NEW YORK (TheStreet) -- Shares of Intercloud Systems (ICLD)  are slumping, down 4.28% to $3.77 in midday trading on Thursday after the IT service provider released its first quarter financial results before the opening bell Wednesday.

The company posted a loss of 28 cents per share, compared to the loss of 22 cents per share analysts were expecting for the period.

Revenue rose 49% year over year to $20.9 million, but also failed to meet analysts' expectations of $26.3 million.

CEO Mark Munro said, "Importantly, organic growth rate across our businesses was 29% with the balance coming through acquisitions."

"Intercloud also increased gross profit margin to 35% up from 28% last year due to the strength of our cloud segment," Munro added.

Earlier this month, the company was awarded a $1.5 million contract with a regional provider of family services. The company will provide next generation network solutions and services to the family services centers.

Red Bank, N.J.-based InterCloud Systems, formerly Genesis Group, is a provider of information technology and next-generation network solutions to the telecommunications service provider and corporate enterprise markets through cloud platforms and professional services.

Separately, 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."

You can view the full analysis from the report here: ICLD Ratings Report