Mobile satellite technology developer Beam Communications (ASX: BCC) has unveiled plans to sell its ZOLEO service through the LiTMUS LAB at Myer’s flagship store in Sydney, commencing next month.
As of 1 March 2020, Beam’s global messaging solution that harnesses satellites will be available via LiTMUS LAB, a “shop-in-shop” concept shop showcasing the best consumer technology products at Myer’s flagship stores.
The retailer claims that more than two million shoppers visit LiTMUS LAB every month, which is expected to serve as a staging ground for shoppers to experience the product among other tech innovations within the digital space.
LiTMUS LAB showcases the best in innovation from around the world, allowing customers to discover, experience, and test the ZOLEO device before making a purchase.
In a statement to the market, Beam declared that ZOLEO will be made available at Myer’s Sydney CBD store followed by Myer Chadstone in Melbourne in the coming weeks and eventually Myer’s Brisbane store by May 2020.
ZOLEO will also be sold via Myer’s website, which is visited by a million consumers every month.
“We are always on the lookout for the latest and greatest technology trends and we believe that ZOLEO will resonate with consumers who value being in constant contact with friends and family, no matter where they are in Australia or the world,” said LiTMUS LAB chief executive officer Ashley Heath.
“ZOLEO is the only satellite product we have seen that we believe has mainstream appeal, and we are excited to have the opportunity to showcase this portable messaging device at our stores,” he said.
In a further bid to boost sales of ZOLEO following a North American launch last month, Beam revealed that it is also working on an agreement to sell its messaging device through prominent retail hubs Amazon.com and eBay.
According to Beam, ZOLEO will be available on these online shopping sites by the end of June 2020.
Growing underlying sales
Beam’s latest results shows its underlying business is growing and remains profitable despite its relatively small size.
Just last week, Beam reported interim revenues of $7.1 million and delivered a net profit of $160,538 for the last six months of 2019.
Total revenues were down 32% compared with the previous year, while profit declined by 78% due to receiving a $3.85 million order for its Thuraya WE devices in the previous corresponding period.
Discounting the impact of Thuraya WE, sales of Beam’s other products have grown in the last three halves.
The company says it remains profitable despite not receiving another large order for the Thuraya WE units in the latest period. Beam said it is anticipating a repeat order in FY21.
Beam achieved FY19 full year sales of $18.5 million, with the market currently valuing the company at a market cap of around $11 million.
Beam’s chief executive officer Michael Capocchi stated that the current financial year represents a “transition year” for Beam as its recently launched products hit store shelves and are expected to make a meaningful contribution to group revenue and earnings from the next financial year onwards.
“We will also be developing and launching the next generation of Iridium satellite devices, which are more than 35 times faster than the previous generation of narrowband transceivers. Sales of these devices will further enhance Beam’s medium-term growth profile given the long product life cycle for satellite equipment and the sales history of our very successful Iridium GO! devices,” said Mr Capocchi.
In Australia, Beam has also signed a separate agreement with Leading Edge, a company with over 950 independent retail partners across Australia, to sell Beam’s Telstra-approved 4G IoT routers.
“It is pleasing to see that our new products, ZOLEO and our 4G routers, are gaining traction in the marketplace. While online is a key channel for our products, consumers often want to be able to touch, feel and interact with a new product before making a purchasing decision,” said Mr Capocchi.
“Having retail partners with significant physical presence provides an invaluable opportunity to accelerate the adoption of our latest satellite, 4G and dual-band devices. Beam is in the process of signing on other retail partners in Australia and in other overseas markets,” he added.