Great name isn't it? But if you think it has something to do with fishing, you'd be wrong.
Here's the rundown on Speedcast International Ltd (ASX: SDA).
It's a satellite network service provider – but in a different class to the ASX-listed Newsat Limited (ASX: NWT). Speedcast supplies its more than 1,000 customers with satellite networks, usually in remote locations. 3,000 of those locations are on land, and another 1,700 are on offshore rigs and shipping vessels.
An example of the services Speedcast supplies is a fast broadband network for employees working on an oil rig, so they can access corporate networks, social media sites as well as utilise communications systems such as voice, video, email and text. Speedcast designs, implements and integrates small satellite dishes that send and receive high focused beams from satellites, and also provides add-on services such as network monitoring and management.
Customers located in Australia contribute 35% of revenues, with the Pacific Islands another 21%, with other parts of Asia generating 14% of sales. By sector, telecoms customers comprise 29% of revenues, maritime 26%, with resources another 15%. Government and non-government customers deliver another 11%.
At the offer price of $1.96, Speedcast shares are trading on a prospective P/E ratio of 17.0 times, and the company expects to pay a 2.9% dividend yield in the 2015 financial year. The company has recorded strong growth of 13% per year in revenues from 2011 to 2013, and is forecasting strong growth over the next few years.
Management appear to have a strong grasp of the business with plenty of experience, and will hold a substantial number of shares in Speedcast after listing. Interestingly, Michael Malone, the founder and ex-CEO of iiNet Limited (ASX: IIN) is on the board as a non-executive director.
It's early days yet, but with Speedcast already generating profits and boasting strong growth ahead, Foolish investors may want to add the company to their watchlist.
