Profitable ASX Small Cap with Growing Recurring Revenues Aiming to be World’s Leading Satellite Communication Solutions Provider!

BEAM Featured Image

Company: Beam Communications Holdings Ltd

ASX Code: BCC

Share Price: $0.435 (As at 26 Nov 21)

Morning Star Valuation: $0.61 (As at 26 Nov 21)

Market Cap: $33m (As at 26 Nov 21)

Cash: $10M Approx. (After recently over subscribed Capital Raise)

Company Website: https://www.beamcommunications.com/

Beam Communications at a Glance:

Vision: 
To build on Beam’s successful track record as an international leader in designing and manufacturing satellite communication equipment to pivot into recurring revenue subscription services.

Mission: 
Saving lives, improving safety and enhancing communications worldwide through the design and development of advanced satellite communications and services.

Beam Communications is dedicated to saving lives, improving safety and enhancing communications for the people and companies that work, live and play in remote, and sometimes hostile, regions of our planet.

Through our innovation, creativity and technological expertise, we design products and services that are at the leading edge of the satellite industry, helping to solve some of the most challenging communications problems.

Established in 2002, as a subsidiary of ASX-listed World Reach Limited, Beam started out as the developer of a satellite terminal for local Australian telco, Telstra, for use on the Iridium satellite network. The success of the terminal gave us an opportunity to increase distribution into Asia, the United States, Europe and the UK and led to our recognition as a designer and manufacturer of satcom equipment, on a global scale.

Further success followed with the development of various world-renowned products such as the world’s first satellite hotspot (Iridium GO!), dual-band hotspot (Thuraya WE), Iridium docking station for Telstra and Priority Service Units, remote community telephones, highway emergency concepts, data modems and further voice, data and tracking products.

Our business was now strategically positioned with the widest range of satellite communications terminals and accessories globally for the Iridium network.

In 2009, our strategic product development team secured a major development contract with Inmarsat for four specialised docking stations for their first handheld satellite phone enabling us to access Inmarsat’s key markets in China, Japan, Singapore and South America.

Today, we continue our dedication to increase our product portfolio in the creation of market leading products and services, to provide mobile satellite solutions to all market sectors. 

Our successful track record in developing market leading satellite equipment led us to build and launch ZOLEO through a joint venture entity in early 2020. Sales and subscription growth for ZOLEO has been strong and the momentum is likely to persist for years, thanks in part to the device winning several national and international awards and glowing expert reviews.

The affordable pocked-sized ZOLEO unit is an always connected messaging solution that works with smartphones as it automatically switches between Wi-Fi, mobile and satellite networks. ZOLEO generates monthly subscription income for Beam and has the potential to become a company-maker.

Our extensive strategic distribution network includes the biggest names in the mobile satellite telecommunications industry. These partners cover thousands of distribution points across every continent, providing global access to Beam products.

Through our constant focus on R&D, excellent industry relationships, our new and original products and through acquisitions of synergistic businesses, we strive to become the supplier of choice for satellite communications services, terminals, accessories and accessories.

Company Overview:

  • World Leader in developing multi-band (satellite, mobile, Wi-Fi) portable devices and services for smart phones

  • Growing recurring revenues from ZOLEO as well as other devices

  • Targeting large and growing niche markets for travellers, adventure seekers, rural residents and remote/lone workers

  • Long-standing partnerships with global industry leaders (e.g. Iridium, Inmarsat, KDDI, Telstra, Thuraya etc)

  • Successful track record in developing and launching innovative solutions that are used around the world

  • Strong balance sheet and cash holdings to fast-track international growth

Recent Company Announcements:

23 November 2021 – Successful Completion of $5m Placement and launch of SPP to accelerate Beam’s International Growth Plans

Highlights:

  • Beam undertakes a capital raise under PEAK Asset Management to accelerate its international growth agenda, including a more rapid roll-out of ZOLEO to additional markets

  • The company successfully raised $5M via a share placement with demand heavily exceeding expectation

  • Proceeds will be used to launch ZOLEO into more countries then originally planned, R & D for the next-gen ZOLEO, developing APIs/SDKs for third-party integration, manufacture of Iridium Certus (registered) devices and for growth opportunities

  • Provide Beam the optionality to consider strategic acquisitions

25 October 2021 – Beam Receives Additional Orders For 12,000 ZOLEO Units

Beam Communications Holdings Ltd is pleased to announce that it has received additional orders for 12,000 extra ZOLEO devices in total from its joint venture (JV) entity, less than a month after the previous order.

The First 9,000 of these units are scheduled to be delivered and invoiced in 4QF2022, which the balance will be shipped and invoiced in 1QFY2023.

ZOLEO Inc. continues to see strong interest from its retail partners and distributors for the unique seamless global messaging device and believes that the ongoing reopening of the travel industry around the world will further drive demand for the pocket-sized communicator.

ZOLEO is not only for extreme adventures needing a safety device and a reliable and constant connection to friends and family. Anyone planning to escape to a remote hideaway, an unfamiliar country or a cruise will also find the service invaluable.

The Total Number of ZOLEO’s ordered from BEAM since its launch in early 2020 now stands at 115,225 devices.

21 September 2021 – Beam Receives Additional Order to Manufacture 5,000 Additional Iridium GO! (Registered) Devices

The additional order is to met continuous consumer demand for the popular portable satellite hotspot device. Half of this order will be delivered in Q3 of FY2022 with the balance scheduled for delivery in the first half of FY2023.

The order for the extra devices is ahead of Beam management’s internal forecasts and is in addition to the 7,5000-unit order that Iridium placed just last month. To date, Beam has received orders for a total of 62,500 units since this product’s launch in 2014

30 August 2021 – Beam Delivers Record Revenue and Profit Before Tax

Highlights:

Full-year ordinary revenue increased 24% to record $18.5m as total revenue also hits all-time high

Turnaround in profit before tax to a record high of $781K

Significant increase in ZOLEO hardware sales and growth in key parts of Beam’s legacy business contributed revenue uplift in FY21

Positive outlook for the Group with further revenue and earnings growth expected in FY22

Iridium GO! orders hit 57k since launch

SatPhone Shop online business experiences 28% growth

Summary:

Highly cashed up after the recent placement and strong sales contracts in place, things are looking highly positive for Beam Communications Holdings as they plan to expand their products to other countries.

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