Document Security Systems, Inc [NYSE:DSS] is in a breakout at the moment and could see its value rise in the near-term. The company that is focused on brand protection technology, direct marketing, healthcare, real estate, blockchain security, and securitized digital assets yesterday announced its financial results for the third quarter 2020, ended September 30.
Among the highlights of these results included the company’s revenue growing 59% to $4.2 million up from $2.6 million in the same quarter last year. The printed segments grew by 40%, from $2.1 million in 2019 to $3.0 million in the same quarter.
Direct marketing revenue recorded an increase of $715,000, indicating the company’s strength of venturing into the direct marketing industry. The highlight of this report was the company’s net income that recorded a massive growth up from a net loss of about $1.2 million from continuing operations to approximately $5.4 million in 2020, in the third quarter of the two respective years. The cost of operations also increased in 2020 to $6.6 million, up from $3.8 million.
The increase was as a result of an increase in the costs of professional and consultation fees, administrative and marketing expenses as well as sales costs. Particularly, marketing for the direct marketing business segment took a significant chunk of those expenses.
Despite that, equity stockholders recorded a massive growth up by 496% to a massive $73.3 million from $12.3 million as of December 31, 2019.
Some of the business highlights that sparked the massive growth were the complete acquisition of Impact BioMedical, two separate offerings that so the balance sheet strengthened with $11.6 million in cash, published results of a successful COVID-19 treatment, with prophylactic cell protection that prevents infection by the virus, signed an agreement with global personal protective equipment exporter that will see the company’s AuthentGuard as a Service popularised and also launched the save AGaaS app on the App store. Other ventures include the testing of COVID-19 vaccine efficacy and began a research collaboration with Impact BioMedical that will see the company develop microbial-resistant plastics.
DSS Chief Executive Officer, Frank Heuszel in a statement expressed his excitement saying that the quarter was truly transformational with investors getting $1.20 in net profit per share from continuing operations and the shareholder equity growing five-fold to $73.3 million.
He further noted the company’s move to further strengthen the company’s business and further grows shareholders’ equity and profits after DSS completed the move to acquire Impact BioMedical and declaring a special share dividend. He noted that with such forward-looking collaborations and partnerships, the company is set to further grow its business in the coming quarters.