This sale was made to satisfy withholding tax obligations, as stated in the filing. Following the transaction, Kempster retained ownership of 829,583 shares of the company. The micro-cap company, valued at $35 million, 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 Pro Research Report for deeper insights into DTST’s valuation and growth prospects. The micro-cap company, valued at $35 million, 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 Pro Research Report for deeper insights into DTST’s valuation and growth prospects. This sale was made to satisfy withholding tax obligations, as stated in the filing. Following the transaction, Kempster retained ownership of 829,583 shares of the company.

In other recent news, Data Storage Corporation reported a minor decline in third-quarter earnings for fiscal year 2024, with revenues totaling $5.8 million, a 3 % year-over-year decline, primarily attributed to a fall in one-time equipment sales. However, the company experienced growth in recurring subscription revenue and an increase in gross profit margin to 43.2%, from 38.9% last year. Despite falling profits, the company has secured key contracts in the insurance, healthcare, and education sectors, and plans to expand into the UK

The company’s CloudFirst subsidiary is expected to generate more than $20 million in recurring revenue by 2025. Data Storage Corporation ended Q3 with $11.9 million in cash and marketable securities, with no long-term debt. The company also reported a 29% increase in infrastructure and cloud disaster recovery services.

The management team maintains an optimistic outlook on growth and profitability, with service turnover for 2025 expected to exceed $20 million. The company’s CEO, Chuck Piluso, highlighted the migration of 95-96% of sticky customers to cloud subscriptions, indicating a strategic shift towards building a more stable revenue stream. . This is one of the new developments for Data Storage Corporation.

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