NEW YORK (TheStreet) -- Shares of Intercloud Systems Inc (ICLD) were rallying, up 4.92% to $3.18 on heavy trading volume late morning Wednesday, after the company was awarded a $1.5 million contract with a regional provider of family services.
Earlier today, InterCloud announced its network expansion contract. The company will provide next generation network solutions and services to the family services centers.
InterCloud V.P. of Sales Joe Scotti said in a statement, "Our teams performance and execution during the first phase of network expansion was key in the award of this expansion project. This brings our total revenue for this health services provider to over $4 million."
About 4.38 million shares have exchanged hands as of 11:25 a.m. ET, compared to its average daily volume of about 2.47 million shares.
Red Bank, NJ-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."