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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 second quarter ended June 30, 2012.
The following financial highlights are in thousands of dollars, except per share amounts.
Three months ended
Six months ended June 30,
Net Income (loss) attributable to ORBCOMM Inc. Common Stockholders
Net Income (loss) per Common Share
Adjusted EBITDA (2,3)
(1) EBITDA is defined as earnings attributable to ORBCOMM Inc. before interest income (expense), provision for income taxes and depreciation and amortization.
(2) Adjusted EBITDA is defined as EBITDA, adjusted for stock-based compensation expense, loss on disposition of other investment in Alanco, and noncontrolling interests.
(3) A table presenting EBITDA and Adjusted EBITDA, reconciled to GAAP Net Income (Loss), is among other financial tables at the end of this release.
For the second quarter of 2012, Total Revenues increased 51% to $16.3 million, and Service Revenues increased 38% year-over-year to $12.4 million. Adjusted EBITDA for the period was $4.0 million, up from $1.7 million during the same three months last year. ORBCOMM reported EPS of $0.04 for the second quarter of 2012 compared to a loss of ($0.01) for the comparable period last year.
For the second quarter of 2012, net subscriber additions were 26,000. ORBCOMM had 715,000 billable subscriber communicators at June 30, 2012, compared to 606,000 at the end of the second quarter last year. The base of billable subscribers increased 18% year-over-year.
ORBCOMM’s AIS service was selected to be the sole provider by the European Maritime Safety Agency (EMSA), through ORBCOMM’s partner LuxSpace, awarding a multi-year framework contract to provide satellite-based Automatic Identification System (AIS) data used for ship tracking and maritime navigation safety efforts.
Our prototype ORBCOMM Generation 2 (OG2) satellite completed several significant milestones, including the most critical environmental tests. We anticipate the satellite will be shipped to Cape Canaveral over the next few weeks to be attached to a Falcon 9 rocket and launched in October. When the OG2 constellation is fully deployed, ORBCOMM will be able to provide multiple new data offerings and we expect its superior service will result in a substantial expansion of ORBCOMM’s addressable markets.
“This quarter, ORBCOMM successfully executed on its growth strategy, which led to strong results this quarter,” said Marc Eisenberg, Chief Executive Officer of ORBCOMM. “Our AIS service got a major endorsement by EMSA to be the sole provider of AIS because our product provides the best service and value on the market. We also added two heavy equipment customers in recent months, extending our position as the leading provider of connectivity to the heavy equipment category. Additionally, both our direct channel and traditional M2M services recorded impressive net subscriber additions for the quarter.”