After posting a solid gain in our winter report, the FOCUS Carrier-Focused Telecom Technology Index (CFTTI) dropped 2.2% in our spring reporting period. This was slightly better than the 2.7% drop in the S&P 500, but worse than the 0.1% decline in the NASDAQ. The EFTTI is also down nearly 14% compared to this time last year. Over this time period, the EFTTI lagged the 9.2% decline in the S&P 500 but outperformed the 16.7% drop in the NASDAQ. Sector multiples are also lower than they were at this time last year. The sub sector revenue multiple dropped sharply from 2.5x to 2.1x, while the sector EBITDA multiple posted a more modest decline as it fell from 11.9x to 10.6x.
The FOCUS Enterprise-Focused Telecom Technology Index (EFTTI) experienced another disappointing reporting period with a three-month drop of 2.4%. This loss was in stark contrast to the broader indices as the S&P 500 and NASDAQ were up 5.3% and 5.4%, respectively. The EFTTI is also trading 19.0% below the levels of a year ago. This significantly underperformed the 9.7% loss in the S&P 500 but was roughly in line with the 18.7% decline in the NASDAQ. Sector multiples closed out the period at 4.6x revenue and 19.5x EBITDA. Both of these are lower than the corresponding multiples of a year ago of 6.1x revenue and 23.4x EBITDA.
Queen Consulting Group (“Queen”), a nationally recognized IT staffing and consulting company specializing in healthcare and pharmaceutical IT, Epic electronic medical record (EMR) system implementations, financial services, and niche technical recruiting, has been acquired by Talent Group, a leading national IT staffing company. FOCUS represented Queen in this transaction. This case study highlights the unique …
After losing more than 25% in our fall report, the FOCUS Communications Service Provider Index (CSPI) turned things around and managed to deliver a three-month gain of 10.0%. This was better than the three-month gain for the S&P 500 of 7.1% and far superior to the 1.0% loss in the NASDAQ. Even so, the CSPI’s year-over-year performance remains dismal with a drop of 34.3%. This underperformed both the 19.4% loss in the S&P 500 as well as the 33.1% drop in the NASDAQ over the 12-month period. Sub sector multiples also dropped considerably compared to this time last year, falling from 2.7x revenue
and 7.6x EBITDA a year ago to 2.2x revenue and 6.2x EBITDA currently.
The global pet industry has grown dramatically in recent years, despite the downturn in the world economy, driven by increased adoption rates, humanization trends among owners, and e-commerce penetration. The industry has proven to be largely recession-resistant while underlying trends support continued growth in the future, regardless of overall economic conditions.
After two straight periods of decline, the FOCUS Telecom Business Services Index (TBSI) rebounded in our winter reporting period to deliver a strong three-month gain of
15.0%. This handily outperformed both the 7.1% gain in the S&P 500 and the 1.0% drop in the NASDAQ over the corresponding time period. Even with this period’s gains,
the TBSI remains in the red for the full 12-month period with a loss of 11.5%. On the bright side, this still outperforms the 19.4% drop in the S&P 500 and the 33.1% drop in the NASDAQ over the past year. Sector multiples are lower than they were a year ago, but only by the narrowest
of margins. The sector revenue multiple slipped from 1.0x to 0.9x, while the sector EBITDA multiple
inched down from 11.0x to 10.9x.
Tempest Telecom Solutions (“Tempest”), a multi-vendor provider of network telecommunications equipment and related repair services, has received a significant equity investment from Pfingsten, a Chicago-based private equity firm. FOCUS advised Tempest in this transaction. This case study highlights the unique process of this transaction.
Entech has completed a recapitalization partnership with Prospect Partners. The goal of this funding is to accelerate Entech’s growth and expansion efforts, priming them for a focused acquisition strategy. FOCUS served as catalyst for the deal with Prospect Partners and exclusive financial advisor to Entech. This case study highlights the unique process of this transaction.
The FOCUS Carrier-Focused Telecom Technology Index (CFTTI) gained 4.8% in the past three months. This com-fortably exceeded both the 3.2% gain in the S&P 500 and the 3.0% decline in the NASDAQ. Even with this period’s gain, the CFTTI is still down 11.9% year-over-year. This performance was slightly worse than the 10.7% decline in the S&P 500 over this same time period, but much better than the 26.2% loss in the NASDAQ. Sector multiples are lower than they were a year ago, but not by a wide margin. The CFTTI revenue multiple dipped from 2.5x to 2.3x, while the EBITDA multiple fell from 12.0x to 11.4x.