Data Storage Corp (DTST) 2025 Q2 法說會逐字稿

Greetings, and welcome to Data Storage Corporation's second quarter earnings call. (Operator Instructions) Please note that this conference is being recorded. I will now turn the conference over to our host, Alexandra Schilt, Investor Relations. Thank you. You may begin.

您好，歡迎參加資料儲存公司第二季財報電話會議。（操作員指示）請注意，本次會議正在錄音。現在，我將會議交給主持人、投資人關係部 Alexandra Schilt。謝謝。你可以開始了。

Thank you. Good morning, everyone, and welcome to Data Storage Corporation's 2025 second quarter business update conference call. On the call with us this morning are Chuck Piluso, Chairman and Chief Executive Officer; and Chris Panagiotakos, Chief Financial Officer.

謝謝。大家早安，歡迎參加資料儲存公司 2025 年第二季業務更新電話會議。今天早上與我們通話的有董事長兼執行長 Chuck Piluso 和財務長 Chris Panagiotakos。

The company issued a press release this morning containing its 2025 second quarter financial results, which is also posted on the company's website. If you have any questions after the call or would like any additional information about the company, please contact Crescendo Communications at (212) 671-1020.

該公司今天上午發布了一份新聞稿，其中包含其2025年第二季的財務業績，該新聞稿也發佈在公司網站上。如果您在通話後有任何疑問或想了解有關該公司的更多信息，請聯繫 Crescendo Communications，電話：（212）671-1020。

Before we begin, I'd like to remind listeners that this conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created thereby. Forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded by, followed by or that otherwise include the words, believes, expects, anticipates, intends, projects, estimates, plans or similar expressions or future or conditional verbs such as will, should, would, may, and could, are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing.

在我們開始之前，我想提醒聽眾，本次電話會議包含經修訂的 1995 年私人證券訴訟改革法案所定義的前瞻性陳述，旨在受到該法案所創建的安全港的保護。前瞻性陳述受風險和不確定性的影響，可能導致實際結果、績效或成就與此類前瞻性陳述表達或暗示的任何未來結果、績效或成就有重大差異。以相信、期望、預期、打算、預測、估計、計劃或類似表達或將來時或條件動詞（如將、應該、會、可能和可以）開頭、結尾或以其他方式包含這些詞語的陳述一般屬於前瞻性陳述，而非歷史事實，但並非所有前瞻性陳述都包含前述內容。

Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to have been correct. These risks should not be construed as exhaustive and should be read together with other cautionary statements included in the company's quarterly reports on Form 10-Q, annual reports on Form 10-K and current reports on Form 8-K filed with the Securities and Exchange Commission.

儘管公司認為此類前瞻性聲明所反映的預期是合理的，但無法保證此類預期將被證明是正確的。這些風險不應被視為詳盡無遺的，應與公司向美國證券交易委員會提交的 10-Q 表季度報告、10-K 表年度報告和 8-K 表當前報告中包含的其他警示性聲明一起閱讀。

Any forward-looking statement speaks only as of the date on which it was initially made. Except as required by law, the company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or otherwise. I'd now like to turn the call over to Chuck Piluso. Please go ahead, Chuck.

任何前瞻性陳述僅代表其首次作出之日的觀點。除法律要求外，本公司不承擔更新或修改任何前瞻性聲明的義務，無論由於新資訊、未來事件、情況變化或其他原因。現在我想把電話轉給查克·皮盧索 (Chuck Piluso)。請繼續，查克。

Thank you, Allie. Good morning, everyone, and thank you for joining us on today's call to discuss our 2025 second quarter results. We appreciate your continued interest and the opportunity to share an update on our performance as well as provide insights into recent developments and future plans. To begin, we'll start with a review of our financial results for three- and six-month periods ended June 30, 2025. And with that, I'd like to turn the call over to Chris, our CFO. Chris?

謝謝你，艾莉。大家早安，感謝您參加今天的電話會議討論我們的 2025 年第二季業績。我們感謝您的持續關注和機會，讓我們分享我們的最新業績以及對近期發展和未來計劃的見解。首先，我們將回顧截至 2025 年 6 月 30 日的三個月和六個月的財務表現。說完這些，我想把電話轉給我們的財務長克里斯。克里斯？

Thank you, Chuck. Good morning, everyone. Total sales for the three months ended June 30, 2025, were $5.1 million, an increase of approximately $236,000 or 4.8% compared to the three months ended June 30, 2024. The increase was primarily driven by continued growth in our subscription-based services. Cloud infrastructure and disaster recovery revenue increased by approximately $193,000 or 6.1% due to the addition of new subscription clients and expanded services for existing clients.

謝謝你，查克。大家早安。截至 2025 年 6 月 30 日的三個月的總銷售額為 510 萬美元，與截至 2024 年 6 月 30 日的三個月相比增加約 236,000 美元，即 4.8%。這項成長主要得益於我們訂閱服務的持續成長。由於增加了新的訂閱客戶並擴展了現有客戶的服務，雲端基礎設施和災難復原收入增加了約 193,000 美元或 6.1%。

Nexxis also contributed significantly with an increase of approximately $48,000 or 17.3%, reflecting successful sales initiatives. This growth was partially offset by a decrease in equipment and software sales of approximately $95,000 or 12.1%, which is attributable to nonrecurring equipment sales in the prior-year period and a strategic shift towards subscription services.

Nexxis 也做出了巨大貢獻，增幅約為 48,000 美元，增幅為 17.3%，反映了成功的銷售舉措。這一增長被設備和軟體銷售額約 95,000 美元或 12.1% 的下降部分抵消，這歸因於去年同期的非經常性設備銷售和向訂閱服務的策略轉變。

Total sales for the six months ended June 30, 2025, were $13.2 million, an increase of approximately $84,000 or 0.6% compared to the six months ended June 30, 2024. The relative stability in total sales was the result of a significant shift in our revenue mix. Growth was primarily driven by a $600,000 or 9.8% increase in our core cloud infrastructure and disaster recovery services, and a $79,000 or 14.3% increase in Nexxis services.

截至 2025 年 6 月 30 日的六個月的總銷售額為 1,320 萬美元，與截至 2024 年 6 月 30 日的六個月相比增加約 84,000 美元或 0.6%。總銷售額的相對穩定是我們收入結構發生重大轉變的結果。成長主要得益於我們的核心雲端基礎設施和災難復原服務​​收入增加了 60 萬美元（9.8%），以及 Nexxis 服務收入增加了 7.9 萬美元（14.3%）。

This growth was largely offset by an approximately $615,000 or 12.6% decrease in equipment and software sales, which is primarily attributable to nonrecurring equipment sales in the prior-year period. Cost of sales for the three months ended June 30, 2025, were $2.6 million, an increase of approximately $108,000 or 4.3% from the prior-year period, which was consistent with the overall growth in sales and also reflects our investment in the newly established UK entity, which is contributing to higher cost of sales as operations ramp up.

這一增長在很大程度上被設備和軟體銷售額約 615,000 美元或 12.6% 的下降所抵消，這主要歸因於去年同期的非經常性設備銷售。截至 2025 年 6 月 30 日的三個月的銷售成本為 260 萬美元，比去年同期增加約 108,000 美元或 4.3%，這與整體銷售增長一致，也反映了我們對新成立的英國實體的投資，隨著業務的擴大，這導致銷售成本上升。

Cost of sales for the six months ended June 30, 2025, were $7.8 million, an increase of approximately $62,000 or 0.8% from the prior-year period. Selling, general and administrative expenses for the 3 months ended June 30, 2025, were $3.3 million, an increase of approximately $536,000 or 19.2% as compared to the three months ended June 30, 2024.

截至 2025 年 6 月 30 日的六個月的銷售成本為 780 萬美元，比去年同期增加約 62,000 美元或 0.8%。截至 2025 年 6 月 30 日的三個月的銷售、一般及行政費用為 330 萬美元，與截至 2024 年 6 月 30 日的三個月相比增加約 536,000 美元，即 19.2%。

The increase was primarily driven by an increase in salaries and directors' fees and noncash stock-based compensation. The rise in salaries is attributable to an increase in head count to support our growth initiatives in the UK and in the US and annual merit-based salary adjustments. The increase in stock-based compensation reflects new equity awards granted to the Board and to key employees and directors in the current period.

成長的主要原因是薪資、董事費以及非現金股票薪資的增加。薪資上漲的原因是，為了支持我們在英國和美國的成長計劃，公司增加了員工人數，並進行了年度績效工資調整。股票薪酬的增加反映了本期授予董事會、關鍵員工和董事的新股權獎勵。

Also contributing was an increase in commissions associated with increased revenues. These increases were partially offset by lower professional fees and occupancy costs compared to the prior period when we were in the process of transitioning our principal office location. Selling, general and administrative expenses for the 6 months ended June 30, 2025, were $6.3 million, an increase of approximately $735,000 or 13.3% as compared to the 6 months ended June 30, 2024. The increase was primarily driven by an increase in salaries and directors' fees and noncash stock-based compensation.

伴隨收入增加而來的佣金也隨之增加。與我們之前轉移主要辦公地點時相比，這些成長部分被較低的專業費用和占用成本所抵消。截至 2025 年 6 月 30 日的 6 個月的銷售、一般及行政費用為 630 萬美元，與截至 2024 年 6 月 30 日的 6 個月相比增加約 735,000 美元，增幅為 13.3%。成長的主要原因是薪資、董事費以及非現金股票薪資的增加。

The increase in salaries is attributable to an increase in head count to support our growth initiatives in the UK and in the US and annual merit-based salary adjustments. The increase in stock-based compensation reflects new equity awards granted in 2025, and the full period effect of awards granted in 2024. These increases were partially offset by a decrease in rent and occupancy expense compared to the prior period when we were in the process of transitioning our principal office location.

薪資成長歸因於員工人數增加，以支持我們在英國和美國的成長計劃以及年度基於績效的薪資調整。股票薪酬的增加反映了 2025 年授予的新股權獎勵，以及 2024 年授予的獎勵的整個期間效應。與我們之前轉移主要辦公地點時相比，這些增加的部分被租金和入住費用的減少所抵消。

Net loss attributable to common shareholders for the there months ended June 30, 2025, was $733,000 compared to a net loss of $244,000 for the three months ended June 30, 2024. Net loss attributable to common shareholders for the six months ended June 30, 2025, was $709,000 compared to net income of $113,000 for the six months ended June 2024. We ended the quarter with cash, cash equivalents and marketable securities of approximately $11.1 million at June 30, 2025, compared to $12.3 million at June 31, 2024.

截至 2025 年 6 月 30 日的三個月，歸屬於普通股股東的淨虧損為 733,000 美元，而截至 2024 年 6 月 30 日的三個月的淨虧損為 244,000 美元。截至 2025 年 6 月 30 日的六個月，歸屬於普通股股東的淨虧損為 709,000 美元，而截至 2024 年 6 月 30 日的六個月的淨收入為 113,000 美元。截至 2025 年 6 月 30 日，本季末我們的現金、現金等價物及有價證券約為 1,110 萬美元，而 2024 年 6 月 31 日為 1,230 萬美元。

Thank you. I will now turn the call back to Chuck.

謝謝。我現在將電話轉回給查克。

Thank you, Chris. Today's conversation is about the road ahead, and how we plan to capitalize on the opportunities in front of us. At the center of the conversation is the proposed sale of CloudFirst Technologies. I want to be clear, our long-term strategy is not contingent on the outcome of this transaction. Whether the sale is approved by the shareholders or not, we are moving forward with purpose and ambition.

謝謝你，克里斯。今天的談話是關於未來的道路，以及我們計劃如何利用眼前的機會。這次談話的核心是 CloudFirst Technologies 的擬議出售。我想明確一點，我們的長期策略並不取決於這筆交易的結果。無論此次出售是否獲得股東批准，我們都將滿懷目標和雄心壯志地向前邁進。

Let's start with the path that the sale is approved. This transaction would be transformative. At $40 million, the deal represents a substantial premium to our entire market cap prior to the announcement. And after fees, taxes, working capital, commissions to investment banks, we -- the approximate net amount is $24 million, and that's $24 million plus the cash in Data Storage Corporation that can be returned to shareholders and reinvested in future growth. CloudFirst has been a vital part of our journey.

讓我們從銷售獲得批准的路徑開始。此次交易將具有變革意義。該交易價值 4000 萬美元，比公告發布前我們的整個市值高出不少。扣除費用、稅金、營運資金和投資銀行佣金後，我們的淨額約為 2,400 萬美元，這 2,400 萬美元加上資料儲存公司的現金可以返還給股東並再投資於未來的成長。CloudFirst 是我們旅程中至關重要的一部分。

It is a high-performing cash-generating business that has consistently delivered year-over-year EBITDA growth. However, the public markets, its contribution was not fully recognized. With the sale, we have the opportunity to unlock that hidden value and convert it to tangible return. In addition, our Board has authorized a tender offer to purchase up to 85% of the company's outstanding common stock, using 85% of the cash on hand as I mentioned, including the proceeds from the sale and our bank accounts at Data Storage Corporation. This represents a return of capital to shareholders designed to reward long-term holders.

這是一家高績效的現金產生企業，其 EBITDA 一直保持逐年成長。但在公開市場上，它的貢獻並未被充分認可。透過銷售，我們有機會釋放隱藏的價值並將其轉化為有形的回報。此外，我們的董事會已授權透過要約收購的方式，收購公司最多 85% 的已發行普通股，並使用我提到的 85% 的現金，包括出售所得和我們在資料儲存公司的銀行帳戶。這代表著向股東返還資本，旨在獎勵長期持有者。

And even after returning capital, we will retain the resources necessary to remain on Nasdaq and to pursue broader growth agenda, with 15% of the cash earmarked for acquisitions, innovation and expansion. The 15% is assuming that all shareholders participate, which may not be the case. However, it's up to 85%. That said, if the transaction is not approved by the shareholders at our upcoming annual meeting, we are just as committed to the future. CloudFirst will remain a core part of the business.

即使在返還資本後，我們仍將保留在納斯達克上市和追求更廣泛增長議程所需的資源，其中 15% 的現金將用於收購、創新和擴張。15% 是假設所有股東都參與，但事實可能並非如此。不過，這個比例高達85%。話雖如此，如果該交易在即將召開的年度股東大會上未獲得股東批准，我們仍將致力於未來。CloudFirst 仍將是業務的核心部分。

It is a valuable and growing asset. In this scenario, we will continue to optimize CloudFirst platform, continue to invest in long-term performance. Equally important, we will continue to explore and expand into new high-growth markets that align with our evolving vision. Our plan is to reshape and rebrand Data Storage Corporation. In fact, we're already engaged in evaluation, strategic partnerships and technology extensions.

它是一種寶貴且不斷增長的資產。在此場景下，我們將繼續優化CloudFirst平台，並持續投資長期效能。同樣重要的是，我們將繼續探索和擴展符合我們不斷發展的願景的新的高速成長市場。我們的計劃是重塑和重塑資料儲存公司。事實上，我們已經開始進行評估、策略合作和技術擴展。

These opportunities span artificial intelligence, cybersecurity and AI vertical SaaS solutions, and we are not limiting ourselves to just these areas alone. In either scenario, we intend to lead with focus, discipline and a bias towards growth that we expect to drive increased value to our shareholders. The last 12 to 18 months have ushered in a dramatic shift in enterprise technology.

這些機會涵蓋人工智慧、網路安全和人工智慧垂直 SaaS 解決方案，而且我們不僅限於這些領域。無論哪種情況，我們都打算以專注、紀律和對成長的偏向來引領，我們希望這將為股東帶來更高的價值。過去 12 到 18 個月，企業科技發生了巨大轉變。

The acceleration of AI adoption, the growing complexity of infrastructure needs, the emergence of new software categories, all of these trends are shaping a different enterprise. We believe this creates a window to capitalize and to step into a more expansive role within the tech ecosystem.

人工智慧的採用加速、基礎設施需求的日益複雜、新軟體類別的出現，所有這些趨勢都在塑造不同的企業。我們相信，這將為我們創造一個機會，讓我們能夠利用這個機會，在技術生態系統中發揮更廣泛的作用。

We are doing this with experience and network to bring together the talent required for our expanded direction, and we are doing it with a goal of delivering value to our shareholders. To support this evolution, we are exploring a full rebranding of the company. We will be redesigning our website and refreshing our brand identity to better reflect the direction and future of our company. It's strategic. It's about signaling to investors, to partners, to customers, we are evolving.

我們利用經驗和人脈來匯集擴展方向所需的人才，我們這樣做的目的是為股東創造價值。為了支持這項發展，我們正在探索對公司進行全面的品牌重塑。我們將重新設計我們的網站並更新我們的品牌形象，以更好地反映我們公司的方向和未來。這是有戰略意義的。這是向投資者、合作夥伴、客戶發出的信號：我們正在發展。

We are focused on the markets that drive shareholder value today and in the years to come. Whether we complete the CloudFirst sale, our capital allocation remains rooted in balance. We will continue to look for opportunities to return value to shareholders while retaining the flexibility to invest in new platforms, products and partnerships. If we complete the sale based on the shareholder approval, and over time, we cannot execute our plans for some reason, our public entity alone has value to excellent private companies that desire to be public and to be listed on Nasdaq. We will continue to operate Nexxis, which remains an asset in our portfolio.

我們專注於當前和未來幾年推動股東價值的市場。無論我們是否完成 CloudFirst 的出售，我們的資本配置仍然以平衡為基礎。我們將繼續尋找機會為股東帶來價值，同時保留投資新平台、新產品和新合作夥伴的靈活性。如果我們在股東批准的基礎上完成出售，並且隨著時間的推移，我們由於某種原因無法執行我們的計劃，那麼僅我們的公共實體對那些希望公開並在納斯達克上市的優秀私營公司來說就具有價值。我們將繼續經營 Nexxis，它仍然是我們投資組合中的一項資產。

And more importantly, we will continue to pursue opportunities where we believe our expertise can unlock new value either through organic expansion or targeted M&A. I want to reiterate that the proposed transaction is subject to shareholder approval at our annual meeting on September 10, 2025. I urge all the shareholders to review the material in the proxy statement. These documents outline the terms of the deal, the Board's rationale and the long-term strategy we are pursuing. It's more than just a sale.

更重要的是，我們將繼續尋求機會，我們相信我們的專業知識可以透過有機擴張或有針對性的併購釋放新的價值。我想重申，擬議的交易需經我們 2025 年 9 月 10 日年度股東大會批准。我敦促所有股東審查代理聲明中的材料。這些文件概述了交易條款、董事會的理由以及我們正在推行的長期策略。這不僅僅是一次銷售。

It's a shareholder-aligned reset, a chance to realize value today and position the company for greater value tomorrow. Just to recap, we have a proposed sale of CloudFirst at a compelling premium with substantial net proceeds. If approved, we intend to return capital to our shareholders through a tender offer. Whether the sale is approved or not, we are executing future-facing strategy. We are rebranding the company to reflect our new direction.

這是與股東一致的重新設定，是實現當前價值並為公司未來創造更大價值的機會。簡單回顧一下，我們提議以極具吸引力的溢價出售 CloudFirst，並獲得可觀的淨收益。如果獲得批准，我們打算透過要約收購的方式向股東返還資本。無論出售是否獲得批准，我們都在執行面向未來的策略。我們正在重塑公司品牌，以反映我們的新方向。

We are investing in next-gen growth verticals like AI, cybersecurity and SaaS. And most importantly, we are confident that either path leads to a stronger, more focused and ultimately more valuable Data Storage Corporation. Thank you again for your time, your attention and your continued support as we move forward together. And with that, I'd like to open up the call for questions. Operator?

我們正在投資人工智慧、網路安全和 SaaS 等下一代成長垂直領域。最重要的是，我們相信，無論哪條路，我們都會打造出更強大、更專注、最終更有價值的資料儲存公司。再次感謝您在我們共同前進的過程中付出的時間、關注和持續的支持。現在，我想開始提問。操作員？

(Operator Instructions) Matthew Galinko, Maxim Group.

（操作員指示）Matthew Galinko，Maxim Group。

Maybe just first one is -- and I apologize if I missed this in the script, but what would your cash position be roughly following the transaction? I know we have the $24 million in net proceeds. So is it just another $11 million and sort of that's your post-transaction capital position?

也許只是第一個是 - 如果我在腳本中遺漏了這一點，我很抱歉，但在交易之後您的現金狀況大致如何？我知道我們有 2400 萬美元的淨收益。那麼這只是另外 1100 萬美元，而這就是您交易後的資本狀況嗎？

Thanks for the question. We have $24 million in there, and we believe that that is approximately the bottom of where it is. We really don't know fully because of taxes and other things that we have, net working capital adjustments. So we believe it could be more, but we're cautioned with that to say it's $24 million. And that with the $11 million would lead us to $35 million.

謝謝你的提問。我們在那裡有 2400 萬美元，我們相信這大約是它的底部。由於稅收和其他因素，我們確實不完全了解淨營運資本調整。因此我們相信這個數字可能會更多，但我們謹慎地認為這個數字是 2400 萬美元。加上 1100 萬美元，我們的總收入將達到 3500 萬美元。

Great. And maybe on the -- just on your visibility into the cloud pipeline for the balance of the year. I'm curious how that's looking. Are you seeing any acceleration in move to cloud and you're capturing those opportunities? Or how is the pipeline for the cloud business through the balance of the year?

偉大的。也許只是對今年餘下的雲端管道的了解。我很好奇它看起來怎麼樣。您是否看到了向雲端運算遷移的加速趨勢並且正在抓住這些機會？或者今年雲端業務的進度如何？

We normally always have around $10 million in opportunities. And what happens, Matt, is it's rated from a 10% probability up to 90%. 90% means that there's verbal approvals. So it's a wide question. But usually, there's between [$10 million and $11 million] in total contract value that always sits in there.

我們通常總是有大約 1000 萬美元的機會。馬特，實際情況是，它的機率被評為 10% 到 90%。 90% 意味著有口頭批准。所以這是一個很廣泛的問題。但通常情況下，合約總價值總會在 [1,000 萬美元到 1,100 萬美元] 之間。

What we are seeing, though, and it's continuing because we're seeing almost like a 3:1 ratio of adds to existing customers and then new sales that typically come in through either shows we've gone to or SEO and things like that with lead generation. But we're seeing the customers continue to add to it. But usually, you'll see between $10 million to $11 million. Chris is shaking his head, yes, at me, Matt.

然而，我們看到的是，這種情況還在繼續，因為我們看到新增客戶與現有客戶的比例幾乎是 3:1，而新增銷售通常是透過我們參加的展會或 SEO 以及諸如此類的潛在客戶開發方式實現的。但我們看到顧客繼續增加它。但通常情況下，你會看到 1000 萬美元到 1100 萬美元之間。克里斯對我，馬特，搖了搖頭，是的。

All right. Great. And the last question for me, and I'll jump back in the queue. You mentioned higher -- some higher expenses related to your European expansion. Any update on how the growth opportunity is shaping up there? And where is the -- where are you operationally in Europe at this point?

好的。偉大的。這是我的最後一個問題，我將回到隊列中。您提到了更高的東西——與您的歐洲擴張相關的一些更高的費用。有關於那裡的成長機會如何形成的最新消息嗎？您目前在歐洲的業務開展情況如何？

Sure. So Colin Freeman, who does an excellent job with his staff, everything is installed in three data centers. I think we have 10 partnerships -- other 10 partnerships. They are not the same company. I don't know if we've been clear on that in the past.

當然。因此，科林·弗里曼 (Colin Freeman) 和他的員工出色地完成了工作，所有東西都安裝在三個資料中心。我認為我們有 10 個合作夥伴關係——另外 10 個合作夥伴關係。他們不是同一家公司。我不知道我們過去是否已經明確過這一點。

There are three separate companies, organizations that have the Intel platform in these data centers. And each one of those companies have partnership arrangements. I believe that Colin and his group have trained all of their sales force, the partner sales force. In addition, there's around seven additional distributors. So that funnel is building.

有三家獨立的公司和組織在這些資料中心擁有英特爾平台。每家公司都有合作安排。我相信 Colin 和他的團隊已經培訓了他們所有的銷售人員，也就是合作夥伴銷售人員。此外，還有大約七家分銷商。所以這個漏斗正在建置中。

I believe they have some opportunities in there. At hand, I don't have that, but I've heard as of last week that those opportunities are building, and they are working towards bringing them in and closing the deals. So that's going well. Also, just we've added, and I'm not sure if it hit the second quarter fully or not, we have four new sales individuals, account maintenance and such, and two additional techs that have been added into the mix on things. So we've really beefed up the sales, especially in the account maintenance area because at one time, we had one person doing that.

我相信他們在那裡有一些機會。目前我還沒有這方面的情況，但據我上週了解，這些機會正在不斷湧現，他們正在努力爭取並達成交易。一切進展順利。此外，我們剛剛增加了，我不確定這是否完全影響到第二季度，我們有四名新的銷售人員、帳戶維護人員等，還有兩名額外的技術人員加入工作。因此，我們確實加強了銷售，特別是在帳戶維護領域，因為我們曾經只有一個人做這件事。

We have a team now because these addendums are coming in and same customer sales are important along with the renewals that go along with it. So we continue to hold a good renewal rate.

我們現在有一個團隊，因為這些附錄正在陸續到來，而相同客戶的銷售以及隨之而來的續約都很重要。因此我們繼續保持良好的續約率。

(Operator Instructions) [Ellen Litvik], Forest Hill Capital.

(操作員指示)[Ellen Litvik]，Forest Hill Capital。

First, can you actually walk us through, I guess, really the rationale behind selling CloudFirst, especially given that currently it represents, I guess, approximately about 95% of your revenue.

首先，您能否向我們真正解釋出售 CloudFirst 背後的真正理由，特別是考慮到目前它大約佔您收入的 95%。

I'm -- frankly speaking personally, someone that has invested in this company and what's interesting, this company was launched on 9/11, and we now have a shareholder meeting actually on September 10, and it's interesting. And hopefully, we close on September 11, and it's interesting of what happened, 9/11, and now all of a sudden, this company that kicked off then, now years and years later, where we are.

坦白說，就我個人而言，我是這家公司的投資者，有趣的是，這家公司是在 9/11 事件中成立的，而我們實際上將於 9 月 10 日舉行股東大會，這很有趣。希望我們能在 9 月 11 日結束，9/11 事件發生後發生的事情很有趣，現在突然之間，這家當時成立的公司，經過多年以後，就到了我們現在的處境。

And quite frankly, it's very interesting about the dates and how they align. Not to be too into astrology and all. But it's disappointing because we weren't able to do M&A. We weren't able to use the stock. Our volume was low, and we have a cash machine. If it stayed as a private company, it's a cash machine. What was the EBITDA, Chris, on, let's say, CloudFirst?

坦白說，這些日期以及它們的排列方式非常有趣。不要太沉迷於占星術之類的。但令人失望的是，我們無法進行併購。我們無法使用該庫存。我們的數量很少，而且我們有自動櫃員機。如果它作為一家私人公司，它就是一台提款機。克里斯，那麼 CloudFirst 的 EBITDA 是多少？

So the EBITDA for CloudFirst for Q2 was approximately $1 million, and then for the 6 months, it was approximately $2.5 million.

因此，CloudFirst 第二季的 EBITDA 約為 100 萬美元，而前 6 個月的 EBITDA 約為 250 萬美元。

So you have a cash machine with this, and it's not being recognized, it's -- maybe it's not exciting, but we weren't able to do anything with the stock. And we didn't want to create dilution for shareholders on it. And so at some point, you have to say where can we get the value. And I believe that we're getting the value. I'd like it to be higher than that, but we've negotiated a deal out with a firm that we believe is excellent, Performive, and they're backed by Renovus, PE firm.

所以你有一台自動櫃員機，但它沒有被識別，這 - 也許這並不令人興奮，但我們無法對股票做任何事情。我們不想因此而稀釋股東的權益。因此在某個時候，你必須說我們可以從哪裡獲得價值。我相信我們得到了價值。我希望它能更高，但我們已經與我們認為非常優秀的Performive公司達成了協議，他們得到了PE公司Renovus的支持。

And we think it's a great home with great people. They have an x86-type platform. So really coming together it should be a good marriage if the shareholders approve it. But we couldn't do anything with a public company with that company. So we need to really be able to move this forward on it. And we believe some of the things that we are planning. But if it doesn't happen on it, we're doing the things we're planning anyway. But for the most part, we want to be able to return value to our shareholders.

我們認為這是一個很棒的家，裡面住著很棒的人。他們有一個 x86 類型的平台。因此，如果股東同意的話，這樁聯姻將會是一次成功的結合。但我們無法與那家上市公司做任何事。因此我們需要真正能夠推動這項進程。我們相信我們正在計劃的一些事情。但如果這件事沒有發生，我們仍然會按照計劃行事。但最重要的是，我們希望能為股東帶來回報。

That makes sense, and thanks for being candid about it. I guess following the sale, what will the company's operations look like? I mean what is your strategy for driving growth in the business post-divestiture?

這很有道理，感謝您的坦誠。我猜測出售之後公司的營運情況會是怎樣？我的意思是，您在剝離業務後推動業務成長的策略是什麼？

Well, post-sale, I would say that there's going to be three people left in the public company. It's going to be the Chief Financial Officer, the Chief Administrative Officer. Wendy Schmittzeh, Chris Panagiotakos and myself. And we're in the process now of actually lining up Board of Advisers. Excuse me, also, we have Nexxis in as well.

嗯，出售後，我想說上市公司將剩下三個人。他將擔任財務長、首席行政官。Wendy Schmittzeh、Chris Panagiotakos 和我。我們現在正在組成顧問委員會。不好意思，我們也有 Nexxis。

Chris reminds me, sorry. Nexxis, and they have a great team. I believe that the company is profitable or very near profitability and growing. But our intention is first on the AI in this area. We're in the process of putting together some very experienced adviser group.

克里斯提醒了我，抱歉。Nexxis，他們有一支很棒的團隊。我相信該公司已經盈利或接近盈利並且正在增長。但我們的目的首先是在這個領域開展人工智慧。我們正在組建一些經驗豐富的顧問團隊。

And then from that, we're going to look to do some investing into companies that are developing AI vertical software. And we'll see what these acquisitions bring and how long it will take us. But it will take us probably 30 to 60 days to actually get a full position on a full plan. If that helps. But we're back to the beginning again.

然後，我們將尋求對開發人工智慧垂直軟體的公司進行一些投資。我們將看看這些收購會帶來什麼以及我們需要多長時間。但我們可能需要 30 到 60 天的時間才能真正全面落實整個計劃。如果有幫助的話。但我們又回到起點了。

The only difference is when I started this company with Larry Maglione and Rich Rebetti, there were three of us, and we started it from scratch. And we're okay with doing that again because now this time, we have a public company, and we have a few million dollars. And we have Nexxis, which is an excellent company. I don't know if that answers the question.

唯一的區別是，當我與 Larry Maglione 和 Rich Rebetti 一起創辦這家公司時，我們只有三個人，而且是從零開始。我們願意再這樣做，因為這次，我們有一家上市公司，而且我們有幾百萬美元。我們還有 Nexxis，這是一家優秀的公司。我不知道這是否回答了這個問題。

Yes, it definitely does.

是的，確實如此。

(Operator Instructions) And ladies and gentlemen, there appears to be no additional request for questions. So I'll hand the floor to Chuck Piluso for closing remarks.

（操作員指示）女士們，先生們，似乎沒有其他問題請求。因此我將把發言權交給查克·皮盧索 (Chuck Piluso) 來做最後發言。

Thank you for the question, Matt and [Ellen]. As we move into this next chapter, we're focused on unlocking value, whether that's through the proposed sale of CloudFirst or through the continued optimization of our existing businesses. This is a moment of alignment, aligning capital with opportunity, aligning our brand with strategic future and aligning our operations with growth sectors that are reshaping today enterprise technology. We have a clear path and a commitment to making disciplined, high-impact decisions that will drive shareholder value. In short, we are not standing still.

謝謝你的提問，馬特和[艾倫]。當我們進入下一章時，我們將專注於釋放價值，無論是透過擬議出售 CloudFirst 還是透過持續優化我們現有的業務。這是一個協調的時刻，將資本與機會協調起來，將我們的品牌與策略未來協調起來，將我們的營運與正在重塑當今企業技術的成長部門協調起來。我們有明確的方向和承諾，做出有紀律的、影響深遠的決策，以推動股東價值的實現。簡而言之，我們並沒有停滯不前。

We are transforming. We are building a company that reflects where the market is going. Regardless of the outcome of the shareholder vote, our vision remains the same, to evolve, to invest and to grow. We're excited about what lies ahead, and we are confident that our strategy will position Data Storage Corporation for long-term success. I'd like to thank the shareholders for your continued support. Have a great day. Thank you.

我們正在轉型。我們正在建立一家能夠反映市場走向的公司。無論股東投票結果如何，我們的願景始終如一：發展、投資和成長。我們對未來充滿期待，並堅信我們的策略將使資料儲存公司獲得長期成功。我要感謝股東們的持續支持。祝你有美好的一天。謝謝。

This concludes today's conference. All parties may disconnect. Have a good day.

今天的會議到此結束。各方均可斷開連線。祝你有美好的一天。