Public Markets

While sector performance has cooled off significantly since our last report, the FOCUS Enterprise-Focused Telecom Technology Index (EFTTI) still managed to deliver a positive return of 1.5% in this most recent three-month period. The sector underperformed the broader indices over this time frame as it lagged both the S&P 500 (up 4.8%) and the NASDAQ (up 5.6%).The situation looks better when measured over the full year as the EFTTI is up 37.8% in the past 12 months. While this still lags the 39.2% gain in the S&P 500 and the 39.6% gain in the NASDAQ, the gap is extremely narrow. Multiples are up strongly com- pared to this time last year.The sub sector revenue multiple closed out the period at 7.0x (up from 5.3x a year ago) while the EBITDA multiple ended up at 27.0x (up from 19.9x a year ago).