Street Calls of the Week
SINGAPORE - Karrier One has signed a Memorandum of Understanding (MOU) with Iridium Communications Inc. (NASDAQ:IRDM), a $1.85 billion market cap satellite communications company with over $857 million in annual revenue, to integrate Iridium NTN Direct IoT capabilities into its decentralized telecom infrastructure ecosystem, according to a company press release.
The partnership aims to enable IoT connectivity in remote locations beyond the reach of traditional mobile networks without requiring local base station installation. Through Iridium’s low-Earth orbit satellite constellation, Karrier One users will be able to connect sensors and monitoring equipment in areas lacking terrestrial coverage. According to InvestingPro data, Iridium maintains strong operational efficiency with a 71.62% gross profit margin and healthy liquidity, as evidenced by its 2.51 current ratio.
"From environmental monitoring in the Arctic to asset tracking in the middle of the ocean, deployers can now build IoT solutions without worrying about terrestrial coverage gaps," said Samer Bishay, CEO of Karrier One.
The collaboration will provide narrowband IoT device connectivity across land, sea, and air without requiring infrastructure deployment. The integration is designed for applications such as maritime tracking, oil and gas monitoring, and environmental sensing.
Tim Last, executive vice president of sales and marketing at Iridium, stated, "Iridium’s unique satellite architecture provides reliable pole-to-pole coverage that users can count on, making it the perfect fit for Karrier One’s mission to connect the unconnected."
While Karrier One has previously focused on local cellular infrastructure deployment, this partnership expands its capabilities to areas hundreds of miles from the nearest cell tower. Despite Iridium’s stock trading near its 52-week low of $17.08 and showing a 35% decline over the past six months, InvestingPro analysis suggests the stock is currently undervalued, with multiple additional insights available to subscribers through the comprehensive Pro Research Report.
The companies indicated that the MOU will be followed by a bilateral agreement detailing technical integration and commercial rollout plans. For deeper insights into Iridium’s financial health, growth prospects, and detailed valuation metrics, investors can access the full analysis through InvestingPro, which offers exclusive access to over 10 additional ProTips and comprehensive financial metrics.
In other recent news, Iridium Communications reported its second-quarter earnings, revealing a mixed performance. The company posted earnings per share of $0.20, which fell short of the analyst consensus of $0.24. However, revenue for the quarter was $216.9 million, slightly surpassing the expected $214.01 million and marking an 8% increase from the previous year. This earnings shortfall seems to have overshadowed the positive revenue results. In addition, Raymond James downgraded Iridium Communications from Strong Buy to Outperform, adjusting the price target to $26.00 from $39.00. This decision came after SpaceX Starlink’s announcement of acquiring spectrum rights to enter the Direct-to-Device market. BWS Financial also downgraded Iridium from Neutral to Sell, lowering the price target to $16.00 from $25.00. BWS Financial highlighted the acquisition by Starlink as a significant competitive threat to Iridium’s business model.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.