California-based Direct Communication Solutions (CSE: DCSI) (OTCQX: DCSX) (FSE: 7QU) has posted strong growth in revenue for the second quarter of 2022 (Q2 2022) — bolstering the company’s status as a leading provider of information technology solutions within the Internet of Things (IoT) market.
In 1H 2022, Direct Communication’s six-month revenue reached US$13.6 million (C$17.7 million), representing an increase of 70% on the first six months of 2021.
Direct Communication chief executive officer Chris Bursey said the financial results have placed the company in a strong position moving forward.
“We are excited about our accomplishments in the second quarter of 2022 and our growth prospects going forward,” he said.
The company’s gross profit for Q2 2022 was an increase of 110% year-on-year – reaching US$2.1 million versus the US$1 million posted in Q2 2021.
Gross profit for the six months ending June 2022 hit US$4.5 million, compared to US$2.2 million in H1 FY2021, representing an increase of 105%.
Direct Communication’s net income for the six months ended June 2022 reached US$0.7 million, trumping a net loss of US$1 million in 2021 – signalling a turnaround with an increase of US$1.7 million.
Following a positive Q2 2022, Direct Communication’s strengthened its board to meet NASDAQ listing requirements.
On 29 July, the company announced the appointment of David Diamond and Julie Hajduk as new members of its board.
Mr Diamond is currently managing director of CBIZ (NYSE: CBZ) and lead independent director and audit committee chair for RenovoRX (NASDAQ: RNXT). In joining Direct Communications, Mr Diamond offers strategic guidance and operational oversight to the board.
His experience includes assisting management teams and boards with capital financing and strategic business planning – particularly IPOs, exit strategies, and other business hurdles.
Mr Diamond’s reputation is built on more than 30 years of experience in both public accounting and industry, which includes the strong relationships he has established with Wall Street bankers.
Multifaceted investor relations specialist Ms Hajduk has more than 20 years of experience working in the junior mining sector with resource companies based in Vancouver and the US.
She currently serves as president and chief executive officer of Li-FT Power (CSE: LIFT).
“We are thrilled to achieve board diversity and a majority of independent directors, which has been our intention as part of meeting NASDAQ listing requirements,” Mr Bursey said.
Senior US Exchange listing nears
On 9 September, Direct Communication Solutions announced the closing of a private placement, issuing US$1.5 million in unsecured convertible debentures.
Mr Bursey said the placement will help bolster its efforts to uplist into a senior US exchange.
“We have always strived to be diligent in our capital raising to ensure minimal dilution for our shareholders, and this will assist with our process of uplisting to a senior US Exchange,” he said.