Total Revenues for the quarter ended March 31, 2012, were $15.9 million, an increase of 101% over total revenues of $7.9 million reported in the comparable period of 2011. Service Revenues for the quarter ended March 31, 2012 were $11.5 million versus $7.4 million in the first quarter of 2011, an increase of 56%. The increase in service revenues was due to an increase in the number of billable units and higher usage in core service, the inclusion of AIS revenues as a result of our recent launches of AIS satellites, and increases attributable to the acquisitions of StarTrak Systems, LLC (StarTrak), completed on May 17, 2011, and PAR Logistics Management Systems (LMS), on January 12, 2012.
In the first quarter of 2012, ORBCOMM’s majority owned subsidiary, Satcom International Group plc (Satcom), extinguished debts of $1.6 million for $381,000 in cash, generating a gain of $1.2 million of which $1.1 million was recorded as Extinguishment of Debt and $128,000 was booked as a reduction of Selling, General, and Administrative expenses. Net Income Attributable to ORBCOMM Inc. Common Stockholders was $2.4 million in the first quarter of 2012 compared to a Net Loss of $0.7 million in the prior year period. At March 31, 2012, there were approximately 689,000 billable subscriber communicators, a 17% increase over the first quarter of 2011. Total net additions during the quarter were 42,000, including 19,000 subscribers added through the acquisition of LMS, as previously announced.
“We’re pleased to report the integration of LMS and StarTrak is progressing as planned. The breadth of complimentary products has been well received by our customers as demonstrated by our strong product sales in the first quarter – a precursor to service revenue.” said Marc Eisenberg, CEO of ORBCOMM. “At the same time, shipments to our heavy equipment/OEM customers remain strong. We are seeing incremental revenue growth due to the return of our AIS business which is providing industry-leading service and strengthening ORBCOMM’s market leadership position in AIS market. ORBCOMM’s Adjusted EBITDA of $4.2 million in the first quarter represents a 427% improvement over the first quarter of 2011” said Robert Costantini, CFO. “After adjusting for one-time items of the debt repayment and Acquisition-related costs, Adjusted EBITDA was a notable improvement over the first quarter of 2011, and illustrative of the operating leverage underlying our business model and potential for incremental margin expansion as we build our subscriber base.”
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