Direct Communication Solutions Announces Interim Financial Statements for Q1 2025

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San Diego, California--(Newsfile Corp. - June 2, 2025) - Direct Communication Solutions, Inc. (CSE: DCSI) (FSE: 7QU0) ("DCS" or the "Company"), a leading provider of information technology solutions for the Internet of Things (IoT) market, is pleased to announce the posting of its Interim Financial Statements for the months ending March 31, 2025, along with the corresponding Management Discussion & Analysis on SEDAR+.
Significant Highlights
Ongoing Transition to SaaS Solutions: Continued executing on our strategy to transition to a SaaS-focused model with an emphasis on high-margin, recurring revenue. Added 1,224 new recurring revenue subscribers, including 191 MiFleet + Vision video telematics subscribers in Q1 of 2025
Backlog of Customer Purchase Orders: Ended Q1 2025 with a strong customer backlog of $3M in customer purchase orders for Smart Hardware products
Solar Powered Trailer Security Solution: Delivered the first shipment of a solar powered trailer security solution to a Tier 1 transportation/logistics carrier in North America.
Fuel Dispensing and Audit Solution: Delivered a custom designed IoT solution to manage and audit fuel dispensing for IT&E in Guam for the Guam Port Authority.
IoT Device Approvals: Approved multiple IoT devices on the major cellular network operators to position DCS as a leading provider of IoT solutions to our customers and partners.
SaaS Solutions Channel: Enabled and expanded our SaaS Solutions channel of dealers and resellers with promotions across multiple vertical markets to position our SaaS Solutions to increase future sales.
Company Restructuring: Ongoing efforts to restructure the company focus and operations on long-term, high margin strategy of recurring revenue through SaaS Solutions. The continued restructuring efforts streamline company resources and continue to reduce overall operational expenses significantly.
Financial Performance
Direct Communication Solutions Inc. reported Q1 2025 revenues of $3.62 million (U.S.), compared to $1.52 million (U.S.) in Q4 2024, representing a 58% increase over Q4 2024. This increase is attributed to delivering on customer sales backlog and our ongoing restructuring to prioritize long term, high-margin recurring SaaS revenue over lower-margin, one-time hardware sales.
Gross Profit for Q1 2025 was $1.16M (U.S) compared to $343K million (U.S.) in Q4 2024, reflecting a 239% increase in Gross Profit quarter over quarter. However, the gross margin improved to 32.1% from 22.6% in Q4 2024, an increase of 42%. The net income for Q1 2025 was $204K (U.S.), a significant increase from a net loss of ($2.65M) in Q4 2024.
CEO Commentary
"In the first quarter of 2025, we faced some significant challenges from tariff increases that directly impacted the global supply chain. Despite this unforeseen challenge, we were able to deliver products to our customers, making our Q1 2025 revenue numbers even more impressive. We continue to execute our strategic transition towards long term, high-margin, recurring SaaS revenues based on our industry leading IoT services and solutions," said Chris Bursey, CEO of Direct Communication Solutions. "Our efforts are reflected in the increased SaaS revenues and improved gross margins. We are making significant strides in reducing operating costs while growing our SaaS subscriber base. The strategic partnerships we have forged are set to enhance our IoT solutions and contribute to our ongoing growth."
About Direct Communication Solutions Inc.
DCSI 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. DCSI is headquartered in San Diego, California and is publicly traded on the OTCQX ("DCSX"), Canadian Securities Exchange ("DCSI") and Frankfurt Stock Exchange ("7QU0"). For more information, visit www.dcsbusiness.com. DCSI and the DCSI logo are among the trademarks of DCSI in the United States. Any other trademarks or trade names mentioned are the property of their respective owners.
Contacts
Chris Bursey, [e-mail]858-525-2483
Bill Espley, Chairman of the [e-mail]604-767-3458
Forward-Looking Statements
This release contains forward-looking statements reflecting management's current views of future events and operations. These statements are based on current expectations and assumptions, subject to risks and uncertainties that could cause results to differ materially. DCS believes 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 available on SEDAR+ at www.sedarplus.ca 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/254072