Silversun Technologies Reports Second Quarter 2022 Results

Rhea-AI Summary

SilverSun Technologies (NASDAQ:SSNT) announced its second quarter 2022 results, revealing a 4.0% revenue increase to $10.6 million compared to Q2 2021. However, the company reported a net loss of $87,766, a stark contrast to 2021's net income of $130,289. Software revenues surged by 57.9%, while service revenues declined by 7.2%. For the first half of 2022, total revenues rose 2.6%, with software revenues increasing 43.2%. The CEO expressed optimism about future growth despite challenges in recruiting and inflationary costs.

Positive

• Software revenues increased 57.9% in Q2 2022.
• Total revenues rose 2.6% to $21.7 million for the first half of 2022.
• Strong sales pipeline indicates potential for continued growth.

Negative

• Net loss of $87,766 in Q2 2022 compared to net income of $130,289 in Q2 2021.
• Service revenues declined by 7.2% in Q2 2022.
• Operating expenses rose due to recruitment and inflation pressures.

EAST HANOVER, NJ / ACCESSWIRE / August 12, 2022 / SilverSun Technologies, Inc. (NASDAQ:SSNT), a national provider of transformational business technology solutions and services, today announced its second quarter results for the three and six months ended June 30, 2022.

Financial Highlights for Three Months Ended June 30, 2022 As Compared to Three Months Ended June 30, 2021:

• Total revenue was $10,638,073, compared with $10,229,209, an increase of 4.0%.
• Software revenues were $2,782,081, compared with $1,761,485, an increase of 57.9%.
• Service revenues totaled $7,855,992, compared with $8,467,724, a decrease of 7.2%.
• Earnings before taxes, interest, depreciation, and amortization ("EBITDA"), plus share-based compensation, were $249,646, compared with earnings before taxes, interest, depreciation and amortization, plus share-based compensation, of $463,661, a decrease of $214,015.
• Net loss was $87,766, or $0.02 loss per basic and diluted share, compared to net income of $130,289, or $0.03 per basic and diluted share.

Financial Highlights for the Six Months Ended June 30, 2022 Compared to the Six Months Ended June 30, 2021:

• Total revenues rose 2.6% to $21,661,917 from $21,108,667.
• Software revenues were $5,393,043, compared with $3,765,496, an increase of 43.2%.
• Service revenues totaled $16,268,874, compared with $17,343,181, a decrease of 6.2%.
• Earnings before interest, taxes, depreciation and amortization ("EBITDA") plus share-based compensation were $564,757, compared with earnings before taxes, interest, depreciation and amortization, plus share-based compensation, of $1,156,467 a decrease of $591,710.
• Net loss was $128,422, or $0.03 loss per basic and diluted share, compared to net income of $484,968, or $0.10 per basic and diluted share.
• As of June 30, 2022, the Company had $5,873,674in cash and cash equivalents; $2,246,166 in accounts receivable; long term debt of $1,601,940 (excluding the impact of operating lease liabilities), and total stockholders' equity of $9,320,291.

For more details on SilverSun's second quarter and six months results, please refer to the Company's 10-Q filed with the U.S. Securities Exchange Commission and accessible at www.sec.gov.

Commenting on the results, Mark Meller, Chairman and CEO of SilverSun, stated, "Despite a challenging economic environment during the first half of the year, we were able to continue to execute on our plan to increase our market share of our software products, as evidenced by our 57.9% increase in software revenues this quarter, and a 43.2% increase during the first half of the year. We anticipate continued growth as our sales pipeline remains very strong. Our customers and prospects seem to feel confident about their economic outlook, both in the short and long term, and continue to invest in their systems and infrastructure for the future."

"Our challenge has been retaining and recruiting personnel to accommodate our growth. Our costs have been impacted by higher costs associated with increasing pay and benefits to employees to retain and recruit their services, and to address inflationary pressures in the overall economy. In addition, we incurred additional expenses associated with the training of new employees, who were hired to accommodate our growth, and who are not as yet as billable as our more experienced team. These issues appear to be prevalent throughout our industry, but we believe the worst is behind us. We now have the team we want, and we believe that we will be successful in attracting and maintaining qualified personnel going forward."

"Our application hosting practice continues to grow, and we expect that to continue. As of May 1, 2022, our service is now a participant in the Sage Partner Cloud initiative undertaken by our partner, Sage Software. As a result, we anticipate that many more business partners in the Sage channel will now direct their customers to our platform. We have already seen substantial progress and momentum on that front, and believe that we will be the number one hosting platform within that program by year's end."

"Our operating expenses rose as a result of inflation increasing our costs of doing business. In addition, we continue to invest in our sales and marketing efforts, with great success. Our team is doing much more traveling than during the pandemic, and is attending and sponsoring more in-person conferences and trade shows, which contribute to our growth. We expect that we will be able to improve our operating margins in the upcoming quarters as we aggressively scale our business."

Meller concluded, "We believe that we are well positioned for continued growth and success as we have a strong team, experienced resources, and a strong financial position to support our initiatives. We look forward to delivering very positive results in the coming quarters."

About SilverSun Technologies, Inc.

We are a business application, technology and consulting company providing software and IT solutions to meet our clients' information, technology and business management needs. Our services and technologies enable customers to manage, protect and monetize their enterprise assets whether on-premise or in the "cloud". As a value-added reseller of business application software, we offer solutions for accounting and business management, financial reporting, Enterprise Resource Planning ("ERP"), Warehouse Management Systems ("WMS"), Customer Relationship Management ("CRM"), Business Intelligence ("BI") and other business applications. Our value-added services focus on consulting and professional services, specialized programming, training, and technical support. We have a dedicated network managed services practice that provides cybersecurity, application hosting, disaster recovery, business continuity, cloud and other services. Our customers are nationwide, with concentrations in the New York/New Jersey metropolitan area, Chicago, Arizona, Southern California, North Carolina, Washington and Oregon.

Forward-Looking Statements

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things our plans, strategies and prospects -- both business and financial. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Many of the forward-looking statements contained in this news release may be identified by the use of forward-looking words such as "believe," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated," and "potential," among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include market conditions and those set forth in reports or documents that we file from time to time with the United States Securities and Exchange Commission. All forward-looking statements attributable to SilverSun Technologies, Inc. or a person acting on its behalf are expressly qualified in their entirety by this cautionary language.

Contact:

Corporate
Mark Meller
SilverSun Technologies, Inc.
973-758-6108
meller@silversuntech.com

SOURCE: SilverSun Technologies, Inc.

View source version on accesswire.com:
https://www.accesswire.com/711808/Silversun-Technologies-Reports-Second-Quarter-2022-Results

FAQ

What were SilverSun Technologies' Q2 2022 financial results?

SilverSun reported total revenue of $10.6 million in Q2 2022, a 4.0% increase from Q2 2021. However, the company incurred a net loss of $87,766.

How did software revenues perform in Q2 2022 for SSNT?

Software revenues for SilverSun increased by 57.9% in Q2 2022, reaching $2.78 million.

What challenges did SilverSun Technologies face in Q2 2022?

The company faced challenges in recruiting personnel and rising operating expenses due to inflation.

What was the net income for SilverSun Technologies in the first half of 2022?

SilverSun reported a net loss of $128,422 for the six months ended June 30, 2022.

What are the future prospects for SilverSun Technologies?

The CEO expressed optimism for continued growth, citing a strong sales pipeline and software revenue increases.