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SWK PARENT HIRES FINANCIAL ADVISOR

Damon Testaverde, Network 1 Financial SecuritiesSilverSun Technologies, parent to Sage reseller SWK Technologies, has hired a financial advisor. The Livingston, N.J.-based company it has retained investment banking firm, Network 1 Financial Securities, ”to advise the Company's management team on financial strategies to support its current growth initiatives." There was no elaboration on what this meant and no talk about looking for a buyer, investors or anything else. But the cash-poor balance sheet probably points the way to understanding this.
In a prepared statement, Damon D. Testaverde, managing director of investment banking at Network 1 said, "In view of SilverSun's growth potential, Network 1 is very pleased to be teaming with the Company to identify opportunities to unlock shareholder value. We look forward to working with SilverSun in executing its business plan and reaching its corporate goals." I got caught up in looking at the P&L for SilverSun's year ended December 31, but one of my friends paid attention to the balance sheet which has some interesting information. One of those items is that the company had $4,483 in cash at year's end, down from $223,722 at the end of 2011. Meanwhile, receivables had jumped to $1.5 million from $881,217 over the year. In terms of cash use, $441,964 went out the door for purchase of a business, I assume mainly Hightower, although SWK picked up some other stuff last year. The end result was net cash provided by operating activities dropped to $391,802, down from $905,906. Most of this is because the company had a 2012 loss of $1.24 million versus net income of $2.71 million for 2011.
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