DSS Announces Second Quarter 2019 Financial Result
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Posted On: 08/14/2019 9:29:33 AM
DSS Announces Second Quarter 2019 Financial Results
ROCHESTER, N.Y., Aug. 13, 2019 (GLOBE NEWSWIRE) -- DSS (NYSE American SS) (the "Company" , a leader in anti-counterfeit, authentication, and diversion protection technologies whose products and solutions are used by governments, corporations and financial institutions to defeat fraud and to help ensure product authenticity, today announced its financial results for the second quarter ended June 30, 2019.
Second Quarter 2019 Business Highlights and Recent Developments
August 2019 - DSS adds two independent directors, Mr. Jose' Escudero and Mr. Samson Lee to its Board of Directors
July 2019 - DSS releases blockchain tracking and authentication technology "Sentinel" to combat unauthorized sellers, map violators and retail arbitrage within Amazon Marketplace
July 2019 - DSS appoints Jason Grady as Chief Operating Officer
June 2019 - DSS prices $5.6 million underwritten public offering of common stock
June 2019 - DSS BioHealth Security, Inc. announces the addition of Daryl Thompson and Dr. Roscoe Moore to advisory team
May 2019 - Established new business divisions for strategic global expansion
May 2019 - Added new independent directors, John "JT" Thatch, Brett Scott and Stan Grisham to DSS Board of Directors
April 2019 - Announced brand protection agreement with Market Defense, LLC
March 2019 - Mr. Heng Fai Ambrose Chan named DSS Chairman of the Board of Directors
March 2019 - DSS and Zappar, Ltd. partner to combine proprietary technologies to Inform, Engage and Protect
"As we reach the half-way point of our fiscal year, I am pleased with the progress we are making relative to the execution of our business plan. We have realized a comparable quarter increase of nearly 34% in our Technology sales, services, and licensing revenue, and I am particularly encouraged with our continued growth performance as it relates to DSS' flagship product, AuthentiGuard," stated Frank D. Heuszel, CEO of DSS.
"Overall, DSS revenues are up by almost 5.5% for the first six-months of 2019, and we continue to be optimistic about even further growth opportunities for the remainder of the year and beyond. Further, the Company continues to identify potential operational and cost savings while we are simultaneously aligning resources to support and build a foundation for strategic growth opportunities. Furthermore, in June 2019, we completed a successful capital raise which netted approximately $4.9 million. The proceeds therefrom will be directed toward addressing pent-up Printed product customer demand and the marketing and sales of our AuthentiGuard product and associated anti-counterfeiting and brand protection technologies. There is a focused commitment by all members of the DSS team to increase our market share, customer base and financial performance, the results of which, we believe, will provide measurable value to our shareholders," added Heuszel.
Second Quarter 2019 Financial Highlights
Revenues for the six-months ended June 30, 2019, as compared to the same period of 2018, increased from $8.5 million to $8.9 million representing an increase of approximately 5.5%. This revenue growth for the period was primarily driven by an increase in the sales of Printed products of approximately 4.0%, predominantly due to increased packaging sales. Technology sales, services and licensing revenue also grew for the same comparative period by over 14.0% primarily resulting from increased AuthentiGuard sales.
For the three-months ended June 30, 2019, total revenue remained relatively steady at approximately $4.1 million as compared to the same three-months ended June 30, 2018. While revenues from the sale of Printed products decreased by 3% during the three-months ended June 30, 2019, as compared to the same period in 2018, the Technology sales, services and licensing revenues increased by nearly 34% during the same comparative three-months ended June 30, 2019. The decline in Printed products revenues is primarily due to a decline in vinyl card sales. The increase in technology sales is primarily due to increased AuthentiGuard sales.
Costs of goods sold increased by 5.0% and 13.0%, respectively, during the three and six-months ended June 30, 2019, as compared to the same periods in 2018, representing an increase in outside services used by our technology group, coupled with an increase in material costs as a percentage of the printed products groups' total direct costs.
For the three and six months-ended June 30, 2019, the Company recorded net loss of approximately $1.0 million ($0.05 per share) and $1.5 million ($0.07 per share), respectively, as compared to net income of $2.7 million ($0.16 per share) and $2.3 million ($0.14 per share), respectively, during the same periods in 2018. The increase in operating losses incurred during the three and six months ended June 30, 2019 as compared to the same periods in 2018 is due primarily to an approximate $3.5 million gain on extinguishment of debt recorded in Q2 2018 as well as an increase in direct costs as a percentage of sales at the Company's printed products divisions, an increase in professional fees, and an increase in costs associated with the Company's expansion into Asia.
The Company recorded an Adjusted EBITDA1 loss of ($724,000) for the six-months ended June 30, 2019 as compared to positive Adjusted EBITDA of $3,160,000 for the six-months ended June 30, 2018. The decline in Adjusted EBITDA was driven by increased cost of sales for the printed products group, as well as the $3.5M gain on extinguishment of debt recorded in Q2 2018.
A full analysis of results for the quarter ended June 30, 2019 is available in the Company's Form 10-Q which was filed on August 13, 2019 and is available on the Company's website at www.dsssecure.com or through the Securities and Exchange Commission's Edgar database at https://www.sec.gov/ .
ABOUT DOCUMENT SECURITY SYSTEMS, INC.
For over 16 years, Document Security Systems, Inc. ("DSS" has protected corporations, financial institutions, and governments from sophisticated and costly fraud. DSS' innovative anti-counterfeit, authentication, and brand protection solutions are deployed to prevent attacks which threaten products, digital presence, financial instruments, and identification. AuthentiGuard®, the Company's flagship product, provides authentication capability through a smartphone application so businesses can empower a wide range of employees, supply chain personnel, and consumers to track their brands and verify authenticity. For more information on DSS and its integrated operating divisions, visit DSS at www.dsssecure.com, Premier Printing Corporation at www.premiercustompkg.com and DSS Plastics Group at http://dssplasticsgroup.com/.
Keep up to date on DSS events and developments, join our online communities at Facebook, Twitter and LinkedIn.
Contact Information:
Investor Relations
Document Security Systems, Inc.
Tel: (585) 232-5440
Email: ir@dsssecure.com
FORWARD-LOOKING STATEMENTS
Forward-looking statements that may be contained in this press release, including, without limitation, statements related to the Company's plans, strategies, objectives, expectations, potential value, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act and contain words such as "believes," "anticipates," "expects," "plans," "intends" and similar words and phrases. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the results projected in any forward-looking statement. In addition to the factors specifically noted in the forward-looking statements, other important factors, risks and uncertainties that could result in those differences include, but are not limited to, our ability to continue the growth in sales of AuthentiGuard and manage our expenses, as well as those risks disclosed in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2018, filed with the Securities and Exchange Commission on March 15, 2019. Forward-looking statements that may be contained in this press release are being made as of the date of its release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements.
DOCUMENT SECURITY SYSTEMS, INC. AND SUBSIDIARIESConsolidated Balance SheetsAs of(unaudited) June 30, 2019 December 31, 2018 ASSETS Current assets: Cash and cash equivalents $5,321,344 $2,317,659 Restricted cash 50,266 130,326 Accounts receivable, net of $50,000 allowance for doubtful accounts 2,564,178 2,217,877 Inventory 1,272,111 1,563,593 Prepaid expenses and other current assets 256,048 285,580 Total current assets 9,463,947 6,515,035 Property, plant and equipment, net 4,854,786 5,014,494 Investment 324,930 324,930 Other assets 90,319 90,319 Right-of-use assets 1,313,742 - Goodwill 2,453,597 2,453,597 Other intangible assets, net 1,166,310 881,411 Total assets $19,667,631 $15,279,786 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $1,563,986 $1,347,491 Accrued expenses and deferred revenue 818,773 1,106,346 Other current liabilities 1,473,163
ROCHESTER, N.Y., Aug. 13, 2019 (GLOBE NEWSWIRE) -- DSS (NYSE American SS) (the "Company" , a leader in anti-counterfeit, authentication, and diversion protection technologies whose products and solutions are used by governments, corporations and financial institutions to defeat fraud and to help ensure product authenticity, today announced its financial results for the second quarter ended June 30, 2019.
Second Quarter 2019 Business Highlights and Recent Developments
August 2019 - DSS adds two independent directors, Mr. Jose' Escudero and Mr. Samson Lee to its Board of Directors
July 2019 - DSS releases blockchain tracking and authentication technology "Sentinel" to combat unauthorized sellers, map violators and retail arbitrage within Amazon Marketplace
July 2019 - DSS appoints Jason Grady as Chief Operating Officer
June 2019 - DSS prices $5.6 million underwritten public offering of common stock
June 2019 - DSS BioHealth Security, Inc. announces the addition of Daryl Thompson and Dr. Roscoe Moore to advisory team
May 2019 - Established new business divisions for strategic global expansion
May 2019 - Added new independent directors, John "JT" Thatch, Brett Scott and Stan Grisham to DSS Board of Directors
April 2019 - Announced brand protection agreement with Market Defense, LLC
March 2019 - Mr. Heng Fai Ambrose Chan named DSS Chairman of the Board of Directors
March 2019 - DSS and Zappar, Ltd. partner to combine proprietary technologies to Inform, Engage and Protect
"As we reach the half-way point of our fiscal year, I am pleased with the progress we are making relative to the execution of our business plan. We have realized a comparable quarter increase of nearly 34% in our Technology sales, services, and licensing revenue, and I am particularly encouraged with our continued growth performance as it relates to DSS' flagship product, AuthentiGuard," stated Frank D. Heuszel, CEO of DSS.
"Overall, DSS revenues are up by almost 5.5% for the first six-months of 2019, and we continue to be optimistic about even further growth opportunities for the remainder of the year and beyond. Further, the Company continues to identify potential operational and cost savings while we are simultaneously aligning resources to support and build a foundation for strategic growth opportunities. Furthermore, in June 2019, we completed a successful capital raise which netted approximately $4.9 million. The proceeds therefrom will be directed toward addressing pent-up Printed product customer demand and the marketing and sales of our AuthentiGuard product and associated anti-counterfeiting and brand protection technologies. There is a focused commitment by all members of the DSS team to increase our market share, customer base and financial performance, the results of which, we believe, will provide measurable value to our shareholders," added Heuszel.
Second Quarter 2019 Financial Highlights
Revenues for the six-months ended June 30, 2019, as compared to the same period of 2018, increased from $8.5 million to $8.9 million representing an increase of approximately 5.5%. This revenue growth for the period was primarily driven by an increase in the sales of Printed products of approximately 4.0%, predominantly due to increased packaging sales. Technology sales, services and licensing revenue also grew for the same comparative period by over 14.0% primarily resulting from increased AuthentiGuard sales.
For the three-months ended June 30, 2019, total revenue remained relatively steady at approximately $4.1 million as compared to the same three-months ended June 30, 2018. While revenues from the sale of Printed products decreased by 3% during the three-months ended June 30, 2019, as compared to the same period in 2018, the Technology sales, services and licensing revenues increased by nearly 34% during the same comparative three-months ended June 30, 2019. The decline in Printed products revenues is primarily due to a decline in vinyl card sales. The increase in technology sales is primarily due to increased AuthentiGuard sales.
Costs of goods sold increased by 5.0% and 13.0%, respectively, during the three and six-months ended June 30, 2019, as compared to the same periods in 2018, representing an increase in outside services used by our technology group, coupled with an increase in material costs as a percentage of the printed products groups' total direct costs.
For the three and six months-ended June 30, 2019, the Company recorded net loss of approximately $1.0 million ($0.05 per share) and $1.5 million ($0.07 per share), respectively, as compared to net income of $2.7 million ($0.16 per share) and $2.3 million ($0.14 per share), respectively, during the same periods in 2018. The increase in operating losses incurred during the three and six months ended June 30, 2019 as compared to the same periods in 2018 is due primarily to an approximate $3.5 million gain on extinguishment of debt recorded in Q2 2018 as well as an increase in direct costs as a percentage of sales at the Company's printed products divisions, an increase in professional fees, and an increase in costs associated with the Company's expansion into Asia.
The Company recorded an Adjusted EBITDA1 loss of ($724,000) for the six-months ended June 30, 2019 as compared to positive Adjusted EBITDA of $3,160,000 for the six-months ended June 30, 2018. The decline in Adjusted EBITDA was driven by increased cost of sales for the printed products group, as well as the $3.5M gain on extinguishment of debt recorded in Q2 2018.
A full analysis of results for the quarter ended June 30, 2019 is available in the Company's Form 10-Q which was filed on August 13, 2019 and is available on the Company's website at www.dsssecure.com or through the Securities and Exchange Commission's Edgar database at https://www.sec.gov/ .
ABOUT DOCUMENT SECURITY SYSTEMS, INC.
For over 16 years, Document Security Systems, Inc. ("DSS" has protected corporations, financial institutions, and governments from sophisticated and costly fraud. DSS' innovative anti-counterfeit, authentication, and brand protection solutions are deployed to prevent attacks which threaten products, digital presence, financial instruments, and identification. AuthentiGuard®, the Company's flagship product, provides authentication capability through a smartphone application so businesses can empower a wide range of employees, supply chain personnel, and consumers to track their brands and verify authenticity. For more information on DSS and its integrated operating divisions, visit DSS at www.dsssecure.com, Premier Printing Corporation at www.premiercustompkg.com and DSS Plastics Group at http://dssplasticsgroup.com/.
Keep up to date on DSS events and developments, join our online communities at Facebook, Twitter and LinkedIn.
Contact Information:
Investor Relations
Document Security Systems, Inc.
Tel: (585) 232-5440
Email: ir@dsssecure.com
FORWARD-LOOKING STATEMENTS
Forward-looking statements that may be contained in this press release, including, without limitation, statements related to the Company's plans, strategies, objectives, expectations, potential value, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act and contain words such as "believes," "anticipates," "expects," "plans," "intends" and similar words and phrases. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the results projected in any forward-looking statement. In addition to the factors specifically noted in the forward-looking statements, other important factors, risks and uncertainties that could result in those differences include, but are not limited to, our ability to continue the growth in sales of AuthentiGuard and manage our expenses, as well as those risks disclosed in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2018, filed with the Securities and Exchange Commission on March 15, 2019. Forward-looking statements that may be contained in this press release are being made as of the date of its release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements.
DOCUMENT SECURITY SYSTEMS, INC. AND SUBSIDIARIESConsolidated Balance SheetsAs of(unaudited) June 30, 2019 December 31, 2018 ASSETS Current assets: Cash and cash equivalents $5,321,344 $2,317,659 Restricted cash 50,266 130,326 Accounts receivable, net of $50,000 allowance for doubtful accounts 2,564,178 2,217,877 Inventory 1,272,111 1,563,593 Prepaid expenses and other current assets 256,048 285,580 Total current assets 9,463,947 6,515,035 Property, plant and equipment, net 4,854,786 5,014,494 Investment 324,930 324,930 Other assets 90,319 90,319 Right-of-use assets 1,313,742 - Goodwill 2,453,597 2,453,597 Other intangible assets, net 1,166,310 881,411 Total assets $19,667,631 $15,279,786 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $1,563,986 $1,347,491 Accrued expenses and deferred revenue 818,773 1,106,346 Other current liabilities 1,473,163
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Never argue with stupid people, they will drag you down to their level and then beat you with experience.
Get .... PrivacyLok https://cyberidguard.com/
Try SafeVchat: https://cyberidguard.com/
My comments are only my opinion and are not to be used for investment advice.
Please conduct your own due diligence before choosing to buy or sell any stock.
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