SilverSun Technologies Reports 2023 Year End Results
- SilverSun Technologies, Inc. (NASDAQ:SSNT) achieved a 21.2% increase in total revenue, reaching $54,516,941 in fiscal year 2023.
- Gross profit rose by 20.3% to $21,613,809 compared to the previous year.
- EBITDA plus share-based compensation increased to $2,716,154, showing significant growth from 2022.
- The company incurred an expense of $2,986,107 related to a terminated merger agreement with Rhodium Enterprises.
- Despite a net loss per share of ($0.20) in 2023, the company maintained a healthy cash position of $6,143,298 as of December 31, 2023.
- None.
The reported increase in total revenue by 21.2% for SilverSun Technologies is a positive indicator of the company's growth and its ability to scale up operations. This growth rate surpasses the average for many technology solution providers, which often aim for a year-over-year increase in the mid-to-high single digits. The corresponding rise in gross profit by 20.3% suggests that the company is maintaining a consistent cost of goods sold (COGS) ratio, which is beneficial for its financial health.
However, the net loss per share widening from ($0.05) to ($0.20) raises a red flag. It indicates that despite higher gross profits, other expenses are increasing at a faster rate, potentially due to operational inefficiencies, increased marketing spend, or other strategic initiatives that have yet to yield financial returns. The expense related to the terminated merger agreement is a one-time event, but it has a significant impact on the net loss. Investors should consider whether this is a sign of potential issues in the company's strategic decision-making or merely an isolated incident.
Lastly, the EBITDA increase is noteworthy. It reflects improved operational profitability, excluding non-cash expenses and one-off items, which could be a signal of underlying business strength. However, investors should be aware that EBITDA does not account for the cost of capital investments, which are crucial for a technology company's long-term growth.
From a market perspective, SilverSun Technologies' substantial revenue growth suggests that it is gaining market share or expanding its market. This could be due to the introduction of new products, expansion into new markets, or the success of its existing services. The technology solutions sector is highly competitive and such growth might indicate that SilverSun has effectively differentiated itself from competitors.
However, the terminated merger could signal to the market a potential instability or change in strategic direction. Mergers and acquisitions are often pursued to achieve synergies and enhance market position. The termination of such a process could be interpreted as a missed opportunity or a sign of misalignment between the entities involved. Market participants will be interested in management's future plans to compensate for this setback.
The company's cash position and long-term liabilities will also be scrutinized. A strong cash position is essential for weathering economic downturns and investing in innovation, while manageable long-term liabilities suggest a sustainable debt level. The ratio between these two figures can provide insight into the company's financial resilience.
Regarding the legal implications of the terminated merger, shareholders and potential investors should consider the possibility of litigation or arbitration, which could result from such a termination. While the expense has been quantified in the financial statement, the ongoing impact of any legal proceedings could have further financial repercussions and distract management from core business activities.
Additionally, the termination of a merger agreement often results in scrutiny from regulatory bodies, especially if the companies are publicly traded. The Securities and Exchange Commission (SEC) may investigate the circumstances surrounding the termination to ensure all disclosure requirements were met and that there was no market manipulation involved.
Investors should also be aware of the potential for reputational damage following a failed merger. Such events can affect stakeholder confidence and may influence future partnership or acquisition opportunities. The company will need to communicate effectively with shareholders to mitigate these risks.
EAST HANOVER, NJ / ACCESSWIRE / March 14, 2024 / SilverSun Technologies, Inc. (NASDAQ:SSNT), a national provider of transformational business technology solutions and services, today announced its financial and operating results for the fiscal year ended December 31, 2023.
Fiscal 2023 Financial Highlights
- Total revenue was
$54,516,941 , compared with$44,985,276 in 2021, an increase of21.2% . - Gross profit was
$21,613,809 , compared with$17,960,736 in 2021, an increase of20.3% . - Earnings before interest, taxes, depreciation, and amortization (EBITDA) plus share-based compensation, were
$2,716,154 , compared with earnings before interest, taxes, depreciation and amortization plus share-based compensation of$914,280 in 2022, an increase of$1,801,874. - The Company incurred an expense of
$2,986,107 related to the terminated merger agreement with Rhodium Enterprises. - Net loss per share in 2023 (on a diluted basis) was (
$0.20) , compared to net loss per share of ($0.05) in 2022. - As of December 31, 2023, cash totaled
$6,143,298 , and the Company had$1,241,383 in long term liabilities.
For more detailed information about SilverSun's 2022 financial results, please refer to the Company's Form 10-K filed with the U.S. Securities and Exchange Commission (www.sec.gov) on Friday, March 15, 2024.
Commenting on the results, Mark Meller, Chairman and CEO of SilverSun, stated, "2023 was a record year for the Company. We were able to successfully execute on our growth plan, as evidenced by our
Meller continued, "Our expenses have been impacted by the higher costs associated with increasing pay and benefits to retain and recruit employees. These issues appear to be prevalent throughout our industry, but we have been successful in attracting and retaining qualified personnel, and believe we can sustain our needed level of recruiting under any reasonable circumstances. "
"In addition, our non-payroll operating expenses rose as a result of inflation increasing our costs of doing business. But we have and will continue to increase our investment in our sales and marketing efforts, which has led to our increased sales volume."
"The Company remains on the acquisition hunt. In 2023, we acquired JCS Computer Resources, a Midwest-based reseller of Sage 100 and Sage 50 software. The acquisition added several hundred new customers to our installed base, and provides us with new migration, upsell and cross-sell opportunities. We continue to review acquisition candidates and are hopeful we can close on several transactions in 2024."
Meller further continued, "In September 2022, we announced our planned merger with Rhodium Enterprises, Inc., an industrial bitcoin mining company. After a year of failing to clear regulatory hurdles, we announced the termination of our merger agreement with Rhodium Enterprises on October 13, 2023. As a result, the Company was forced to take a charge to earnings equal to the accrued transaction expenses of roughly
"On December 4, 2023, the Company announced that it had entered into an investment agreement with Jacobs Private Equity II, LLC ("JPE") and minority co-investors pursuant to which JPE and the minority co-investors will invest
Meller concluded, "We are pleased with the success we achieved in 2023. 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 even more positive results in the coming quarters and years."
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, Connecticut, 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.
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