Document Security Systems Reports Fourth Quarter and Year Ended 2017 Financial Results

Document Security Systems (NYSEA:DSS) has announced its financial results for Q4 and year ended December 31, 2017.

As quoted in the press release:

“While 2017 was our first full year of integrating our AuthentiGuard technology within a global customer’s supply chain, we are very pleased with its progress and execution, as well as with the additional AuthentiGuard opportunities currently in our development pipeline,” stated Jeff Ronaldi, CEO of DSS.

“Sales for the fourth quarter of 2017 increased 7% for our printed products division and was the largest sales quarter for that group in our history.    Those revenues were countered by a reduction in technology-based sales, affected by a slowdown in the reported usage of AuthentiGuard during the latter part of 2017.  However, we were able to generate a meaningful net profit during the quarter, which points to the strength of our combined business segments,” added Ronaldi.

“For the full year 2017, along with major strides in our AuthentiGuard product development and rollout, we also began our expansion into the Asia Pacific market with the opening of our Hong Kong office, and the formation of the DSS International team.  This new location will allow us to service our existing customers in the region, and to hopefully capitalize on the demand for anti-counterfeit technology in the Asia Pacific market. The expansion and investment into the Asia Pacific market is a strategic component to the planned growth of DSS – and was achieved while we increased our year-over-year profitability to over $1.4 million, as measured by our Adjusted EBITDA,” said Ronaldi.

Fourth Quarter 2017 Financial Highlights

• Revenue for the fourth quarter of 2017 increased slightly to $5.83 million from $5.79 million in the fourth quarter of 2016.
• Net income during the fourth quarter of 2017 increased 674% to approximately $147,000 ($0.01 per share), as compared to a net income of $19,000 ($0.00 per share) during the fourth quarter of 2016.
• Costs and expenses for the fourth quarter totaled $5.6 million, a decrease of 1% from $5.7 million during the same period of 2016.
• Adjusted EBITDA¹ for the fourth quarter of 2017 was approximately $590,000 as compared to $662,000 for the fourth quarter of 2016, which represents an 11% decrease. The decline in Adjusted EBITDA was mostly driven by increases in costs of goods sold.

Full Year 2017 Financial Highlights

• Revenue for the year 2017 decreased 3% to $18.7 million from $19.2 million in 2016.  Printed products revenue decreased 1% as compared to 2016, with the decrease in the sales of printing and packaging products of 3%, offset by an increase in sales of plastic card products of 3%.
• Adjusted EBITDA totaled $1.4 million in 2017 compared to an Adjusted EBITDA $1.1 million in 2016. The improvement in Adjusted EBIDTA for the year reflects the decrease in costs, especially sales, general, and administrative compensation, professional fees, and stock-based compensation costs.
• Costs and expenses for the year 2017 totaled $18.9 million, a decrease of 5% from $19.8 million in 2016.

Click here to read the full press release.