Direct Communication Solutions is winning new orders and expanding its IoT offering for the fleet sector
IT and technical services is a huge area and it is only getting bigger each year as we embrace new technologies such as the Internet of Things (IoT), cloud computing, data analytics and monitoring, and Artificial Intelligence (AI). One company that is making steady progress in providing these services is Direct Communication Solutions Inc. (CSE: DCSI | OTCQX: DCSX) (“DCS”).
DCS is an up-and-coming IoT company with a motto to “connect anything, anywhere”. DCS develops network ready IoT solutions that will make a difference in business efficiencies, productivity, reliability and profitability. DCS does this by providing better ways to collect and assess business-critical data from all types of assets and devices using their hardware, software applications and scalable cloud services.
“DCS has developed key relationships over the past decade, by providing and becoming a Technical Services Provider (TSP) that clearly enables the IoT industry with hardware, software services, managed services and technical expertise throughout the IoT process.”
Direct Communications Solutions business is reaching over 400+ partners
Source: DCS company presentation
DCS’s new orders are bringing in significant revenue
DCS has grown revenues from US$9 million in 2017 to US$14 million in 2020. While that is not a bad performance it is looking like DCS is just getting warmed up. Announced on April 6, 2021, DCS received “a purchasing commitment from one of its long time clients. The purchase order represents $6.88 million in products and services.” Further details of the deal were not disclosed. A $6.88 million order is significant to DCS and bodes well for future earnings announcements.
MiFleet + Vision update
In further good news in April DCS announced that their MiFleet + Vision products have been approved for use on US cellular’s 4G-LTE network. This is a key step towards commercialization and should potentially lead to significant adoption and in time revenues for DCS. MiFleet + Vision allows fleet managers to see their vehicles and drivers by providing real-time video within the MiFleet platform. It is also useful for training drivers and can provide video intelligence in the event of an accident, theft or potential litigation.
Mike Lawless, EVP of DCS stated: “When you look at the fleet management industry, bringing multiple data points together in one platform is where fleet managers really start to realize the benefits of using technology to manage their fleets.”
In May news DCS announced that it has partnered with Bluesky Communications to offer MiFleet to Bluesky customers. The initial deployment between the companies will be to upgrade 300+ vehicles across the Bluesky Communications network footprint.
DCS also announced in May that it was appointed the first distributor in the North American market by TOPFLYtech to provide distribution, logistics and technical support. TOPFLYtech offers long battery life devices for virtually any asset monitoring use case. Their solar powered GPS device solves the problem of monitoring high value assets that have no direct access to power.
More details about DCS
DCS operates as a Software as a Service (SaaS) company and sells several services and product solutions. Services include engineering, logistics and wireless data. Product solutions include MiFleet (tracking software), MiSensors (includes MiTag an 8 in one IoT sensor) or MiCovid cam (a COVID-19 detection device). DCS is becoming a leader in providing fleets with GPS and other monitoring services.
Some of DCS’s cloud-based product solutions
Source: DCS company presentation
DCS’s solutions combine the future’s most relevant technologies – IoT, 4G, Cloud Based Platform, SaaS, Data Analytics, AI & Sensor Based Monitoring. These are high growth areas and represent significant revenue potential for DCS as they offer businesses complete end-to-end solutions.
DCS has a market cap of just C$17 million and the US listing is up 97% over the past year. One to follow.
Matthew Bohlsen is a Senior Editor for InvestorIntel.com. With a Graduate Diploma in Applied Finance and Investment, and a Graduate Diploma in Financial Planning. He ... <Read more about Matthew Bohlsen>