- Beam Communications (BCC) has reportedly dodged the worst of COVID-19’s impacts during the 2020 June quarter
- While gross revenues were lower than pre-coronavirus estimates, sales have largely rebounded since the initial COVID-19 shutdown
- Beam Communications expects to sign more major retailers for its ZOLEO units in Australia and North America in coming weeks
- The company ended the June quarter with $874,000 in cash holdings, and approximately $3.3 million in undrawn debt
- Beam Communications shares are grey in early trade, priced at 23.5 cents
Beam Communications (BCC) has reportedly dodged the worst of COVID-19’s impacts during the 2020 June quarter.
While the company did not go untouched by the coronavirus, the damage has not been nearly as severe as anticipated. Gross revenues for the quarter were certainly lower than pre-COVID estimates, but have already started to bounce back from the first shutdown.
In some ways, the nation-wide lockdowns may have even boosted the demand for Beam’s communication equipment. With people avoiding crowded centres and staying home, there has been increased inclination towards solitary leisure activities which require satellite communication devices.
Since early June, Beam has noted an encouraging improvement in interest around its ZOLEO units. In particular, ZOLEO sales in North America are performing well, while sales in Australia are gaining ground after the country’s first lockdown.
So far, the company has not been materially impacted by the second lockdown now taking place in Victoria, when compared to expectations.
Throughout the June quarter, Beam received several orders for its ZOLEO units and Inmarsat terminals, with more expected in future. In the coming weeks, the company expects to sign other major retailers for ZOLEO units in Australia and North America.
Beam Communications ended the June quarter with $874,000 in cash holdings, a slight increase from the $806,000 in cash held at the end of the March quarter. The company’s net operating cash flow also increased to $834,000 during the quarter.
Beam also invested $584,000, the vast majority of which was related to capitalised product development costs. The company recorded $182,000 in financing costs for the quarter, relating to its share of operating costs for the ZOLEO joint venture.
Overall, Beam’s total available funds, consisting of cash and undrawn debt, currently stand at $4.2 million. This is the result of the National Australia Bank (NAB) expanding its available facilities by $500,000 in early June.
After releasing its quarterly update on July 30, the company’s share price rose by 23.68 per cent the following day.
Today, Beam Communications shares are grey in early trade, priced at 23.5 cents at 10:36 am AEST.