Beam Communications Holdings Limited (ASX:BCC) Reports Positive Free Cash Flow
Financial Performance Highlights
Beam Communications Holdings Limited (ASX: BCC) reported an adjusted positive free cash flow of $753,000 for the quarter ended December 31, 2024. This marks a $1.1 million increase from the previous quarter, attributed to lower operating expenses and a significant growth in recurring revenues as well as sales from the SatPhone Shop.
However, the company faced a net operating cash outflow of $2.2 million, largely due to one-off costs totalling $3 million related to ongoing arbitration proceedings concerning ZOLEO. Total available funds at the end of the quarter amounted to $1.3 million, comprising over $1.2 million in cash and approximately $81,000 in undrawn debt from an overdraft facility.
Operational Developments
Beam’s recurring revenue surged by 36.4% year-on-year, reaching $854,000, while hardware sales increased by 12.5% to $392,000. Sales from the core Beam business, which excludes ZOLEO, experienced a minor drop of 4.1% year-on-year but showed a 59.3% increase since the previous quarter.
The company’s cost rationalisation program is on target to yield annual savings of around $2.5 million. Beam anticipates improvements in net operating cash flow for Q3 FY25 as a result of these cost-saving measures, the timing of new orders, and the removal of one-off arbitration costs.
This announcement has been approved by the Board of Directors.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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