SilverSun Technologies Reports Profitable Second Quarter

SilverSun Technologies (NASDAQ:SSNT) announced its second quarter results with the company reporting that its earnings were US$212,508, decrease of 39.2 percent as compared to the prior year quarter.

The company’s revenue increased to US$9,683,224 which represented 13.8 percent increase from US$8,508,640 in the same period in 2017.

As quoted in the press release:

Financial Highlights for Three Months Ended June 30, 2018:

• Software sales decreased 4.7% to $1,367,660 from $1,434,635.
• Services revenues totaled $8,315,564, increasing 17.6% from $7,074,005.
• Earnings before interest, taxes, depreciation and amortization (“EBITDA”), plus share based compensation, were $212,508, decreasing 39.2% from $349,586.
• Net income was $17,218, or $0.00 earnings per basic and diluted share, compared to net income of $120,493 or 0.03 earnings per basic and diluted share.

Financial Highlights for the Six Months Ended June 30, 2018 Compared to the Six Months Ended June 30, 2017: 

• Total revenues rose 15.0% to $18,993,299 from $16,511,212.
• Software sales were $3,002,721, up 28.2% from $2,341,540.
• Services revenues increased 12.9% to $15,990,578 from $14,169,672.
• Earnings before interest, taxes, depreciation and amortization (“EBITDA”), plus share based compensation, were $497,204, decreasing 43.8% from $885,004.
• Net income totaled $75,605, or $0.02 per basic and diluted share, decreasing from net income of $274,347, or $0.06 per basic and diluted share.
• During the first six months of 2018, the outstanding balance of the Company’s revolving bank line of credit was $0, bringing the total amount available under the line at June 30, 2018 to $1,000,000.
• As of June 30, 2018, the Company had $1,154,132 in cash and cash equivalents; $2,858,601 in accounts receivable; long-term debt of $1,454,978 and total stockholders’ equity of $4,362,604.

Mark Meller, Chairman and CEO of SilverSun, stated, “This was a very busy quarter for SilverSun. We completed the acquisition of ISM and its affiliate on June 1, 2018, adding 12 employees, exceptional talent, and the infrastructure to support a new business initiative, cloud hosting for business applications.  The hosting business will be conducted by a newly-formed subsidiary, Secure Cloud Hosting, Inc.  ISM provided the Company with over 800 new customers, and generated revenue of over $4.5 million in 2017.  The integration of the ISM business is now complete, and we expect to rapidly expand the revenue spend of these customers over the course of the next 12 months.

“However, the requirement to invest in our various initiatives outlined above has negatively impacted, temporarily, our level of profitability.  Earnings before interest, taxes, depreciation and amortization (“EBITDA”), plus share based compensation, were $497,204 for the first half of 2018, decreasing 43.8% from 2017.  The reduction is largely a result of increased headcount, as we have hired for anticipated growth in our sales and marketing groups.  In addition, given the much higher number of transactions we are now processing, we have re-engineered our sales operations group, which has also involved increasing headcount.  We now believe we have the infrastructure in place and are properly organized to support a $50 million organization.  As we scale, we expect a return to the higher levels of profitability that we have delivered in the past.”

Meller concluded, “All in all, we are extremely optimistic about our prospects for the balance of 2018, and look forward to continuing to deliver positive results for the benefit of all our stakeholders in the coming months and years ahead.”

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