NEW YORK (TheStreet) -- Shares of InterCloud Systems (ICLD) were gaining 13.7% to $3.83 on heavy trading volume Friday after the networks solutions company announced a new contract with a major auto parts distributor.
InterCloud said that its cloud team was hired by a "large east coast auto parts distributor" to design, migrate, and implement a cloud solution to house a web services infrastructure, centralized point of sale, and inventory data across all store locations.
The company said its solution will include "development, quality assurance, production and disaster recovery environments, and will employ industry leading storage and delivery technologies."
The value of the contract was not disclosed.
About 3.3 million shares of InterCloud Systems were traded by 9:56 a.m. following the announcement, more than double the company's average trading volume of about 1.6 million shares a day.
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."