FTE Networks Inc (OTCMKTS:FTNW) Is Today's OTC Focus

FTE Networks Inc (OTCMKTS:FTNW) popped up on our radar screen as a new volume leader on the OTC markets this month. When we see a penny stock rocket up the charts with volume from a zero basis, that's a telltale sign of the makings of a new promotion. We at Insider Financial view this as a positive as we like to get in on the ground floor of new promotions, especially ones with a story to tell and we think FTE Networks has a story to tell.FTE Networks describes itself as a leading international networking infrastructure service solutions company. The company designs, builds, and supports telecommunications and technology systems and infrastructure services for Fortune 500 companies operating four (4) industry segments: Data Center Infrastructure, Fiber Optics, Wireless Integration, and Surveillance & Security. FTE Networks is headquartered in Naples, Florida, with offices throughout the United States and Europe.What we like about FTE is that the company is beyond the startup phase and is actually generating revenues. In other words, it's a real company with a real business. For the 2015 fiscal year ended September 30, FTE reported $4 million in revenues, up from $3.3 million the year before. Gross profit for the year came in at $551k. On the balance sheet, the company had $208k in cash, $1.2m in net receivables, and $1.9m in other assets for total current assets of $3.4m. FTE also lists $1.4m in property, plant and equipment, which gives the company a total asset base of $4.8m. The weakness lies on the liability side where the company has total liabilities of $16m.Last month, FTE signed a multi-million dollar, multi-year strategic alliance agreement with Plano, Texas-based Edge Communications. FTE will support Edge on a multi-state network expansion project valued up to $100 million dollars over the next 36 months. Under the terms of the agreement, FTE Networks will be performing engineering, management and outside plant infrastructure services. FTE will begin work Monday, February 22, 2016 in the following four markets: Des Moines, IA; Quad Cities, IA; Springfield, MO; and Valdosta, GA. In addition, FTE Networks will provide services to manage the end-to-end infrastructure installation.Earlier this month, FTE announced that it had been awarded a multi-year, multi-million-dollar contract with a leading telecommunications carrier. The contract is expected to commence on April 1, 2016 and is valued at over $45 million dollars over the next three years with the potential for additional service offerings in existing and new markets. Under the terms of this contract, FTE will be providing its Fiber Optic Infrastructure Services by expanding the carriers' current fiber to the home (FTTH) offering. FTE will open new offices in Texas and Oklahoma and expand its current office locations in Kansas and Missouri. The relationship between FTE and the carrier was established in the beginnings of FTE. CEO Michael Palleschi said of the two deals:

"We have already begun work on the Edge project, which is going very well," added Palleschi. "Both of these projects add substantial new long term revenue streams and enable us to continue on our path to profitability in 2016."

FTE has also added three new board members. For us, the most interesting one is Luisa Ingargiola, the CFO of MagneGas Corp (NASDAQ:MNGA). For those not familiar with MagneGas, we wrote about the company back in January. The company started out as a shell on the bulletin boards and has morphed into a NASDAQ company that regularly trades over $1m a day. Luisa is the sister of CEO Ermanno Santilli and her family has been quite successful. Her involvement with FTE Networks is a big win for FTNW and its shareholders.FTE Networks in one name that investors need to keep their eye on. We certainly are as we think it has the makings of becoming a microcap runner. We will be updating Insider Financial as soon as we know more. For continuing coverage on FTNW and our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!Disclosure: We have no position in FTNW and have not been compensated for this article.