[SatNews] ORBCOMM Inc. (Nasdaq: ORBC) has announced financial results for the second quarter ended June 30, 2013. The following financial highlights are in thousands of dollars, except per share amounts.
- For the second quarter of 2013, Total Revenues increased 13.7 percent year-over-year to $18.6 million. Service Revenues increased 8.9 percent over the prior year period to $13.5 million with increases in organic Service Revenues and from acquisitions. Product Sales of $5.0 million were 29.2 percent higher than prior year, driven by an increase in organic sales in Direct Channel, and Product Sales from the new acquisitions of GlobalTrak and MobileNet, offset by lower sales at our Japanese subsidiary, which was impacted by a less favorable U.S.$/Yen exchange rate this year compared to last year
- Adjusted EBITDA for the second quarter of 2013 was $3.9 million, and includes $0.2 million in Acquisition-related costs. ORBCOMM’s basic EPS is $0.04 for the second quarter of 2013 compared to $0.04 for the comparable period last year
- Net subscriber additions were 23,000 in the second quarter of 2013 and include a one-time 2,000 subscriber increase from the acquisitions, bringing the total billable subscriber communicators to 800,000 at June 30, 2013, compared to 715,000 at the end of the second quarter last year. Billable subscribers increased 12 percent year-over-year
- On June 6, 2013, ORBCOMM announced the availability of a complete end-to-end telematics solution for the heavy equipment industry. Leveraging the strategic acquisition of MobileNet, Inc. as well as long-time partnerships with Quake Global, Inc. and Tier One wireless carriers, AT&T, Rogers, T-Mobile, and Vodafone, ORBCOMM’s dual-mode offering combines the company’s global satellite and cellular connectivity with a robust web-based analytics platform in a single, low-cost monthly subscription as well as state-of-the-art hardware designed for the rigorous requirements of the heavy equipment market. Targeted for OEMs, dealers, rental companies and fleet owners, ORBCOMM’s advanced solution delivers asset utilization and operational information
- ORBCOMM, along with its subsidiary, MobileNet, expects to start the first phase of a global telematics deployment with a major Korean OEM starting in Q4 2013. ORBCOMM has designed a full telematics solution including dual mode connectivity, hardware and a customized web-based analytics platform. This OEM is anticipated over time to be one of ORBCOMM’s top customers
- On May 16, 2013, ORBCOMM announced the availability of its GT 1100, a self-powered M2M asset tracking and monitoring device targeted for a variety of global markets including transportation and logistics, heavy equipment and oil and gas. ORBCOMM’s ruggedized, easy-to-install device is designed to fit seamlessly in between the indented spacing on intermodal containers. Its low, one-inch height profile and small form factor are also ideal for tracking and monitoring trailers and other types of cargo assets. The GT 1100 is sensor-compatible and self-powered with solar recharging technology for low power consumption and long service life in the field. This device is being offered initially with cellular communications capability. We are pleased to report that ORBCOMM’s GT1100 won the 2013 CTIA E-Tech Award for Innovation in M2M
- On May 20, 2013, ORBCOMM announced the availability of four innovative asset tracking and monitoring devices targeted for the transportation and logistics market. This broad product portfolio includes the GT 1000, a low-cost, cellular-enabled electronic bolt seal with GPS capability; GT 1200, a self-powered device with cellular communications and GPS capability; GT 2000, a powerful dual-mode cargo security and monitoring device; and RT 6000+, a dual-mode, two-way reefer monitoring and control device. These devices can be paired with powerful web analytics platforms, which provide near-real-time knowledge and notifications of the assets’ status and location, empowering fleet owners and leasors with complete command and control of their global assets
- On July 25, 2013, ORBCOMM announced that its GlobalTrak division has completed the shipment of its state-of-the-art fuel monitoring system, which features a unique fuel sensor and is designed to prevent theft of mission-critical fuel used by U.S. and NATO forces in Afghanistan. A team has been deployed to manage on-site installation and launch of this system
- On May 29, 2013, ORBCOMM announced that Cartrack (Pty) Ltd. selected the company to provide satellite data communication services to extend its current range of GSM logistics and telematics solutions. Cartrack, a leading vehicle tracking and logistics company based in Johannesburg, South Africa, will use the ORBCOMM network to track and monitor the location, routes and status of its vehicles throughout the African continent via its growing brand and dealer network
“We continue to focus on the growth and expansion of the company as a global end-to-end M2M solutions provider in new and existing markets, as evidenced by the recent launch of our new portfolio of state-of-the-art asset tracking and monitoring devices,” said Marc Eisenberg, ORBCOMM’s Chief Executive Officer. “Building upon our current foundation of innovation and M2M specialization, we are committed to delivering the most dynamic combination of network services, hardware and web applications to our customers. With OG2 on the horizon, the breadth of our products and level of service will be even more compelling.”
“Second quarter Total Revenues of $18.6 million exceeded our previously announced expectations with contributions from organic Service Revenues and acquisitions,” said Robert Costantini, Chief Financial Officer of ORBCOMM. “We are pleased to maintain strong profitability while we incur costs to pursue major revenue opportunities.”
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