This sale was made to satisfy withholding tax obligations, as stated in the filing. Following the transaction, Kempster retains ownership of 829,583 shares in the company. The $35 million microcap company maintains strong financial health with a current ratio of 4.8x and positive earnings. InvestingPro subscribers can access 12 additional investment tips and a comprehensive Pro Research Report for deeper insight into DTST’s valuation and growth prospects. The $35 million microcap company maintains strong financial health with a current ratio of 4.8x and positive earnings. InvestingPro subscribers can access 12 additional investment tips and a comprehensive Pro Research Report for deeper insight into DTST’s valuation and growth prospects. This sale was made to satisfy withholding tax obligations, as stated in the filing. Following the transaction, Kempster retains ownership of 829,583 shares in the company.
In other recent news, Data Storage Corporation reported a smaller third-quarter revenue decline for fiscal 2024, with total revenue of $5.8 million, down 3% year-over-year, primarily attributed to a decline in one-time equipment sales. However, the company experienced growth in recurring subscription revenue and an increase in gross profit margin to 43.2%, compared to 38.9% the previous year. Despite falling revenues, the company has secured significant contracts in the insurance, healthcare and education sectors and plans to expand in the UK
The company’s CloudFirst subsidiary is projected to generate more than $20 million in current revenue by 2025. Data Storage Corporation ended the third quarter with $11.9 million in cash and marketable securities, with no long-term debt. The company also reported a 29% increase in disaster recovery cloud infrastructure and services.
The management team maintains an optimistic outlook on growth and profitability, with service renewals expected to exceed $20 million by 2025. The company’s CEO, Chuck Piluso, highlighted the migration of 95-96% of regular customers to cloud subscriptions, indicating a strategic shift towards building a more stable revenue stream. These are among the recent developments for Data Storage Corporation.
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