- Beam Communications has bagged another order for Iridium GO! devices from its long-standing partner.
- The Company has received orders for 62,500 Iridium GO! devices over the past seven years since the launch of this product in 2014.
- The demand for the highly reliable smartphone-to-satellite connectivity device Iridium GO! remains strong.
- The personal communication devices market is forecast to rise at a CAGR of 29% to 2025.
Beam Communications Holdings Ltd (ASX:BCC) continues to register solid growth prospects, backed by its innovative satellite communications solutions.
An additional order for Iridium GO! – a popular portable satellite hotspot device – has further validated the Company’s strong potential and strengthened its revenue base.
In a significant update, the Company has secured a new order for 5,000 Iridium GO! devices from its long-standing partner Iridium Communications Inc. (NASDAQ: IRDM).
Image Source: © Gajus |Megapixl.com
A global leader in ingenious satellite communication devices, Beam specialises in designing, developing, manufacturing, and distributing satellite, cellular and dual-mode equipment, applications, and services.
Some of the world’s biggest satellite and telecom companies, such as Iridium Communications, Telstra Corporation Limited (ASX:TLS), KDDI Corporation, Inmarsat, and Thuraya, depend on Beam for satcom products and service requirements.
Striking elements of Iridium GO! order
Leading satellite services provider Iridium Communications has placed the additional order to cater to the rising demand for Iridium GO!, a highly reliable smartphone-to-satellite connectivity device.
Beam will deliver the order in two phases – 50% of the devices is scheduled for delivery in the third quarter of the current fiscal year FY22, while the remaining 50% will be delivered in the first half of the next financial year FY23.
Evolving market for Iridium GO! Devices
In July this year, Beam received its largest order for the manufacturing of 7,500 units of the popular portable satellite hotspot device from Iridium Communications.
Altogether, the Company has received orders for 62,500 Iridium GO! devices over the past seven years since the launch of this product in 2014.
Image Source: Company’s Annual Report, 14 September 2021
The success of Iridium GO! can be attributed to the growing demand for the device. The growth momentum is likely to continue over the coming years as there has been remarkable growth in the personal communication devices market.
As per Iridium Communications, the personal communication devices market is projected to grow at a 29% compound annual growth rate (CAGR) to 2025.
Welcoming the additional order, Michael Capocchi, Managing Director of Beam Communications, said:
“We are seeing an increased demand for personal communication devices as the world reopens following the COVID-19 pandemic. Beam is well placed to capitalise on this trend, and the better-than-expected orders for Iridium GO! and the rising subscription revenues from ZOLEO, bode well for the Group’s financial performance in FY2022 and beyond.”
Stock information: BCC shares were trading at AU$0.235 on 21 September 2021 midday, with a market capitalisation of AU$18.76 million.