Data Storage Corporation Announces Year End Results 2020; Annual Revenue of $9.3 Million Represents Ten Percent Year over Year Increase
Data Storage Corporation (OTC: DTST) reported a 10% revenue increase to $9.3 million for the year ended December 31, 2020, despite COVID-19 impacts. Key product segments saw strong growth: Nexxis VoIP Services grew 44%, and cloud services rose 6.8%. The company invested in infrastructure and launched new cybersecurity solutions. A merger with Flagship Solutions aims to enhance offerings, while the expansion into Canada includes two new Tier 3 data centers. Operating expenses rose by 13%, but net income increased significantly to $173,359 from $29,323 in 2019.
- 10% revenue growth to $9.3 million for 2020.
- Nexxis VoIP Services revenue increased by 44%.
- Expansion into Canada with two new Tier 3 data centers.
- Merger with Flagship Solutions to enhance service offerings.
- Net income rose to $173,359 from $29,323 in 2019.
- Operating expenses increased by 13% to $3,896,791.
- Cost of sales rose by 14% to $5,425,205.
MELVILLE, N.Y., April 01, 2021 (GLOBE NEWSWIRE) -- Data Storage Corporation (OTC: DTST) (“DSC” and the “Company”), a provider of diverse business continuity, disaster recovery protection, and cloud infrastructure solutions and services, today provided a business update and announced its 2020 financial results.
Chuck Piluso, CEO of Data Storage Corporation, commented, “We continue to achieve meaningful financial performance and profitability despite the impact of COVID-19 on the global markets, as evidenced by a
“Heading into 2021, we believe we have set the stage for continued growth. Due to the COVID-19 outbreak and the critical need for safe remote collaboration, we expanded our offering of cybersecurity solutions for remote tele-computing with our new product, ezSecurity™. We also launched a new remote collaboration program for small and medium-sized businesses. As part of this new program, we are offering free migration services from Microsoft Exchange to Microsoft 365, along with support for comprehensive voice communications (Hosted VoIP, IP Phones, Cloud PBX) and video conferencing. In addition, we expanded capacity through our new Dallas data center location to accommodate increased demand for our portfolio of ezServices, including ezBackup, ezRecovery and ezAvailability, adding to our existing network of data centers and fiber backbone.
“At the same time, we expanded our North American footprint, including new markets in Canada, where we added two new Tier 3 enterprise-level data centers. We also recently announced a joint venture with Able-One Systems Inc, an IBM market leader, to provide our portfolio of enterprise-level IBM cloud infrastructure services to customers in Canada. We look forward to working closely with Able-One to develop new opportunities in Canada and solve technology issues for businesses seeking superior IBM infrastructure and Disaster Recovery services.
“In addition to our organic growth, we are also exploring potential opportunities to acquire cash flow positive businesses with complementary products and services. Most recently, we entered into a definitive Agreement with Flagship Solutions, LLC to merge into our wholly owned subsidiary, Data Storage FL, LLC, at which time Flagship will become a wholly owned subsidiary of our Company. Flagship is a provider of IBM Software, Services, Equipment and cutting edge intelligent analytical and decision-making solutions, providing managed services and cloud solutions worldwide that include cloud-based server monitoring and management, 24×7 help desk support, and data center infrastructure management. We believe this transaction will be highly synergistic with our existing IBM business. This merger provides a comprehensive one-stop provider approach to cross-sell solutions across our respective enterprises and middle-market customers. Overall, we remain extremely encouraged by the outlook for the business and believe 2021 will be a transformative year for the Company.”
Financial Results
Net sales for the year ended December 31, 2020 were
Cost of Sales for the year ended December 31, 2020 was
Operating expenses for the year ended December 31, 2020 were
Net income for the year ended December 31, 2020 was
About Data Storage Corporation
The Company delivers and supports a broad range of premium technology solutions focusing on IaaS, data storage protection and IT management. Clients look to DSC to ensure disaster recovery, business continuity, enhance security, and to meet increasing industry, state and federal regulations. The Company markets to businesses, government, education and the healthcare industry by leveraging leading technologies. Through its business units, the Company provides IaaS, SaaS, DRaaS, VoIP, IBM Power systems and storage hardware with managed IT services. For more information, please visit http://www.DataStorageCorp.com.
Safe Harbor Provision
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created thereby. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expects," "intends," "plans," "projects," "estimates," "anticipates," or "believes" or the negative thereof or any variation thereon or similar terminology or expressions. These forward-looking statements are based upon current estimates and assumptions and include statements regarding the Company’s future revenue, setting the stage for the Company’s accelerated growth, working with Able-One to develop new opportunities in Canada and solve technology issues for businesses seeking superior IBM infrastructure and disaster Recovery services, exploring potential opportunities to acquire cash flow positive businesses with complementary products and services, completion of the pending acquisition of Flagship Solutions, LLC, the Flagship acquisition being highly synergistic with the Company’s existing IBM business, and 2021 being a transformative year for the Company. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from results proposed in such statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, the Company’s ability to continue to generate revenue at current levels, the Company’s ability to achieve accelerated growth, the Company’s ability to work with Able-One to develop new opportunities in Canada and solve technology issues for businesses seeking superior IBM infrastructure and disaster Recovery services, the Company’s ability to acquire cash flow positive businesses with complementary products and services, the Company’s ability to complete the acquisition of Flagship Solutions, LLC, the Company’s ability to integrate Flagship’s business with the Company’s existing IBM business, the Company’s ability to make 2021 a transformative year for the Company and those risk factors set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 and its other filings and submissions with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements.
Contact:
Crescendo Communications, LLC
212-671-1020
DTST@crescendo-ir.com
DATA STORAGE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31,
| 2020 | 2019 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 893,598 | $ | 326,561 | ||||
| Accounts receivable (less allowance for doubtful accounts of | 554,587 | 691,436 | ||||||
| Prepaid expenses and other current assets | 239,472 | 80,728 | ||||||
| Total Current Assets | 1,687,657 | 1,098,725 | ||||||
| Property and Equipment: | ||||||||
| Property and equipment | 7,845,423 | 6,894,087 | ||||||
| Less—Accumulated depreciation | (5,543,822 | ) | (4,705,256 | ) | ||||
| Net Property and Equipment | 2,301,601 | 2,188,831 | ||||||
| Other Assets: | ||||||||
| Goodwill | 3,015,700 | 3,015,700 | ||||||
| Operating lease right-of-use assets | 241,911 | 324,267 | ||||||
| Other assets | 49,310 | 65,433 | ||||||
| Intangible assets, net | 455,935 | 649,934 | ||||||
| Total Other Assets | 3,762,856 | 4,055,334 | ||||||
| Total Assets | $ | 7,752,114 | $ | 7,342,890 | ||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 979,552 | $ | 906,716 | ||||
| Dividend payable | 1,115,674 | 970,997 | ||||||
| Deferred revenue | 461,893 | 432,942 | ||||||
| Line of credit | 24 | 75,000 | ||||||
| Finance leases payable | 168,139 | - | ||||||
| Finance leases payable related party | 1,149,403 | 833,148 | ||||||
| Operating lease liabilities short term | 104,549 | 101,505 | ||||||
| Note payable | 374,871 | 350,000 | ||||||
| Total Current Liabilities | 4,354,105 | 3,670,308 | ||||||
| Note payable long term | 107,106 | -- | ||||||
| Operating lease liabilities long term | 147,525 | 231,312 | ||||||
| Finance leases payable, long term | 247,677 | -- | ||||||
| Finance leases payable related party, long term | 974,743 | 1,713,122 | ||||||
| Total Long Term Liabilities | 1,477,051 | 1,944,434 | ||||||
| Total Liabilities | 5,831,156 | 5,614,742 | ||||||
| Stockholders’ Equity: | ||||||||
| Preferred stock, Series A par value $.001; 10,000,000 shares authorized; 1,401,786 shares issued and outstanding in each year | 1,402 | 1,402 | ||||||
| Common stock, par value $.001; 250,000,000 shares authorized; 128,539,418 and 128,439,418 shares issued and outstanding in 2020 and 2019, respectively | 128,539 | 128,439 | ||||||
| Additional paid in capital | 17,620,459 | 17,456,431 | ||||||
| Accumulated deficit | (15,734,737 | ) | (15,790,076 | ) | ||||
| Total Data Storage Corp Stockholders’ Equity | 2,015,663 | 1,796,196 | ||||||
| Non-controlling interest in consolidated subsidiary | (94,705 | ) | (68,048 | ) | ||||
| Total Stockholders’ Equity | 1,920,958 | 1,728,148 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 7,752,114 | $ | 7,342,890 | ||||
DATA STORAGE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31,
| 2020 | 2019 | |||||||
| Sales | $ | 9,320,933 | $ | 8,483,608 | ||||
| Cost of sales | 5,425,205 | 4,746,031 | ||||||
| Gross Profit | 3,895,728 | 3,737,577 | ||||||
| Selling, general and administrative | 3,896,791 | 3,531,053 | ||||||
| (Loss) Income from Operations | (1,063 | ) | 206,524 | |||||
| Other Income (Expense) | ||||||||
| Interest income | 24 | 250 | ||||||
| Interest expense | (175,602 | ) | (177,451 | ) | ||||
| Gain on extinguishment of contingent liability | 350,000 | - | ||||||
| Total Other Income (Expense) | 174,422 | (177,201 | ) | |||||
| Income before provision for income taxes | 173,359 | 29,323 | ||||||
| Provision for income taxes | -- | — | ||||||
| Net Income | 173,359 | 29,323 | ||||||
| Non-controlling interest in consolidated subsidiary | 26,657 | 40,537 | ||||||
| Net Income attributable to Data Storage Corporation | 200,016 | 69,860 | ||||||
{
"@context": "https://schema.org",
"@type": "FAQPage",
"name": "Data Storage Corporation Announces Year End Results 2020; Annual Revenue of $9.3 Million Represents Ten Percent Year over Year Increase FAQs",
"mainEntity": [
{
"@type": "Question",
"name": "What was Data Storage Corporation's revenue for 2020?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Data Storage Corporation reported a revenue of $9.3 million for the year ended December 31, 2020."
}
},
{
"@type": "Question",
"name": "How much did Nexxis VoIP Services grow in 2020?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Nexxis VoIP Services experienced a revenue increase of 44% in 2020."
}
},
{
"@type": "Question",
"name": "What is the financial status of Data Storage Corporation for 2020?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Data Storage Corporation reported a net income of $173,359 for 2020, up from $29,323 in 2019."
}
},
{
"@type": "Question",
"name": "What merger did Data Storage Corporation announce?",
"acceptedAnswer": {
"@type": "Answer",
"text": "The company announced a merger with Flagship Solutions, which will enhance its service offerings."
}
},
{
"@type": "Question",
"name": "What new market did Data Storage Corporation expand into?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Data Storage Corporation expanded into Canada, adding two new Tier 3 data centers."
}
}
]
}
FAQ
What was Data Storage Corporation's revenue for 2020?
Data Storage Corporation reported a revenue of $9.3 million for the year ended December 31, 2020.
How much did Nexxis VoIP Services grow in 2020?
Nexxis VoIP Services experienced a revenue increase of 44% in 2020.
What is the financial status of Data Storage Corporation for 2020?
Data Storage Corporation reported a net income of $173,359 for 2020, up from $29,323 in 2019.
What merger did Data Storage Corporation announce?
The company announced a merger with Flagship Solutions, which will enhance its service offerings.
What new market did Data Storage Corporation expand into?
Data Storage Corporation expanded into Canada, adding two new Tier 3 data centers.
Data Storage Corporation
NASDAQ:DTSTDTST RankingsDTST Latest NewsDTST Stock Data
27.57M
4.09M
41.48%
12.15%
4.78%
Information Technology Services
Services-computer Processing & Data Preparation
United States of America
MELVILLE
| ||||||||