Global satellite data communications company ORBCOMM Inc. today announced total revenues for the quarter ended June 30, 2010 of $7.8 million, a 15.8% increase over the same quarter in 2009. In addition, the 6-month period ending June 30 showed a 13% gain over the same period in 2009, jumping to just over $15.2 million.
Service revenues for the second quarter were $7.3 million, an increase of 8.3% over the same quarter in 2009, due largely to an increase in AIS (Automatic Identification System) revenues of $0.3 million, and an increase in billable subscriber satellite and terrestrial revenue of $0.2 million. AIS is a shipboard broadcast system that transmits a vessel’s identification, position, and other critical data, used to assist in navigation and improve maritime safety. Quarterly product sales increased from $50,000 to $560,000, due primarily to an increase in sales at the company’s Japanese subsidiary.
ORBCOMM had income from operations for the second quarter of $249,000, versus a loss from operations of $1.1 million in the second quarter of 2009. However, consistent with the company’s plan to focus on high margin service businesses, ORBCOMM has sold the assets of Stellar Satellite Communications LTD, a wholly-owned subsidiary, resulting in a loss from discontinued operations of $3.5 million, including a one-time $3.3 million asset impairment charge at Stellar.
Second quarter costs and expenses decreased by 3.7%, compared to 2009, driven largely by lower insurance costs and lower professional service fees. Excluding the above mentioned asset impairment loss, the net loss attributable to ORBCOMM Inc. is near breakeven, at $35,000, representing a 90.3% improvement over the second quarter of 2009.
ORBCOMM is a leading provider of global satellite and cellular data communications solutions for asset tracking, management, and remote control. The company’s global network and unique management tools enable delivery of small quantities of information to and from virtually any place in the world on a near real-time basis. ORBCOMM is the only satellite service provider focused exclusively on machine-to-machine data communications, allowing them to offer solutions perfectly tailored to the unique needs of M2M applications.
For more information, visit the company’s website at www.orbcomm.com.