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SWK PARENT RESULTS MIXED

swk technologies logoAided by the purchase of Hightower's assets, SilverSun Technologies turned in a quarter that can be described as mixed. Although it lost $334,031 for the second quarter ended June 30, it had stock-based compensation expense of $2.3 million for the grant of options to employees of SWK Technologies, its only operations.
Exclude that amount, and SilverSun had non-GAAP net income for the quarter although the bottom line benefitted in $190,000 in net income from Hightower, the failed Chicago Sage reseller that was acquired by SWK. The loss compared to net income of $2.3 million last year’s corresponding quarter but that amount included a $2.2 million gain on the extinguishment of debt. So the bottom line was better than it looked. The top line, however, was not as good as it looked. Revenue hit $3.1 million in the most recently ended period, an increase of 9.7 percent from $2.3 million a year ago. But that included about $400,000 in revenue from Hightower while the company noted that increased services and consulting revenue was partially offset by a decline in income from its installed base because of competitive pricing. Service revenue was $2.6 million in the second quarter compared to $2.4 million year earlier. The remainder is product revenue.
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