http://www.shedconnect.com/the-new-criterion-53/Mobilicom (MOB) 9.3cAs with Vonex, Mobilicom is a recent telco listing that’s been shunned by investors.
In contrast, the Israeli-based telco is not focused on stealing customers from other networks, but creating communications hubs for areas where current wireless or satellite coverage is non-existent or too expensive.
Put another way, Mobilicom provides private mobile networks without the need for existing infrastructure.
Founded a decade ago and listed since May 2017, Mobilicom’s original emphasis was on government applications for critical infrastructure, or to enable police or emergency services to set up communications around a disaster scene.
One application is for oil rigs to communicate with supply vessels and helicopters, or for a mining operation to talk to its trains or trucks (manned or otherwise).
Clients include Israeli Ministry of Defense, ExxonMobil and General Electric.
In the case of the oil industry, it’s common to pay up to $300,000 per vessel to acquire the tracking antennae to a satellite.
“On top of that they have to lease the line from satellites, up to $15,000 per month per vessel,” chairman and co-founder Oren Elkayam says. “The cost of our equipment is less than 20 percent of the cost of the satellite equipment.”
Now, Mobilicom is eyeing a potentially bigger market: the $100 billion-plus industrial drone sector.
To date, 50 global drone and robotics makers have bought Mobilicom’s SkyHopper system as original equipment to include in their manufacturing processes. The systems control a drone’s communications, video, sensors and data collection function that account for half of the value of a typical unit.
“We are going to be the only one-stop shop end to end provider of all the key components within the drone system,” Elkayam says. When they design around our solution it is locking our design for their production line.”
Mobilicom recorded revenue of $1.42 million in the June half, 75 percent higher than the previous corresponding period and narrowed its loss from $4 million to $1.28 million. In the September quarter the company recorded receipts of $654,000 and cash burn of $632,000.
Mobilicom raised $7.5 million when it listed and still has $6 million in the bank without any subsequent raisings. “We have a stream of revenue and we consume little of our own funding, which give us two years to execute our strategy and get to cash flow positive,” Elkayam says.
Despite the drone potential, Mobilicom has struggled to excite investors and Elkayam concedes the company would have a higher valuation on the US market. As with Vonex, the stock is trading at around half its listing price, for an $18 million market cap and a $12 million enterprise value.
Tim Boreham edits The New Criterion[email protected]
