SilverSun Technologies, Inc. (SSNT), a national provider of transformational business technology solutions and services, today announced its first quarter results for the three months ended March 31, 2022.
Financial Highlights for Three Months Ended March 31, 2022 As Compared to Three Months Ended March 31, 2021:
Total revenue was $11,023,844, compared with $10,879,468, an increase of 1.3%.
Software sales were $2,610,962, compared with $2,004,011, an increase of 30.3%.
Service revenues totaled $8,412,882, compared with $8,875,457, a decrease of 5.2%.
Gross profit was $4,704,867, compared with $4,746,537, a decrease of 0.9%.
Earnings before taxes, interest, depreciation and amortization ("EBITDA"), plus share-based compensation, were $296,618, compared with earnings before taxes, interest, depreciation and amortization, plus share-based compensation, of $692,311, a decrease of $395,693.
Net loss was $40,656, or $0.01 loss per basic and diluted share, compared to net income of $354,679, or $0.07 per basic and diluted share.
For more details on SilverSun's first quarter 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, "The quarter was a mixed bag for our Company. Software sales continue to be a bright spot, and our sales pipeline is deep. 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 application hosting practice, Secure Cloud Services, continues to grow.. The service is now a participant in the Sage Partner Cloud initiative undertaken by our partner, Sage Software, and as a result, we anticipate that many more business partners in the Sage channel will now direct their customers to our platform. "
"Our largest challenge is identifying resources to support our sales growth. Historically, we have been able to recruit when we had work and projects in hand, often finding suitable candidates in a matter of days or weeks. That situation has changed as a result of the current hiring environment . Consultants, developers and engineers, both experienced and inexperienced, are difficult to find, and in high demand. As a result, it can now take months to find suitable candidates, and when found, they are commanding ever higher wages because of the competition for their services. We are now hiring quality people when we find them, which sometimes results in excess capacity (and lower utilization). Our aggressive product sales growth gives us confidence that we can bring these newer recruits to high levels of utilization in a few quarters, but in the meanwhile, this carrying cost negatively impacts our income statement. In this environment, we feel we have no alternative but to secure talent as and when it is available."
"Similarly, our operating expenses continue to rise as inflation increases our costs of doing business. Now that the economy has re-opened following the Covid pandemic, our team is doing much more traveling, and is attending and sponsoring more in-person conferences and trade shows. These are expensive endeavors, but are necessary for growth, retention, and recruitment. We will continue to review and implement cost-saving measures to reduce our operating expenses, and we expect that we will be able to improve our operating margins in the upcoming quarters as we aggressively scale our business."
Meller concluded, "The current economic environment is challenging, but the Company is well positioned for success, and we look forward to delivering positive news and results in the coming quarters."