Silversun Technologies, Inc. (NASDAQ:SSNT)

SilverSun Technologies (OTC:SSNT) ($4.09, $18.3M market cap), a business application, technology, and consulting company, announced the creation of a dual-shore SaaS operation partnership with CyberHat, a leading Israeli Security Operation Center. Management stated:

“In today’s data-driven world, our customers and partners are repeatedly threatened by cybersecurity threats, data breaches, and network intrusion.  Our subsidiary, SWK Technologies, has grown a network Managed Service Provider (MSP) practice, ranked 45th in the world by MSPMentor 501, that is responsible for managing the information technology infrastructure of our clients.  SilverSun’s new security offering goes well-beyond managed services to provide the highest-level security operations service available, ensuring a pro-active security posture and incident response team for our clients.”

SilverSun Technologies (OTC:SSNT) ($3.98, $17.89M market cap), a business application, technology, and consulting company, announced today that its wholly owned subsidiary, SWK Technologies, the premier total solutions provider specializing in business software solutions, has acquired  Info Sys Management, Inc. (“ISM”). The company, a leading Portland, Oregon-based reseller of Sage Software and Acumatica solutions, also provides hosting services for business applications to customers throughout the United States. The purchase price for ISM and its affiliate is $1.7 million, including $300,000 cash and a $1.4 million convertible note. The deal will be effective June 1, 2018.

Second Quarter 2017 Results

• Sales of $8.5 million vs $8.5 million in the prior year
• Non GAAP EPS of $0.05 vs $0.13

Quotes from management:

"we are witnessing the first material impact of the start of our customer's conversion from the traditional on-premise, perpetual licensing model to a software-as-a-service (SaaS) model. Perpetual licenses, which were paid in full at time of purchase, enabled us to recognize the full sales price as revenue, with a corresponding cost of goods associated with our payment to the software publisher. Under SaaS, we no longer recognize the top line revenue, but receive a commission instead (with no associated cost of goods). While this will negatively impact our top line revenue, it will not impact gross profit (at least in those instances where we receive commissions based on annualized (versus monthly) SaaS payments, which is the majority of our transactions at this point.)"

"Other elements of our business are looking strong for the balance of 2017. Our sales pipeline across all our business lines, ERP, MAPADOC (our proprietary EDI solution), and managed services, is as deep as it's ever been. The first cloud version of MAPADOC is scheduled for general release in the third quarter. We are actively seeking acquisitions and strategic partnerships, and are hopeful that we can consummate several of these transactions in the near future. All in all, we are extremely optimistic about our prospects for the balance of 2017, and look forward to continuing to deliver positive results for the benefit of all our stakeholders in the coming months and years ahead."