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Beam Communication (ASX:BCC) - Managing Director, Michael Capocchi - The Market Herald
Managing Director, Michael Capocchi
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  • Beam Communications (BCC) has recorded a 24.5 per cent year-on-year growth in customer receipts for the March quarter
  • In terms of cashflow, Beam recorded a net operating cash inflow of $64,000 after expenses
  • Pleasingly, this marks Beam's sixth consecutive quarter of positive operating cashflows from usual activities
  • In March, the telecom stock welcomed its sixth order of ZOLEO, its global messaging device, which takes up the total number of devices ordered to about 47,000
  • The company plans to invest in enhancing ZOLEO's features to generate more subscription revenues per subscriber
  • At the end of the quarter, Beam had $4.5 million in cash which is slightly more than the $4.4 million it started with
  • Company shares have dropped 7.14 per cent and are trading at 26 cents

Beam Communications (BCC) has recorded a 24.5 per cent year-on-year growth in customer receipts for the March quarter.

The $4.67 million in customer receipts is a positive growth from the $3.7 million received in the March 2020 quarter. It also marks Beam's sixth consecutive quarter of positive operating cashflows from usual activities.

Pleasingly, the company welcomed a sixth order for its ZOLEO device. This order came from Beam's joint venture partner, ZOLEO, who ordered 12,500 devices. This took the total number of devices ordered to around 47,000.

ZOLEO is a global messaging device that allows users to send messages outside of mobile coverage areas.

In terms of cashflow, Beam recorded a net operating cash inflow of $64,000 after expenses. It also received a research and development grant of $690,000 from the government.

The telecom stock's largest expenses were for product manufacturing and operating costs, which totalled $3.3 million, and staff costs, which totalled $1.2 million.

Beam also paid back $50,000 of debt to NAB and allocated $595,000 in product development costs relating to the new Iridium Certus devices and enhancements to the ZOLEO product.

The company plans to continue investing in the device to enhance its features and overall offerings. This will hopefully generate additional subscription revenues per subscriber.

At the end of the quarter, Beam had $4.5 million in cash which is slightly more than the $4.4 million it started with.

Looking ahead, Beam will develop go-to-market strategies, systems and infrastructure to launch ZOLEO into Europe and Asia early next year.

Company shares have dropped 7.14 per cent and are trading at 26 cents at 1:18 pm AEST.

BCC by the numbers
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