Beam Communications : pdf Beam Delivers First Half Profit on Strong Organic Growth (142 KB)

21 February 2020

The Manager

Market Announcements Platform

Australian Securities Exchange Limited

BEAM DELIVERS FIRST HALF PROFIT ON STRONG ORGANIC GROWTH

Highlights:

• Group remains profitable, with robust expansion of core business revenues
• Significant and continuing growth of other Beam products lowers earnings variability
• FY2020 transition year with new products to deliver further earnings momentum in FY2021 and beyond

Beam Communications Holdings Ltd (ASX: BCC) is pleased to announce its first half FY2020 financial results. The company recorded interim revenues of $7.1 million and delivered a net profit of $160,538 for the six months ended 31 December 2019.

This is a pleasing performance and is reflective of an increase in Beam's core business revenues over the prior corresponding period, which in 2019 were bolstered by the delivery of a $3.85m order of the Thuraya WE dual-band hotspot device.

$m	First Half Revenue Comparison
12
10
8							Thuraya WE sales
6
4							Sales of other Beam equipment
2
0
1HFY18		1HFY19	1HFY20

The significant and consistent lift in sales orders enjoyed for existing Beam and SatPhone Shop products, including docking units, fixed terminals and accessories continues the momentum built in Beam's central business since H1 FY2018.

"Having a wide range of products in our portfolio for multiple network operators that are sold in multiple markets around the world provides greater earnings stability to Beam," said Beam's chief executive officer, Michael Capocchi.

"What's more, our earnings stability and growth will be enhanced in future periods with the launch of ZOLEO. This seamless satellite messaging solution for smartphones will generate monthly recurring revenues for our company."

Outlook

The ZOLEO device was launched last month in the Australian and North American markets and is the only wearable ubiquitous messaging solution of its kind in the world. Beam is in the process of expanding the sales distribution for the product and is in final negotiations with a major Australian retailer. The company will provide further updates accordingly.

"FY2020 is a transition year for Beam as our recently launched products are anticipated to make a meaningful contribution to group revenue and earnings from the next financial year onwards," said Mr Capocchi.

"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."

Yours faithfully,

Dennis Payne

Chief Financial Officer & Company Secretary

For media & investor enquiries please contact:

Brendon Lau

1. [e-mail]

1. 0409 341 613

About Beam Communications

Beam Communications Holdings Limited is an Australian publicly-listed company (ASX:BCC) that specialises in the design, development, manufacture and distribution of satellite, cellular and dual-mode equipment, applications and services. Its products and services are adopted by some of the world's largest satellite and telecommunications companies, such as Iridium, Telstra, KDDI, Inmarsat & Thuraya, to fill the global needs of Information Communication & Technology markets. Beam Communications Holdings Limited owns 100% of Beam Communications Pty Ltd and SatPhone Shop Pty Ltd www.satphoneshop.com. For more information, visit www.beamcommunications.com.