NEW YORK (TheStreet) -- Intercloud Systems (ICLD) shares are up 3.3% to $4.29 in early market trading on Wednesday after the IT service provider reported its first quarter earnings results before the opening bell today.

The Red Bank, NJ-based company reported a first quarter net loss attributable to shareholders of $10.7 million, or a net loss of 28 cents per share, 20 cents better than the 48 cents per share it lost a year ago but 6 cents short of analysts' expectations for this period.

The company's revenue rose 49% year over year to $21 million, but also failed to meet expectations of $26.3 million.

"We are extremely pleased to report that in Q1 ICLD increased revenue of 49% year/year. Importantly, organic growth rate across our businesses was 29% with the balance coming through acquisitions. This is a very important milestone and reflects our increasing success in penetrating large and high growth cloud networking markets," said CEO Mark Munro. "ICLD also increased gross profit margin to 35% up from 28% last year due to the strength of our cloud segment. Our business continues to gain momentum in 2015 and we remain focused on improving the financial performance of the Co as our business continues to grow this year."

TheStreet Ratings team rates INTERCLOUD SYSTEMS INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:

"We rate INTERCLOUD SYSTEMS INC (ICLD) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself and generally high debt management risk."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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