This sale was made to satisfy tax withholding obligations, as stated on file. Following the transaction, Kempster retains ownership of 829,583 shares in the company. The small-cap, $35M company maintains strong financial health with a current ratio of 4.8x and positive earnings. InvestingPro Subscribers can access 12 additional investment tips and a comprehensive professional research report to gain deeper insights into DTST's valuation and growth prospects. The small-cap, $35M company maintains strong financial health with a current ratio of 4.8x and positive earnings. InvestingPro Subscribers can access 12 additional investment tips and a comprehensive professional research report to gain deeper insights into DTST's valuation and growth prospects. This sale was made to satisfy tax withholding obligations, as stated on file. Following the transaction, Kempster retains ownership of 829,583 shares in the company.
In other recent news, the data storage company reported a slight decline in third-quarter revenue for fiscal 2024, with revenue totaling $5.8 million, down 3% year-over-year, primarily due to lower one-time equipment sales. However, the company saw growth in recurring subscription revenue and a rise in gross margin to 43.2%, compared to 38.9% a year earlier. Despite declining revenues, the company has secured major contracts in the insurance, healthcare and education sectors, and plans to expand into the UK.
The company's CloudFirst business is expected to generate more than $20 million in recurring revenue for 2025. Data Storage Corporation ended the third quarter with $11.9 million in cash and marketable securities, with no long-term debt. The company also announced a 29% increase in disaster recovery infrastructure and cloud services.
The management team maintains an optimistic outlook on growth and profitability, with 2025 service renewals expected to exceed $20 million. The company's CEO, Chuck Peluso, confirmed that 95-96% of committed customers have moved to cloud subscriptions, indicating a strategic shift towards building a more stable revenue stream. These are among the latest developments of Data Storage Corporation.
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