DCS Reports Strong Q4 Revenues and Year Ending Backlog
- BACKLOG GREW TO $15.94 Million IN YE 2021 VS $1.67 Million IN YE 2020 REPRESENTING AN YOY 855% INCREASE; GROWTH IS ATTRIBUTED TO NEW ORDERS AND UPGRADES
- For the Quarter ending December 2021, Quarterly Revenues WERE ESTIMATED AT (Q4Revenue) USD $5.68 Million (CAD $7.21 Million) VS Q3Revenue of USD $2.83 Million IN Q3 2020 REPRESENTING AN 100% INCREASE
- Q4Revenue of USD $5.68 Million (CAD $7.21 Million) VS USD $4.41 Million IN Q4 2020 REPRESENTING AN YOY 29% INCREASE
- Entered into a new major agreement with Telenor Connexion, a fully owned subsidiary of Telenor ASA (OSE:TEL)
- Announced plan for Nasdaq up listing in the next 12 months
San Diego, California--(Newsfile Corp. - March 16, 2022) - Direct Communication Solutions, Inc. (OTCQX: DCSX) (CSE: DCSI) (FSE: 7QU) a leading provider of information technology solutions for the Internet of Things (IoT) market, is excited to announce Q4'2021 revenues of $5.68 million versus USD $2.83 million in Q3'2021, representing a 100% increase. Q4'2021 revenues of USD $5.68 million versus USD $4.41 million in Q4'2020 representing an increase of 29% year over year. Backlog grew to $15.94 Million in Q4'2021 versus $1.67 Million in Q4'2020 representing an increase of 855% due to new orders from new clients and upgrades from existing clients.
The gross margin is estimated to be 27.7% for Q4'2021 (27.1% for Q4'2020), representing USD $1.57 million estimated gross profit ($1.20 million for Q4'2020). The Backlog in the year ending 2021 is estimated to have a gross margin of 27.7%, representing USD $4.41 million estimated Backlog gross profit.
In Q4 2021, the DCS team took advantage of a quick-to-market strategy and capture the first wave of the 4G/5G transition from 2G/3G in the United States. As the network upgrades continue in 2022, DCS is on track to grow the revenue through Smart-Hardware, SaaS solutions, and Industry IoT Innovations.
Telenor Connexion Master Services Agreement
Telenor Connexion is a fully owned subsidiary of Telenor ASA (OSE:TEL) a multi-billion-dollar public company listed on the Oslo Stock Exchange in Norway. Telenor ASA is a Norwegian state-owned multiple nation telecommunication enterprise, a Forbes Global 2000 company, and ranked as the top 10 IoT operator in the world. DCS entered into a Master Services Agreement with Telenor Connexion dated October 14th 2021. Customers of DCS will enjoy the utmost optimized network connectivity with wider coverage than any single carrier. This gives DCS the unique advantage to add additional value in North America. Internationally, Telenor opens the gateway for DCS to go beyond North America and expand the business reach to anywhere with Telenor's coverage of over 500 networks across 200+ countries.
"The ability to optimize connectivity is vital to the success of next-gen IoT innovation. With Telenor, we are one step ahead at providing optimized, dependable, and established solutions to our customers." Says Chris Bursey, CEO of DCS, "We are excited about our accomplishments in a challenging environment in 2021 and our growth prospects going forward. Uplisting to Nasdaq is another potential step in our evolution."
DCS is a technology solutions integrator focusing on connecting the Internet of Things. We provide real solutions that solve real problems. Our software applications and scalable cloud services collect and assess business-critical data from all types of assets. DCS is headquartered in San Diego, California and is publicly traded on the OTCQX ("DCSX"), Canadian Securities Exchange ("DCSI") and Frankfurt Stock Exchange ("7QU"). For more information, visit www.dcsbusiness.com. DCS and the DCS logo are among the trademarks of DCS in the United States. Any other trademarks or trade names mentioned are the property of their respective owners.
Bill Espley, Director
Chris Bursey, CEO
This release contains forward-looking statements, which reflect management's current views of future events and operations. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially. We believe that these potential risks and uncertainties include, without limitation: the ongoing COVID-19 pandemic, the Company's dependence on third-party manufacturers, suppliers, technologies and infrastructure; risks related to intellectual property; industry risks including competition, online security, government regulation and global economic conditions; and the Company's financial position and need for additional funding, Statements in this release should be evaluated in light of these factors. These risk factors and other important factors that could affect our business and financial results are discussed in our Management's Discussion and Analysis, periodic reports and other public filings which are available on SEDAR at www.sedar.com and posted with the OTC Disclosure and News Service. DCS undertakes no duty to update or revise any forward-looking statements.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
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