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TREY LOSS LEAPS ON G&A
Revenue was off less than one percent, but Trey Resources, parent of Sage reseller SWK Technologies, turned in a sharp loss as general and administrative spending surged to $508,204, a jump of 82.1 percent from $279,139 in last year’s corresponding period. That was a major factor in the red ink of $789,416, which compared to net income of $542,682 in last year's corresponding period. The other major deduction, a $447,327 loss on revaluation of derivatives, compared to a loss of $432,156 a year earlier.
Trey revenues are all from SWK which said the rise in G&A was from the hiring in its program development department, along with outside consultants and that it also spent $50,000 on tooling up for Sage's X3 before it received revenue. In the two revenue categories, software sales totaled $230,471, down 5.3 percent from $243.3 million in last year’s second quarter. Services revenue was virtually unchanged at $1.6 million. Operations took a toll on cash which stood at $175,419 on June 30, down from $300,482 on December 31, with the current ratio dropping to a negative 8.3 to 1 from a negative 6.7 to 1 during the same period. SWK issued figures that showed without the Trey overhead it would have had operating income of $285,405 and net income of $17,256. It also said software sales were up 23 percent, while maintenance income was up 19 percent, following a decline. SWK said it also took over maintenance and development of some of the Sage Extended Solutions and that had cost it $20,000 more than revenue as that ramped up. This statement came in on deadline and I didn't have time to compare SWK's involved in the Sage line with what Blytheco said it was doing. But interesting.
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