STOCKS TELEGRAPH

Tag: information technology

  • SolarWinds Corp. (SWI) Stock Plummets Following Announcement of Completion of Spin-Off Business

    SolarWinds Corp. (SWI) Stock Plummets Following Announcement of Completion of Spin-Off Business

    SolarWinds Corp. (SWI) stock prices were down by a massive 47.37% as of the market closing on July 19th, 2021, bringing the price per share down to USD$8.92 at the end of the trading day. Subsequent premarket fluctuations have seen the stock fall by another 37.00%, bringing it down to USD$10.66.

    Spin-Off Business

    July 20th, 2021 saw the company announce the completion of its previously announced spin-off of the SWI managed service provider (MSP) business into N-able, Inc., a standalone public company that is traded separately. With the completion of the transaction having taken place on July 19th, 2021, the newly listed spin-off company will facilitate the provision of cloud-based software solutions for managed service providers.

    Birth of N-able

    This, in turn, will allow the MSPs to support digital transformation and growth within small and medium-sized enterprises. While N-able will be listed on the New York Stock Exchange under the NABL ticker, SWI will retain control of its Core IT Management business, which will primarily focus on Providing IT infrastructure management software to corporate IT organizations.

    Financial Forecasts

    Following the company’s initial review of its financial performance for the second quarter of 2021, SWI anticipates reporting total revenue ranging from USD$260.8 million to USD$262 million. This forecast accounts of roughly 6% year-over-year growth, including the company’s Core IT Management revenue-generating USD$176 million to USD$177 million, representing a 2% year-over-year increase. GAAP net loss for the second quarter of 2021 is expected to be in the range of USD$10.4 million and USD$11.3 million.

    Private Placement Offering

    July 12th, 2021 saw the company announce having entered into a definitive agreement with various institutional accredited investors in regard to a private placement financing transaction. The transaction is expected to generate roughly USD$225 million before the deduction of expenses related to the offering. As per the agreement, the company will issue a total of 20,623,282 shares of its common stock, with each share being priced at USD$10.91. Having culminated on July 19th, 2021, N-able will diver the net proceeds generated from the offering to SolarWinds before the closing of the distribution. The capital generated is expected to be used in distribution to its stockholders, as well as to pay down existing third-party indebtedness.

    Future Outlook for SWI

    Armed with the influx of capital from the offering having resulted in a healthier balance sheet, SWI is poised to capitalize on the opportunities presented to it and its spin-off business. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate a continued trajectory of success for the company.

  • Data Storage Corp. (DTST) Stock Skyrockets Following Promising Closure of Merger with Flagship LLC

    Data Storage Corp. (DTST) Stock Skyrockets Following Promising Closure of Merger with Flagship LLC

    Data Storage Corp. (DTST) stock prices surged 24.40% on July 6th, 2021, bringing the price per share up to USD$7.29. Subsequent premarket fluctuations saw the stock skyrocket by 75.45%, bringing it up to USD$12.79.

    Merger with Flagship

    June 3rd, 2021 saw the company announce the merger of its wholly owned subsidiary, Data Storage FL, with Flagship Solutions. Flagship will continue on as the surviving combined entity, with its CEO taking over as the CEO of the combined company. The merger followed shortly after the company was uplisted to Nasdaq, with the transaction substantially expanding the services offered, thus proving highly synergetic with existing IBM operations.

    Details of the Merger

    The combined company is poised to lead the industry as a one-stop provider of multi-cloud IT solutions, which are cross-sold across relevant enterprise and middle-market customers. With more and more customers migrating to the IBM cloud, the merger came at an opportune time, with further growth expected in the market. This assumption is based on the fact that it is only recently that the IBM on-premise server market began transitioning to the cloud. The partnership will provide access to additional resources and infrastructure that will accelerate the growth of the combined company.

    Public Offering

    May 18th had seen the company announce the closing of its underwritten public offering of shares of its common stock. The offering will see the sale of 1.6 million units to the public, at a price of USD$6.75 per unit. Each unit will consist of one share of common stock and one warrant, which can be used to purchase one share of common stock, at an exercise price of USD$7.425. The shares and warrants comprising each unit were immediately separable and were issued separately, having begun trading on the Nasdaq Capital Market on May 14th 2021, under the tickers DTST and DTSTW.

    Allocation of Capital

    The company anticipates the generation of gross proceeds in the amount of USD$10.8 million. An additional USD$2,400 were generated from the exercising of the allowable overallotment option that saw the purchase of an additional 240,000 warrants at a price per warrant of USD$0.01. The funds raised are expected to be allocated towards the expansion of the company’s sales force, marketing and business development, potential acquisitions, as well as the payment of dividends.

    Future Outlook for DTST

    With the final completion of the business combination having occurred on July 6th 2021, in conjunction with the healthy liquidity position, soaring stock prices reflect the untapped potential of the combined company. Investors are hopeful for continued gains over the long-term.

  • SilverSun Technologies, Inc. (SSNT) Stock Skyrockets Following Announcement of Dividend Payment

    SilverSun Technologies, Inc. (SSNT) stock prices surged by a massive 24.26% as of the market closing on June 22nd, 2021, bringing the price per share up to USD$10.50 at the end of the trading day. Subsequent pre-market fluctuations have seen the stock dip marginally by 2.19%, bringing it down to USD$10.73.

    Implementing Dividend

    The national provider of game-changing business technology solutions announced on June 22nd, 2021 that its Board of Directors had declared the commencement of a special cash dividend on the company’s common stock. The dividend to be paid out has been set at USD$0.60 per share of the company’s common stock, with a record date of July 9th, 2021, and a payment date of July 16th, 2021.

    Sharing Profits

    As the company continues the successful implementation of their business plan, it concluded that a special cash dividend was a suitable way to reward the company’s shareholders for their continued investments and support. As the company makes more money, it plans on sharing the fruits of its labor with investors. Business conditions such as the company’s cash requirements will drive the future payment of dividends. As the company’s financial performance varies over time, the Board of Directors will accordingly adjust any future dividend payout levels.

    Financial Reports

    Total revenues for the quarter ended March 31st, 2021 were reported at USD$10,879,468, up 7.9% from the total revenue reported for the prior year quarter. Software sales exhibited a 13.3% improvement, up to USD$2,004,011 for the 2021 quarter, while services revenues were up 6.8% year-over-year to hit USD$8,875,457. Gross profit came in at USD$4,746,537 in Q1 2021, up 23.2% from the USD$3,852,210 reported in the first quarter of fiscal 2020.

    Net Income & Liquidity Position

    Net income for Q1 2021 came in at USD$354,679, representing a net income of USD$0.07 per basic and diluted share. This is a significant improvement on the USD$292,1155 reported in net loss for the year-ago quarter, representing a net loss of USD$0.06 per basic and diluted share. The company reported a strong liquidity position as of March 31st, 2021, with USD$9,356,136 in cash, USD$1,904,057 in accounts receivable, long term debt of USD$725,416, and total stockholders’ equity of USD$11,688,772.

    Future Outlook for SSNT

    Armed with a solid liquidity position, SSNT is poised to capitalize on the momentum generated from its announcement of dividends on shares of its common stock. The company is keen to continue its trajectory of success with the opportunities afforded to it from its recent surge in equity value. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • SOS Stock Dips Following Announcement of Joint Venture with Niagara Development

    SOS Stock Dips Following Announcement of Joint Venture with Niagara Development

    SOS Limited (SOS) stock prices were down by 7.30% shortly after market trading commenced on June 21st, 2021, bringing the price per share up to USD$3.36 early on in the trading day.

    Joint Venture with Niagara Development

    June 21st, 2021 saw the company announce that it had entered into a joint venture agreement with Niagara Development LLC that will be based in Niagara, Wisconsin. The joint venture FD LLC is expected to conduct crypto-currency mining operations and facilitate the construction of an international standardized Digital Super Computing Custody Operation Center.

    Specifics of the Agreement

    As per the agreement, Niagara Development will be tasked with the responsibility for the provision of 150MW of electricity and the construction of the Operation Center. The electricity to be generated will include energy generated from renewable sources. Management, operation, and financing of the joint venture is to be carried out by SOS, which is committed to its block-chain strategy and strives to become a leader of sustainability.

    Entry into American Market

    In light of the increasingly pessimistic outlook of the laws and regulations pertaining to blockchain operations in China, the company has initiated a transition of its bitcoin mining operation to the US. Most of the company’s Chinese operations are fully operational and remain unaffected as of yet. This primarily includes SOS’s insurance business, call centers, and Ethereum mining business. As the company continues to increase its development of blockchain solutions for a myriad of industries, SOS made the decision to acquire a sustainable power supply. This move comes in preparation for the expansion of the company’s blockchain operations into North America, which it has high hopes for in light of the joint venture.

    Prolific Track Record

    To date, SOS has registered a total of almost 100 software copyrights, as well as 3 patents. The company has been granted a national high-tech enterprise certification as recognition of its caliber. SOS has also been awarded the title of Big Data Star Enterprise by the Gui’an New District Government, a further indication of the company’s ability to stay at the forefront of digital technology innovation.

    Future Outlook for SOS

    Armed with its recent expansive acquisition and a bright outlook for its transition into the North American market, SOS is poised to capitalize on upcoming opportunities afforded to it. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.