Gregory Mesniaeff

Gregory Mesniaeff asked about any changes in the terms, such as revenue split or economics, with the 70 new distribution partners Iridium recently signed.

Answer

CEO Matthew J. Desch stated that terms for new partners, who license Iridium's technology for integration into their systems, haven't significantly changed in 25 years. He noted that pricing schedules are typically consistent but flexible, allowing partners to offer competitive rates. He added that pricing for PNT is evolving, with openness to capital models or regional payments.

Gregory Mesniaeff from Kingswood Capital Partners asked if the increased subscriber seasonality is a broader customer trend or specific to resellers. He also inquired about the potential impact on annual plan pricing as customers shift to monthly options.

Answer

CEO Matt Desch explained that while some seasonality is normal, the recent increase is specific to one large IoT customer changing its retail plans from annual to monthly. This change does not impact Iridium's revenue due to a fixed-price contract. He clarified this is a partner's retail strategy and does not signal a change in Iridium's own pricing or a need to incentivize annual plans differently.

Gregory Mesniaeff inquired about how SuperCom is addressing the recent tariff situation in its U.S. market entry, specifically concerning its supply chain, product mix, and the hardware versus software components.

Answer

Executive Ordan Trabelsi stated that product manufacturing is currently done in Israel, and the company will adapt its strategy as the U.S.-Israel tariff situation evolves, noting they also have the capability to manufacture in the U.S. Trabelsi emphasized that a significant portion of their business is Software as a Service (SaaS) and recurring revenue from leased bracelets, which helps mitigate the impact of potential hardware tariffs.