Data Storage Corporation Achieves Profitability for the First Quarter of 2023

MELVILLE, N.Y., May 15, 2023 (GLOBE NEWSWIRE) -- Data Storage Corporation (Nasdaq: DTST) (“DSC” and the “Company”), a provider of diverse business continuity solutions for disaster-recovery, cloud infrastructure, cyber security, and IT services, today provided a business update and reported financial results for the three months ended March 31, 2023.

Chuck Piluso, CEO of Data Storage Corporation, commented, “We are implementing a number of strategic business initiatives that are expected to further accelerate growth, such as expanding our dedicated sales teams, hosting revenue-driven sales events, expanding our channel partner programs, and increasing our international footprint through strategic partnerships. At the same time, we remain focused on streamlining operations and consolidating redundant business expenses. By executing on these initiatives, while focusing our efforts on long-term, high-margin, subscription-based contracts, we believe we can achieve sustained profitability and maximize returns for our shareholders.”

“Towards this end, I’m pleased to report we achieved profitability for the first quarter of 2023 on $6.9 million in revenue. We decreased our selling, general and administrative expenses by 13%, as a result of reallocating resources and eliminating redundancies. With approximately $11 million of cash and short-term investments, and no debt, we believe we are well capitalized with a solid balance sheet and poised for rapid organic growth.”

Conference Call

The Company plans to host a conference call at 10:00 am ET today, May 15, 2023, to discuss the Company's financial results for the first quarter of 2023 which ended March 31, 2023, as well as corporate progress and other developments.

The conference call will be available via telephone by dialing toll-free 877-451-6152 for U.S. callers or for international callers 1-201-389-0879. A webcast of the call may be accessed at, or on the Company’s News & Events section of the website,

A webcast replay of the call will be available on the Company’s website ( through May 15, 2024. A telephone replay of the call will be available approximately three hours following the call, through May 22, 2023, and can be accessed by dialing 844-512-2921 for U.S. callers or + 1-412-317-6671 for international callers and entering conference ID: 13738533. 

About Data Storage Corporation
Data Storage Corporation (Nasdaq: DTST) is a family of fully integrated cyber security, cloud infrastructure, and voice & data companies, built around investments in proprietary IT solutions for a broad range of domestic and global customers, including Fortune 500 clients, across a wide range of industries, such as government, education, and healthcare, with a focus on the rapidly growing, multi-billion-dollar business continuity market. A stable and emerging growth leader in cloud infrastructure support, DTST companies operate regional data center facilities across North America, sustainably servicing clients via recurring subscription agreements.  Additional information about the Company is available at: and on Twitter (@DataStorageCorp).

Safe Harbor Provision
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created thereby. Forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to have been correct. These risks should not be construed as exhaustive and should be read together with the other cautionary statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it was initially made. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or otherwise.

Crescendo Communications, LLC
SOURCE: Data Storage Corporation

[Tables follow]


    March 31, 2023   December 31, 2022
Current Assets:              
Cash and cash equivalents   $ 1,882,039     $ 2,286,722
Accounts receivable (less allowance for credit losses of $31,136 and $27,250 in 2023 and 2022, respectively)     3,671,170       3,502,836
Marketable securities     9,114,391       9,010,968
Prepaid expenses and other current assets     878,460       584,666
Total Current Assets     15,546,060       15,385,192
Property and Equipment:              
Property and equipment     7,597,462       7,168,488
Less—Accumulated depreciation     (5,177,980 )     (4,956,698
Net Property and Equipment     2,419,482       2,211,790
Other Assets:              
Goodwill     4,238,671       4,238,671
Operating lease right-of-use assets     175,842       226,501
Other assets     65,736       48,437
Intangible assets, net     1,905,914       1,975,644
Total Other Assets     6,386,163       6,489,253
Total Assets   $ 24,351,705     $ 24,086,235
Current Liabilities:              
Accounts payable and accrued expenses   $ 3,699,246     $ 3,207,577
Deferred revenue     309,273       281,060
Finance leases payable     308,180       359,868
Finance leases payable related party     454,115       520,623
Operating lease liabilities short term     143,480       160,657
Total Current Liabilities     4,914,294       4,529,785
Operating lease liabilities     36,733       71,772
Finance leases payable     192,666       281,242
Finance leases payable related party     139,285       256,241
Total Long Term Liabilities     368,684       609,255
Total Liabilities     5,282,978       5,139,040
Commitments and contingencies (Note 6)          
Stockholders’ Equity:              
Preferred stock, Series A par value $.001; 10,000,000 shares authorized; 0 and 0 shares issued and outstanding in 2023 and 2022, respectively          
Common stock, par value $.001; 250,000,000 shares authorized; 6,834,627 and 6,822,127 shares issued and outstanding in 2023 and 2022, respectively     6,835       6,822
Additional paid in capital     39,068,896       38,982,440
Accumulated deficit     (19,836,712 )     (19,887,378
Total Data Storage Corp Stockholders' Equity     19,239,019       19,101,884
Non-controlling interest in consolidated subsidiary     (170,292 )     (154,689
Total Stockholder’s Equity     19,068,727       18,947,195
Total Liabilities and Stockholders' Equity   $ 24,351,705     $ 24,086,235


    Three Months Ended March 31,
    2023   2022
Sales   $ 6,879,723     $ 8,657,199  
Cost of sales     4,789,978       6,011,289  
Gross Profit     2,089,745       2,645,910  
Selling, general and administrative     2,130,759       2,459,866  
Income (Loss) from Operations     (41,014 )     186,044  
Other Income (Expense)                
Interest income (expense), net     76,077       (42,660 )
Total Other Income (Expense)     76,077       (42,660 )
Income before provision for income taxes     35,063       143,384  
Benefit from income taxes            
Net Income     35,063       143,384  
Non-controlling interest in consolidated subsidiary     15,603       12,626  
Net Income Attributable to Common Stockholders   $ 50,666     $ 156,010  
Earnings per Share – Basic   $ 0.01     $ 0.02  
Earnings per Share – Diluted   $ 0.01     $ 0.02  
Weighted Average Number of Shares - Basic     6,822,127       6,695,966  
Weighted Average Number of Shares - Diluted     6,954,320       6,955,900  


    Three Months Ended March 31,
    2023   2022
Cash Flows from Operating Activities:              
Net Income   $ 35,063     $ 143,384
Adjustments to reconcile net income to net cash provided by operating activities:              
Depreciation and amortization     288,710       351,338
Stock based compensation     86,469       66,505
Changes in Assets and Liabilities:              
Accounts receivable     (168,334 )     (1,140,097
Other assets     (17,300 )     25,180
Prepaid expenses and other current assets     (293,794 )     (719,842
Right of use asset     50,659       47,962
Accounts payable and accrued expenses     491,669       2,991,981
Deferred revenue     28,213       (74,409
Operating lease liability     (52,216 )     (48,179
Net Cash Provided by Operating Activities     449,139       1,643,823
Cash Flows from Investing Activities:              
Capital expenditures     (426,671 )     (25,946
Purchase of short-term investments     (103,423 )    
Net Cash Used in Investing Activities     (530,094 )     (25,946
Cash Flows from Financing Activities:              
Repayments of finance lease obligations related party     (183,464 )     (274,393
Repayments of finance lease obligations     (140,264 )     (65,515
Cash received for the exercised of options           6,935
Net Cash Used in Financing Activities     (323,728 )     (332,973
Increase (decrease) in Cash and Cash Equivalents     (404,683 )     1,284,904
Cash and Cash Equivalents, Beginning of Period     2,286,722       12,135,803
Cash and Cash Equivalents, End of Period   $ 1,882,039     $ 13,420,707
Supplemental Disclosures:              
Cash paid for interest   $ 24,863     $ 41,040
Cash paid for income taxes   $     $
Non-cash investing and financing activities:              
Assets acquired by finance lease   $     $ 881,308

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Source: Data Storage Corp.