Monday, Apr 01 2013
News and Analysis
A sharp increase in operating expenses pushed SilverSun Technologies, parent of reseller SWK Technologies, to a $1.2 million loss for the year ended December 31. That compared to net income of $2.6 million a year earlier. But the revenue side, aided by the purchase of assets of the former Hightower, was bright, rising to $13.2 million, a 25.3-percent increase from $10.5 million for 2011.
The purchase of Hightower brought $1.1 million in additional revenue and 870 more Sage ERP customers, SilverSun said in its form 10-K. A big part of the red ink stemmed from the recognition of $1.14 million in share-based compensation, as opposed to no expenses of that kind the prior year. But as companies are fond of saying, that is a non-cash expense. Minus that amount, operating expenses would have still risen by 21 percent, but it’s fair to say SWK, SilverSun's only source of revenue, has been investing in growth. Among other notable elements was maintenance revenue, which rose to $3.6 million for the most recently ended year, an 89.2-percent rise. SilverSun also diversified its revenue sources. In fiscal 2012, its top 10 customers produced about $2.3 million in revenue, or 17 percent of the total down from $3.2 million or 31 percent of revenue for 2011. You have to give SWK president Jeff Roth and SilverSun CEO Mark Meller a lot of credit for cleaning up the formerly messy capital structure and P&L. This year, there were no gains, losses or reversals on revaluations of derivates or any of the other items that made the company's results a nice financial analysis puzzle.
Last modified on Sunday, 16 June 2013
Bob Scott has been informing and entertaining the mid-market financial software community with his email newsletters for 10 years. And he has been covering this market through print publications for 18 years, first as technology editor of Accounting Today and then as the Editor of Accounting Technology from 1997 through 2009. He has covered the traditional tax and accounting profession during the same time and continues to address that as executive editor of the Progressive Accountant.