SilverSun Technologies Reports First Quarter 2018 Results

SilverSun Technologies Inc (NASDAQ:SSNT), a national provider of transformational business technology solutions and services announced its first quarter results for the three months ended March 31, 2018.

The company said that its revenues increased to $9,310,074 rising 16.3 percent from $8,002,572. Its software sales increased 80.3 percent to $1,635,061 from $906,905.

As quoted in the press release:

Services revenues totaled $7,675,013, increasing 8.2% from $7,095,667.

• Gross profit increased 16.3% to $3,940,738 as compared to $3,387,049.

• Gross margin was 42.3% of revenue, compared to 42.3% in 2017.

•  Earnings before interest, taxes, depreciation, amortization and share-based compensation (“EBITDA”) were $284,696,   decreasing 46.8%   from   $535,417.

•      Net income was $58,387, or $0.01 earnings per basic and diluted share, compared to net income of $153,583, or $0.03 earnings per basic and diluted share.

As of March 31, 2018, the Company had $1,807,171 in cash; $3,024,865 in accounts receivable; $262,977 in long term debt; and total stockholders’ equity of $4,339,247. The Company has a $1,000,000 line of credit with a commercial lender, and the outstanding balance on that line of credit is $0.

Commenting on the results, Mark Meller, Chairman and CEO of SilverSun, stated, “This was an excellent quarter for SilverSun.  Our record first quarter revenue reflects the success of our various growth initiatives across all our platforms.  We generated record quarterly sales of both our Sage Enterprise Management (formerly Sage X3) and Acumatica product offerings.  Our inside sales team, selling product into our installed customer base, generated record quarterly revenue.  Our proprietary Partner Success Program (“PSP”), which encourages smaller Sage Software channel partners to contractually align their customers with our sales organization, was successful in increasing the growth of our customer base by over 25% in the first quarter alone.

“In addition, our award-winning managed service provider generated revenue 21% higher than the first quarter of 2017. Finally, our Mapadoc EDI solution remains the solution of choice for users of Sage 100c, Sage Enterprise Management, and Acumatica.  We are very confident about the continued upward trajectory of all our business lines.”

Meller continued, “Sales, marketing and general and administrative expenses all increased in the first quarter, as we continued to invest in the resources and infrastructure necessary to support a larger organization.  This has had a temporary negative impact on profitability, but we have taken steps to more closely align our cost structure with our growth targets, and we expect to deliver on our target operating margins in the second quarter and beyond.  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.”

Click here for the full text release.