Lattice Incorporated (OTCBB: LTTC), a cloud-based provider of telecommunications services for the government and commercial markets, recently sold certain non-strategic assets related to its government services division for $1.2 million plus additional royalty provisions.
The divestiture of these assets erases $282,000 worth of debt, adds $0.7 million in cash, and removes contract renewal risk associated with the current budgeting climate in Washington. The sale also frees up LTTC to focus on its fast-growing communications business, which is driving solid sales growth and margin improvement for the Company. Revenue generated by the communications division increased 64.7% year-over-year to $7.5 million for fiscal 2012.
LTTC expects 70% YoY sales growth in 2013 due to increasing domestic and international demand for its secured communications services. The Company's new cloud-based service offering is expected to further drive sales growth. The system adds additional services to LTTC's current offerings with minimal upfront cost to the customer.
Shares of LTTC currently trade around $0.10, but the stock is poised to move much higher as the Company expands its service offerings and moves into new markets. RedChip has issued a $0.71 price target on the stock. Learn more about LTTC by watching our recent "Money Report" interview with CEO Paul Burgess.
Interested parties can also dial into the Company's first-quarter earnings conference call on Tuesday, May 14, 2013 at 2:00 p.m. ET (11:00 a.m. PT). Click here to view the dial-in information.
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