Last week, ShtfPlan.com highlighted for the first time a hardware, firmware and software provider in the IoT industry, focused in sensors and customization, called Direct Communication Solutions (US: DCSX).

The big cellular providers, such as AT&T, U.S. Cellular, Verizon and others, which service millions of sensors that rely on their airtime for usage, have been notifying corporations, which own hundreds and thousands of sensors that the 2G networks are likely to be coming down in the near future.

Chris Bursey, founder and CEO owns 34% of the company’s fully-diluted shares and along with other members of the management team, hold a combined majority of the fully-diluted outstanding shares of Direct Communication Solutions (US: DCSX).

According to management, entire fleets of vehicles, whole operations of companies that can’t function without sensors, virtually must replace their 2G sensors to 4G.

1. Direct Communication has received a purchasing commitment from one of its long-time clients. The purchase order represents $6.88-million in products and services!

This is the largest order in company history.

Direct Communication (US: DCSX) has developed key relationships over the past decade, by providing and becoming a technical services provider that clearly enables the IoT industry with hardware, software services, managed services and technical expertise throughout the IoT process. 

The company offers technical and managed services to every client in the Direct Communication Services portfolio ensuring success from the start of the process to the end, enabling clients and customers to traverse the connected networks.

Remember what we said before about the 2G phase-out?

Here’s what the sales people at (US: DCSX) are hearing from their customers: “Our clients are faced with a perfect storm of securing product during a time where the global supply chain is stressed, yet at the same time being confronted with the North American cellular networks migrating away from legacy 2G networks towards 4G LTE technologies, and they recognize the importance of purchasing commitments to ensure their customers and revenues are secured in advance of actual demand.”

2. for a comparison, Sensata Technologies (NYSE: ST), a leading industrial technology company and provider of sensor-rich solutions that creates insight for customers, announced the acquisition of leading telematics and data insight provider, Xirgo® Technologies Intermediate Holdings, LLC for $400 million .

Xirgo generates 5% of its revenue from its SaaS (Software as a Service) division. (US: DCSX) now generates approximately 15% of gross revenues from SaaS. If we look at their revenues for the full fiscal year of 2019, we see that the bottom line was around USD$16M. At a price-to-revenue multiple of 4, which was what Sensata used to aqcuire Xirgo®, this puts the hypothetical valuation at USD$64M (using 2019 figures). 

This is the largest order in company history.

Direct Communication (US: DCSX) has developed key relationships over the past decade, by providing and becoming a technical services provider that clearly enables the IoT industry with hardware, software services, managed services and technical expertise throughout the IoT process.

Conduct your due diligence!

Prosperous Regards,
Mac Slavo