[08-14-12] Global satellite data communications provider Orbcomm<\/b> has reported its second consecutive quarter of Automatic Identification System (AIS) revenue growth after a year of struggles to get the shipboard broadcast system moving in the maritime market, according to its 2012 second-quarter financial results issued Aug. 10. <\/p>\n
Orbcomm\u2019s adjusted EBITDA of $4.2 million beat analysts\u2019 estimates of $4 million, backed by a 38 percent year-over-year increase in service revenues to $12.4 million \u2014 a new record for the company. Orbcomm management said the growth was aided by a higher subscription count and a 13 percent increase in ARPUs compared with the same period in 2011.
\n The company\u2019s overall second quarter revenues increased 51 percent from the corresponding period last year to $16.3 million due to strong organic growth and Orbcomm\u2019s recent acquisition of PAR LMS, though barely fell short of the $16.4 million market consensus.
\n Orbcomm CEO Marc Eisenberg said that the company\u2019s ARPUs should flatten in the next several quarters pending the mid-2013 launch of its first batch of OG2 satellites.
\n \u201cOur AIS solution was selected to be the sole provider by the European Maritime Safety Agency (EMSA)<\/b>, which awarded us a multi-year contract to provide satellite-based AIS data used for ship tracking and maritime navigation safety efforts,\u201d Eisenberg said in a statement. \u201cThis is 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.\u201d
\n Sierra Nevada Corp.<\/b> recently completed environmental testing for Orbcomm\u2019s second-generation prototype spacecraft. The spacecraft will be launched in October on SpaceX\u2019s<\/b> next Falcon-9 launch vehicle along with first Cargo Re-supply Services mission to the International Space Station.
\n Raymond James<\/b> Analyst Chris Quilty said that Orbcomm\u2019s new customer add-on rates and revenues could more than double in 2013 with the successful launch of the first batch of OG2 satellites.
\n \u201cOrbcomm\u2019s first OG2 satellite is scheduled to launch in two months \u2014 an event that should serve as a catalyst for improved network performance, accelerated revenues and a higher valuation,\u201d Quilty said in a research note. \u201cOrbcomm\u2019s sequential net adds increased 53 percent year-over-year to 26,000, which was above our estimate of 24,400. This marks the seventh consecutive quarter of improvement from the same period in the previous year. Orbcomm\u2019s StarTrak\/PAR service contributed 2,000 subscriptions, but volumes should grow beginning in the fourth quarter, when Orbcomm begins shipping its new dual-mode communicator.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
[08-14-12] Global satellite data communications provider Orbcomm has reported its second consecutive quarter of Automatic Identification System (AIS) revenue growth after a year of struggles to get the shipboard broadcast system moving in the maritime market, according to its 2012 second-quarter financial results issued Aug. 10. Orbcomm\u2019s adjusted EBITDA of $4.2 million beat analysts\u2019 […]<\/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-82652","post","type-post","status-publish","format-standard","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/82652"}],"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=82652"}],"version-history":[{"count":0,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/82652\/revisions"}],"wp:attachment":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media?parent=82652"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/categories?post=82652"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/tags?post=82652"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}