Document Security Systems Announces First Quarter 2018 Financial Results

Document Security Systems Inc (NYSEA:DSS), a leader in anti-counterfeit, authentication and diversion protection technologies whose products and solutions are used by governments, corporations and financial institutions announced its financial results for the first quarter ending March 31, 2018.

The company’s revenue for the first quarter of 2018 decreased eight percent to $4.4 million from $4.8 million in the first quarter of 2017. The company’s net loss during the first quarter of 2018 was approximately $406,000 or $0.02 per share.

As quoted in the press release:

The first quarter of 2018 was a slow quarter for our Printed Products group which negatively impacted first quarter results. While disappointing, this result was not completely unexpected since this group had its biggest quarter ever in sales in the fourth quarter of 2017.  When looking at the past 6 months, revenues for the printed products group were down 1.4% from the comparable six-month period ending March 31, 2017. We continue to be very positive about our Printed Products group’s performance, with expectations that revenues will strengthen during the remainder of 2018.  “Technology sales experienced significant revenue growth driven by a 172% increase in first quarter revenue from our AuthentiGuard product line,” stated Jeff Ronaldi, CEO of DSS. “Also impacting the quarter was the increase in costs associated with the expansion into the Asia Pacific market, in particular, the commencement of operations in Hong Kong, where we have begun selective sales and marketing efforts. We have also initiated a research project with the Hong Kong R&D Centre for Logistics and Supply Chain Management Enabling Technologies to assist with the adaptation of blockchain technology for product authentication. In addition, this group has become an integral resource for the continuing software development requirements for AuthentiGuard as our customers expand their usage of the product internationally. We are very excited about the Hong Kong office and the early successes we have already realized,” added Ronaldi.

First Quarter 2018 Financial Highlights 

• Printed Products revenue decrease of 11% offset by increase in Technology sales by 23%.
• Costs and expenses for the first quarter totaled $4.7 million, a decrease of 3% from $4.9 million during the same period of 2017.
• Adjusted EBITDA¹ for the first quarter of 2018 remained positive and was approximately $15,000 as compared to $391,000 for the first quarter of 2017, which represents a 96% decrease. The decline in Adjusted EBITDA was driven by decreases in revenue at the Company’s Printed Products divisions and costs for the expansion into Hong Kong.

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