SYTA - Siyata Mobile Announces 180% Increase In Revenue For Second Quarter 2023
(NewsDirect)
By Faith Ashmore,Benzinga
SiyataMobile Inc. (NASDAQ: SYTA), a global vendor of Push-to-Talk overCellular (PoC) devices and cellular signal booster systems, is makingwaves in the industry with its recent developments. The companyrecently announced its financialresults for Q2 2023 .
The company reported revenues of $2.7 million,marking a remarkable 180% increase compared to the same period lastyear. This substantial growth can largely be attributed to the salesof the SD7, Siyata Mobile's flagship product, which accounted for$1.9 million in revenue during Q2 2023. This surge in revenuedemonstrates the increasing demand and popularity of the SD7 handsetamong customers.
Moreover, the company's gross profit for the quarter was$804,000, equivalent to 29.7% of revenues, a substantial improvementcompared to the previous year's $109,000, which accounted for11.2% of revenues. This increase can be attributed to the strategicshift towards selling more SD7 handsets, which boasted higher grossmargins, as opposed to lower-margin legacy devices.
WIth these numbersreported, the company says Siyata's market cap is undervalued atapproximately $7 million. This is in spite of the fact that Siyata hasa demonstrated, differentiated product that is in high demand by bothits first responder and enterprise customers, as well as by thelargest wireless carriers in North America who sell Siyata'sproducts. Not to mention, the company has growing revenue, cash onhand, and an experienced sales team.
Siyata Mobile's net loss for Q2 2023 wassignificantly reduced to $2.3 million, compared to a net loss of $4.3million during the same period in the prior year. This reduction innet loss demonstrates the company's progress in managing costs andimproving profitability.
Additionally, Siyata Mobile reported an impressive improvementin adjusted EBITDA, which stood at negative $2.0 million, compared tonegative $3.4 million in the same period last year, showcasing animprovement of $1.4 million. This positive trend highlights thecompany's commitment to enhancing financial performance andmaximizing operational efficiency.
The company's liquidity and capital resourcesalso remain strong, with a cash balance of $2.0 million and workingcapital of $3.7 million as of June 30, 2023. These figures representan increase compared to the prior year, reaffirming SiyataMobile's solid financial position.
To support its growth and expansion plans,Siyata Mobile successfully completed a public offering in June 2022,issuing 50.0 million common shares and raising gross proceeds of $2.25million. Furthermore, subsequent to June 30, 2023, the companyconducted a registered direct offering, issuing an additional 51.45million common shares and generating gross proceeds of $2.3 million.These fundraising activities have further bolstered SiyataMobile's financial resources.
“Growth continued to accelerate in the secondquarter with a 180% year-over-year increase in revenue onstrengthening sales of our mission-critical PoC (MCPTT) SD7solution,” said Marc Seelenfreund, Founder and CEO of Siyata.“Adoption of our critical communications devices is expanding. Wehave received purchase orders for the SD7 handset and its accessoriesof more than $5 million since the start of 2023, and our resellersalso anticipate an increase in demand. Just as important, the increasein orders reaches beyond emergency services to include education,healthcare, industrial, and enterprise use cases among others. Givenour performance in the first half of the year and our expanding salespipeline, we are increasingly optimistic that 2023 will be a stronggrowth sales year for Siyata.”
Siyata Mobile's impressive performance in thesecond quarter of 2023, with a significant 180% increase in revenue,highlights the company's growing market presence and strong salestraction. With a focus on high-margin products and improved financialindicators, Siyata Mobile seems well-positioned for continued successin the mobile communications industry.
Click here to learn more about Siyata Mobile.
Siyata Mobile Inc. is aB2B global vendor of next-generation Push-To-Talk over Cellulardevices, cellular booster systems, and video monitoring solutions. Itsportfolio of in-vehicle and rugged devices enables first respondersand enterprise workers to instantly communicate, over a nationwidecellular network of choice, to increase situational awareness and savelives.Its portfolio of enterprise-grade and consumer cellular boostersystems enables first responders and enterprise workers to amplifycellular signals in remote areas, inside structural buildings wheresignals are weak, and within vehicles for the maximum cellular signalstrength possible.For its video monitoring system, Siyata integratessoftware that we license with off-the-shelf hardware providing ourcustomers with an integrated advanced camera system for management andvisual monitoring of their fleet vehicles.
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