Siyata Mobile (NASDAQ: SYTA) continues to make all the right moves. Recently, its wholly-owned subsidiary Signifi Mobile, Inc., announced a new distribution agreement with U.S.-based TESSCO Technologies Incorporated (TESS). The deal opens new channels for Siyata’s push-to-talk-over-cellular (PoC) devices and cellular signal booster systems.
Tessco is a leading U.S. distributor of wireless devices that support network infrastructure, site support, and mobile broadband networks. They’re combining Siyata’s Uniden® Hero Series of cellular boosters with Tessco Ventev wireless antennas, cables and connectors. The co-branded kits will be targeted primarily to enterprise and first responder networks.
Adding Tessco’s thousands of existing customers to a distribution and reseller network that already includes Silk Worldwide, the parent company of SignalBoosters.com (see announcement here), positions Siyata for a big year in 2022.
ESChat Partners with Siyata for FirstNet SD-7 IoT Solution
Tessco isn’t the only partnership agreement recently finalized by Siyata. On January 19th, ESCHat announced the launch of an IoT radio solution in partnership with Siyata’s SD-7 rugged handsets. ESChat is a FirstNet Certified™ solution that is used throughout numerous markets, including public safety, transportation, education, utilities and logistics.
ESChat is the leading solution for carrier independent secure broadband push-to-talk (PTT) services. ESChat is approved by the Defense Information Systems Agency for U.S. military operational use, operates across all wireless carriers, and is the primary PTT offering used by T-Mobile and TELUS.
See ESChat’s video review of the SD-7 device in action: https://www.youtube.com/watch?v=mbX2bxiLueA
Siyata is already well-positioned to do business in the first responder marketplace. They developed the SD-7 and the UV-350 in-vehicle system to offer a push-to-talk-over-cellular (PoC) as an alternative to land mobile radios (LMR), which are inefficient, offer limited coverage creating dead zones and suffer from limited functionality. The new ESChat/Siyata system is a significant upgrade as it leverages the nationwide LTE cellular network.
FirstNet™ has been growing quickly and today connects via cellular 18,500 public service agencies, and over 2.8 million individual connections in the United States. The total market for the handsets alone is estimated to be worth $38.4 billion by 2024, according to MarketsAndMarkets.com. This implies a compound annual growth rate of 9% through 2024.
Public Offering Provides Necessary Working Capital to Weather Omicron
The elephant in the room for any electronics distributor right now is the Omicron variant. With supply chains already bottlenecked from surging demand in 2021, Siyata chose to be proactive with funding to help them “weather the storm” through whatever Omicron throws at them.
Gross proceeds from the public offering came in at $20 million, giving Siyata significant working capital to navigate the still choppy waters of the global pandemic recovery. The company stated in its SEC prospectus that the funds will be used to repay some of its promissory note debt, and for general corporate purposes including working capital, increased R&D funding, and increased growth, sales and marketing strategies.
The added capital resources help ensure Siyata is fully prepared for further development and SD7 launch. As supply chain issues are slowly resolved, the company doesn’t need to concern itself about getting the funding they need to push their products to market. In fact 2022 is off to a good start as the company announced in December 2021 an additional $1.3 million in orders for SD7 bringing orders to date for the SD7 (and its associated vehicle kit, the VK7) to more than $1.8 million.
Zacks Estimates EBITDA Profitability in Late 2022
Zacks Small Cap Research recently issued an updated report on the company, which adjusted Siyata’s valuation and sales estimates for 2022. The new price target was set at $6.00 by the equity research firm. Revenue forecasts were increased for 2022 from $18.3 million to $19.4 million and for 2023 from $25.9 million to $28.0 million, with an estimate that the company will achieve EBITDA profitability in 2023.
This is good news for Siyata shareholders and prospective investors looking for discounted small caps with a long-term upside. Share prices today are at a low of $1.28, and we expect a re-evaluation coming when the company demonstrates robust growth and hits EBITDA profitability, Siyata might be one of the better deals in the small-cap space right now.
Omicron is still spreading, and supply chain bottlenecks are slowing down distribution, so it’s important to temper expectations and exercise patience when
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