Document Security Systems Inc. Monday released a preliminary summary of its third-quarter results.
DSS reported a net loss of $1.1 million, compared with a net loss of $760,000 a year ago. The company’s revenues for the quarter were $4.2 million, up 15 percent.
The company’s operating expenses for the third-quarter grew 20 percent to $2.6 million. The expenses included approximately $461,000 in professional fees incurred from the company’s merger agreement with Lexington Technology Group, a privately owned intellectual property asset management group, this month.
Absent the merger costs, net loss for the quarter would have decreased 19 percent a year ago to a loss of $635,000, the company said.
DSS attributed the increased revenues to growth in both its packaging division, which grew 39 percent in the quarter, and its technology licensing and digital solutions division, which grew 13 percent. Its printing division saw a 17 percent drop in revenues.
“We are very pleased with our third-quarter results, where we saw strength in all of our business divisions,” DSS CEO Patrick White said in a statement.
White is set to leave his post once the merger with Lexington Technology is complete, which is expected to occur in the first quarter. White is to be replaced by Lexington Technology CEO Will Rosellini.
The third-quarter summary released by DSS is considered preliminary as the company has yet to release its official quarterly report, which is slated to be filed with the Securities and Exchange Commission on or before Nov. 14.
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