Direct Communication Solutions Announces Q3 Financials for 2024 and Operational Highlights
Direct Communication Solutions (DCSX) reported Q3 2024 financial results with revenues of $1.55M, down 55% from Q3 2023's $3.42M. Despite revenue decline, gross margin improved to 36% from 30% in Q3 2023. The company achieved net income of $2.01M, compared to a $1.13M loss in Q3 2023. Notable developments include successful restructuring of $6.1M debt, with $2.9M forgiven and $3.2M converted to a five-year term loan. The company received 2,295 new recurring revenue orders and ended Q3 with a $1.2M customer purchase backlog. The revenue decrease reflects strategic shift towards high-margin recurring SaaS revenue over lower-margin hardware sales.
Direct Communication Solutions (DCSX) ha riportato i risultati finanziari del terzo trimestre 2024 con ricavi pari a 1,55 milioni di dollari, in calo del 55% rispetto ai 3,42 milioni di dollari del terzo trimestre 2023. Nonostante il calo dei ricavi, il margine lordo è migliorato al 36% rispetto al 30% del terzo trimestre 2023. L'azienda ha registrato un utile netto di 2,01 milioni di dollari, rispetto a una perdita di 1,13 milioni di dollari nel terzo trimestre 2023. Sviluppi notevoli includono la ristrutturazione con successo di 6,1 milioni di dollari di debito, con 2,9 milioni di dollari cancellati e 3,2 milioni di dollari convertiti in un prestito a cinque anni. L'azienda ha ricevuto 2.295 nuovi ordini di ricavi ricorrenti e ha chiuso il terzo trimestre con un arretrato di acquisti da parte dei clienti di 1,2 milioni di dollari. La diminuzione dei ricavi riflette un cambiamento strategico verso il ricavo SaaS ricorrente ad alta marginalità rispetto alle vendite hardware a bassa marginalità.
Direct Communication Solutions (DCSX) informó los resultados financieros del tercer trimestre de 2024 con ingresos de 1.55 millones de dólares, lo que representa una disminución del 55% en comparación con los 3.42 millones de dólares del tercer trimestre de 2023. A pesar de la caída en los ingresos, el margen bruto mejoró al 36% desde el 30% en el tercer trimestre de 2023. La compañía logró un ingreso neto de 2.01 millones de dólares, frente a una pérdida de 1.13 millones de dólares en el tercer trimestre de 2023. Los desarrollos notables incluyen la reestructuración exitosa de 6.1 millones de dólares en deuda, con 2.9 millones de dólares perdonados y 3.2 millones de dólares convertidos en un préstamo a cinco años. La empresa recibió 2,295 nuevas órdenes de ingresos recurrentes y finalizó el tercer trimestre con un retraso en las compras de clientes de 1.2 millones de dólares. La disminución de ingresos refleja un cambio estratégico hacia ingresos SaaS recurrentes de alta margen en lugar de ventas de hardware de bajo margen.
Direct Communication Solutions (DCSX)는 2024년 3분기 재무 결과를 발표했으며, 수익은 155만 달러로 2023년 3분기 342만 달러에서 55% 감소했습니다. 수익 감소에도 불구하고, 총 이익률은 30%에서 36%로 개선되었습니다. 회사는 201만 달러의 순 이익을 기록했으며, 이는 2023년 3분기 113만 달러의 손실과 비교됩니다. 주목할 만한 발전으로는 610만 달러의 부채 재구성이 성공적으로 이루어졌으며, 290만 달러가 탕감되고 320만 달러가 5년 만기 대출로 전환되었습니다. 회사는 2,295개의 새로운 반복 수익 주문을 받고 3분기가 끝날 때 고객 구매 적체가 120만 달러에 달했습니다. 수익 감소는 낮은 마진의 하드웨어 판매보다 높은 마진의 반복 SaaS 수익으로의 전략적 전환을 반영합니다.
Direct Communication Solutions (DCSX) a rapporté les résultats financiers du troisième trimestre 2024 avec des revenus de 1,55 million de dollars, en baisse de 55 % par rapport aux 3,42 millions de dollars du troisième trimestre 2023. Malgré cette baisse des revenus, la marge brute a été améliorée à 36 % contre 30 % au troisième trimestre 2023. L'entreprise a réalisé un bénéfice net de 2,01 millions de dollars, contre une perte de 1,13 million de dollars au troisième trimestre 2023. Parmi les développements notables, citons la restructuration réussie d'une dette de 6,1 millions de dollars, dont 2,9 millions de dollars ont été annulés et 3,2 millions de dollars convertis en prêt à cinq ans. L'entreprise a reçu 2 295 nouvelles commandes de revenus récurrents et a terminé le troisième trimestre avec un arriéré d'achats clients de 1,2 million de dollars. La diminution des revenus reflète un changement stratégique vers des revenus SaaS récurrents à forte marge par rapport à des ventes de matériel à faible marge.
Direct Communication Solutions (DCSX) berichtete über die finanziellen Ergebnisse des dritten Quartals 2024 mit einem Umsatz von 1,55 Millionen Dollar, was einem Rückgang von 55 % im Vergleich zu 3,42 Millionen Dollar im dritten Quartal 2023 entspricht. Trotz des Umsatzrückgangs verbesserte sich die Bruttomarge von 30 % auf 36 % im dritten Quartal 2023. Das Unternehmen erzielte einen Nettogewinn von 2,01 Millionen Dollar, im Vergleich zu einem Verlust von 1,13 Millionen Dollar im dritten Quartal 2023. Zu den bemerkenswerten Entwicklungen gehört die erfolgreiche Umstrukturierung einer 6,1 Millionen Dollar schweren Schuldenlast, wobei 2,9 Millionen Dollar erlassen und 3,2 Millionen Dollar in ein Darlehen mit fünfjähriger Laufzeit umgewandelt wurden. Das Unternehmen erhielt 2.295 neue wiederkehrende Umsatzaufträge und beendete das dritte Quartal mit einem Auftragsrückstand von 1,2 Millionen Dollar. Der Rückgang des Umsatzes spiegelt einen strategischen Wechsel zu margenstarken wiederkehrenden SaaS-Einnahmen im Vergleich zu margenschwachen Hardwareverkäufen wider.
- Debt restructuring: $2.9M in payables forgiven and $3.2M converted to favorable terms
- Net income improved to $2.01M from -$1.13M loss in Q3 2023
- Gross margin increased to 36% from 30% in Q3 2023
- 2,295 new recurring revenue orders secured
- 46% improvement in Adjusted EBITDA to -$279,197 from -$0.51M
- Revenue declined 55% YoY to $1.55M in Q3 2024
- Gross profit decreased 46% to $0.55M from $1.02M in Q3 2023
- Negative Adjusted EBITDA of -$279,197 in Q3 2024
San Diego, California--(Newsfile Corp. - November 19, 2024) - Direct Communication Solutions, Inc. (OTCQX: DCSX) (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 report its Interim financial results for the third quarter ended September 30, 2024 and highlight significant achievements and strategic initiatives.
Significant Highlights
- Project Awards: During the period ended, the Company was named finalists for the three global IoT projects of the year awards.
- New Recurring Revenue: The Company received 2,295 new recurring revenue orders that will generate high margin recurring revenues to the growing subscriber base.
- SaaS Solutions: The Company enabled SaaS Solutions channel of dealers and resellers with promotions across multiple markets to position SaaS Solutions and increase future sales.
- Business Strategy: As a strategic move of the organization, the company restructured focus and operations to focus on long-term strategy of recurring revenue through SaaS Solutions. The restructuring aims to streamline the Company's resources and reduce overall expenses significantly.
- MiFleet VisionOne: The Company received approval of the MiFleet VisionOne Pro dash camera on various cellular network operators to strengthen its unique position in the video telematics market.
- Debt Restructure: The Company has successfully restructured 6.1M in debt owed to its largest supplier. The supplier has forgiven 2.9M in payables and 3,2M has been restructured to a five-year term loan, principal to be repaid at the end of the five-year term and
10% interest to be paid annually.
- Ended the period September 30, 2024 with customer purchase backlog of
$1.2M .
Financial Performance
Direct Communication Solutions Inc. reported third-quarter 2024 revenues of
The third-quarter 2024 gross profit was
Highlights for the fiscal year 2024 include:
Operational Efficiency and Cost Savings Direct Communication Solutions continues to implement cost cutting measures to reduce operational overhead in Q3 2024, and will continue the company's strategic restructuring efforts, aimed at focusing on high-margin, recurring Software as a Service (SaaS) and services revenue streams in 2024 and 2025. The streamlining of operational efficiencies and cost savings will position the company for enhanced efficiency and sustainable future growth.
Recurring Revenue Growth Direct Communication Solutions continues its strategy of focusing on growing its overall recurring revenue customer base by receiving 2,295 new SaaS recurring revenue orders in Q3 2024, that will contribute to the overall growth of our subscriber base. This continued growth includes a diverse range of customers in both software and connectivity segments, contributing to the company's robust and sustainable revenue streams.
Enhanced Profitability and Margin Expansion With a steadfast focus on recurring SaaS and solutions revenues, Direct Communication Solutions has significantly increased its overall gross margins. The company anticipates that its margins for Q3 2024 will continue to grow and show positive results as we execute on our strategic plan. This strategic emphasis on high-margin SaaS and services offerings has not only enhanced profitability but also strengthened the company's financial position for future growth and expansion.
Expansion and Diversification of SaaS Sales Channel
Continuing to expand and diversify our SaaS sales channel by onboarding new resellers and new direct SaaS customers. Our focus on SaaS recurring revenues in the third quarter of 2024 generated 2,295 new SaaS subscription orders from our diverse customers and partners that rely on our SaaS and services solutions to run their businesses effectively and efficiently. The SaaS and services recurring revenue growth in 2024 will allow us to continue to execute our strategy of focusing on high-margin, long-term recurring revenues in 2025 and beyond. Our customer backlog of purchase orders was
Video Telematics Provides High-Margin Growth
Video telematics provided a significant contribution to our overall SaaS and services recurring revenue in Q3 2024 and will continue to grow and add to our diverse and expanding customer base. We received approval on the MiFleet VisionOne Pro cellular dash camera from several key major cellular network operators in Q3 2024. These approvals position us to continue our strategy of growth. These approvals have strategically positioned us to take advantage of the growth in video telematics.
Chris Bursey, CEO of Direct Communication Solutions, commented on the company's Q3 2024 financial results, stating, "We are pleased to announce our strong performance for the third quarter of 2024 continues as we continue to execute on our strategy of focusing on SaaS recurring revenues. Our continued focus on operational efficiencies, recurring revenue growth, and strategic partnerships continues to yield positive results, positioning Direct Communication Solutions for continued future success."
Bursey continued, "The focus on operational cost reductions and strategic focus on our SaaS and services offering positions us to offer enhanced IoT solutions to our customers and partners. We look forward to building on this momentum as we continue to innovate and deliver value to our stakeholders."
CEO Commentary
Chris Bursey, CEO of Direct Communication Solutions, commented on the company's Q3 2024 financial results, stating, "We are pleased to announce our strong performance for the third quarter of 2024 as we continue to execute on our strategy of focusing on SaaS recurring revenues. Our continued focus on operational efficiencies, recurring revenue growth, and strategic partnerships continues to yield positive results, positioning Direct Communication Solutions for continued future success."
Bursey continued, "The focus on operational cost reductions and strategic focus on our SaaS and services offering positions us to offer enhanced IoT solutions to our customers and partners. We look forward to building on this momentum as we continue to innovate and deliver value to our stakeholders."
About Direct Communication Services 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 OTC ("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, CEO
cbursey@dcsbusiness.com
858-525-2483
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/230534
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