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SALES EXPENSES PRODUCE SILVERSUN LOSS

swk technologies logoSilverSun Technologies, the parent of Sage reseller SWK Technologies, reported a $14,141 loss for the third quarter ended September 30, compared to $730,785 in net income in last year’s corresponding period.  But revenue grew to $2.4 million in the most recent quarter, up a healthy 24.2 percent over last year’s $1.9 million as consulting revenue propelled growth. This is the first quarter for SilverSun (formerly known as Trey Resources) in which the lines on the financial statements look more normal.
That’s because the company retired debt and collapsed its wildly inflated number of shares through a reversed split. That still leaves having to explain that last year’s big bottom line came from a gain on extinguishment of debt and derivative liability. But going forward, we don’t have to worry about understanding of the gain or loss on the revaluation of derivatives (or reversal of this) which used to be a regular feature of Trey’s P&Ls. Now, the analysis can dwell on the business of selling software and services. Services revenue (largely from consulting) was the overwhelming component of the total. For the most recently ended quarter, services revenue was just over $2 million, a 19.3-percent increased from $1.7 million a year earlier. Product revenue grew to $356,909, a 62.6-percent rise from last year’s $219,369. SilverSun’s SEC report said there were strong marketing efforts “and very competitive pricing” along with the impact of the Sage ERP X3 practice. Those gains were eaten up by selling expenses of $450,345, 17.8-percent higher than the $382,831 recorded in last year’s corresponding period.
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