MCLEAN, Va. - Iridium Communications Inc. (NASDAQ: NASDAQ:IRDM) announced today a partnership with Nordic Semiconductor (OL:NOD) to integrate its Iridium NTN Direct service into Nordic's cellular IoT modules and chipsets. This collaboration aims to enable global connectivity for a wide range of devices through Iridium's satellite network.
The Iridium NTN Direct service is being developed as part of Iridium's Project Stardust and is expected to be the world's first global Narrowband IoT (NB-IoT) service. It aligns with the 3rd Generation Partnership Project's (3GPP) recent enhancements, which will allow devices with a 3GPP release 19 compliant chipset to access satellite services.
Nordic Semiconductor, a leader in low power wireless connectivity, plans to incorporate Iridium's global communication capabilities into its product roadmap, leveraging the Iridium network's reliability and extensive coverage.
Bryan Hartin, Iridium's executive vice president, commented on the significance of the partnership, stating that it opens a new chapter for Nordic and will contribute to a universe of devices capable of staying connected from anywhere on Earth. Oyvind Birkenes of Nordic Semiconductor expressed enthusiasm for the collaboration, which will allow low-cost, 3GPP-standard NB-IoT modules and chipsets to connect to Iridium's satellite network.
The Iridium network is known for its global coverage and resilience, making it suitable for Device-to-Device (D2D) and NB-IoT services. The completion of 3GPP Release 19 is anticipated by the end of 2025, and further details about Iridium NTN Direct will be shared at the Mobile World Congress Las Vegas's NTN Summit today.
This announcement is based on a press release statement and contains forward-looking statements regarding the capabilities and integration timing of the Iridium NTN Direct service. The actual outcomes may differ due to various risks and uncertainties, including the finalization of 3GPP Release 19 and the technical development and integration processes.
In other recent news, Iridium Communications Inc. has made significant strides in enhancing its services and improving financial stability. The company reported a 5% growth in service revenue in the second quarter, with an increase of 80,000 in its subscriber base. Iridium is expecting record revenue in 2024 from its collaborations with the U.S. Space Development Agency.
The company has implemented a new safety system for Brazil's railway logistics through its Iridium Certus service. Additionally, Iridium's request to extend Narrowband Internet of Things (NB-IoT) functionality for Non-Terrestrial Networks has been included in the Work Plan for the 3GPP Release 19.
Iridium's Board of Directors approved an additional $500 million stock repurchase program, and the company secured a $200 million loan backed by multiple banks. The company also launched Iridium Certus GMDSS, a maritime safety, and communication service.
Executive changes include the appointment of Vincent O'Neill as the new Chief Financial Officer and Timothy Last as the new Executive Vice President of Sales and Marketing. These are recent developments in the company's operations and financial strategy.
InvestingPro Insights
Iridium Communications Inc.'s partnership with Nordic Semiconductor aligns well with the company's strong financial position and growth prospects. According to InvestingPro data, Iridium boasts a market capitalization of $3.5 billion and has demonstrated solid revenue growth, with a 2.7% increase in the last twelve months as of Q2 2024. This growth trajectory supports the company's ambitious plans for expanding its global connectivity services.
InvestingPro Tips highlight that Iridium's management has been aggressively buying back shares, which often signals confidence in the company's future. This strategy could be particularly beneficial as Iridium rolls out its new Iridium NTN Direct service, potentially driving further value for shareholders.
The company's strong financial health is further evidenced by its liquid assets exceeding short-term obligations, providing the flexibility needed to invest in innovative projects like Project Stardust. With a gross profit margin of 71.96% in the last twelve months, Iridium appears well-positioned to fund its technological advancements and partnerships.
It's worth noting that Iridium's P/E ratio stands at 41.42, indicating that investors are pricing in high growth expectations, likely due to initiatives such as the Nordic Semiconductor partnership. While this valuation is considered high, it may be justified by the company's potential in the expanding IoT and satellite communication markets.
For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for Iridium Communications, providing deeper insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.