The Global Satellite Data Services Market size is expected to reach $16.2 billion by 2026, rising at 25% CAGR during the next six years. With increasing coordination of global information and data, and near monopolies by the big IT companies, this market could become increasingly important.
With momentum investors searching for new covid-resistant investment ideas that play on 21st century technology themes, this is a space that could become increasingly interesting ahead.
With that in mind, we take a look at a handful of highly active names in the space, including: Globalstar Inc (NYSEAMERICAN:GSAT), Iridium Communications Inc (NASDAQ:IRDM), SC Holdings Corp (OTCMKTS:SCNG), and Intelsat SA (OTCMKTS:INTEQ).
Globalstar Inc (NYSEAMERICAN:GSAT) trumpets itself as a company that provides mobile satellite services worldwide. The company offers duplex two-way voice and data products, including mobile voice and data satellite communications services and equipment for remote business continuity, recreational usage, safety, emergency preparedness and response, and other applications; fixed voice and data satellite communications services and equipment at industrial, commercial, and residential sites, as well as rural villages and ships; and satellite data modem services comprising asynchronous and packet data services.
It also provides SPOT consumer retail products, such as SPOT satellite GPS messenger for personal tracking, emergency location, and messaging solutions; and SPOT Trace, an anti-theft and asset tracking device.
Globalstar Inc (NYSEAMERICAN:GSAT) recently announced its operating and financial results for the quarter ended June 30, 2020.
Dave Kagan, Chief Executive Officer of Globalstar, commented, “Globalstar recorded improved overall profitability for the second quarter, and I am pleased with our ability to continue to execute our business plan on so many fronts even in the face of the extreme adversity that COVID-19 presents. We continue to see the negative impacts of the pandemic and the oil and gas industry downturn on our revenue, particularly with lower customer demand of our Commercial IoT products. While we recognize that we are experiencing unprecedented times, our confidence in the future expansion of our Commercial IoT business remains and the execution of our product development efforts continues. Just this quarter, we introduced three new products, including the ST100, the latest satellite transmitter in our family of Commercial IoT solutions. Intended for rapid development in partnership with our resellers, the ST100 is a low-cost data modem suitable for any commercial market that needs remote data connectivity. Utility contractor Potelco will be a launch customer of the ST100 through our partnership with Recon Dynamics. Potelco operates from 12 offices spread around the Pacific Northwest with 1,100 employees utilizing over 3,500 pieces of equipment. We expect there to be many more companies with needs similar to Potelco.”
While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasn’t been the type of action GSAT shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -11% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities.
Globalstar Inc (NYSEAMERICAN:GSAT) generated sales of $30.4M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -5.7% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($15.7M against $100.7M, respectively).
Iridium Communications Inc (NASDAQ:IRDM) frames itself as a company that provides mobile voice and data communications services and product to businesses, the United States and foreign governments, non-governmental organizations, and consumers worldwide.
The company offers postpaid mobile voice and data satellite communications; prepaid mobile voice satellite communications; push-to-talk; broadband data; and Internet of Things (IoT) services. It also provides other services, such as inbound connections from the public switched telephone network, short message, subscriber identity module, activation, customer reactivation, and other peripheral services. In addition, the company offers voice and data solutions comprising personnel tracking devices; asset tracking devices for equipment, vehicles, and aircrafts; beyond-line-of-sight aircraft communications applications; maritime communications applications; specialized communications solutions for high-value individuals; mobile communications and data devices for the military and intelligence community, such as secure satellite handsets, as well as netted voice, messaging, and paging services; and maintenance services for the department of defense’s dedicated gateway.
Iridium Communications Inc (NASDAQ:IRDM) just announced six beta partners for its newest out-of-the-box satellite IoT device, the Iridium Edge Solar – an intelligent, secure and maintenance-free solar-powered remote asset management device with over-the-air configuration capabilities. The six companies selected to participate in beta testing include CLS Telemetry, Everywhere Communications, Marlink, M2M Data Corporation, Rock Seven, and Tesacom. These companies represent some of the most innovative of the over 450 partners that are licensed to create Iridium® network-based solutions.
According to the release, as part of this process, Iridium Edge Solar is undergoing a multi-continent deployment that will push the device’s limits for applications including Vessel Monitoring Systems (VMS), fisheries management, asset tracking including freight and containers, oil and gas and heavy equipment telematics data reporting. In addition, Bluetooth Low Energy (BLE)-enabled smart device applications are being tested to allow users to maintain remote asset management and monitoring from their smartphone and/or tablet. Unlike competitive satellite GPS tracking products, Iridium Edge Solar enables real-time, two-way communication, over-the-air configuration changes and local wireless capabilities over BLE – anywhere in the world.
It will be interesting to see if the stock can break out of its recent sideways action. Over the past week, the stock is net flat, and looking for something new to spark things.
Iridium Communications Inc (NASDAQ:IRDM) pulled in sales of $140.2M in its last reported quarterly financials, representing top line growth of -2%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($119.1M against $101.9M).
SC Holdings Corp (OTCMKTS:SCNG), now basically doing business as Strattner Financial Group Corp., is an investment management company that manages multiple alternative asset classes, including private equity, convertibles, credit, and hedge funds. It also focuses on selling satellite-based communications devices. On March 25, 2020, Timo Strattner became CEO of SC Holdings Corp. and changed its name to Strattner Financial Group. During the week of his appointment, he added $2,328,582 of financial assets to SCNG when he acquired his own Companies.
At this point, Strattner Financial Group is actively pursuing the strategy to acquire a Broker-Dealer in the USA and obtain FCA licensing in the United Kingdom to accelerate enterprise growth and provide tailored investment banking and growth services relevant to the industries where subsidiaries operate. The Company also opened technology division Strattner Technologies LLC which made headlines acquiring New York based Point-To-Point technology firm Always On Incorporated. Shortly after Strattner Technologies LLC is entering into the satellite communications market through an agreement with satellite network operator Pivotel America, Inc.
Strattner Technologies LLC also recently signed a contract with satellite phone manufacturer AdvanceTC Limited (OTC:ATCLF) to service and commercialize up to one million phones via the Strattner.Space platform. AdvanceTCs android based satellite-smartphone Xplore 7 is a FCC/SIRIM certified rugged satellite-smartphone with 4G LTE, satellite messaging and emergency button device which received authorization by the United States Federal Communications Commission (FCC) in 2019.
SC Holdings Corp (OTCMKTS:SCNG) just announced that its subsidiary Strattner Technologies LLC signed a Memorandum of Agreement (MOA) with The Federal Emergency Management Agency (FEMA) Program Management Office (PMO), which will remain in effect for three years, is to establish a management agreement between Strattner Technologies and the Federal Emergency Management Agency (FEMA) regarding the development, management, operation, and security of a connection between Strattner Alerts, owned by Strattner Technologies, and the Integrated Public Alert and Warning System – Open Platform for Emergency Networks (IPAWS-OPEN) owned by FEMA.
Strattner Alerts is a service being developed by Strattner Technologies LLC with the mission to build a SaaS, mobile app and web service system capable of sending the relevant messages to the right audiences to ensure public safety of the American People.
SC Holdings Corp (OTCMKTS:SCNG) recently reported that assets under management in its wholly owned private funds TBS Equities Fund LLC and TBS Capital LP increased 192% from $2,328,582 to $6,812,000 attributable to a growing securities portfolio. The company continues to line up key deals to commercially expand in the sat-com space.
Intelsat SA (OTCMKTS:INTEQ) bills itself as a company that provides satellite communications services worldwide. The company offers a range of communications services to media companies, fixed and wireless telecommunications operators, data networking service providers for enterprise and mobile applications in the air and on the seas, multinational corporations, and Internet service providers; and commercial satellite communication services to the U.S. government and other military organizations and their contractors.
It provides various on-network services, including transponder services; managed services that combine satellite capacity, teleport facilities, satellite communications hardware, and other ground facilities to provide managed and monitored broadband, trunking, video, and private network services to customers; and channel services primarily used for providing point-to-point bilateral services to telecommunications providers.
Intelsat SA (OTCMKTS:INTEQ) just announced the successful launch of Galaxy 30, a geosynchronous communications satellite that will primarily provide high-performance television distribution service to Intelsat’s North American customers.
Northrop Grumman’s Mission Extension Vehicle 2 (MEV-2) was part of the same successful launch today. The Intelsat 10-02 satellite is scheduled to be its first customer in early 2021.
If you’re long this stock, then you’re liking how the stock has responded to the announcement. INTEQ shares have been moving higher over the past week overall, pushing about 4% to the upside on above average trading volume. Shares of the stock have powered higher over the past month, rallying roughly 22% in that time on strong overall action. Intelsat SA (OTCMKTS:INTEQ) generated sales of $482M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 5.1% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($1.1B against $5.8B, respectively).