Bob Scott reporting in his weekly Insights column.
Despite a 3-percent drop in product income, SilverSun Technologies reported a 12.9-percent increase in revenue for the second quarter ended June 30. Revenue for the parent of SWK Technologies was $5.9 million in the most recently ended quarter, compared to $5.3 million a year earlier. The top line got the lift from service revenue which rose to slight more than $5 million, up 16.9 percent from $4.3 million in last year’s corresponding period. Net income for the second quarter was $44,60, down 25.5 percent from $59.9 million in the prior year. The bottom line was dented by increased spending, particularly for G&A expenses which rose to $1.3 million, rising 16.9 percent from $1.1 million. In a prepared statement, Mark Meller, CEO of SilverSun, said, “Our focus in the coming months will be to increase our operating margins by rationalizing our expenses with our current level of sales.” The company’s SEC filing was clear in describing factors behind a rise in software sales and an increase in G&A spending for the first half, but was not as clear on the causes for the drop in product revenue and increased spending in the second quarter. For the half, net income was $565,768, three time the $180,631 in the first half of 2014. Revenue for the most recently ended half was $12.4 million, up 22 percent from $10.2 million a year earlier. The company said G&A spending in the half rose primarily as a result of increases in payroll and related expenses associated with the addition of management personnel and incremental costs associated with the acquisition of two resellers. First half product revenue was attributed to ” sales of our accounting software products, such as Sage ERP X3, cloud solutions NetSuite and Acumatica, and Accellos Warehouse Management.” Can we assume any products not cited by name did not do as well?