Mobile satellite technology developer Beam Communications (ASX: BCC) is introducing its branded satellite equipment to the Indian market, inking a reseller deal with leading Indian satellite services company Station Satcom.
The signed agreement announced today formalises an existing partnership between the companies, under which Station Satcom has already ordered about US$250,000 worth of Beam-branded equipment since the start of the year.
The deal is for Beam’s satellite devices specially designed for the Inmarsat network, which recently became the only satellite network that India’s government has permitted to operate in the country.
For this reason, Beam’s Inmarsat equipment faces little to no competition in the Indian market, with further orders expected as the Inmarsat service gains greater market application in the country.
According to the company, most of its products supplied to and sold by Station Satcom have been docking stations and Beam’s Oceana 800 satellite terminal, which is designed for maritime and in-building uses.
The company claims its docking stations are the only Imarsat-approved docking units in the world and the Oceana 800 is the only device of its kind currently running on the Inmarsat GSPS service.
Station Satcom chief executive officer Anshul Khanna said the reseller agreement follows strong initial demand for Beam’s products in India.
“We are expecting further robust sales of Beam’s Inmarsat equipment, as this is the first time we’ve been able to sell such equipment in the Indian market, and as the Inmarsat service gains greater market penetration,” Mr Khanna said.
In addition to Inmarsat, Beam’s clients include some of the world’s biggest satellite and telecommunications companies such as US-headquartered Iridium, United Arab Emirates-based Thuraya, Australia’s largest telco Telstra and Japanese operator KDDI.
Positive earnings outlook
The 2019 financial year has been a turning point for Beam, which reported record first-half revenue of $10.5 million in December 2018.
Sales were up 30% compared to the previous corresponding period and the company was officially out of the red, reporting a net profit after tax of $732,938 compared to a net loss of $580,858 in the first half of fiscal 2018.
This result was driven by new product launches including the successful completion of the first order of Thuraya WE dual-mode terminals and the shipment of 2,500 Iridium GO! devices.
Beam said its entrance in the Indian market supports the company’s positive earnings outlook, with the market expected to be a strong contributor to ongoing growth of Beam’s equipment division.