{"id":81367,"date":"2013-03-15T21:48:08","date_gmt":"2013-03-15T13:48:08","guid":{"rendered":"https:\/\/wp-productionenv-bjg9h2g2bgg5b8aa.southeastasia-01.azurewebsites.net\/news\/orbcomm-expects-key-contributions-from-globaltrak-mobilenet-acquisitions\/"},"modified":"2013-03-15T21:48:08","modified_gmt":"2013-03-15T13:48:08","slug":"orbcomm-expects-key-contributions-from-globaltrak-mobilenet-acquisitions","status":"publish","type":"post","link":"https:\/\/starpath.global\/news\/orbcomm-expects-key-contributions-from-globaltrak-mobilenet-acquisitions\/","title":{"rendered":"Orbcomm Expects Key Contributions from GlobalTrak, MobileNet Acquisitions"},"content":{"rendered":"

[Satellite TODAY 03-15-13] Enterprise global satellite and cellular data communications solutions Orbcomm<\/strong> has acquired value-added resellers GlobalTrak<\/strong> and MobileNet<\/strong> for a combined cash purchase price of nearly $8 million, including an undisclosed earn-out, the company announced with its 2012 fourth quarter earnings report.<\/p>\n

   GlobalTrak and MobileNet are expected to make valuable contributions to Orbcomm\u2019s portfolio, including: run rate revenues of between $5 million and $7 million; significantly higher ARPUs; more than 4,000 net subscriptions; and an expanded presence in the heavy equipment, rail, and government sectors. 
\n   Orbcomm CEO Marc Eisenberg said the acquisitions support his company\u2019s growth strategy of expanding its end-to-end solutions portfolio into key vertical markets and new geographic regions, as GlobalTrak sells into key markets such as the government sector and operates in the Middle East, Asia and South America.
\n   \u201cThe addition of GlobalTrak\u2019s advanced asset monitoring solution and its top-tier customer base adds to our diverse technologies and expertise serving the transportation market,\u201d Eisenberg said in a statement. \u201cIt is an important next step in the evolution of our business as an end-to-end solutions provider, and brings with it significant differentiated technology solutions, such as container tracking, as well as new and important distribution channels.\u201d
\n   Commenting on the MobileNet acquisition, Eisenberg added that leveraging its turnkey offering would provide Orbcomm customers with significant operating advantages, as well as savings in development costs and faster time to market for implementing telematics solutions in the field.
\n   \u201cWith MobileNet\u2019s strong customer base and proven success as a solutions provider in this market, we believe the MobileNet product offering fits perfectly within our strategic initiative of strengthening our end-to-end solutions capabilities in key areas,\u201d said Eisenberg.
\n   News of the acquisitions came alongside Orbcomm\u2019s fourth quarter 2012 fiscal report, which included a 51 percent year-over-year increase in adjusted EBITDA to $4.2 million and company record operating cash flows of $5.1 million. Revenues increased 18.5 percent from the same period in 2011 to $16.2 million.
\n   Orbcomm\u2019s net subscriber additions, however, were relatively weak compared to analysts\u2019 projections. The company added 15,000 subscribers during the fourth quarter \u2013 well short of the market\u2019s 29,000 net addition forecast, representing the company\u2019s weakest total in seven quarters. 
\n   Raymond James <\/strong>Analyst Chris Quilty is wary of Orbcomm management\u2019s expectations for sequential improvement in the first quarter of 2013, aided by its two newly acquired assets.
\n   \u201cDespite incremental contribution from GlobalTrak and MobileNet, we are holding our estimates largely unchanged due to the possibility that customers may delay orders while awaiting the availability of OG2 hardware and services planned for a September launch,\u201d Quilty said in a research statement to SatelliteTODAY<\/em>, adding that a successful launch should contribute to higher subscriber growth, ARPUs, and service revenues in 2014. \u201cAlthough shares of ORBC have rallied approximately 60 percent since late-November, we believe stock has more room to run, buoyed by the launch of new OG2 satellites, recent accretive acquisitions and high operating leverage.\u201d  
\n <\/p>\n","protected":false},"excerpt":{"rendered":"

[Satellite TODAY 03-15-13] Enterprise global satellite and cellular data communications solutions Orbcomm has acquired value-added resellers GlobalTrak and MobileNet for a combined cash purchase price of nearly $8 million, including an undisclosed earn-out, the company announced with its 2012 fourth quarter earnings report.    GlobalTrak and MobileNet are expected to make valuable contributions to Orbcomm\u2019s […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[2],"tags":[],"class_list":["post-81367","post","type-post","status-publish","format-standard","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/81367"}],"collection":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/comments?post=81367"}],"version-history":[{"count":0,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/81367\/revisions"}],"wp:attachment":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media?parent=81367"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/categories?post=81367"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/tags?post=81367"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}