Not too long ago, the global cloud communications platform SaaS (software as a service) company Pareteum Corporation (OTCMKTS:TEUM) had seen its stock suffering from a selloff. However, things have actually turned around for the Pareteum stock on Wednesday as it recovered strongly and ended the day with gains of as much as 33%.
That being said, it is also necessary to note that there was no fresh news about the company that might have turned the tide for Pareteum. Hence, it could be a good idea to have a look at the company’s first quarter financial results which were announced on August 26.
In the first fiscal quarter the company managed to generate total revenues to the tune of $15.5 million but that was lower than the $20.1 million that it had generated in the year ago period. The steep decline in revenues was primarily a result of the drop in mobile communications since most of the Pareteum customers were not doing a lot of business travel.
On the other hand, the gross profits for the quarter stood at $5.2 million and that reflected a drop as well from the $5.6 million in gross profits in the prior year period.
