DENVER, Colo., Oct 24, 2023- From developing new sales verticals to securing its largest single SD7 order in Company history, Siyata Mobile (NASDAQ: SYTA) is having a breakout year and the B2B provider of technologically advanced cellular communications solutions, including in-vehicle devices, rugged handsets, and cellular boosters, is positioning the Company to finish 2023 on strong footing.
By disrupting the legacy Land Mobile Radio (LMR) industry with Next Generation Communication Technology, Siyata seeks to offer a cost-effective option in the rapidly growing Push-to-Talk Over Cellular (PoC) industry, which has a total addressable North American market, for all 3 product categories of US$50 billion.
Based on its current growth trajectory, Siyata should continue to gain traction and strengthen its foothold in those markets, to drive value for its investors, while its recent moves indicate that’s what management’s sights are set on.
The Company is preparing to roll out its new SD7+ handset, which combines mission-critical push-to-talk (PTT) and video streaming solutions. The SD7+ handset is designed to solve real-world public safety challenges and at the price point that beats its competitors, as well. It’s a game changing upgrade from LMR that is easy for LMR Radio users to adopt. Its superior sound quality delivers clear communication despite background noise and its rugged design meets military standard 810H and IP68 ratings against dust, debris and liquids.
Motorola Solutions’ APX Radio Series is well known for its durability, but it lacks an integrated body camera.
Axon Enterprise’s Body 3 Camera is the mirror opposite, as its visual data capture feature is strong, but it falls well short in integrated communications.
If recent milestones are an indication of future success, the SD7+ will be a smash hit, as Siyata announced that it secured its largest SD7 single customer order, in July, valued at approximately $1.4 million, which it expects to deliver this year. Included in that announcement was news that the order brought Siyata’s total of publicly announced orders for 2023 of over $6 million, already exceeding its full year 2022 revenues.
The SD7 handset recently became a cobranded in-stock device that is now being carried by AT&T. this elevated presence should translate into many more sales opportunities and sets the foundation for further cobranding deals for upcoming devices, like the SD7+.
Plus, Siyata recently scored its first order from the U.S. federal government, for its Hero Series UM50 FN cellular boosters, which are compatible with the FirstNet wireless network, which opens for the Company to increase sales and deepen penetration in that key market.
Siyata’s momentum is being driven by its handsets several other Siyata Mobile offerings, including the VK7 Vehicle Kit, UV350 In-Vehicle Device, Siyata Real Time View, and the Siyata Mobile Command Center, an all-in-one, mobile communications solution with built-in redundancy primarily for providers of Emergency Management Services (“EMS”) that need to set up a mobile telecommunications command center in the field.
The Company reported that “New orders are increasing, demand is robust and our pipeline of new markets and potential new customers is expanding.” Additionally, it stated that “Our sales momentum is accelerating, and we are extremely encouraged by the traction we are gaining with our channel partners.”
To fulfill these orders and fund future growth initiatives, Siyata plans on raising up to $5 million via a public offering. As Siyata stated, “We intend to use the proceeds of this offering for general corporate purposes, which could include working capital to fund inventory purchases for customers based on sales orders on hand and expected inventory demands as well as future acquisitions and capital expenditures.”
This indicates that the investment banks have spotted value at this level. Scratch that, they probably see significant upside potential from this level to execute a deal as structured. The simple reasoning is that, if the bankers are willing to invest that much at this level, that’s a strong signal that they are also betting on the Company’s business plan doing well and success with their execution of that plan.
From an investment banker’s point of view, what’s not to like?
To report reaching previous year’s revenues by the midyear point must put a smile on any banker’s face, but the year-over-year growth metrics are captivating. For example, Siyata reported $2.7 million in second quarter 2023 revenues, up 180% year-over-year and 50% sequentially. are eye popping
The investment bankers also understand the importance of cobranding, especially with a superior product offering around the corner.
However, investment bankers are all about the bottom line and they must see tremendous opportunity in Siyata, solely based on $6million in announced orders for the first half of 2023, which far exceed its $4.0 million market cap.
Siyata’s distribution network already includes established relationships with AT&T, Verizon, T-Mobile, FirstNet, Bell and US Cellular, and it is building out its global channel strategy, via relationships with carriers like KPN Royal Dutch Telecom.
Siyata’s sales verticals include public safety, transportation, education, healthcare, service delivery, emergency health and safety services providers, hospitality operators, and waste management operators. In fact, waste management is one of the newest sales verticals and Siyata Mobile already reported that it received a follow-on order from a large North American waste management company for additional SD7 handsets and VK7 vehicle kits, which Siyata also planned on delivering this year.
Siyata is set to maintain or even accelerate its current pace and should finish 2023 on strong footing that continues into next year.
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Cautionary Statement Regarding Forward Looking Information
Statements in this press release about the Company’s future and expectations other than historical facts are “forward-looking statements.” These statements are made on the basis of management’s current views and assumptions. As a result, there can be no assurance that management’s expectations will necessarily come to pass. These forward-looking statements generally can be identified by phrases such as “believes,” “plans,” “expects,” “anticipates,” “foresees,” “estimated,” “hopes,” “if,” “develops,” “researching,” “research,” “pilot,” “potential,” “could” or other words or phrases of similar import. Forward looking statements include descriptions of the Company’s business strategy, outlook, objectives, plans, intentions and goals. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security.
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