The Beam Communications Holdings Ltd (ASX: BCC) share price is jumping higher following another ZOLEO contract order. We take a closer look.
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The Beam Communications Holdings Ltd (ASX: BCC) share price is on the move today following news of another ZOLEO contract order. During mid-afternoon trade, the satellite telecommunications company’s shares are up 3.7% to 28 cents.
Established in 2002, Beam Communications designs, manufactures and sells satellite communication equipment. The company’s products include satellite terminals, modems, accessories and related services. Some of the world’s largest satellite and telecommunications companies such as Iridium, Telstra Corporation Ltd (ASX: TLS), KDDI, Inmarsat, and Thuraya currently use Beam’s products.
ZOLEO is the world’s first true global messaging satellite communicator. The handheld device connects with a smartphone and enables the user to access an array of features when out of mobile coverage range. The device contains personal safety features such as check-in and SOS alerts, sharing GPS location, and messaging services.
What did Beam announce?
The Beam share price is climbing higher as investors process the company’s latest contract.
According to its release, Beam has received a sixth order for 12,500 ZOLEO units from its joint venture entity, ZOLEO Inc. This comes as retail channel partners in North America have begun preparing for the anticipated demand in the upcoming holiday season.
Beam noted that sales in outdoor equipment traditionally rise during the Spring/Summer break. ZOLEO is stocked by all major outdoor and camping retailers across the United States and Canada. This includes Bass Pro Shop/Cabela’s, Mountain Equipment Co-op, Recreational Equipment, Inc. and London Drugs.
In Australia, demand has also rocketed, with leading outdoor retailer, Anaconda Group, placing repeat orders since December 2020. Beam revealed that it is currently in negotiations with another major Australian retailer to sell ZOLEO.
The current shipment scheduled for North America is expected to be delivered to retailers by the end of June 2021. Beam said this will bring the total amount of ZOLEO products shipped to 47,000 units, reflecting growing demand.
About the Beam share price
Over the last 12 months, the Beam share price has gained around 27%, but fallen by around 18% year to date, providing mixed returns.
Based on the company’s current share price, Beam has a market capitalisation of around $21 million.
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Motley Fool contributor Aaron Teboneras owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.