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TREY/SWK BETTING FARM ON X3?

Trey Resources, the parent company of SWK Technology, continued to lose money during 2010. But as usual, the Livingston, N.J.-based reseller issued results to show SWK’s performance without the parent. And that showed $206,000 in revenue from the X3 efforts in the year ended December 31 and $525,000 in X3 sales recognized during the quarter ended yesterday, March 31.

SWK also said it “has embarked on an aggressive marketing and branding campaign, the focus is to highlight the SWK proprietary products (including MAPADOC and Extended Solutions), as well as our network services offerings.” But there’s still that matter of the results of Trey, a public company. The question is not whether the glass is half full. The question is, “Is there a glass?” The company lost $486,942 for 2010, down from $1.52 million in red ink in 2009. But that change reflected a $483,081 gain on the revaluation of derivatives and the rose from operations rose to $937,117 from $252,121. Meanwhile, revenue was relatively unchanged at $7.49 million for the year just ended, compared to $7.4 million for 2009. The cost of the X3 ramp up was part of the reason that the cost of revenue and operating expenses both rose. The summary of the SWK results noted that X3 involved “$75,000 in direct costs for licensing and training, exclusive of the costs of having our consultants not generating any revenue during their training.” There was also $37,000 in net costs in taking over some of the Sage Extended Solutions, $78,500 in costs on developing non-Sage software and $60,000 in increased marketing. However, operating expenses increased by $514,000.

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