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SWK SPELLS OUT M&A RESULTS Featured

Jeff Roth, SWK TechnologySilverSun Technology gave us an unusual look into financial results in the small reseller world. That came as the company, parent to Livingston, N.J.-based reseller, SWK Technology, reported results for the year ended December 31. This included a snapshot of the contributions from five acquired operations—ESC Software, picked up in 2014, and Accounting Technologies Resources, The Macabe Associates, Oates & Co. and ProductiveTech purchased last year.

The acquisitions are quickly pushing SWK, under CEO Jeff Roth, up the ladder of reseller size. For 2015, ESC had revenue of about $1,344,878 , expenses of $1,186,593 and net income before taxes of $158,285. Contributions for the others were as follows: ATR, $945,523, revenue, $879,612 expenses, $158,285 net income before taxes; Macabe, $432,564, revenues, $398,729,expenses, $33,835 net income before taxes; Oates, $523,668, revenues, $514,849, expenses; $8,819, net income before taxes. PTI, $911,038 revenues, $868,561 expenses. $42,477 net income before taxes. I don't know if there's anything in the way deals are structured that would slant the following analysis unfairly, but here goes a ranking of the pre-tax net margins high to low: ATR, 16.7 percent; ESC, 11.7 percent; Macabe 7.8 percent; PTI, 4.7 percent; and Oates, 1.7 percent. Maybe these numbers explain some of the difficulty over the years in getting submissions for VAR Stars from some resellers.

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