GTT wins US military fibre connectivity network contract

Created December 12, 2018
News and Business

GTT Communications has been awarded an international fibre connectivity contract by the US Defense Information Technology Contracting Organization (DITCO), the contracting arm of the US Defense Information Systems Agency (DISA).

GTT will provide multiple diverse 100G wavelength services between the US and Europe in support of the Transoceanic Optical Transport – Atlantic (ToT-A) programme, to support secure military communications between US forces and numerous foreign US bases.

“We continue to be a key industry partner for the US Department of Defense, delivering high-speed connectivity services in support of the global Department of Defense Information Network (DoDIN),” said Rick Calder, GTT president and CEO. “Our highly reliable, secure network provides a trusted platform for the US Government’s mission-critical requirements around the world.”

The company also recently reported its third quarter results for the three months ended 30 September. It said revenue was $448.6m, growing 121.4% over 3Q17, partly as a result of the Interoute acquisition. Sales grew 37.3% over 2Q18.

A net loss of $23.4m was also posted, compared to the net loss of $9.5m in 3Q17, and the net loss of $136.3m in 2Q18. The 3Q18 net loss was primarily the result of several non-recurring costs related to the Interoute acquisition, said GTT, including $26.2m in exit, transaction and integration costs.

The large 2Q18 net loss was also mainly due to several non-recurring costs related to the Interoute buy, including $13.7m in exit, transaction and integration costs, $13.8m on extinguishment of debt, and $88.6m of expenses related to a foreign currency hedge, which was settled at closing of the acquisition.

Adjusted earnings before interest, taxes, depreciation and amortisation (Adjusted EBITDA) of $108.4m for the latest quarter grew 92.9% over 3Q17, and were up 44.7% over 2Q18.

Capital expenditure during the third quarter was $28.9m (6.4% of revenue) compared to $9.1m in 3Q17 (4.5% of revenue).

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This article was written
by Antony Savvas

Antony Savvas is a global technology journalist covering the key trends in the communications industry, and was there at the beginning of mobile business and ICT convergence, the move to the cloud and now digital transformation