Watch for continued merger and acquisition activity from SilverSun Technologies – a company whose primary asset is Sage partner SWK Technologies.
In a letter to shareholders released today , Chairman, President and CEO Mark Meller summarizes the past year’s financial results as well as outlines plans for the company to grow from $18 million in size to “more than $50 million in the next 18 months”.
This level of public confidence seems to imply SilverSun Technologies believes they may be able to merge with or acquire one or more top Sage partners.
Scanning down the Bob Scott – BSI 2014 Top 100 VARS – that could make the leading candidates (top largely pure-play Sage partners) Net@Work ($34 million), Blytheco ($25 million), or ADSS ($25.8 million). It’s also possible that SilverSun could diversify outside the Sage realm however recent acquisitions have largely been with partners who mostly specialize in Sage.
Among the interesting highlights of SilverSun’s shareholder letter:
- The company’s professional services group has a backlog of over 6000 hours booked.
- The company has, over the last 4 years, grown at a compound annual growth rate of 32%.
- Recurring revenue was equal to roughly 36% of revenue in 2013.
LIVINGSTON, NJ, Jun 09, 2014 (Marketwired via COMTEX) — SilverSun Technologies, Inc. SSNT +8.63% (otcqb:SSNT), a national provider of transformational business technology solutions and services, today released the following letter to shareholders.
Dear Fellow Shareholders, Employees, Business Partners and Friends,
SilverSun Technologies is committed to keeping you updated on the progress of the company, and by extension, the value of your investment. Since we last communicated with you, I am pleased to report that our team, now 86 employees strong, continues to execute its business plan while exceeding previously set goals and milestones.
It’s important to note that SilverSun is nothing short of a team effort. I have the privilege of working alongside a team of amazing, dedicated and talented people, who, by their very nature, refuse to accept mediocrity, much less failure as an outcome to any challenge. Like me, they are unwaveringly committed to the pursuit of building sustainable shareholder value.
Importantly, like you, our employees are substantial shareholders in the company. Our employees, excluding myself, own more than 40% of the company. This directly aligns their interests with those of our outside shareholders. Their honesty, integrity, and yeoman efforts are directly responsible for increasing the size of our business, delivering profitable results, and enabling the seamless integration of acquired companies. I thank them all.
Among our most notable achievements over the last 24 months, I would like to emphasize:
— The company reported sales of $17.4 million in 2013, an increase of
32% over our 2012 results. Net income increased to $322,548 in 2013.
— The company maintains a strong balance sheet. As of 3/31/14, the
company had only $62,522 in long term debt, and a balance of zero on
its $750,000 line of credit.
— The company reported sales of $4.9 million in the first quarter of
2014, an increase of $880,000, or 21.75%, over the year earlier
period. In addition, we reported pre-tax income of $191,652 in Q1, an
increase of $76,122, or 65.9%, over the same period in 2012.
— The company has, over the last 4 years, grown at a compound annual
growth rate of 32%.
— Recurring revenue was equal to roughly 36% of revenue in 2013.
— The company has completed 6 acquisitions over the past 30 months. The
most recent acquisition closed on May 1, 2014. That company, ESC
Software, had sales of roughly $1.7 million in 2013. We paid for that
acquisition by issuing a five year note for $350,000.
— The company’s intellectual property portfolio has grown to 20
proprietary solutions, including our EDI product, MAPADOC. The number
of end users of MAPADOC has roughly doubled in the past 4 years, and
continues to grow. We also entered into our first international
distribution agreement for MAPADOC to be sold in Australia.
— The company’s proprietary SAAS solution, BeerRun, has taken the craft
beer brewing industry by storm. In the two short years since its
introduction, BeerRun is now among the most widely used products for
the management of brewing operations within the craft beer industry.
— The company’s managed services division, which provides disaster
recovery, business continuity, and 24/7/365 remote network monitoring
for our client’s networks, continues to rapidly expand, delivering 45%
growth in 2013.
— The company’s professional services group has a backlog of over 6000
Although we have much to be thankful for and certainly to be prideful of, there remains much hard work ahead of us if we are to fully capitalize on key emerging industry trends and on the numerous growth and expansion opportunities being presented to us on a regular basis. Towards that end, we have set our goal on growing our annual revenues to more than $50 million in the next 18 months.
By building on our successes, effectively addressing any perceived weaknesses, and implementing new business development strategies with forethought and purpose, we are confident in our ability to accelerate SilverSun’s future growth and win enduring leadership in the business management solutions and consulting industry.
I want to reemphasize how excited and optimistic I am about the future of SilverSun Technologies. We are implementing strategies that will empower us to continue scaling our business by attracting highly talented people who are inspired to think outside of the box while establishing entirely new standards of excellence for our industry.
In closing, I’d like to use this opportunity to give my sincere thanks to our shareholders. We recognize that through your investment in the company, you are expressing your confidence in our ability to execute; and we take that responsibility to heart and intend to be relentless in our pursuit to deliver.
Sincerely, SILVERSUN TECHNOLOGIES, INC.
Mark Meller Chairman, President and Chief Executive Officer
About SilverSun Technologies, Inc.
Headquartered in Livingston, New Jersey, SilverSun Technologies is involved in the acquisition and build-out of technology and software companies engaged in providing best of breed management applications and professional consulting services to small and medium size businesses (SMBs) in the manufacturing, distribution and service industries. Serving as SilverSun’s principal operating subsidiary, SWK Technologies, Inc. employs national direct and channel sales teams, and a consulting team, all of which serve a growing customer base spanning the United States and Canada. For more information, please visit www.silversuntech.com , www.swktech.com or www.mapadoc.com .
This press release may contain forward-looking statements, including information about management’s view of SilverSun Technologies’ future expectations, plans and prospects. In particular, when used in the preceding discussion, the words “believes,” “expects,” “intends,” “plans,” “anticipates,” or “may,” and similar conditional expressions are intended to identify forward-looking statements. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of SilverSun Technologies, its subsidiaries and concepts to be materially different than those expressed or implied in such statements. Unknown or unpredictable factors also could have material adverse effects on SilverSun Technologies’ future results. The forward-looking statements included in this press release are made only as of the date hereof. SilverSun Technologies cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, SilverSun Technologies undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by SilverSun Technologies.