As the world opens up alongside mass vaccination rollouts, populations are getting outside in droves to explore the post-pandemic world as evidenced by unexpected sales for Beam Communications (ASX: BCC) of their satellite hotspot devices.
The sales come as an order for 5,000 Iridium GO! from leading satellite services company Iridium Communications Inc. (NASDAQ: IRDM) in response to rising demand. Using the devices, outdoor enthusiasts can stay connected to internet services from anywhere in the world, powered by the world’s farthest reaching network.
“We are seeing an increased demand for personal communication devices as the world reopens following the COVID-19 pandemic,” said Beam Communications Managing Director, Michael Capocchi.
“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.”
As a hotspot divide, the Iridium GO! can connect with five different devices at one time including smartphones, laptops, and tablets, linking them to the Iridium LEO satellite constellation via the device’s wi-fi hotspot.
Given the ruggedness of outdoor activities where durability is critical, especially in emergency situations, the device’s popularity is driven by it’s small size which can fit into an explorer’s pocket while being strong enough to withstand rain, sand, and dust.
The devices sell online from USD $699 each.
As the manufacturers of the device, the 5,000 new devices takes Beam’s order book beyond internal expectations and follows on from the 7,500-unit order placed by Iridium just last month.
In total, Beam will have received orders for more than 62,500 devices since it was launched in 2014 as its demand is more relevant than ever with the world so connected digitally through the pandemic as we champ at the bit to resume outdoor activities.
FY21 marked a milestone year for Beam Communications which reported $18.5 million in revenue to deliver a net profit after tax of $0.51m to turn a profit after the previous year’s $1.6m net loss.
Iridium GO! is just one of the satellite communication devices manufactured by Beam with their flagship product being Zoleo, another GPS-integrated satellite communications device.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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