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ORBCOMM Announces Third Quarter 2011 Results

ORBCOMM Inc. (Nasdaq: ORBC), a global satellite data communications company focused on two-way Machine-to-Machine (M2M) communications, today announced financial results for the third quarter ended September 30, 2011.

The following financial highlights are in thousands of dollars, except per share amounts.

      Three months ended       Nine months ended
September 30, September 30,
2011       2010 2011       2010
Total Revenues (1) $ 13,940 $ 13,912 $ 32,632 $ 29,166
Service Revenues (1) $ 10,315 $ 12,975 $ 26,692 $ 27,134
Product Sales $ 3,625 $ 937 $ 5,940 $ 2,032
Net Income (loss) attributable to ORBCOMM Inc. $ 555 $ (609 ) $ (717 ) $ (4,640 )
Net Income (loss) per Common Share $ 0.01 $ (0.01 ) $ (0.02 ) $ (0.11 )
EBITDA (2) (4) $ 2,308 $ 302 $ 3,921 $ (1,424 )
Adjusted EBITDA (3) (4) $ 2,694 $ 7,610 $ 5,241 $ 10,426
(1)     For the third quarter of 2010, Total Revenues is $8,006 and Service Revenues is $7,069 after excluding the one-time recognition of $5.9 million of unamortized AIS deferred service revenue in the third quarter of 2010. These figures were used to calculate the year-over-year increases for Total Revenues and Service Revenues. The Company believes it is useful for investors to evaluate and compare the results of the Company's operations from period to period on a consistent basis by removing this significant one-time event.
(2) EBITDA is defined as earnings attributable to ORBCOMM Inc. before interest income (expense), provision for income taxes and depreciation and amortization.
(3) Adjusted EBITDA is defined as EBITDA, adjusted for stock-based compensation expense, Noncontrolling Interests, Impairment Charges, and Loss on disposition of other investment in Alanco.
(4) A table presenting EBITDA and Adjusted EBITDA, reconciled to GAAP Net Income (loss), is among other financial tables at the end of this release.

Service Revenues for the quarter ended September 30, 2011 were $10.3 million versus $13.0 million in the third quarter of 2010 that included the one-time recognition of $5.9 million of unamortized AIS deferred service revenue. Excluding this item, Service Revenues in the third quarter of 2011 increased 45.9% compared to the prior year quarter. Service revenues were positively impacted in the third quarter of 2011 by an increase in the number of subscribers, higher usage by some customers, and the inclusion of a full quarter from the StarTrak acquisition. Product Sales increased in the third quarter to $3.6 million from $937,000 in the third quarter of 2010, with increases attributable to operations in Japan and the addition of StarTrak. Total Revenues for the quarter ended September 30, 2011, were $13.9 million and slightly higher than the prior year period. Excluding the impact of recognizing $5.9 million of unamortized AIS deferred service revenues in the prior year, Total Revenues were up 74.1% year-over year.

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