RDCM

Party_Service_2830

This analysis focuses on four companies—AmpliTech Group (AMPG), Gilat Satellite Networks (GILT), RADCOM Ltd. (RDCM), and CEVA Inc. (CEVA)—that operate in critical layers supporting satellite communications and 5G infrastructure, complementing AST SpaceMobile’s satellite layer business. AmpliTech (AMPG) specializes in ultra-low-noise RF amplifiers and ORAN 5G radios, critical for satellite ground systems. It showed remarkable growth with FY2025 revenues up 163%, guided for $50 million revenues in FY2026 (about 100% growth), and achieved positive EBITDA in Q3 2025 after strategic margin compression investments to secure Tier 1 customers. AmpliTech has no debt and modest cash reserves ($8.4M), with concentrated customer exposure posing execution risk. Gilat Satellite Networks (GILT) delivers satellite gateways, terminals, and network management across commercial, defense, and international markets. It grew revenues 58% YoY in Q3 2025 to $158 million, raised 2025 revenue guidance to $435-$455 million, and improved operating income with strong cash generation. Gilat benefits from secular growth in in-flight connectivity and multi-orbit satellite markets, maintaining a strong balance sheet with low leverage. RADCOM (RDCM) provides AI-driven network analytics and telecom traffic monitoring software. It reported 16-19% YoY revenue growth in 2025, achieving positive GAAP and non-GAAP operating incomes, with the highest margins (20.9% non-GAAP operating margin). RADCOM has a strong cash position, zero debt, and solid recurring revenue from cloud-native 5G network assurance, positioned well for telecom digital transformation. CEVA (CEVA) licenses DSP and AI processor IP targeting wireless connectivity and AI acceleration. While revenue growth is modest (\~4% YoY) and GAAP losses persist due to heavy R&D investment, CEVA shows very high gross margins (\~88%) and positive trends in AI-related licenses, including partnerships with major semiconductor manufacturers. The balance sheet is strong with $162M cash and no debt. In comparison to AST SpaceMobile (ASTS), which is a high-risk, early-stage satellite network provider with large market cap but little current revenue, these four companies offer more immediate cash flows, profitability, and critical complementary infrastructure exposure at significantly lower valuations. Risks across the group include customer concentration (especially AmpliTech), geopolitical tensions (impacting Gilat’s defense contracts and market environment), competitive pressures from larger integrated operators, and the challenge of keeping pace with rapid technological standards and AI commoditization (notably for CEVA). Given their differentiated roles in the 5G-satellite ecosystem, substantial recent growth, improving profitability, and strong balance sheets (except for CEVA’s net loss but offset by robust cash and R&D investment), these companies present compelling opportunities for investors seeking exposure to the evolving satellite and telecommunications infrastructure market beyond the speculative AST SpaceMobile stock. Recommendation: BUY with 80% confidence based on strong growth rates, increasing margins, visible revenue pipelines, and strategic positioning as foundational providers in ground and signal-processing layers critical for global satellite and 5G network scale-up.

_hiddenscout

Anyone here follow RDCM? Another new name I’m digging into. Seems like have become profitable like a year ago. They have like no debt and steady double digit revenue growth. Also have a high amount of reoccurring revenue.