Data storage corporation targets $21.5M annual recurring revenue with international expansion
Management Insights: Data Storage Corporation reported a total revenue of $25.4 million for FY 2024, with a significant focus on recurring revenue streams, particularly from cloud infrastructure and disaster recovery services, which accounted for over half of the total revenue. The company also launched CloudFirst Europe Limited to expand into the European market.
Financial Performance and Outlook: The company achieved a 71% increase in net income to $513,000 and improved adjusted EBITDA to $2.4 million. Management anticipates continued growth in recurring revenues and expects its U.K. operations to break even by January 2026, despite concerns raised by analysts regarding operational costs and market execution.
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DATA STORAGE CORPORATION RELEASES FINAL OUTCOMES OF TENDER OFFER
Final Results Announcement: Data Storage Corporation has announced the final results of its tender offer.
Tender Offer Details: The announcement includes specifics about the number of shares accepted and the overall response from shareholders.
Data Storage Corporation Indicates Strategic M&A Approach and Aims for $10M–$15M Cash Reserve After CloudFirst Sale
Management Insights: Data Storage Corporation's CEO, Charles Piluso, described Q3 2025 as a transformative period following the $40 million sale of the CloudFirst subsidiary, which allows the company to focus on long-term shareholder value and disciplined growth under the new strategy, DSC 2.0.
Financial Performance: The company reported a 28.2% increase in sales from its continuing operations, totaling $417,000 for the quarter, while net income for the quarter reached $16.8 million, primarily due to gains from discontinued operations.
Future Outlook: Management is focused on completing a tender offer and share buyback process, with expectations of finalizing cash positions between $5 million and $15 million, and is exploring strategic acquisitions in emerging technology sectors like AI and cybersecurity.
Analyst Sentiment: Analysts expressed skepticism regarding cash forecasts and the sustainability of current expenses, while management maintained a confident tone, emphasizing transparency and a disciplined approach to capital allocation and acquisition strategies.
