Revenue Growth Helps Orbcomm Cut Net Loss
[Satellite Today – 3-12-08] Orbcomm Inc. posted revenue gains in the 2007 fourth quarter and full year as the company cuts its yearly loss by 68 percent, Orbcomm reported March 11.
Revenues in 2007 improved 15 percent to $28.2 million, as service revenues jumped 53 percent to $17.7 million. Product revenues slipped from $10.4 million in 2006 to $2.5 million in 2007.
Revenues for the fourth quarter of 2007 were $8.7 million, an increase of 37 percent from $6.3 million in the fourth quarter of 2006. Service revenues improved 47 percent to $5 million, while product sales increased from $700,000 in the 2006 fourth quarter to $3.7 million in the 2007 fourth quarter.
Orbcomm cuts its full-year loss from $11.2 million in 2006 to $3.6 million in 2007 while posting a profit of $1.1 million in the 2007 fourth quarter.
“The evolution of the company’s revenue mix is in line with our objectives,” Jerry Eisenberg, Orbcomm’s chairman and CEO, said in a statement. “The growth of our service revenues are evidence of the progress we are making in executing our business strategy. As we grow our business, expand into new territories, sign more value-added resellers and continue to add billable subscribers, we expect our service revenues growth to be the key driver of total revenues.”
Separately, Orbcomm and Wavecom signed an agreement to market devices that combine satellite and terrestrial wireless communications, Orbcomm announced.