MELVILLE, N.Y., Dec. 23, 2025 (GLOBE NEWSWIRE) -- Data Storage Corporation (Nasdaq: DTST) (“Data Storage” or the “Company”), today announced that it will extend the Expiration Time for its Offer to Purchase. The Offer to Purchase shall be extended from January 7, 2026 to January 12, 2026. The Company will file an Amendment No. 2 to its Schedule TO with the Securities and Exchange Commission solely to extend the expiration date of the Tender Offer to 12:00 Midnight at the end of the day, New York City Time o ...

MELVILLE, N.Y., Dec. 18, 2025 (GLOBE NEWSWIRE) -- Data Storage Corporation (Nasdaq: DTST) (“Data Storage” or the “Company”), today provided a letter to shareholders from its CEO, Chuck Piluso. Dear Valued Shareholders, As we look ahead to 2026, I would like to outline the strategic direction we plan to pursue while noting that as we progress through the Tender Offer process, expected to be completed on or about January 12th, we will gain a clear understanding of our available cash and can begin executing th ...

Core Viewpoint - Data Storage Corporation is initiating a tender offer to purchase up to 6,192,990 shares of its common stock at a price of $5.20 per share, totaling an aggregate purchase price of up to $32,203,548 [1][4] Group 1: Tender Offer Details - The tender offer will commence on December 8, 2025, and is set to expire at midnight on January 7, 2026, unless extended [2] - Stockholders must validly tender their shares before the expiration time to participate in the offer, and shares can only be withdrawn before this time [2] - The company will fund the purchase of tendered shares using cash on hand, including proceeds from the sale of its cloud services business completed on September 11, 2025 [6] Group 2: Strategic Direction - Following the divestiture of its disaster recovery and CPU cloud hosting services, the company is focusing on higher-growth areas such as GPU Infrastructure-as-a-Service (IaaS), AI-driven software applications, cybersecurity, and voice/data telecommunications [3][12] - The company has engaged specialists in high-technology verticals to support its acquisition and partnership strategy [3] - The tender offer provides liquidity for stockholders who choose to participate, while those who do not will own a greater percentage of the company post-offer [3][4]

Core Insights - Data Storage Corporation (DTST) has shifted its focus towards high-growth sectors such as AI, cybersecurity, and infrastructure markets after selling its CloudFirst subsidiary, aiming to streamline operations and enhance shareholder value [1][6] Financial Performance - On November 19, 2025, DTST reported an earnings per share (EPS) of $2.20, significantly exceeding the estimated EPS of -$0.11, indicating strong financial management [2][6] - The company's revenue reached approximately $417,000, surpassing the anticipated $300,000, reflecting robust sales performance [2][6] Strategic Initiatives - The earnings call featured CEO Charles Piluso and CFO Chris Panagiotakos discussing the company's financial performance and strategic initiatives, with the sale of CloudFirst being a key focus [3] - The strategic pivot towards high-growth areas is expected to promise higher returns and long-term sustainability for the company [3][6] Valuation Metrics - DTST has a price-to-earnings (P/E) ratio of 1.88, indicating it may be undervalued relative to its earnings [4] - The price-to-sales ratio is 1.53, and the enterprise value to sales ratio is 1.52, suggesting a consistent valuation approach [4] Liquidity and Financial Health - The company exhibits strong liquidity with a current ratio of 5.64, indicating its ability to cover short-term liabilities [5] - An earnings yield of 0.53% provides insight into the return on investment relative to earnings, underscoring the company's financial health [5]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - The sale of the CloudFirst subsidiary was completed for $40 million, which was projected to generate approximately $25 million in annual revenue and $5.5 million in EBITDA with no debt [6][10] - Sales from continuing operations (Nexus subsidiary) were $417,000 for Q3 2025, an increase of $92,000 or 28.2% from $325,000 in Q3 2024 [7] - Net income attributable to common shareholders for Q3 2025 was $16.8 million compared to $122,000 for Q3 2024, driven by the gain recognized on discontinued operations [10] Business Line Data and Key Metrics Changes - Sales from continuing operations for the nine months ended September 30, 2025, were $1.1 million, an increase of approximately $159,000 or 17.6% from $900,000 in the same period last year [8] - Selling, general, and administrative expenses for Q3 2025 increased by $313,000 or 31.8% to $1.3 million from $984,000 in Q3 2024, primarily due to non-cash stock-based compensation and salary adjustments [8][9] Market Data and Key Metrics Changes - The company ended Q3 2025 with cash, cash equivalents, and marketable securities of approximately $45.8 million, up from $12.3 million at the end of 2024 [10] Company Strategy and Development Direction - The company is focusing on building DSC 2.0, a streamlined operation pursuing selective opportunities in high-value markets, following the sale of CloudFirst [4][11] - The company is exploring strategic acquisitions in areas such as GPU-based computing, AI-enabled infrastructure, and cybersecurity, while emphasizing disciplined execution and prudent capital allocation [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the transformative impact of the CloudFirst sale, which strengthened the financial position and clarified strategic direction [11] - The company plans to complete the tender offer and share buyback process, finalize cash position, and pursue acquisitions that provide recurring revenue [12] Other Important Information - A special committee has been established to oversee the tender offer and buyback process, ensuring transparency and alignment with shareholder interests [5] - The company is launching a new corporate website to reflect its streamlined profile and future direction [5] Q&A Session Summary Question: Possible outcomes of the tender offer for cash position - Management estimated that if everything is tendered, the cash position could range from approximately $5 million to $15 million, but this is difficult to forecast accurately [16][18] Question: Non-recurring charges in SG&A for Q3 2025 - Management confirmed that there were no non-recurring charges in Q3 2025, and the SG&A number is a good run rate going forward [20] Question: Direction for acquisitions and focus on Nexus - Management indicated that there is potential for acquisitions to bolster Nexus, particularly in VoIP and data access companies, which could enhance revenue streams [22][24]

Financial Data and Key Metrics Changes - The sale of the CloudFirst subsidiary was completed for $40 million, which was projected to generate approximately $25 million in annual revenue and $5.5 million in EBITDA with no debt [6][10] - Sales from continuing operations (Nexus subsidiary) were $417,000 for Q3 2025, an increase of $92,000 or 28.2% from $325,000 in Q3 2024 [7] - Net income attributable to common shareholders for Q3 2025 was $16.8 million compared to $122,000 for Q3 2024, driven by the gain recognized on discontinued operations [10] Business Line Data and Key Metrics Changes - Sales from continuing operations for the nine months ended September 30, 2025, were $1.1 million, an increase of approximately $159,000 or 17.6% from $900,000 in the same period last year [8] - Selling, general, and administrative expenses for Q3 2025 increased by $313,000 or 31.8% to $1.3 million from $984,000 in Q3 2024, primarily due to increased non-cash stock-based compensation [8][9] Market Data and Key Metrics Changes - The company ended Q3 2025 with cash, cash equivalents, and marketable securities of approximately $45.8 million, compared to $12.3 million at December 31, 2024 [10] Company Strategy and Development Direction - The company is focusing on building DSC 2.0, a streamlined operation pursuing selective opportunities in high-value markets, emphasizing disciplined execution and operational efficiency [11] - The company is exploring strategic acquisitions in emerging areas such as GPU-based computing, AI-enabled infrastructure, and cybersecurity [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the transformative impact of the CloudFirst sale, which strengthened the financial position and clarified strategic direction [11] - The company plans to complete the tender offer and share buyback process, after which capital allocation plans will be finalized [12] Other Important Information - A special committee has been established to oversee the tender offer and buyback process, ensuring transparency and alignment with shareholder interests [5] - The company is forming a special advisory group to identify and evaluate strategic opportunities that align with long-term growth objectives [12] Q&A Session Summary Question: Possible outcomes of the tender offer for cash position - Management estimated that if everything is tendered, the cash position could range from approximately $5 million to between $10 million and $15 million [16][18] Question: Non-recurring charges in SG&A for Q3 2025 - Management confirmed there were no non-recurring charges in Q3 2025, indicating that the SG&A number is a good run rate going forward [20] Question: Direction for acquisitions and focus on Nexus - Management indicated that there is potential for acquisitions to bolster Nexus, particularly in the VoIP and data access sectors, which could provide stable revenue streams [24][25]

Financial Data and Key Metrics Changes - The company completed the sale of its CloudFirst subsidiary for $40 million, which was projected to generate approximately $25 million in annual revenue and $5.5 million in EBITDA with no debt [6][10] - Sales from continuing operations, specifically from the Nexus subsidiary, were $417,000 for Q3 2025, an increase of $92,000 or 28.2% from $325,000 in Q3 2024 [6][10] - Net income attributable to common shareholders for Q3 2025 was $16.8 million compared to $122,000 for Q3 2024, driven primarily by the gain recognized on discontinued operations [10][11] - The company ended the quarter with cash, cash equivalents, and marketable securities of approximately $45.8 million, up from $12.3 million at the end of 2024 [10] Business Line Data and Key Metrics Changes - Sales from continuing operations for the nine months ended September 30, 2025, were $1.1 million, an increase of approximately $159,000 or 17.6% from $900,000 in the same period last year, driven by an expanding customer base in Nexus voice and data solutions [7][10] - Selling, general, and administrative expenses for Q3 2025 increased by $313,000 or 31.8% to $1.3 million from $984,000 in Q3 2024, primarily due to increased non-cash stock-based compensation [8][9] Market Data and Key Metrics Changes - The company is exploring strategic acquisitions in high-value markets such as GPU-based computing, AI-enabled infrastructure, and cybersecurity, indicating a focus on emerging technology sectors [11][12] Company Strategy and Development Direction - The company is transitioning to a new phase termed DSC 2.0, focusing on disciplined growth and shareholder value creation following the sale of CloudFirst [4][11] - A special advisory group is being formed to identify and evaluate strategic opportunities that align with long-term growth objectives [12] - The company plans to complete a tender offer and share buyback process, which will influence its final cash position and capital allocation plans [11][12] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of disciplined execution, prudent capital allocation, and operational efficiency in the current market environment [11][12] - The company is actively engaging strategic consultants to ensure that potential investments support long-term profitability and sustainable growth [12] Other Important Information - The company is launching a new corporate website to reflect its streamlined profile and future direction [5][12] Q&A Session Summary Question: What are the possible outcomes of the tender offer for your cash position? - Management estimated that if everything is tendered, the cash position could range from approximately $5 million to between $10 million and $15 million [15][17] Question: Were there any non-recurring charges in Q3 2025 SG&A? - Management confirmed that there were no non-recurring charges in Q3 2025, and the current SG&A number is a good run rate for the future [18][19] Question: Is there a scenario where the company pushes harder exclusively into Nexus? - Management indicated that there are opportunities to acquire smaller VoIP companies to bolster Nexus, which could lead to significant revenue growth [20][22]

Financial Performance - For Q3 2025, sales increased to $416,956, a 28.1% rise from $325,299 in Q3 2024[12] - Gross profit for Q3 2025 was $198,499, representing a 37.4% increase compared to $144,467 in Q3 2024[12] - The net income attributable to common stockholders for Q3 2025 was $16,778,276, compared to $122,397 in Q3 2024, marking a substantial increase[12] - The company reported a loss from operations of $1,098,475 for Q3 2025, compared to a loss of $839,632 in Q3 2024[12] - Loss from continuing operations decreased to $(1,313,172) in 2025 from $(2,016,109) in 2024, showing an improvement[14] - Net income from discontinued operations increased significantly to $17,385,939 in 2025 compared to $2,238,934 in 2024[14] Assets and Liabilities - The total assets as of September 30, 2025, were $47,677,690, up from $25,280,215 as of December 31, 2024[10] - Current liabilities increased to $8,414,058 as of September 30, 2025, compared to $3,546,149 at the end of 2024[10] Cash Flow and Investments - Net cash provided by (used in) operating activities was $(555,823) in 2025, a decline from $552,590 in 2024[14] - Cash and cash equivalents at the end of the period decreased to $284,714 in 2025 from $513,718 in 2024[14] - Capital expenditures were minimal at $(128) in 2025, compared to $(2,149) in 2024[14] - Cash used in investing activities of discontinued operations was $(787,129) in 2025, down from $(1,113,859) in 2024[14] Strategic Initiatives - The company plans to strategically invest in high-growth areas such as GPU Infrastructure-as-a-Service (IaaS), AI-driven software applications, and cybersecurity[6] - The Nexxis subsidiary continues to perform well, providing a stable, recurring revenue base that supports broader strategic objectives[3] - The company aims to leverage its expertise and financial strength to identify opportunities that align with its core competencies for sustainable results[3] Discontinued Operations - Net proceeds from the sale of discontinued operations amounted to $35,634,291 in 2025, with no comparable figure in 2024[14] - The company reported a significant gain on the sale of discontinued operations of $(17,471,290) in 2025, with no prior year figure[14] Other Financial Metrics - Stock-based compensation increased to $1,005,830 in 2025 from $564,800 in 2024, indicating higher employee incentives[14] - The effect of exchange rate changes on cash resulted in an increase of $9,950 in 2025, with no prior year figure reported[14]

Financial Performance - Sales from continuing operations for the three months ended September 30, 2025, were $416,956, an increase of $91,657, or 28.2%, from $325,299 in the same period last year [107]. - Gross profit for the third quarter of 2025 was $198,499, an increase of $54,032, or 37.4%, compared to $144,467 in the third quarter of 2024, with a gross profit margin improvement to 47.6% from 44.4% [108]. - Income from continuing operations for the three months ended September 30, 2025, was $129,555, compared to a loss of $678,862 in the prior year period [112]. - Sales from continuing operations for the nine months ended September 30, 2025, were $1,057,651, an increase of $158,516, or 17.6%, from $899,135 in the same period last year [114]. - Gross profit for the nine months ended September 30, 2025, was $477,458, an increase of $83,007, or 21.0%, compared to $394,451 in the prior-year period, with a gross profit margin improvement to 45.1% from 43.9% [115]. - Loss from continuing operations, net of tax, was $1,313,172 for the nine months ended September 30, 2025, compared to a loss of $2,016,109 in the prior year period [117]. Expenses - Selling, general and administrative expenses increased by $312,875, or 31.8%, to $1,296,974 for the three months ended September 30, 2025, primarily due to a $429,483, or 396.4%, increase in non-cash stock-based compensation [111]. - Selling, general and administrative expenses for the nine months ended September 30, 2025, increased by $375,693, or 13.1%, to $3,242,833 from $2,867,140 for the same period last year [116]. Cash Flow - Cash used in operating activities of continuing operations was $1,145,839 for the nine months ended September 30, 2025, compared to $1,637,378 in the prior-year period [128]. - Cash provided by investing activities of continuing operations was $1,423,190 for the nine months ended September 30, 2025, compared to cash used of $58,722 in the same period of the prior year, driven by $35,634,291 in net cash received from the sale of the CloudFirst business [129]. - Cash used in financing activities of continuing operations was $824,051 for the nine months ended September 30, 2025, compared to cash provided of $88,732 in the prior-year period, primarily due to a $1,236,825 cash settlement of warrants [130]. - Cash used in discontinued operations was $248,633 for the nine months ended September 30, 2025, compared to cash provided of $692,356 in the prior-year period [131]. Strategic Actions - The company recognized a gain on the sale of discontinued operations of $17,846,470 for the nine months ended September 30, 2025, net of transaction costs [119]. - The company received net cash proceeds of approximately $38.1 million, net of $1.5 million placed in escrow and a working capital adjustment [121]. - Working capital increased to $46,749,512 as of September 30, 2025, up by $34,829,443 from $11,920,069 at December 31, 2024, primarily due to the divestiture of the CloudFirst business [127]. - The company plans to use the remaining proceeds from the tender offer for strategic investments and acquisitions in high-growth technology sectors, including GPU IaaS, AI-driven software, and cybersecurity [122]. Tax and Liquidity - The company has accrued $4.4 million in estimated income taxes payable related to the divestiture [121]. - The company’s liquidity assessment is based on current information, and any inaccuracies may require a reduction in selling, general, and administrative expenses [125]. - The company has not made any sales under the Equity Distribution Agreement with Maxim as of the report date [126]. Interest Income - Interest income for the three months ended September 30, 2025, was $193,347, a 20.3% increase from $160,770 in the same period last year [113].