World Reach (ASX:WRR) is an original equipment manufacturer of a...

World Reach (ASX:WRR) is an original equipment manufacturer of a device that gives any smartphone the capabilities of a satellite phone.

WRR creates this device, called Iridium GO!, for Iridium Communications (NASDAQ:IRDM), which is capitalised at around A$1 billion.

During the most recent quarter, the company achieved a net increase in cash for the quarter of $684,000, with sales revenue of $3.8 million.

WRR has forward orders for Iridium GO! of over US$4 million.

The company has also identified opportunities for growth in key strategic markets in conjunction with commercial partners Inmarsat and Iridium, and growth in Japan, Russia and China following the improvement in regulatory environments.

Profitability continues to increase through higher margin sales to core distributors in place of higher volume, lower margin deals, particularly in China and Australia.

Lowering of the AUD against the USD increases profitability as revenues and product costs are fixed, predominately in USD.

Following the release of Iridium GO! this year there is an increased awareness of the WRR's capabilities as an OEM, presenting further solid opportunities for growth.

Negotiations are currently underway on further OEM development opportunities.

The cash position at 30 September 2014 was $639,000 in addition to undrawn financing facilities of $472,000, and the company is capitalised at $6 million.