Data Storage Corporation Reports 42% Increase in Revenue for the Third Quarter of 2021

Management to host conference call today, November 15 at 11:30AM Eastern Time

MELVILLE, N.Y., Nov. 15, 2021 (GLOBE NEWSWIRE) -- Data Storage Corporation (Nasdaq: DTST) (“DSC” and the “Company”), a provider of diverse business continuity, disaster recovery protection, IBM Power infrastructure-as-a-service, cyber-security based and data analytics solutions, today provided a business update and reported its financial results for the third quarter ended September 30, 2021.

Chuck Piluso, CEO of Data Storage Corporation, commented, “I’m pleased to report revenue for the third quarter increased 42% compared to the same period last year, and we continue to generate positive net income, while investing in the future growth of the Company. We saw a meaningful increase in sales across Infrastructure & Disaster Recovery/Cloud Services, which increased 27%; an increase in Managed Services; and Nexxis VoIP services, which increased 17%. This increase was partially offset by a decline in Equipment and Software, reflecting our focus on recurring and high margin cloud-based subscription services. Our solid results for the quarter are a direct reflection of our new sales and marketing strategy, as well as the continued growth and synergies that are being realized from the recent Flagship merger.”

“We continue to expand our offerings, as illustrated by the recent partnership with Precisely, a global leader in data integrity and security software solutions, providing us new and valuable opportunities within the market. As more companies migrate their businesses to the cloud, there is an increasing need for solutions that prioritize privacy and compliance adherence. Precisely has proven to be an ideal partner to enhance our IBM i ezSecurity solution, as evidenced by the increased demand and new sales opportunities.”

“Overall, with our new capital we are investing in our organic growth, including new employees and marketing campaigns. We are establishing special incentives for cross selling our solutions between our three subsidiaries and leveraging our distribution channels. We believe we are positioned for solid organic growth in 2022 creating the baseline of subscription recurring revenue for futures years and continuing our high contract renewal rate of 94%. Our primary objectives going into 2022 are to establish more accretive partnerships and to increase our sales presence across all our product lines. At the same time, we have maintained a strong balance sheet with approximately $12.9 million of cash and cash equivalents as of September 30, 2021. Our cash position enables us to execute on our growth strategy as well as explore opportunistic acquisitions that would enhance our offerings. Looking ahead, we believe we are on track to make considerable progress towards achieving our goals and look forward to providing further updates as developments unfold.”

Financial Results

Revenue for the three months ended September 30, 2021 was $3.86 million, an increase of 42%, compared to $2.72 million for the three months ended September 30, 2020. The increase was primarily attributable to additional sales from the Flagship merger and an increase in monthly subscription revenues.

Selling, general and administrative expenses for the three months ended September 30, 2021 were $2.02 million compared to $1.02 million for the three months ended September 30, 2020. The increase in expenses was primarily attributable to increases in salaries, professional fees, advertising expenses, commission expenses, and interest expenses.

Net income attributable to common shareholders for the three months ended September 30, 2021 was $0.14 million, or $0.02 per share, as compared to $0.01 million, or $0.00 per share, for the three months ended September 30, 2020.

Conference Call

The Company plans to host a conference call at 11:30 am Eastern Time today, November 15, 2021 to discuss the Company’s financial results for the third quarter ended September 30, 2021 as well as corporate progress and other developments.

The conference call will be available via telephone by dialing toll free 888-506-0062 for U.S. callers or for international callers +1 973-528-0011 and using entry code: 737560. A webcast of the call may be accessed at, or on the Company’s Investor Relations section of the website,

A webcast replay of the call will be available on the Company’s Investor Relations section of the website ( through November 15, 2022. A telephone replay of the call will be available approximately one hour following the call, through November 29, 2021 and can be accessed by dialing 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering conference ID: 43671.

About Data Storage Corporation

The Company delivers and supports a broad range of premium technology solutions focusing on IaaS, data storage protection and IT management. Clients look to Data Storage to ensure disaster recovery, business continuity, enhance security, and to meet increasing industry, state and federal regulations. The Company markets to businesses, government, education and the healthcare industry by leveraging leading technologies. Through its business units, the Company provides IaaS, SaaS, DRaaS, VoIP, cyber security, data analytics, IBM Power systems and storage hardware with managed IT services. For more information, please visit

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, 2020, 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***


    September 30, 2021   December 31, 2020
Current Assets:                
Cash and cash equivalents   $ 12,889,032     $ 893,598  
Accounts receivable (less allowance for doubtful accounts of $19,896 and $30,000 in 2021 and 2020, respectively)     1,837,053       554,587  
Prepaid expenses and other current assets     521,958       239,472  
Total Current Assets     15,248,043       1,687,657  
Property and Equipment:                
Property and equipment     6,443,075       7,845,423  
Less—Accumulated depreciation     (4,406,987 )     (5,543,822 )
Net Property and Equipment     2,036,088       2,301,601  
Other Assets:                
Goodwill     6,610,021       3,015,700  
Operating lease right-of-use assets     469,643       241,911  
Other assets     72,153       49,310  
Intangible assets, net     2,355,463       455,935  
Total Other Assets     9,507,280       3,762,856  
Total Assets   $ 26,791,411     $ 7,752,114  
Current Liabilities:                
Accounts payable and accrued expenses   $ 1,287,525     $ 979,552  
Dividend payable           1,115,674  
Deferred revenue     379,526       461,893  
Line of credit     50,000       24  
Finance leases payable     177,175       168,139  
Finance leases payable related party     805,890       1,149,403  
Operating lease liabilities short term     204,598       104,549  
Note payable           374,871  
Total Current Liabilities     2,904,714       4,354,105  
Note payable long term           107,106  
Deferred tax liability long term     429,619        
Operating lease liabilities long term     274,702       147,525  
Finance leases payable, long term     126,645       247,677  
Finance leases payable related party, long term     482,069       974,743  
Total Long Term Liabilities     1,313,035       1,477,051  
Total Liabilities     4,217,749       5,831,156  
Stockholders' Equity:                
Preferred stock, Series A par value $.001; 10,000,000 shares authorized; 0 and 1,401,786 shares issued and outstanding in 2021 and 2020, respectively           1,402  
Common stock, par value $.001; 250,000,000 shares authorized; 6,692,742 and 3,213,486 shares issued and outstanding in 2021 and 2020, respectively     6,693       3,213  
Additional paid in capital     38,189,610       17,745,785  
Accumulated deficit     (15,521,578 )     (15,734,737 )
Total Data Storage Corp Stockholders' Equity     22,674,725       2,015,663  
Non-controlling interest in consolidated subsidiary     (101,063 )     (94,705 )
Total Stockholder's Equity     22,573,662       1,920,958  
Total Liabilities and Stockholders' Equity   $ 26,791,411     $ 7,752,114  


    Three Months Ended September 30,   Nine Months Ended September 30,
    2021   2020   2021   2020
Sales   $ 3,860,258     $ 2,723,532     $ 9,963,198     $ 6,827,867  
Cost of sales     2,167,622       1,621,008       5,609,845       3,977,546  
Gross Profit     1,692,636       1,102,524       4,353,353       2,850,321  
Selling, general and administrative     2,024,304       1,017,863       4,745,022       2,882,755  
Income (loss) from Operations     (331,668 )     84,661       (391,669 )     (32,434 )
Other Income (Expense)                                
Interest income     1       1       5       21  
Interest expense     (15,727 )     (42,727 )     (97,397 )     (132,866 )
Gain on contingent liability                       350,000  
Loss on sale of equipment                 (29,732 )      
Gain on forgiveness of debt     481,977             789,277        
Total Other Income (Expense)     466,251       (42,726 )     662,153       217,155  
Income before provision for income taxes     134,583       41,935       270,484       184,721  
Provision for income taxes                        
Net Income     134,583       41,935       270,484       184,721  
Non-controlling interest in consolidated subsidiary     1,047       4,283       6,358       17,833  
Net Income attributable to Data Storage Corp     135,630       46,218       276,842       202,554  
Preferred Stock Dividends           (36,650 )     (63,683 )     (105,877 )
Net Income Attributable to Common Stockholders   $ 135,630     $ 9,568     $ 213,159     $ 96,677  
Earning per Share – Basic   $ 0.02     $ 0.00     $ 0.05     $ 0.03  
Earning per Share – Diluted   $ 0.02     $ 0.00     $ 0.05     $ 0.03  
Weighted Average Number of Shares - Basic     6,350,826       3,213,485       4,530,188       3,212,821  
Weighted Average Number of Shares - Diluted     6,482,577       3,383,499       4,720,546       3,365,675  


    Nine Months Ended September 30,
    2021   2020
Cash Flows from Operating Activities:                
Net Income   $ 270,484     $ 184,721  
Adjustments to reconcile net income to net cash provided by operating activities:                
Depreciation and amortization     947,669       754,243  
Stock based compensation     120,251       116,557  
Gain on forgiveness of debt     (789,277 )      
Gain on contingent liability           (350,000 )
Loss on sale of equipment     29,732        
Changes in Assets and Liabilities:                
Accounts receivable     106,797       (241,675 )
Other assets     (344 )     16,125  
Prepaid expenses and other current assets     (154,912 )     (98,874 )
Right of use asset     (227,732 )     61,233  
Accounts payable and accrued expenses     (206,384 )     252,717  
Deferred revenue     (151,103 )     61,687  
Deferred tax liability     (19,362 )      
Deferred rent            
Operating lease liability     227,226       (60,647 )
Net Cash Provided by Operating Activities     153,045       696,087  
Cash Flows from Investing Activities:                
Capital expenditures     (418,422 )     (164,796 )
Cash acquired in business acquisition     212,068        
Cash consideration for business acquisition     (6,149,343 )      
Net Cash Used in Investing Activities     (6,355,697 )     (164,796 )
Cash Flows from Financing Activities:                
Proceeds from issuance of note payable           481,977  
Proceeds from line of credit     50,000        
Repayments of finance lease obligations related party     (886,188 )     (641,170 )
Repayments of finance lease obligations     (111,995 )     (24,320 )
Proceeds from issuance of common stock and warrants     16,944,380        
Cash received for the exercise of Warrants     3,381,270        
Cash received for the exercised of options           5,400  
Repayments of Dividend payable     (1,179,357 )      
Repayment of line of credit     (24 )     (74,976 )
Net Cash Provided by (Used) in Financing Activities     18,198,086       (253,089 )
Increase in Cash and Cash Equivalents     11,995,434       278,202  
Cash and Cash Equivalents, Beginning of Period     893,598       326,561  
Cash and Cash Equivalents, End of Period   $ 12,889,032     $ 604,763  
Supplemental Disclosures:                
Cash paid for interest   $ 92,779     $ 124,297  
Cash paid for income taxes   $     $  
Non-cash investing and financing activities:                
Accrual of preferred stock dividend   $ 63,683     $ 105,877  
Assets acquired by finance lease   $ 50,000     $ 808,261  

Primary Logo

Source: Data Storage Corp.