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Iridium's Advanced Certus System Used by Brazil's Railway Network

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Iridium Communications Inc. (IRDM - Free Report) has joined forces with Satcom Direct Brasil and MRS Logística S.A. to deploy cutting-edge satellite connectivity across the MRS Logística railway network. Through this association, MRS has become the first railway operator in Brazil to adopt the Iridium Certus 700 service for real-time communication between train drivers and operation centers. 

Railway operation centers need to stay in touch with locomotive operators to coordinate movements, ensure safety and manage traffic flow across the network. Any disruption in this communication can lead to potential railway blockages or major accidents. In Brazil, almost 20% of the country’s exports and one-third of its railway cargo are transported via MRS Logística’s train network. The efficient management of the system depends on maintaining constant, reliable communication between train drivers and control centers.

Role of IRDM Certus 700 in Enabling Smooth Communication

Iridium Certus 700 is a satellite service that provides a secure and high-speed data channel to keep operations running smoothly. Iridium’s satellite network is uniquely positioned to address the communication challenges that MRS Logística faces. In contrast to other players in the satellite industry, Iridium’s network consists of low Earth orbit satellites and L-Band service, crucial for uninterrupted communication in harsh weather conditions and across vast distances. 

Thales MissionLINK 700 terminals, connected with the Iridium Certus 700 service, are designed to withstand the demanding conditions of the railway environment. Installed by IRDM’s partner Satcom Direct Brasil, these state-of-the-art terminals enable high-speed data transmission, with speeds of up to 704 Kbps, ensuring swift communication between trains and control centers, regardless of location or weather conditions.

The terminals not only support real-time rail traffic management but also have additional functionalities such as Radio over Internet Protocol, telemetry for efficient train maintenance, Internet access and voice communication. Another advantage of Thales MissionLINK 700 is its ability to automatically swap between satellite and cellular connectivity. This flexible approach ensures that the best available communication channel is used at all times, optimizing both connectivity and cost efficiency. 

The implementation of Iridium Certus 700 on MRS Logística’s railway network represents a significant operational gain for the company. With real-time communication in place, MRS Logística can increase the number of trains on the network and lower the risk of accidents, allowing for more trips and higher capacity. The partnership with Satcom Direct Brasil, which provides 24/7 support for the Iridium Certus system, ensures that the railway network remains connected at all times.

Strength in IRDM Certus & Subscriber Growth to Buoy Sales

Iridium’s continuous innovation in the Certus technology is likely to boost the top-line performance. In September 2024, Iridium unveiled Iridium Certus GMDSS, which harnesses the power of Certus technology to incorporate distress alert, safety voice and Maritime Safety Information features. IRDM GMDSS transforms the maritime sector by offering a comprehensive and modern solution for safety and communication.

In addition, steady momentum in the commercial sector with increasing subscriber engagement is powering its top line. In the last reported quarter, IRDM’s revenues grew 4% year over year to $201.1 million, driven by healthy growth trends across the Commercial service segment and Engineering and support service business. Total Service revenues rose 5% year over year to $152.5 million. Strong recurring revenues from an expanding subscriber base resulted in the upside. Service revenues contributed 76% to total revenues in the second quarter.

IRDM’s Zacks Rank & Stock Price Performance

At present, IRDM carries a Zacks Rank #2 (Buy). Shares have lost 30.1% compared with the sub-industry's decline of 4.3% in the past year.

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Other Stocks to Consider

Some other top-ranked stocks from the broader technology space are Ubiquiti (UI - Free Report) , Zillow Group, Inc. (ZG - Free Report) and Airgain Inc. (AIR - Free Report) . UI sports a Zacks Rank #1 (Strong Buy), whereas ZG and AIRG carry a Zacks Rank #2 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ubiquiti company offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques.

Zillow Group delivered an earnings surprise of 37.41%, on average, in the trailing four quarters. The company is witnessing solid momentum in rental revenues, driven by growth in both multi and single-family listings, which is a positive factor.

Airgain has a long-term earnings growth expectation of 35%. Based in San Diego, CA, Airgain provides antenna products as integrated wireless solutions. These devices are designed to address vital connectivity requirements during product development and throughout the entire lifecycle of other industries, such as automotive and consumer, in addition to various sectors within an enterprise.

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