via NEWMEDIAWIRE --
SilverSun Technologies,
Inc. (NASDAQ: SSNT), a national provider of
transformational business technology solutions and services, today
announced its second quarter results for the three and six months
ended June 30, 2020.
Financial Highlights for Three Months Ended June 30, 2020
Compared to Three Months Ended June 30, 2019:
- Revenues increased to $9,672,945, increasing 6.1% from
$9,119.448.
- Software sales increased 35.2% to $1,926,697 for the three
months ended June 30, 2020.
- Services revenues totaled $7,746,248, increasing 0.7% from
$7,694,779.
- Earnings before interest, taxes, depreciation and amortization
(“EBITDA”) were $220,486, increasing $390,547 from ($170,061) in
2019.
- Net income was $33,514, or $0.01 earnings per basic and diluted
share, compared to net loss of ($2,890) or 0.00 earnings per basic
and diluted share.
Financial Highlights for the Six Months Ended June 30, 2020
Compared to the Six Months Ended June 30, 2019:
- Total revenues rose 7.2% to $19,752,468 from $18,426,732.
- Software sales were $3,695,867, up 22.0% from $3,030,915.
- Services revenues increased 4.3% to $16,056,601 from
$15,395,817.
- Earnings before interest, taxes, depreciation and amortization
(“EBITDA”) were $1,832, increasing $213,209 from ($211,377).
- Net loss totaled ($258,601), or ($0.06) per basic and diluted
share, compared to net income of $93,146, or $0.02 per basic and
diluted share.
- As of June 30, 2020, the Company had $6,859,030 in cash and
cash equivalents; $1,966,582 in accounts receivable; long term debt
of $732,955 (excluding the impact of operating lease liabilities),
and total stockholders’ equity of $8,642,857.
For more details on SilverSun’s second quarter results, please
refer to the Company’s 10-Q filed today with the U.S. Securities
Exchange Commission and accessible at www.sec.gov.
Commenting on the results, Mark Meller, Chairman
and CEO of SilverSun, stated, “The ability of the Company to
deliver profitable results in the midst of the Covid pandemic is a
testament to the hard work and dedication of our employees, who
have continued to operate as valued business partners to our
thousands of customers, despite the hardships and uncertainty
brought about by the pandemic.”
“This was a solid quarter for the Company, as we
now return to positive EBITDA following the sale last August of our
MAPADOC EDI division (which was sold for $11.5 million).
Replacing the margin contribution from MAPADOC was a
high priority for the Company. We focused on increasing our
monthly recurring revenue (“MRR”), and on increasing recurring
revenue as a percentage of total revenue. Towards that end,
we merged our managed service provider and application hosting
businesses, rebranding them as “Managed Cloud Services”
(“MCS”). MCS provides Infrastructure as a Service (IaaS),
cloud hosting for business applications, cybersecurity, business
continuity and disaster recovery solutions.”
“MCS continues to grow rapidly, helped in part by
the new “Work from Home” paradigm imposed by Covid. In
addition to organic growth, we now also have channel partners and
resellers who are utilizing our platform and selling the service on
a white label basis. This division alone now has MRR in
excess of $500,000 and climbing. Our enterprise cybersecurity
initiative, which is being offered in partnership with CyberHat, an
Israeli-based Security Operations Center (SOC), has closed several
transactions, with several large transactions expecting to close in
the next few months. Each of these business lines is built on
a recurring revenue model.”
Meller continued, “Software sales, which consist
of ERP solutions and third party add-ons which extend the
functionality of the ERP solutions, grew by 32.5% this quarter, and
is now up 22.0% for the first 6 months of the year. Our
marketing team is generating new leads at a record pace, and our
sales organization is closing those leads with ever greater
efficiency. Our team has become adept at remote selling, a
must in the current environment.”
“As a result of these efforts, EBITDA (earnings
before interest, taxes, depreciation, and amortization) has
increased $390,547 in the second quarter versus the same period
last year, and has increased $213,209 for the first 6 months of the
year versus the first six months of 2019. We continue to
focus on improving our operating efficiency and reducing expenses,
and as a result, the Company’s selling, general and administrative
expenses (SG&A) were 38.4% of revenue this quarter, versus
40.0% last year. Similarly, SG&A expense was 39.4% of
revenue for the first half of the year, versus 40.4% for the same
period last year. The trend is in the right direction.
We are intent on increasing our operating margins in the
coming quarters as we better manage our costs.”
In conclusion, Meller stated, “Despite Covid, we
have been able to deliver a successful quarter. I am grateful to
our team for their tremendous efforts in accomplishing this feat in
the current environment.”
About SilverSun Technologies,
Inc.
We are a business application, technology and
consulting company providing strategies and solutions to meet our
clients’ information, technology and business management needs. Our
services and technologies enable customers to manage, protect and
monetize their enterprise assets whether on-premise or in the
“Cloud”. As a value-added reseller of business application
software, we offer solutions for accounting and business
management, financial reporting, Enterprise Resource Planning
(“ERP”), Warehouse Management Systems (“WMS”), Customer
Relationship Management (“CRM”), and Business Intelligence (“BI”).
Additionally, we have our own development staff building software
solutions for Electronic Data Interchange (“EDI”), time and
billing, and various ERP enhancements. Our value-added services
focus on consulting and professional services, specialized
programming, training, and technical support. We have a dedicated
network services practice that provides managed services,
cybersecurity, application hosting, disaster recovery, business
continuity, cloud and other services. Our customers are nationwide,
with concentrations in the New York/New Jersey metropolitan area,
Chicago, Arizona, Southern California, North Carolina, Washington
and Oregon.
Forward-Looking Statements
This news release includes forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934, as
amended, regarding, among other things our plans, strategies and
prospects -- both business and financial. Although we believe that
our plans, intentions and expectations reflected in or suggested by
these forward-looking statements are reasonable, we cannot assure
you that we will achieve or realize these plans, intentions or
expectations. Forward-looking statements are inherently subject to
risks, uncertainties and assumptions. Many of the forward-looking
statements contained in this news release may be identified by the
use of forward-looking words such as "believe," "expect,"
"anticipate," "should," "planned," "will," "may," "intend,"
"estimated," and "potential," among others. Important factors that
could cause actual results to differ materially from the
forward-looking statements we make in this news release include
market conditions and those set forth in reports or documents that
we file from time to time with the United States Securities and
Exchange Commission. All forward-looking statements attributable to
SilverSun Technologies, Inc. or a person acting on its behalf are
expressly qualified in their entirety by this cautionary
language.
Contact:
Corporate
Mark Meller
SilverSun Technologies, Inc.
973-758-6108
meller@silversuntech.com
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