The FOCUS Carrier-Focused Telecom Technology Index (CFTTI) held steady over the past three months, neither gaining nor losing value.

The FOCUS Carrier-Focused Telecom Technology Index (CFTTI) did not escape from the overall market carnage and dropped 15.8% in our summer reporting period. This decline was steeper than the drop in both the S&P 500 (down 5.5%) and the NASDAQ (down 12.1%). This period’s declines were also enough to push the sector into negative territory for the full year. The CFTTI is now down 15.7% compared to this time last year, which once again compares unfavorably to the 1.7% drop in the S&P 500 and the 12.1% drop in the NASDAQ. Sector multiples continued to decline. The sector revenue multiple dropped from 2.6x a year ago to 2.1x currently, and the sector EBITDA multiple fell from 12.8x to 10.2x over the same time frame.

Public Markets

The FOCUS Communications Service Provider Index (CSPI) once again ended up in negative territory after it dropped 7.9% in the past three months. This marks the third straight period where the sector posted a negative return.

Public Markets

The FOCUS Carrier-Focused Telecom Technology Index (CFTTI) suffered a second straight reporting period in negative territory, although the decline this period was only slight at 0.3%. Even with this period’s decline, the sector still outperformed both the S&P 500 (down 4.2%) and the NASDAQ (down 11.5%) over this past three months. The sector still remains in positive territory for the full year with a gain of 12.6%. This gain lagged the 14.8% increase in the S&P 500 over the past year, but was higher than the 4.2% gain in the NASDAQ. Sub sector multiples ticked up slightly compared to a year ago. The sub sector revenue multiple went from 2.3x to 2.5x, while the sub sector EBITDA multiple expanded from 11.2x to 12.0x.

Public Markets

The FOCUS Enterprise-Focused Telecom Technology Index (EFTTI) turned in a very strong overall performance this period with a three-month gain of 18.2%.This handily out- performed the 13.6% gain in the S&P 500 but fell slightly short of the 19.8% gain in the NASDAQ over the same time frame. The story is similar for the full year period with a 41.5% gain in the EFTTI comparing favorably to the 15.2% gain in the S&P 500 but trailing the 42.8% gain in the NASDAQ. Sector multiples are up sharply compared to this same time last year. The sector revenue multiple jumped from 4.3x a year ago to 6.3x currently, while the sector EBITDA multiple expanded from 16.8x to 24.7x.

Public Markets

The FOCUS Communications Service Provider Index (CSPI) managed to pull off a hat trick by posting its third straight reporting period with a strong gain. The sector was up 7.8% over the past three months. While a very good performance, it still managed to lag the 11.7% gain in the S&P 500 and the 15.4% gain in the NASDAQ over the corresponding time frame. This period’s gain was enough to bring the CSPI into the black for the full year period with a gain of 4.9%. Once again, this underperformed both the S&P 500 (up 16.3%) and the NASDAQ (up 43.6%). Sector multiples are slightly higher than at this same time last year. The sector revenue multiple closed out the period at 3.1x (up from 3.0x a year ago) and the sector EBITDA multiple ended at 8.7x (up from 8.4x a year ago).

Public Markets

FOCUS’ Carrier-Focused Telecom Technology Index (CFTTI) recouped some of the previous quarter’s 1.3% loss with a gain of 0.5% in the past three months.The CFTTI continues to underperform relative to the broader market, with the S&P 500 up 3.5% and the NASDAQ up 3.6% over the corresponding time period.The sector remains in positive territory for the full year with a 12-month gain of 4.1%. Even so, this gain significantly underperformed both the 15.3% gain in the S&P 500 and the 40.8% gain in NASDAQ over the past year. Multiple performance for the CFTTI is mixed. The sector revenue multiple held steady at 2.2x from the year-ago period, while the sector EBITDA multiple declined from 11.5x to 11.1x.