VANCOUVER - Siyata Mobile Inc. (NASDAQ:SYTA), a developer and vendor of Push-to-Talk over Cellular (PoC) devices, has announced a new partnership with a leading global mining company based in North America. The initial order includes several hundred SD7 handsets and related accessories for deployment at a Canadian mining site.
The company also confirmed the ongoing supply of UV350 Vehicle Kits to Intellicom, a long-time client in Kazakhstan, underscoring its continued presence in Central Asia's mining communications sector.
CEO Marc Seelenfreund expressed confidence in the new relationship, stating that the deployment of SD7 devices at the Canadian site will demonstrate the improved communications and operational enhancements that Siyata's solutions offer. He also emphasized the established use of the UV350 devices by heavy equipment operators in Kazakhstan, highlighting Intellicom's commitment to advancing communication within its operations.
Siyata Mobile specializes in rugged PTT handsets and accessories designed for various industries, including public safety, utilities, and transportation. These solutions are aimed at enabling instant communication over cellular networks, with the goal of increasing situational awareness and safety.
The company distributes its products through major North American cellular carriers, as well as international carriers and distributors. Siyata's shares are publicly traded on the Nasdaq stock market.
The information in this article is based on a press release statement and does not constitute an endorsement of Siyata Mobile Inc. or its products.
In other recent news, Siyata Mobile faced a challenging second quarter in the fiscal year 2024, reporting a revenue of $1.9 million, a decrease from $2.7 million in the same quarter of 2023. This decline was attributed to working capital constraints, which the company has addressed through recent capital raises. Despite Q2 setbacks, Siyata Mobile remains optimistic, underpinned by a strong order backlog and potential growth in the latter half of the year.
Siyata Mobile's Q2 2024 also saw a decrease in gross margin percentage and dollars, and an increase in SG&A expenses, primarily due to marketing costs. However, the company's strong order backlog exceeding $7 million lends visibility into future quarters. Furthermore, Siyata Mobile is well-positioned with major North American carriers and has expanded its sales team.
Looking forward, Siyata Mobile anticipates Q3 2024 revenue to be significantly higher than Q2 2024 and aims for high double-digit growth for the full year of 2024. New product launches planned for the coming months are expected to positively impact 2025 revenue. With a focus on growth and profitability, the company's strategic partnerships, product integrations, and new hires underscore a commitment to expanding its market presence.
InvestingPro Insights
As Siyata Mobile Inc. (NASDAQ:SYTA) secures a new partnership and continues its international supply of communication devices, it's important to consider the company's financial health and market performance. According to InvestingPro data, Siyata Mobile's market capitalization stands at a modest 1.46 million USD, reflecting the size of the company in the competitive tech market.
Despite a challenging period, with a significant year-to-date price total return of -97.82%, the company's solutions continue to gain traction in specialized sectors like mining communications. This is underscored by the latest partnership for deploying SD7 handsets in North America.
An InvestingPro Tip notes that analysts anticipate sales growth in the current year, which could be a positive signal for investors looking at the company's potential for recovery and growth. However, it's worth noting that the company is quickly burning through cash, which raises concerns about its financial sustainability. In total, there are 17 additional InvestingPro Tips available for Siyata Mobile, providing a deeper analysis for those interested in the company's prospects.
From a valuation standpoint, the Price / Book ratio as of the last twelve months ending in Q2 2024 is 1.4, suggesting that the stock is trading at a level that is relatively consistent with the company's book value. This metric, combined with the knowledge that the company holds more cash than debt on its balance sheet, may offer some reassurance to investors mindful of the company's capital structure.
For those considering an investment in Siyata Mobile or following its progress, additional insights and metrics can be found on the InvestingPro platform, which includes comprehensive analysis and real-time data to inform investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.