RED BANK, N.J., Dec. 2, 2013 (GLOBE NEWSWIRE) -- InterCloud Systems, Inc. (Nasdaq:ICLD), a single-source provider of end-to-end IT and telecom solutions to the service provider and corporate enterprise markets through cloud platforms and professional services, announced today that using proceeds received as a result of investors exercising warrants issued in its recent public offering, and with the consent of its senior lender, InterCloud has been able to redeem and cancel $3 million worth of its Series F Preferred Stock.
The redemption also eliminates the potential conversion of the shares of Series F Preferred Stock into over 300,000 shares of common stock, based upon current price levels. Series F Preferred Stock was issued in lieu of cash consideration to the sellers of our TNS, Inc. subsidiary as part of the purchase price for that entity, which was acquired in September 2012. TNS, Inc. revenues for the twelve month period following its acquisition by InterCloud have increased by approximately 60%, from $3.1 million to $4.9 million, with a corresponding increase in net income of $0.8 million to $1.0 million, from $0.2 million for the twelve month period ended September 30, 2012.
TNS, Inc. revenues for the nine month period ended September 30, 2013 have increased by approximately 107%, from $1.9 million to $4.0 million, with a corresponding increase in net income from $0.41 million to $1.4 million, compared to the same period in 2012.Mark Munro, CEO of InterCloud, stated, "We have eliminated nearly $10 million in liabilities from our balance sheet since the end of the third quarter, while raising $5.7 million in the public capital markets, and have strengthened our capabilities for future growth in the process. We are well positioned for future growth in our operating divisions. Investors continue to show confidence in our business operations and our capacity to continue our rapid expansion."