Data Storage Corporation
4.1800-0.03 (-0.73%)
Oct 29, 4:00:00 PM EDT · NasdaqCM · DTST · USD
Key Stats
Market Cap
30.36MP/E (TTM)
-Basic EPS (TTM)
-0.05Dividend Yield
0%Recent Filings
8-K
Closes $40M CloudFirst sale
Data Storage Corporation completed the sale of its CloudFirst cloud solutions business on September 11, 2025, for a $40 million base price after shareholder approval the prior day. The divestiture, involving asset contribution to a subsidiary and sale to Total Server Solutions Holdings, nets approximately $24 million after adjustments and taxes, leaving Nexxis as the sole operating unit with $1.1 million in 2024 sales. Proceeds will fund targeted acquisitions in AI, GPU, and cybersecurity sectors. Post-closing adjustments may tweak the final payout.
8-K
Proxy supplements divestiture valuation
Data Storage Corporation supplemented its definitive proxy statement for the September 10, 2025, stockholder meeting approving the $40 million divestiture of its cloud solutions business, including CloudFirst Technologies assets, after shareholder demands for more valuation details. The updates detail Cassel Salpeter's analyses, showing selected company multiples averaging 8.0x LTM Normalized EBITDA (median 9.2x) and transaction multiples averaging 15.3x (median 10.7x), yielding implied values of $34.7-$42.6 million aligning with the base price. Company deems claims meritless but adds disclosures to sidestep litigation. Valuation judgments vary by market factors.
8-K
Q2 revenue rises; CloudFirst sale proposed
Data Storage Corporation reported Q2 2025 revenue of $5.1 million, up 4.8% from last year, fueled by subscription-based cloud and Nexxis services, yet posted a $0.7 million net loss amid higher administrative costs. The company highlighted its proposed $40 million sale of CloudFirst Technologies, eyeing $24 million in net proceeds for a tender offer repurchasing up to 85% of shares. Shareholder approval looms on September 10. This pivot targets AI and cybersecurity growth.
10-Q
Q2 FY2025 results
Data Storage Corporation posted Q2 revenue of $5.1M, up 4.8% y/y but flat q/q, driven by 6.1% growth in cloud infrastructure and disaster recovery to $3.4M while equipment sales dipped 12.1%; gross margin held steady at 49.3%. Operating loss widened to $0.8M from $0.4M y/y, fueled by 19.2% higher SG&A from salaries and stock-based comp, yet net loss narrowed slightly to $0.73M with $0.10 diluted EPS on 7.2M shares. Cash dipped to $0.6M amid $0.7M operating outflow, offset by $0.3M investing inflow; free cash flow not disclosed in the 10-Q. A pending $40M sale of its core cloud units could reshape operations. Customer concentration lingers as a key risk.
8-K
DTST sells CloudFirst for $40M
Data Storage Corporation signed a deal on July 11, 2025, to sell its cloud solutions business, including CloudFirst Technologies, to Total Server Solutions Holdings for $40 million in cash, subject to shareholder approval at the September 10 annual meeting. The sale strips out the core operations, leaving only Nexxis, Inc., which posted $1.1 million in 2024 sales, while freeing up funds for a tender offer to buy back up to 85% of shares and chase growth in AI, cybersecurity, and healthcare tech. Markets undervalued CloudFirst; this pivots the slimmed-down firm toward high-potential plays. Shareholder nod is key.
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