for FEMA Hurricane Relief Efforts

New York City-based Fusion (FSNN) is a leading provider of integrated cloud solutions to small, medium and large businesses. Fusion’s advanced, proprietary cloud service platform enables the integration of leading-edge solutions in the cloud, including cloud communications, contact center, cloud connectivity, and cloud computing. Fusion’s innovative, yet proven cloud solutions lower their customers’ cost of ownership, and deliver new levels of security, flexibility, scalability, and speed of deployment.

Fusion recently was selected to provide a complete turnkey contact center solution to support the emergency hurricane relief efforts of an insurance claims adjustment company based in the southeastern U.S. The company specializes in a full range of claims adjustment and catastrophic emergency services, and cited Fusion’s advanced, single source cloud solutions and quick response to its requirement for a 48-hour turnaround for the three year, approximately $100,000 award.

To learn more about Fusion (NasdaqCM: FSNN) and tracks its progress, please visit the Vista Partners Company Dedicated Coverage Page.

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Keeps On Keepin’ On

The kids are back in school, and Congress and the Federal Reserve are back in session. The big news in September had to do with the Federal Reserve’s unwinding of its post-financial crisis monetary policy. At a two-day meeting this month, Fed members unanimously agreed to reduce their $4.5 trillion portfolio of bonds and other assets. Starting in October, they will curtail the practice of fully reinvesting the principal payments of maturing bonds into new bonds. As a first step, the Fed will allow $10 billion to roll off without reinvesting. Each month, they will add $10 billion to that total, maxing out at $50 billion a month.

How will this action play out? That’s uncertain. It’s like those ancient maps where people mapped out the edges of a territory while serpents and dragons exist on the fringes. There is no equivalent event in history. No one knows for sure what will happen. Perhaps one comparison is to the Savings and Loans crisis of the 1980s and 1990s. Between 1980 and 1984, the FDIC closed more than 1,600 banks that it insured, while others received FDIC financial assistance. In resolving the crisis, the federal government ended up appropriating $105 billion. But that amounted to only a fraction of the size of what the Fed is doing now.

The Economy Keeps on Keepin’ On

While Houston and Louisiana got battered by Hurricane Harry, Florida by Irma, and the Caribbean by Irma, Jose, and Maria, the anticipated market volatility in September didn’t occur. The economy appears to be growing at a moderate rate with price inflation and unemployment low remaining low. Some people are scratching their heads. “I can’t easily say I can easily point to a sufficient set of factors that explain this year why inflation has been as low,” Fed chair Janet Yellen said. In the months to come, weather-related disruptions may distort economic data, making it difficult to clarify the logic behind the numbers.

Even as investors anticipated the Fed’s decision, the markets kept plowing ahead. The three major stock indices hit record highs—the Dow Jones Industrial Average, 22,370.80; the S&P, 2,506.65; and the Nasdaq Composite, 6,641.32. And there remains room for optimism. Over at Blackstone, investing guru Byron Wien predicts that we won’t see bear market or a recession until at least 2019. He thinks strong earnings growth will continue to drive the market higher. Let’s hope he’s right!

On a Lighter Note

For avid runners, it’s time to gear up for San Francisco’s October 1, 2017 12K Bridge to Bridge Run and Expo. It’s your pick as to whether to run 5K or 12K on a scenic waterfront route from Justin Herman Plaza to a post-run party with food and music at the Marina Green.

Fleet Week kicks off on October 2 and includes Navy ship tours at the Marina Green, as well as band concerts, a Friday parade of ships under the Golden Gate Bridge, weekend air shows with the Blue Angels, and fireworks on Saturday.

 

And for country bluegrass lovers, mark October 6 to 8 on your calendars. Hardly Strictly Bluegrass presents 100 country and bluegrass acts on multiple stages with food sold by 50 vendors in Golden Gate Park. It’s free, thanks to the festival’s founder, Warren Hellman, an American private equity investor and co-founder of Hellman & Friedman, a multibillion-dollar private equity firm.

Click this link to view the balance of the Vista Partners September Macroeconomic & Investment Newsletter,  which centers its focus on the Dow 30 and Select Emerging Growth companies.




Fusion Awarded a 2017 INTERNET TELEPHONY SD-WAN Excellence Award

Fusion (NasdaqCM: FSNN)‘s SD-WAN is a transformational network solution that uses software and cloud-based technologies to optimize customer networks, allowing multi-branch businesses to benefit from high bandwidth, low-cost Internet-based network connectivity. Fusion’s cloud-based SD-WAN solution is transport-independent, working across any combination of circuits as it dynamically optimizes the network.

Fusion announced today that TMC, a global, integrated media company, has awarded Fusion SD-WAN a 2017 INTERNET TELEPHONY SD-WAN Excellence Award. Rich Tehrani, CEO, TMC stated, “Congratulations to Fusion for receiving a 2017 INTERNET TELEPHONY SD-WAN Excellence Award. Fusion’s SD-WAN solution has demonstrated true innovation and is leading the way for Software Defined Wide Area Network. I look forward to continued excellence from Fusion in 2017 and beyond.” The INTERNET TELEPHONY SD-WAN Excellence Awards have been bestowed upon companies that demonstrate the innovation, vision, and execution to deliver software-based networking tools to support different and unique communities of interest. Winners of the SDN Excellence Award will be featured in the next issue of INTERNET TELEPHONY magazine.

Fusion (FSNN), a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry’s single source for the cloud. Fusion’s advanced, proprietary cloud services platform enables the integration of leading-edge solutions in the cloud, including cloud communications, contact center, cloud connectivity, and cloud computing. Fusion’s innovative, yet proven cloud solutions lower our customers’ cost of ownership, and deliver new levels of security, flexibility, scalability, and speed of deployment.

To learn more about Fusion (NasdaqCM: FSNN) and to track their progress please visit the Vista Partners’ Company Dedicated Page.

Fusion Awarded a 2017 INTERNET TELEPHONY SD-WAN Excellence Award

Fusion , a leading provider of cloud services, announced today that TMC, a global, integrated media company, has awarded Fusion SD-WAN a 2017 INTERNET TELEPHONY SD-WAN Excellence Award. Fusion SD-WAN is …..

finance.yahoo.com

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“Acquisition Is Major Milestone in Fusion’s Strategy To Become Leading Single-source Cloud Services Provider”

Fusion (NasdaqCM: FSNN), a leading cloud services provider, announced recently that it has entered into a definitive agreement to acquire the Cloud and Business Services customers, operations and infrastructure of privately-held Birch Communications, which represents the majority of Birch’s current revenues. The transaction is expected to close by the end of 2017, subject to customary approvals and closing conditions. Birch shareholders will exchange their equity position in Birch’s Cloud and Business Services business, valued at approximately $280 million, for common equity of the combined company. The All-stock transaction in which Birch shareholders will receive approximately 73 million common shares of Fusion valued at $3.85 per share, was reported to be a premium of more than 200% versus the prior trading day’s closing price, representing approximately 5x the pro forma adjusted EBITDA of Birch’s Cloud and Business Services business including anticipated synergies.

The combination is expected to create one of the largest cloud services providers in North America, with more than 150,000 business customers and a 100% Internet Protocol-based network, including 30 data centers, 31,000 fiber route-miles of network, and metro fiber assets in 11 major markets. The combined customer base is expected to demonstrate strong fundamentals, with monthly recurring revenue comprising approximately 87% of total revenue. In addition, the combined company will have significant opportunities for growth by cross-selling and upselling to existing customers with a comprehensive suite of cloud and business services.

Matthew Rosen, Fusion’s Chief Executive Officer stated, “This acquisition is a major milestone in Fusion’s targeted and disruptive strategy of becoming the leading single-source cloud services provider to business and enterprise customers. Customers increasingly demand an end-to-end experience that is reliable as well as efficient and innovative. Fusion is well positioned to provide these services having been first-to-market to pursue this strategy, and can now do so with increased scale and resources. This combination will immediately move Fusion into the top tier of cloud services providers and establishes a robust platform from which to pursue aggressive value enhancing initiatives through both organic growth and strategic acquisitions. By leveraging the significantly larger scale of Fusion following the acquisition, the company will gain new efficiencies and greater cash flows, which we believe will drive shareholder value. We also expect that the new Fusion will gain broader awareness among investors and analysts, along with expanded access to the capital markets, which will further support our compelling growth strategy.”

To learn more about Fusion (NasdaqCM: FSNN) and to track its progress please visit the Vista Partners’ Company Dedicated Page.

Fusion Announces Definitive Agreement to Acquire Birch Communications’ Cloud and Business Services Business

Fusion to acquire Birch’s Cloud and Business Services business, including its customers, operations, and infrastructure Combined company is expected to have total pro forma annual revenue of approximately …..

finance.yahoo.com

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Fusion (FSNN) & Birch Combination is expected to Create One of the Largest Cloud Services Providers in North America

Fusion (FSNN), a leading cloud services provider, announced  this week that it has entered into a definitive agreement to acquire the Cloud and Business Services customers, operations and infrastructure of privately-held Birch Communications, which represents the majority of Birch’s current revenues. The transaction is expected to close by the end of 2017, subject to customary approvals and closing conditions.

The combination is expected to create one of the largest cloud services providers in North America, with more than 150,000 business customers and a 100% Internet Protocol-based network, including 30 data centers, 31,000 fiber route-miles of network, and metro fiber assets in 11 major markets. The combined customer base is expected to demonstrate strong fundamentals, with monthly recurring revenue comprising approximately 87% of total revenue. In addition, the combined company will have significant opportunities for growth by cross-selling and upselling to existing customers with a comprehensive suite of cloud and business services.

The acquisition will not include Birch’s legacy consumer and single-line business customers, which have lower profitability and Average Revenue Per Customer (ARPU) as well as higher churn rates.

Fusion Announces Definitive Agreement to Acquire Birch Communications’ Cloud and Business Services Business

Fusion Fusion to acquire Birch’s Cloud and Business Services business, including its customers, operations and infrastructureCombined company is expected to have total pro forma annual revenue of approximately …..

finance.yahoo.com

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Let’s Catch Up! Read Vista Partners Weekly Market Update for Week Ending August 18, 2017

Vista Partners new Weekly Market Update for Week Ending August 18, 2017 includes a quick overview & results of the markets for the week written by Managing Director John F. Heerdink, Jr. and news, trending videos from Vista Partners Coverage Universe that includes all components of the Dow 30 and a Select Group of Emerging Growth Companies and beyond. The Weekly Market Update is targeted to be published on the Vista Partners website and emailed out to all registered by every Saturday. Please take a few seconds to register to receive this free publication directly to your email weekly and to be to download the current newsletter in pdf form now at the “newsletters” section of the Vista partners website www.vistapglobal.com.

Vista Partners also hosts dedicated pages for the Coverage Universe that can assist in gaining greater understanding with the goal of becoming a better investor and is updated regularly.

We hope you enjoy and thank you for your continued attention.

Based in San Francisco, CA Vista Partners LLC (“Vista”) was founded in 2005 and is a Registered Investment Advisor in the State of California. Vista seeks to invest partner capital with a global perspective across all sectors, provide advice to issuers regarding fundamental development, corporate governance, and capital market directives, while providing a platform for all to discover timely and relevant insights and information to foster further evaluation & understanding with a goal of becoming a better investor.

Issuers may contact Vista Partners at inquiries@vistapglobal.com to request a conference call with Managing Director, John F. Heerdink, Jr., so that he may consider conducting the necessary review and due diligence that could lead to their company’s inclusion in the Vista Partners’ Coverage Universe.




It’s Time to Read Vista Partners Weekly Market Update for Week Ending August 4, 2017

Yes. It’s time to get caught up this week and Vista Partners aims to assist as we have published our Weekly Market Update for Week Ending August 4, 2017 includes a quick overview & results of the markets for the week written by Managing Director John F. Heerdink, Jr. and news, trending videos from Vista Partners Coverage Universe that includes all components of the Dow 30 and a Select Group of Emerging Growth Companies and beyond. The Weekly Market Update is targeted to be published on the Vista Partners website and emailed out to all registered members every Saturday. Please take a few seconds to register to receive this free publication directly to your email weekly and to be to download the current newsletter in pdf form now at the “newsletters” section of the Vista partners website www.vistapglobal.com. It’s FREE and EASY!

Vista Partners also hosts dedicated company pages for the Coverage Universe that can assist in gaining greater understanding with the goal of becoming a better investor and is updated regularly. The Coverage Universe includes all companies in the Dow 30 and a Select Group of Emerging Growth Companies that we think you will find interesting.

We hope you enjoy and thank you for your continued attention.

Based in San Francisco, CA Vista Partners LLC (“Vista”) was founded in 2005 and is a Registered Investment Advisor in the State of California. Vista seeks to invest partner capital with a global perspective across all sectors, provide advice to issuers regarding fundamental development, corporate governance, and capital market directives, while providing a platform for all to discover timely and relevant insights and information to foster further evaluation & understanding with a goal of becoming a better investor.

Issuers may contact Vista Partners at inquiries@vistapglobal.com  to request a conference call with Managing Director, John F. Heerdink, Jr., so that he may consider conducting the necessary review and due diligence that could lead to their company’s inclusion in the Vista Partners’ Coverage Universe. We look forward to hearing from you!