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Beam Communications shining bright with major Iridium GO! order

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By Colin Hay - 
Beam Communications ASX BCC Iridium GO NASDAQ IRDM
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Beam Communications (ASX: BCC) has continued its strong recent performance with the awarding of approximately $2.5 million in new orders from global satellite technology leader Iridium Communications (NASDAQ: IRDM).

The new order for the Iridium GO! Devices is expected to be filled within FY24 and FY25.

The company says that while it was initially unveiled in 2014, demand for the Iridium GO!, pocket-sized portable satellite hotspot, remains strong.

Beam’s managing director, Michael Capocchi, says Iridium GO! remains popular despite the recent launch of the next-generation Iridium GO! exec, which is designed and supplied by Beam.

“We believe that the original Iridium GO! product will remain a popular choice for years to come, even as the Iridium GO! exec gains strong market traction,” Mr Capocchi said.

“This is because both devices appeal to different groups of customers who will factor in size, functionality and affordability in their purchase decision.”

“The Iridium GO! has been one of Beam’s most successful development projects to date and we are confident that this device, along with the new Iridium GO! exec, will continue to be key growth drivers for the Group.”

Beam on target for strong FY2023

The positive Iridium award news follows the strong financial forecasts made by the company in late April.

In unveiling its third quarter results, Beam said it remained on track to deliver record FY23 highs of around $4 million EBITDA.

That forecast came on the back of a third quarter that provided significant positive operating cash flows of $1.4 million compared to a net outflow of $1.5 million in the previous corresponding period (PcP).

Beam recorded a significant growth in sales across its business, which included a 200% increase in sales of Beam Equipment (excluding ZOLEO).

That growth was led by strong demand for satellite devices and accessories, including Iridium GO! exec.

The report also noted that Beam was in a strong position financially with a cash holding of $3.6 million, up 17% on the previous quarter. The company confirmed it also has access to a further $1.2 million in available and undrawn debt, with total available funds of $4.8 million.