Revenue Growth Helps Orbcomm Cut Second Quarter Loss
[08/17/07 – Satellite Today] Orbcomm Inc. recorded a revenue gain of about 5 percent to $6.6 million in its 2007 second quarter, the company announced. The growth helped Orbcomm cut its loss from $2.3 million in the 2006 second quarter to $1.3 million in the most recent quarter. Service revenue improved nearly 61 percent to $4.2 million, but product revenues fell about 34 percent to $2.4 million.
“We improved our financial performance in the second quarter, narrowing our net loss, despite some market softness in a few end markets,” Jerome Eisenberg, Orbcomm’s CEO, said in a statement. “We are well-positioned to continue our growth, and believe that some market softness is related to timing of investments by end users, and not a loss of market share. We expect to make an announcement about the development of the next generation satellites shortly.”
Separately, Orbcomm signed an international value-added reseller agreement with Volvo, which is using the service on Volvo Trucks North America’s Volvo Link Sentry truck product and on Volvo Construction Equipment’s CareTrack system.