Orbcomm Revenues Rise 22.4% to $19.7-M in 3Q 2013
Rochelle Park, NJ, Nov. 7, 2013 — Orbcomm Inc. said on Thursday total revenues increased 22.4% year-over year to US$ 19.7 million during the third quarter ending September 30, 2013, while service revenues increased 8.3% over the prior year period to US$13.8 million.
Product sales also rose 75% to $5.9 million driven by an increase in organic sales at the company’s Japanese subsidiary and from the company’s new acquisitions. Revenues in Japan, however, were impacted by a less favorable U.S.$/Yen exchange rate this year compared to last year.
Adjusted EBITDA for the third quarter of 2013 was $3.5 million, which includes $0.8 million in acquisition-related costs. Orbcomm’s basic EPS was pegged at $0.02 for the third quarter of 2013 compared to $0.05 for the comparable period last year.
The company said it posted Net subscriber communicator additions of 27,000 in the third quarter of 2013, bringing the total billable subscriber communicators to 827,000 at September 30, 2013, compared to 744,000 at the end of the third quarter last year. Billable subscriber communicators increased 11% year- over-year. SENS acquisition in October 2013 is expected to add over 20,000 subscriber communicators in the fourth quarter of 2013.
“We are excited about the strong momentum, accelerating Orbcomm’s growth in both the transportation and heavy equipment markets with the addition of new industry leaders like Ryder and Doosan to our customer base. We will continue to look for new opportunities to leverage powerful M2M technologies and infrastructure and infuse them across the existing Orbcomm platform to increase our service value to the global marketplace,” said Marc Eisenberg, Chief Executive Officer.
“Our recent acquisition of the SENS operation, which utilizes the Globalstar one-way satellite network, as well as our newly formed alliance with Inmarsat builds on Orbcomm’s multi-network operator strategy and strengthens our position as the leading provider of satellite and cellular communications services for the M2M industry.”
On September 4, 2013, Doosan Infracore Co. Ltd. has selected Orbcomm to deliver an end-to-end telematics solution tailored for Doosan as well as their customers and dealers for global deployment. Orbcomm said its solution will provide global satellite data service combined with cellular connectivity through the company’s wireless partners, along with state-of-the-art hardware and a robust web-based analytics platform for asset management. Shipments are expected to begin in the first quarter of 2014.
Orbcomm also announced that On September 12, 2013, Ryder System, Inc. (Ryder) has selected Orbcomm to deliver a comprehensive telematics systems solution tailored for Ryder’s fleet of more than 30,000 dry van, refrigerated and flatbed trailers. Orbcomm’s solution will provide connectivity through Orbcomm’s state-of-the-art hardware and web-based analytics platform for fleet management. Ryder will utilize the Orbcomm solution in both its lease and rental trailer fleets in response to customer demand for a tracking and monitoring solution.
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