MELVILLE, N.Y., April 02, 2019 (GLOBE NEWSWIRE) -- Data Storage Corporation (OTC: DTST) (“DSC” and the “Company”), a provider of diverse business continuity, disaster recovery protection, and cloud solutions and services, today provided a business update and announced its 2018 financial results.

Chuck Piluso, CEO of Data Storage Corporation, commented, “2018 was a solid year for the Company, with 8% revenue growth over 2017.  More importantly, we set the stage for accelerated growth 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.

About Data Storage Corporation

The Company delivers and supports a broad range of premium technology solutions focusing on IaaS, data storage protection and IT management. Clients look to DSC to ensure disaster recovery, business continuity, enhance security, and to meet increasing industry, state and federal regulations. The Company markets to businesses, government, education and the healthcare industry by leveraging leading technologies. Through its business units, the Company provides IaaS, SaaS, DRaaS, VoIP, IBM Power systems and storage hardware with managed IT services. For more information, please visit http://www.DataStorageCorp.com.

Safe Harbor Provision

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created thereby.  All statements other than statements of historical fact contained herein, including, without limitation, statements regarding the Company's future financial position, business strategy, plans and objectives, are forward-looking statements.  Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expects," "intends," "plans," "projects," "estimates," "anticipates," or "believes" or the negative thereof or any variation thereon or similar terminology or expressions.  Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from results proposed in such statements.  Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to have been correct.  Important factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, those factors set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 and its other filings and submissions with the SEC.  Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made.  Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements.

Contact:
Crescendo Communications, LLC
212-671-1020
DTST@crescendo-ir.com

  
***tables follow*** 
  
  
  
DATA STORAGE CORPORATION AND SUBSIDIARY 
CONSOLIDATED BALANCE SHEETS 
  
 December 31,
2018
  December 31,
2017
 
ASSETS     
Current Assets:       
Cash and cash equivalents$228,790  $105,139 
Accounts receivable (less allowance for doubtful accounts of $30,000 in 2018 and $90,000 in 2017) 531,245   406,393 
Prepaid expenses and other current assets 167,891   120,217 
Total Current Assets 927,926   631,749 
        
Property and Equipment:       
Property and equipment 5,293,711   5,237,965 
Less—Accumulated depreciation (4,005,338)  (3,614,177)
Net Property and Equipment 1,228,373   1,623,788 
        
Other Assets:       
Goodwill 3,015,700   3,015,700 
Employee loans -   3,000 
Other assets 65,433   75,356 
Intangible assets, net 846,713   1,044,046 
Total Other Assets 3,927,846   4,138,102 
        
Total Assets 6,144,145   6,393,639 
        
LIABILITIES AND STOCKHOLDERS’ EQUITY       
Current Liabilities:       
Accounts payable and accrued expenses 988,579   1,087,351 
Dividend payable 846,685   733,673 
Deferred revenue 435,406   566,731 
Capital leases payable related party 509,487   658,476 
Notes payable related party    186,906 
Note payable 350,000   350,000 
Total Current Liabilities 3,130,157   3,583,137 
        
Deferred rental obligation 18,890   1,061 
Notes payable related party    99,915 
Capital leases payable related party, long-term 1,218,703   1,130,764 
Total Long-Term Liabilities 1,237,593   1,231,740 
        
Total Liabilities 4,367,750   4,814,877 
        
Commitments and contingencies       
        
Stockholders’ Equity       
Preferred stock, Series A par value $.001; 10,000,000 shares authorized; 1,401,786 shares issued and outstanding in each period 1,402   1,402 
Common stock, par value $0.001; 250,000,000 shares authorized; 128,139,418 and 128,039,418 shares issued and outstanding in 2018 and 2017, respectively 128,139   128,139 
Additional paid in capital 17,409,989   17,377,986 
Accumulated deficit (15,735,624)  (15,924,376)
Total Data Storage Corp Stockholders’ Equity 1,803,906   1,583,151 
Non-controlling interest in consolidated subsidiary (27,511)  (4,389
Total Stockholder’s Equity 1,776,395   1,578,762 
Total Liabilities and Stockholders’ Equity$6,144,145  $6,393,639 



  
DATA STORAGE CORPORATION AND SUBSIDIARY 
CONSOLIDATED STATEMENTS OF OPERATIONS 
  
 Years Ended December 31, 
 2018  2017 
Sales$8,887,402  $8,256,918 
        
Cost of Sales 5,427,990   4,910,331 
        
Gross Profit 3,459,412   3,346,587 
        
Selling, General and Administrative 3,124,052   3,431,344 
        
Income (Loss) from Operations 335,360   (84,757)
        
Other Income (Expense)       
Other income 99   3,170 
Interest expense (98,788)  (106,906)
Total Other (Expense) (98,689)  (103,736)
        
Income (Loss) Before Provision for Income Taxes 236,671   (188,493)
        
Provision for Income Taxes     
        
Net Income (Loss) 236,671   (188,493)
        
Net Loss attributable to non-controlling interest 23,122   4,409 
        
Net Income (Loss) attributable to Data Storage Corp 259,793   (184,084)
        
Preferred Stock Dividend (113,012)  (114,536)
        
Net Income (Loss) Available to Common Shareholders$146,781  $(298,620)
        
Earnings (Loss) per Share – Basic$0.00  $0.00 
        
Earnings (Loss) per Share - Diluted$0.00  $0.00 
        
Weighted Average Number of Shares - Basic 128,139,418   128,092,569 
        
Weighted Average Number of Shares - Diluted 131,939,979   128,092,569 



 
DATA STORAGE CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 Years Ended
December 31,
 
 2018   2017 
Net Income (loss)$236,671  $(188,493)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Depreciation and amortization 602,532   614,449 
Stock-based compensation 32,003   183,703 
Changes in Assets and Liabilities:      
Accounts receivable (124,852)  401,122 
Other assets 9,923   (20,832)
Prepaid expenses and other current assets (47,674)  111,215 
Employee loan 3,000   (3,000)
Accounts payable and accrued expenses (98,774)  (266,270)
Deferred revenue (89,353)  (352,372)
Deferred rent 17,829   (843)
Net Cash Provided by Operating Activities 541,305   478,679 
       
       
Cash Flows from Investing Activities:      
Capital expenditures (69,783)   
Net Cash Used in Investing Activities (69,783)   
       
       
Cash Flows from Financing Activities:      
Repayments of capital lease obligations (347,871)  (428,559)
Repayments of credit line    (50,412)
Repayments of related party loans    (150,386
Net Cash Used in Financing Activities (347,871)  (629,357)
       
       
Increase (Decrease) in Cash and Cash Equivalents 123,651   (150,678
       
Cash and Cash Equivalents, Beginning of Year 105,139   255,817 
       
       
Cash and Cash Equivalents, End of Year$228,790  $105,139 
       
       
Cash paid for interest$98,788  $106,906 
       
Cash paid for income taxes$5,604  $1,877 
       
Non-cash investing and financing activities:      
Assets acquired by capital lease$  $1,836,714 
Accrual of preferred stock dividend$113,012  $114,536