LONDON - Liquid Intelligent Technologies, a business of Cassava Technologies, has announced an exclusive partnership with American connectivity firm Globalstar (NYSE:GSAT) to enhance 5G connectivity solutions in Africa, the Middle East, and the Gulf regions. The collaboration grants Liquid exclusive rights to sell and distribute Globalstar's XCOM RAN private networks 5G access solution within these territories.
Strive Masiyiwa, founder and Chairman of Liquid Intelligent Technologies, expressed enthusiasm for the potential of 5G private networks to provide services to large businesses, such as mines, and to support NextGen services like AI. The partnership is expected to revolutionize the mining industry in Africa and cater to high-end markets in the Middle East and Gulf regions.
Hardy Pemhiwa, President and Group CEO of Cassava Technologies, anticipates that the unique 5G enterprise solution from Globalstar will provide unmatched connectivity to customers on the continent. This move aligns with the company's ambition to become a leading technology company of African heritage, empowering businesses and communities with reliable, high-speed internet access necessary for the digital age.
Liquid will also offer comprehensive customer support for Globalstar's products and services, including technical support and warranty services. Additionally, the collaboration may expand to include Globalstar's satellite, Band n53 spectrum, and IoT solutions on a non-exclusive basis.
Dr. Paul E. Jacobs, CEO of Globalstar, noted the significance of the partnership with Liquid, a group known for its focus on technology deployments. Globalstar's 5G XCOM RAN product, combined with the globally licensed Globalstar n53 midband spectrum, provides a distinct offering for private and enterprise 5G networks.
This strategic partnership reaffirms Liquid's commitment to fostering progress and innovation through connectivity for businesses and individuals not only in Africa but also on a global scale.
Liquid Intelligent Technologies has established itself as a leading provider of digital infrastructure in Africa, with a 110,000 km-long fibre broadband network and satellite connectivity. The company also offers cloud and cybersecurity solutions through strategic partnerships with global entities.
The information for this article is based on a press release statement.
In other recent news, Globalstar, Inc. has reported an increase in its financial performance for the second quarter of 2024. The company's service revenue saw an 18% rise, while total revenue reached a new peak of $60.4 million. Additionally, the company has raised its full-year revenue guidance to $235 million and anticipates maintaining a healthy adjusted EBITDA margin of 53%.
Globalstar has received a 15-year extension on its senior HIBLEO-4 authorization from the United States Federal Communications Commission (FCC). This extension allows the company to operate up to 26 replacement satellites, ensuring the company's continued operations in its licensed portion of the Big LEO Band.
The company is planning for future growth with a strong cash position and upcoming satellite launches. Globalstar also has plans to demonstrate the use of its n53 spectrum at an upcoming Investor Day, a development that underscores its commitment to innovation. Despite a decline in equipment revenue due to timing issues with IoT sales, the company's overall financial performance remained strong. These are some of the recent developments at Globalstar.
InvestingPro Insights
As Liquid Intelligent Technologies embarks on enhancing 5G connectivity solutions through its partnership with Globalstar, it's essential to consider the financial health and performance metrics of Globalstar (GSAT). According to recent data, Globalstar has experienced significant revenue growth over the last twelve months as of Q2 2024, with a 17.81% increase, reflecting the company's expanding operations and market reach. This growth is further emphasized by a quarterly revenue growth of 9.65% in Q2 2024, indicating a consistent upward trend.
Despite challenges in profitability, as analysts do not expect the company to be profitable this year, Globalstar maintains a robust gross profit margin of 67.16%, showcasing its ability to manage production costs effectively and maintain a strong market position. The company's moderate level of debt, as highlighted in one of the InvestingPro Tips, suggests a balanced approach to leveraging and financial risk management.
InvestingPro Tips for Globalstar also reveal a strong return over the past five years, which may interest investors looking for long-term growth potential. However, it's important to note that the company does not pay dividends, focusing instead on reinvesting earnings back into the business. For those interested in deeper analysis, InvestingPro offers additional tips on Globalstar, which can be found at https://www.investing.com/pro/GSAT.
With the next earnings date scheduled for October 31, 2024, stakeholders and potential investors will be keen to see how the partnership with Liquid Intelligent Technologies impacts Globalstar's financial trajectory and whether it will influence the company's path to profitability.
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