Over the years, management, especially Crowe, told us that LVLT is a consolidator. Using superior gross margin, LVLT can easily gain new contract and grow revenue. For every revenue put on LVLT's network, they will get better returns. This is a industry leading margin, and no other network can achieve.
That is a lie. The truth is it is very difficult to grow revenue. You might grow some but you also lost some. The contract is very sticky and too many factors that affect the bidding process. Mr. Crowe told shareholders that LVLT has comprehensive solutions for their customers. only on recent complains filed with FCC, shareholders realized that they cannot gain contract because AT&T, VZ using a service that LVLT cannot provide to force customers unable to buy from LVLT.
LVLT realized they cannot grow much revenue in USA & Europe and decide to open a new market in South America & South Africa where AT&T and VZ has less access. So that Mr. JC sold LVLT to GLBC, because they cannot grow revenue with in their reach.
As today, shareholders still believes that LVLT can grow their revenue using their superior gross margin. Management has never offer real reasons why they are not grow revenue. LVLT continues to use EBIDTA target instead of revenue growth. Why not offer revenue growth for next few quarters because that is very little growth there. They can cut cost and reduce network costs to achieve EBIDTA but they cannot achieve their revenue growth that shareholders are expecting. Instead we heard sign orders, contract activities, new logos.
Only when you dig into detail, you find out they stated that those contracts are very small and is only the first step into customers' door. As to how much those contract will add to 3Qtr revenue. Shareholders are excited new revenues but actually very little.
This tricks has been played by management years after years. Build up faulty hinted expectations, but never deliver. That is why LVLT never offer revenue growth, because there are none.
Equality friendly M&A is just another lie.
