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.

In public markets, the FOCUS Carrier-Focused Telecom Technology Index (CFTTI) ...