Siyata Mobile is winning many big smartphone orders which should lead to a rapidly rising revenue in 2020
This Canadian cellular communications company has been winning plenty of big contracts lately, notably selling their core products to fleets, including the First Responders (ambulance, fire, police, etc).
Siyata Mobile Inc. (TSXV: SIM | OTCQX: SYATF) is a leading global developer and provider of cellular communications systems for enterprise customers, specializing in connected vehicle products for fleets, marketed under the Uniden® cellular brand. You can view a video of the core UV350 product here.
A TSX Venture Top 50 Company, Siyata has been a pioneer in the industry, launching the world’s first LTE all-in-one fleet communications device in 2017.
Incorporating voice, push-to-talk over cellular, data, and fleet management solutions into a single device, the Company aims to become the connected vehicle communications device of choice for commercial vehicles and fleets around the world.
Siyata Mobile sells the Uniden®UV350 mostly to fleets and commercial drivers including First Responders
Some of the key Uniden smartphone devices sold by Siyata Mobile
It has been a busy past 3 months for Siyata Mobile receiving several big orders
- January 16, 2020 – Siyata Mobile launches UV350 in Sweden and receives first purchase order to supply heavy trucks, forestry, logistic companies, and more, coming in 2020.
- December 23, 2019 – Siyata Mobile closes Private Placement of C$7,866,000 in unsecured convertible debentures.
- December 19, 2019 – Siyata Mobile announces Uniden® UV350 now available via Ingram Micro for the two leading carriers in the U.S. Ingram Micro is one of the largest telecom distributors in the US.
- December 16, 2019 – Siyata Mobile receives C$900K in purchase orders for 4G/LTE Push-to-Talk over cellular devices.
- December 10, 2019 – Siyata Mobile receives C$450,000 purchase order to equip bus fleet with its Uniden® UV350.
- December 2, 2019 – Siyata Mobile to be major supplier in large government tender for Push-to-talk Over Cellular (PoC) devices. The tender to deliver up to 15,000 Push-to-Talk Over Cellular (PoC) devices for various government agencies. Dependent on the total units and mix between rugged handsets and in-vehicle devices, the tender is valued between C$3 million to C$5 million and anticipated for delivery in the first half of 2020.
- November 26, 2019 – Siyata Mobile wins minimum C$1.8 million tender to equip taxis with CP250 in-vehicle smartphone.
- On November 18, 2019 – Siyata Mobile receives $950,000 purchase order for Uniden® UV350.
Following the above December $900K purchase orders CEO of Siyata Mobile, Marc Seelenfreund, stated:
“We continue to win new business and see our existing customers increase orders and buying our next generation 4G solutions. The clear end-user benefit of shifting to (Push to talk Over Cellular) PoC reduces capex and opex for our customers while increasing functionality and safety over a nationwide cellular network.”
And on December 2, 2019 the CEO stated:
“Since the beginning of Q4, the Company has announced a minimum of $6.5M to $9.0M of new business for its portfolio of 4G Push-to-Talk Over Cellular devices.”
Siyata’s revenue is growing fast and forecast to double by 2021
I have summarized the above recent news for the purpose of showing investors that Siyata Mobile is delivering. With each passing month more and more new customers are buying their products, and this should only grow more from here as word gets out about how good their Uniden product is.
From a revenue perspective it also highlights how fast revenue is growing, with analysts already forecasting 2020 revenues at C$15 million, and 2021 at C$31 million. Based on the CEO’s comments above of “$6.5 million to $9.0 million“ in Q4 2019, it certainly looks like they are well positioned to achieve or likely exceed the 2020 revenue target of C$15 million.
Should Siyata achieve this then they should soon become net income positive possibly by late 2020 or some time into 2021.
Given the revenue growth forecast of 100% in 2021 and the recent contract successes, it helps explain why analysts have a price target of C$1.14, for 280% upside. Time will tell if they achieve these forecasts; however, for now, it looks like they may well do it given the number of large new fleet orders coming in each quarter.