Revenue Gain Helps Orbcomm Cut Operating Loss
[Satellite Today 11-10-08] Orbcomm reported a 15.3 percent increase in revenue to $8 million and a 39.2 percent increase in service revenue to $6.3 million in the company’s third quarter 2008 financial report released Nov. 10. Orbcomm’s net loss for the quarter was $1 million, up from $400,000 in the third quarter of 2007.
The revenue increases were due primarily to an increase in higher revenue billable subscriber communicators, the inclusion of Orbcomm Japan and a slight contribution from the commencement of automatic identification system revenue.
Product sales decreased in the third quarter by $700,000, or 30.8 percent, from the third quarter of 2007. Orbcomm said the decrease is due to a decline in purchases by a large value-added reseller.
The company also said it reduced operating loss by 55 percent from the corresponding period in 2007 and that a $1.2 million decline in interest income and $300,000 million of foreign exchange transaction loss led to the increase in net loss versus the same period in the prior year.