Comdek seeks ASX capital

WESTERN Australian IT veteran Comdek is seeking to raise $4 million through an Australian Stock Exchange listing, with the funds proposed for the extension of its satellite communications business.

Comdek, which is best known for the provision of hardware and peripherals, has been growing its satellite business steadily over the past two years.

This follows the raising of $1.4 million in seed funding in June last year that was used to kick-start the satellite communications business.

Comdek’s satellite communications business provides voice and high-speed data services including telephony, facsimile, EFTPOS, e-mail, Internet and network services to remote sites such as resource companies and regional communities.

The company already boasts leading resource companies Sons of Gwalia, Fluor, MacMahon and BHP Billiton as satellite communications clients.

Mr Collins said Comdek’s satellite communications offering completed the company’s range of products to service most IT&T needs of their customers. He said Comdek had focused on the fixed satellite services in mining sites for the past two years, however, the company was now looking at mobile satellite solutions.

Mr Collins said mobile satellite solutions would lower the entry point into the market and increase the number of potential customers to include exploration and drilling companies that might only have a satellite requirement for a few months before moving on to the next location.

The next phase of developing the business will include a more international focus with the company looking at increasing its exports.

According to Comdek managing director Haydn Collins, the satellite communications business is set to explode.

“It is always a case of a window of opportunity,” Mr Collins said.

“It’s a growth market and we want to take advantage.

“Comdek has proven its business case, proven profit levels can be generated and is ready to take it to the next level.

“We would like to extend all businesses but our main focus is in the satellite areas due to high gross margins and recurring income.”

Comdek’s chief financial officer Richard Wolanski said the company’s satellite communications solutions would mean First World telecommunications was offered out of Perth and provide cost-effective alternatives to existing technologies.

Mr Wolanski said, for example, that Comdek could offer phone calls at a cost of 45c per minute, as opposed to a cost of between $3 and $20 per minute when using a satellite phone.

With exports high on the company’s list of priorities, the company may look at Export Marketing Development Grant funding in the future.

“We have gone through the process of confirming that our product is an Australian product which leads the way for possibly seeking EMDG funding in the future,” Mr Wolanski said.

With their first customers being mining companies, Comdek established its first regional Australian sites, followed by its first overseas sites in Mongolia in December 2002.

According to Mr Collins, the satellite communications services have been well received by the market so far, with existing customers commissioning second satellite sites.