Questions? +1 (202) 540-8337 Login
Trusted News Since 1995
A service for global professionals · Tuesday, June 19, 2018 · 452,309,173 Articles · 3+ Million Readers

Data Storage Corporation Announces Results for the Fiscal First Quarter Ended March 31, 2017 “Post-Acquisition of ABC Services”

/EIN News/ -- NEW YORK, May 30, 2017 (GLOBE NEWSWIRE) -- Data Storage Corporation (OTC:DTST) today announced financial results for its Fiscal 2017 first quarter ended March 31, 2017.

Chuck Piluso, Chief Executive Officer of Data Storage Corporation, stated, "We continue to make significant progress towards executing on our strategic business plan, and we are pleased with the developments throughout the first quarter and to date. Our accomplishments include successfully completing the acquisition and assimilation of ABC Services and integrating finance, administration, sales and operations. The team continues to implement marketing strategies to expand our sales efforts with current clients and targeting new customers in specific markets.”

Select Financial Results for the First Fiscal Quarter Ended March 31, 2017:

  • Net sales for the three months ended March 31, 2017 increased 136% to $2,323,915, compared to $984,620 for the three months ended March 31, 2016.
  • Net profit for the three months ended March 31, 2017 was $368,922, as compared to net loss of $144,813 for the three months ended March 31, 2016.

Mr. Piluso continued, “The acquisition of the assets of ABC Services, Inc. and ABC Services II, Inc. and the remaining 50% of Secure Infrastructure and Services LLC accelerated our strategy into managed services, expanded cyber security solutions and our hybrid cloud solutions with the ability to provide equipment and expanded technical support.  We have a seasoned management team that’s highly focused on execution.”

About Data Storage Corporation

Data Storage Corporation focuses on cyber security, cloud and compliance. Solutions include: Infrastructure as a Service, Disaster Recovery as a Service, Cyber Security and Email Compliance and Analytics. Our mission: Protecting our client’s data, ensuring business continuity, assisting in their compliance requirements while providing better control over their digital information.

The Company sells their services through direct sales and distributors. DSC owns intellectual property with our proprietary email compliance and data analytics software, Message Logic. We provide Recovery Cloud solutions and Infrastructure as a Service with our IBM Power Cloud. Our distributors, typically Managed Service Providers, have a lower barrier of entry in providing DSC’s solutions to their client base.

DSC is a 16-year veteran in cloud storage and cloud computing. 

www.Data.StorageCorp.com 

Forward-Looking Statements

This release may contain "forward-looking statements" that are within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by certain words or phrases such as "may", "will", "aim", "will likely result", "believe", "expect", "will continue", "anticipate", "estimate", "intend", "plan", "contemplate", "seek to", "future", "objective", "goal", "project", "should", "will pursue" and similar expressions or variations of such expressions. These forward-looking statements reflect the Company's current expectations about its future plans and performance. These forward-looking statements rely on a number of assumptions and estimates which could be inaccurate and which are subject to risks and uncertainties. Actual results could vary materially from those anticipated or expressed in any forward-looking statement made by the Company. Please refer to the Company's most recent Forms 10-Q and 10-K and subsequent filings with the SEC for a further discussion of these risks and uncertainties. The Company disclaims any obligation or intent to update the forward-looking statements in order to reflect events or circumstances after the date of this release.

FINANCIAL TABLES FOLLOW

Additional information may be found in the Company's Quarterly Report on Form 10-Q that has been filed with the U.S. Securities and Exchange Commission ("SEC"). The Form 10-Q may be accessed at www.sec.gov or at the Company's website in the Investor Relations section.


DATA STORAGE CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
 
    March 31,     December 31,  
    2017     2016   
    (UNAUDITED)          
ASSETS                
Current Assets:                
Cash and cash equivalents   $ 150,322     $ 255,817  
Accounts receivable (less allowance for doubtful accounts of $90,000 in 2017 and $90,000 in 2016)     954,827       807,515  
Prepaid expenses and other current assets     224,747       231,432  
Total Current Assets     1,329,896       1,294,764  
                 
Property and Equipment:                
Property and equipment     5,148,347       3,401,251  
Less—Accumulated depreciation     (3,309,746 )     (3,222,591 )
Net Property and Equipment     1,838,601       178,660  
                 
Other Assets:                
Goodwill     3,985,700       3,985,700  
Other assets     50,903       54,504  
Intangible assets, net     320,750       329,242  
Total Other Assets     4,357,353       4,369,446  
                 
Total Assets     7,525,850       5,842,870  
                 
LIABILITIES AND STOCKHOLDERS’ DEFICIT                
Current Liabilities:                
Accounts payable and accrued expenses     1,246,011       1,219,247  
Revolving credit facility     -       50,412  
Accounts payable from acquisition     -       374,762  
Dividend payable     647,346       619,138  
Deferred revenue     761,730       919,103  
Leases payable – related party     614,292       254,078  
Note payable – bank     350,000       350,000  
Total Current Liabilities     3,619,379       3,786,740  
                 
Deferred rental obligation     1,796       1,904  
Note Payable – related party     416.435       190,000  
Leases payable long-term – related party     1,414,024       133,825  
Total Long Term Liabilities     1,832,255       325,729  
                 
Total Liabilities     5,451,634       4,112,469  
                 
Stockholders’ Deficit: Preferred Stock, $.001 par value; 10,000,000 shares authorized; 1,401,786 shares issued and outstanding in each period     1,402       1,402  
Common stock, par value $0.001; 250,000,000 shares authorized; 128,039,418 shares Issued and outstanding in each period     128,039       128,039  
Additional paid in capital     17,197,485       17,194,383  
Accumulated deficit     (15,252,710 )     (15,593,423 )
Total Stockholders’ (Deficit) Equity     2,074,216       1,730,401  
Total Liabilities and Stockholders’ (Deficit)   $ 7,525,850     $ 5,842,870  
                 


DATA STORAGE CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
    Three months Ended
March 31,
 
    2017     2016  
                 
Sales   $ 2,323,915     $ 984,620  
                 
Cost of sales     1,324,058       616,316  
                 
Gross Profit     999,857       368,304  
                 
Selling, general and administrative     605,066       438,110  
                 
Income (Loss) from Operations     394,791       (69,806 )
                 
Other Income (Expense)                
Interest income     19        
Bad Debt Recovery     1,542       1,508  
Net income (loss) in equity method investment           (9,087 )
Interest expense     (27,430 )     (67,428 )
Total Other Income (Expense)     (25,869 )     (75,007 )
                 
Income (loss) before provision for income taxes     368,922       (144,813 )
                 
Provision for income taxes            
                 
Net Income (loss)     368,922       (144,813 )
                 
Preferred Stock Dividend     (28,208 )     (25,534 )
                 
Net Income (loss) Attributable to Common Shareholders   $ 340,714     $ (170,347 )
                 
Income (loss) per Share – Basic and Diluted   $ (0.00 )   $ (0.00 )
Weighted Average Number of Shares - Basic and Diluted     128,039,418       36,588,240  


DATA STORAGE CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
 
    Three Months Ended
March 31,
 
    2017     2016  
Cash Flows from Operating Activities:                
Net Income (loss)   $ 368,922     $ (144,813 )
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:                
Depreciation and amortization     95,646       71,366  
Net (gain) loss on equity method investment           9,087  
Non-cash interest expense           52,299  
Stock based compensation     3,102       12,140  
Changes in Assets and Liabilities:                
Accounts receivable     (147,312 )     14,621  
Other assets     3,600       (2,100 )
Prepaid expenses and other current assets     6,686       5,955  
Accounts payable and accrued expenses     (100,978 )     96,808  
Deferred revenue     (157,373 )     (43,455 )
Deferred rent     (108 )     163  
Net Cash Provided by Operating Activities     72,185       72,071  
                 
                 
Cash Flows from Financing Activities:                
Repayment of loan obligations     (70,997 )      
Repayments of capital lease obligations     (106,683 )     (59,176 )
Net Cash Used in Financing Activities     (177,680 )     (59,176 )
                 
Increase (Decrease) in Cash and Cash Equivalents     (105,495 )     12,895  
                 
Cash and Cash Equivalents, Beginning of Period     255,817       67,045  
                 
Cash and Cash Equivalents, End of Period   $ 150,322     $ 79,940  
                 
Cash paid for interest   $ 27,430     $ 15,131  
                 
Cash paid for income taxes   $     $  
                 
Non cash investing and financing activities:                
Accrual of preferred stock dividend   $ 28,208     $ 25,234  
Assets acquired by capital lease   $ 1,747,096     $  —  

 

Investor Relations Contact:
                    Andrew Barwicki
                    Phone: 516-662-9461

Primary Logo

Powered by EIN News