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SWK PARENT SURGES

SilverSun Technologies, the parent of Sage reseller SWK Technologies, reported a strong second quarter, ended June 30, as it continued a turnaround that began in the first quarter.  SilverSun, known previously as Trey Resources, reported net income of $2.4 million for the most recently ended quarter, compared to a loss of $789,416 in last year's corresponding period.

Revenue grew to $5.5 million, an increase of 50.8 percent from $3.6 million a year earlier. All revenue is from the SWK operations. However, the strong bottom line improvement did not stem primarily from operations. Operating income was $84,148 in the quarter just ended, including $60,000 in one-time professional expenses that were incurred in conjunction with the company's restructuring. The bulk of the bottom line was from the $2.2 million recognized from gain on extinguishment of debt and derivative liability. The parent's ability to clean up a financial mess has surprised most other resellers. As cited by CEO Mark Meller those improvements included a 59.7-percent reduction in liabilities. Liabilities fell to $2.5 million on June 30, down from $6.1 million on March 30 this year. It also reduced its share base to something more realistic. In March, there had been 8 billion shares outstanding and that has been reduced to 4.4 million common shares.
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