FY16 Annual Report and Consolidated Financial Statements
SpeedCast's core business vision is to be a leader in the provision of remote communications and IT services worldwide by focusing on creating value for customers through delivering high quality, innovative and tailored solutions with exceptional customer service. Key to the strategy is the ability to retain flexibility to react to changes in customer needs and industry trends.
SpeedCast provides products and services in the following categories:
Network Service: Design, deployment, operation and maintenance of networks, including installation and equipment configuration. Key determinants of the network service are the availability of satellite capacity, the proximity of core infrastructure required to deliver the service, and the skilled personnel to complete the network design, system integration, and follow-up maintenance and support during the lifetime of the service.
Value Added Services: SpeedCast offers its customers a range of value-added services, such as user applications (cyber security, email, voice, video conferencing, video surveillance), network optimisation (firewalls, filtering, data compression) and network monitoring and management (including reporting tools and remote access for IT technicians). Product innovation is the key to success, delivered by the ability to rapidly prototype, test, and productise new products for the SpeedCast portfolio.
Equipment Sales: SpeedCast sells equipment directly to customers including the very small aperture terminal (VSAT) terminals that send and receive transmitted data, modems, routers and other types of equipment related to the provisioning of value-added services. The ability to certify new and existing equipment on SpeedCast's network is critical, which requires skilled personnel, testing facilities and the ability to anticipate future market demand.
Wholesale VOIP: SpeedCast sells wholesale VoIP to telecom customers via the sale of voice minutes on a wholesale basis, which are then re-sold to the end user. VoIP services require a highly redundant carrier-class network backed with skilled personnel to manage, maintain and operate.
Professional Services: Professional Service is the provision of technical manpower and expertise to SpeedCast's customers. This includes the provision of manpower direct to client sites and installations supporting client owned IT and telecom equipment or as locally based technical support to a customer with sites in a remote or difficult region supporting customer owned/SpeedCast provided hardware and services.
System Integration: SpeedCast has three decades of experience in designing and integrating multiple complex telecommunication systems. We provide project management and systems integration services to public safety, utility, oil and gas, and maritime clients with operations around the world. The company also offers turnkey systems integration of communication, security and crew morale solutions developed with robust engineering, analysis, design and project management processes and tools.
Fiscal year 2016 has been challenging, yet transformative for SpeedCast. Significant changes in state of affairs include:
- Global Presence - SpeedCast is now the world's leading provider of fully managed remote communication network and IT services with an extensive global footprint of local support, infrastructure and coverage coupled with world-class technology and a pervasive safety culture. SpeedCast has been added by the Standard & Poor's Dow Jones Indices to the S&P/ASX 300, effective after the close of market on March 18, 2016.
- Financial Performance - Group revenue continued to achieve double-digit growth year-on-year. The Group's core service revenues grew at a faster pace and were 34% above that of 2015.
- Major Acquisitions - In 2016 SpeedCast announced or completed four major acquisitions including Harris CapRock, NewCom International Inc., ST Teleport Pte. Ltd. and WINS Limited.
- Expansion of Maritime Business - Revenue expanded in the Maritime division through strategic acquisitions to build a leadership position in the fast-growing cruise sector.
- Steady Energy Business - The Energy sector experienced an extremely difficult year but SpeedCast managed to win market share and is strongly positioned for the upturn.
- Strong Performance of EEM Business - The Enterprise and Emerging Markets sector experienced solid growth and represents approximately half of the Group's core service revenues pre-Harris CapRock acquisition with cellular backhaul, government, enterprise and NGOs being the main revenue drivers.
- New Products and Services - A number of innovative products and services were successfully launched including a 2nd generation of SIGMA Net and Speedmail+, an email service designed for maritime vessels and remote sites.
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About Speedcast International Ltd
Speedcast International Ltd (ASX:SDA) is the largest provider of remote communications and IT services in the world. Speedcast's fully managed service is delivered via a leading global, multi-access-technology, multi-band and multi-orbit network of 70+ satellites and an interconnecting global terrestrial network, bolstered by extensive on the ground local support from 40+ countries. This global "network of networks" allows customers to fully rely on the most robust, integrated infrastructure available in the market for their mission critical applications. Speedcast is uniquely positioned as a strategic business partner, tailoring communications, IT and digital solutions to meet unique customer needs and enable business transformation. Speedcast extends its managed services through differentiated technology offerings including cyber-security, crew welfare, content solutions, data & voice applications and network systems integration services. With a passionate customer focus and a strong safety culture, Speedcast serves more than 2,000 customers in over 140 countries in sectors such as Maritime, Energy, Mining, Enterprise, Media, Cruise, NGOs and Government. Learn more at Speedcast.
Speedcast International Ltd