Beam Communications finds success overseas as customers go off the beaten track
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Satellite communications company Beam Communications (ASX:BCC) has filled out the global order book for its ZOLEO mobile phone device.
The company is shipping another 5,000 to North America via its joint-venture partnership with Toronto-based Roadpost Inc.
It also booked another $300k in revenue from a customer in India, “with more orders anticipated if reseller partner wins additional government tenders”.
Beam said it’s particularly optimistic about opportunities in North America, while there are tentative signs of activity in Australia where stricter social distancing measures briefly put a pause on sales.
The company’s ZOLEO device uses satellite connectivity to improve connectivity pathways for devices such as mobile phones when they are out of range from existing networks.
The revenue model is similar to that of a mobile phone, with an up-front costs accompanied by a minimum 3-month contract with monthly fees at three different price points.
Shares in BCC bounced off their recent lows this morning, but the company is still looking to capture its pre-COVID momentum when the stock traded above 30 cents.
The 5,000 unit order into Canada marks the company’s third sale into that market, where “most of the units held by Roadpost have already been sold directly to consumers or to its retail channel partners”, Beam said.
Beam also flagged ongoing discussions with retailers in Australia and Canada that it said it was hopeful would result in further contracts in the weeks ahead.
The company added that its Indian customer, Station Satcom, was in the process of tendering for additional government contracts, which if successful could act as a catalyst for additional contracts.
There was a surge in Pureprofile (ASX: PPL) shares with the stock more than tripling in morning trade with a gain of 337.5 per cent.
The company announced a new CEO appointment before the opening bell, with Martin Filz set to join the business from his current role as managing director of data analytics business Eureka AI.
And following Afterpay’s (ASX:APT) surge last week in the wake of a $1bn equity raising, BNPL competitor Sezzle (ASX:SZL) did the same this morning after coming out of a trading halt in connection with its ~$90m raise last week.
The stock promptly jumped by another 25 per cent to $8.60, taking its overall gain from March COVID-19 lows to more than 2,200 per cent.