Data Storage Corp
NASDAQ:DTST
Data Storage Corp
Data Storage Corp. engages in the provision of business continuity services. The company is headquartered in Melville, New York and currently employs 60 full-time employees. The company went IPO on 2009-11-05. The firm provides cloud-managed services and technologies across multiple platforms. The company provides solutions and services to a range of clients in several industries, including healthcare, banking and finance, distribution services, manufacturing, construction, education, and government. Its cyber security solutions include ezSecurity, which offers a range of cyber security products that can be utilized on systems at the client’s location or on systems hosted in the Company’s cloud. The company provides data protection and recovery solutions, which includes ezVault, ezRecovery, ezAvailability, and ezMirror. The company offers cloud-hosted production systems, which include ezHost solution. The company provides voice and data solutions, such as voice over Internet protocol (VoIP), Internet access, and data transport solutions.
Data Storage Corp. engages in the provision of business continuity services. The company is headquartered in Melville, New York and currently employs 60 full-time employees. The company went IPO on 2009-11-05. The firm provides cloud-managed services and technologies across multiple platforms. The company provides solutions and services to a range of clients in several industries, including healthcare, banking and finance, distribution services, manufacturing, construction, education, and government. Its cyber security solutions include ezSecurity, which offers a range of cyber security products that can be utilized on systems at the client’s location or on systems hosted in the Company’s cloud. The company provides data protection and recovery solutions, which includes ezVault, ezRecovery, ezAvailability, and ezMirror. The company offers cloud-hosted production systems, which include ezHost solution. The company provides voice and data solutions, such as voice over Internet protocol (VoIP), Internet access, and data transport solutions.
CloudFirst Sale: Data Storage Corporation completed the sale of its CloudFirst subsidiary for $40 million, marking a major strategic shift and simplifying the company’s structure.
Financial Position: The company ended the quarter with $45.8 million in cash and marketable securities, up from $12.3 million at year-end, but final cash will depend on the upcoming tender offer and share buyback.
Ongoing Operations: Nexxis, the remaining operating business, saw strong revenue growth, with Q3 sales up 28.2% year-over-year and continued expansion of its customer base.
Profit Surge: Net income jumped sharply to $16.8 million in Q3 from $122,000 a year ago, mainly due to the gain on the CloudFirst divestiture.
Buyback Plans: Management confirmed plans for a tender offer and buyback within 90 days of the CloudFirst sale, with estimated post-buyback cash between $5 million and $15 million.
Acquisition Strategy: The company is looking for acquisitions in areas like AI, cybersecurity, and communications, but will focus first on opportunities that provide recurring revenue and align with its disciplined approach.
SG&A Guidance: Third quarter SG&A expenses are expected to be a good run-rate going forward, with no significant nonrecurring items.
