Orbsat Clocks 60% Revenue Growth In Q2, Expands Margin

Orbsat Corp OSAT reported second-quarter FY21 net sales growth of 60% year-on-year to $1.96 million.
An overall global increase in e-commerce demand for satellite-based communications, recurring revenue airtime services, sales of IoT satellite tracking hardware and services drove the numbers.
Global Telesat Communications Ltd. (GTC) unit sales rose 94% Y/Y due to higher demand from the U.K. and E.U. customers, while sales U.S. unit, Orbital Satcom Corp. (OSC), increased 12%.
Margin: The gross margin expanded 660 bps to 27.7% from continued increases in global demand for high-margin satellite IoT products and services and recurring airtime revenue.
Global e-commerce sales continued to grow, particularly in the U.K., which benefited from less competition because of Brexit and strong demand across European markets.
Price Action: OSAT shares traded higher by 4.13% at $5.30 in the premarket session on the last check Tuesday.