Data Storage Corporation: Fiscal 2018 Financial Results

Data Storage Corporation (DSC), a provider of diverse BC, DR protection, and cloud solutions and services, provided a business update and announced its 2018 financial results.

Chuck Piluso, CEO, commented: “2018 was a solid year for the company, with 8% revenue growth over 2017. More importantly,we set the stage for accelerated growt in 2019. We also carefully managed our expenses, which enabled us to achieve both an operating and net profit for the full year. Overall, we believe we have built a scalable operation and, as we continue to work with the goal of increasing revenue, we believe we are well-positioned to further enhance profitability. In addition to organic growth, we are also exploring potential opportunities to acquire cash flow positive businesses with complementary products and services.

“Heading into 2019, we are off to a strong start. We recently announced a $3.5 million contract with a nationally respected apparel company, to provide state of the art data protection services. This contract is a further illustration of the traction we are gaining in the market through our ezMirror offering, which helps companies to cost effectively address their demanding data protection requirements for IBM i and AIX applications by replacing legacy tape-based recovery with a more robust solution. We are also pleased with the successful launch of our new data center located in North Carolina, which will help support the growing demand for our ezSolutions, including ezHost, ezRecovery and ezAvailability.”

Financial Results
Net sales for the year ended December 31, 2018 were $8,887,402, an increase of $630,484 or 7.6%, compared to $8,256,918 for the year ended December 31, 2017.

The increase was attributable to the increase in equipment and software sales. Cost of sales for 2018 was $5,427,990, an increase of $517,659 or 10.5%, from $4,910,331 for 2017.

The increase in cost of sales was a result of an increase in equipment and software sold. Operating expenses for 2018 were $3,124,052, a decrease of $307,292, as compared to $3,431,344 for 2017.

The net decrease was a result of a decrease in staffing salaries, professional fees, travel, commissions, state filing fees and the recovery of bad debt.

Net income for 2018 was $236,671 an increase of $425,164, as compared to net loss of $(188,493) for 2017.