ORBCOMM REPORTS RESULTS FOR FULL YEAR AND FOURTH QUARTER 2010
For the quarter ended December 31, 2010, Total Revenues were $7.5 million, an increase of 6.7% over the fourth quarter of 2009 driven by slight increases in Service Revenues and growth in Product Sales.
Costs and Expenses for the full year 2010 of $38.1 million were up 26.8% over the prior year period. This increase was driven by the satellite Impairment Loss of $6.5 million in the third quarter of 2010.
Operating loss for the full year 2010 was $1.4 million compared to a $2.5 million loss for the full year 2009.
Adjusted EBITDA for the full year 2010 was $11.1 million. Excluding the recognition of deferred revenue from the Coast Guard and the benefit of the Insurance Recovery in 2009, full year 2010 Adjusted EBITDA is $5.2 million, a 113.7% increase over the full year 2009 Adjusted EBITDA.
At December 31, 2010, there were 575,000 billable subscriber communicators, an 11.6% increase over year-end 2009. Net subscriber additions for the full year were almost 60,000, an increase of more than 8% from the prior year, comprised of more than 45,000 satellite additions. Net subscriber additions in the fourth quarter were more than 19,000, representing the fourth consecutive quarter of sequential growth in net additions.
“As reported on February 24, 2011, ORBCOMM entered into a definitive agreement to acquire StarTrak Systems, LLC’s business, which supports ORBCOMM’s growth strategy in a number of ways,” said Marc Eisenberg, ORBCOMM’s Chief Executive Officer. “The acquisition provides an opportunity to drive new subscribers to ORBCOMM’s global communications network while accelerating the growth of StarTrak’s suite of products by adding scale and providing subscriber management tools. Additionally, ORBCOMM is well-positioned to enhance StarTrak’s ability to deliver benefits in efficiency, predictability and quality of cold chain (refrigerated) management operations, as well as leverage StarTrak’s capabilities with other resellers to continue to drive down development cycle time and help shape the end user experience. ”
“ORBCOMM achieved 113.7% growth in Adjusted EBITDA in 2010, excluding the impact of the non-recurring items, like the deferred Coast Guard revenue and the Insurance Recovery from 2009,” said Robert Costantini, ORBCOMM’s Chief Financial Officer. “This growth was supported by nominally flat year-over-year Cost of Service, Selling, General, & Administrative and Product Development Costs, excluding Depreciation and Amortization. The Company also completed the acquisition of the non-controlling ownership interests in ORBCOMM Japan, which allows us to develop that office as a platform for further growth in the Asian markets.”
About ORBCOMM Inc.
ORBCOMM is a leading global satellite data communications company, focused on Machine-to-Machine (M2M) communications. Its customers include Caterpillar Inc., Doosan Infracore America, Hitachi Construction Machinery, Hyundai Heavy Industries, Asset Intelligence a division of I.D. Systems, Inc., Komatsu Ltd., Manitowoc Crane Companies, Inc., and Volvo Construction Equipment among other industry leaders. By means of a global network of low-earth orbit (LEO) satellites and accompanying ground infrastructure, ORBCOMM’s low-cost and reliable two-way data communication services track, monitor and control mobile and fixed assets in four core markets: commercial transportation; heavy equipment; industrial fixed assets; and marine/homeland security. ORBCOMM based products are installed on trucks, containers, marine vessels, locomotives, backhoes, pipelines, oil wells, utility meters, storage tanks and other assets. ORBCOMM is headquartered in Fort Lee, New Jersey and has its network control center in Dulles, Virginia.