Data Storage Corporation (DSC), headquartered in Melville, New York, reported its financial results for the three and nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period.

For the three months ended September 30, 2024, DSC generated total sales of $5.8 million, a decrease of 3% from $6.0 million in the same period of 2023. This decline was attributed to lower one-time equipment and software sales, alongside a decrease in managed services. However, revenue from Infrastructure & Disaster Recovery/Cloud Services increased, contributing to a higher gross profit of $2.5 million, up from $2.3 million year-over-year. Despite this, the company reported a loss from operations of $25,830, a significant drop from a profit of $14,141 in Q3 2023.

For the nine months ended September 30, 2024, total sales rose to $19.0 million, reflecting a 1% increase from $18.8 million in the prior year. This growth was primarily driven by a 29% increase in Infrastructure & Disaster Recovery/Cloud Services, which offset declines in other areas. Gross profit for the nine-month period also improved to $7.9 million from $7.0 million in 2023. However, the company reported a loss from operations of $200,821, compared to a profit of $79,871 in the same period last year. Net income for the nine months was $222,825, down from $398,839 in 2023.

Cash and cash equivalents saw a significant decline, ending at $513,718 as of September 30, 2024, compared to $1.4 million at the end of 2023. The company’s net cash provided by operating activities also decreased to $552,590 from $2.2 million in the prior year.

Strategically, DSC has made notable moves, including the merger of its subsidiary CloudFirst Technologies with Flagship Solutions LLC on January 1, 2024, to streamline operations. The company also formed UK Cloud Host Technologies Ltd. in August 2024 to expand its presence in Europe, with operational data centers expected to be ready by January 2025.

In terms of expenses, selling, general, and administrative costs increased by 17% for the nine-month period, driven by higher salaries, professional fees, and advertising expenses. The company also reported an increase in share-based compensation expenses, reflecting its ongoing investment in employee incentives.

Overall, while DSC experienced growth in certain service areas, challenges in equipment sales and operational losses have impacted its financial performance in 2024.