Orbcomm Q3 Service Revenue Spike Offset by Sales Lag
Orbcomm, a global provider of Machine-to-Machine (M2M) and Internet of Things (IOT) solutions, saw mixed results in its reporting of Q3 2018. The company saw revenues increase from $69.4 million in Q3 2017 to $71 million in Q3 2018 – with service revenues up 10 percent compared to the prior year. The service revenue increase is a 21.4 percent increase in subscribers, compared to the year prior, and the acquisition of Blue Tree Systems.
Yet, the company’s net loss in Q3 2018 was $3.3 million, or a loss of $0.04 per share, and it also missed some revenue targets. Revenue in Q3 included a $0.8 million reduction in accounting adjustments related to Orbcomm’s first year reconciliation with its Inthinc business. Other service revenues, which are comprised of installation services, professional services, and software licenses, were $1.3 million in Q3 – $0.8 million lower versus the same period last year.
Additionally, product sales were $32.6 million in Q3 2018, down $1.8 million or 5.1 percent compared to Q3 2017. According to the release, the decrease was primarily attributable to higher product shipments in the prior year in relation to the large initial JB Hunt rollout.