[Satellite TODAY Insider 08-11-11] Satellite and cellular data communications solutions provider Orbcomm generated a 37.9 percent increase in its 2011 second-quarter revenues at $10.8 million — a performance which analysts said positions the company to deliver substantial growth in the next 18 months to 24 months.

   Orbcomm’s latest financial results, issued Aug. 10, attributed the revenue increase to growth in the company’s satellite service revenues and contributions from its recent acquisition, StarTrak. Orbcomm’s service revenues jumped 23.4 percent from $7.3 million in the same period last year to $9 million in 2011. Product sales also increased during the second quarter to $1.8 million in 2011 from $560,000 in 2010.

   The company’s results left analysts feeling bullish about Orbcomm’s long-term potential. Raymond James analyst Chris Quilty said that Orbcomm will soon place new satellites in service, which will help drive service revenues, average revenue per user (ARPU) and EBITDA margins even higher.

   “Orbcomm remains one of the most attractively valued properties in the satellite industry. The company’s second quarter results were nicely above our forecast, and the recent StarTrak acquisition is already making a positive contribution even though Orbcomm only owned the company for half of the second quarter,” said Quilty. “StarTrak provided an 18 percent sequential bump in Orbcomm’s monthly ARPU. New orders have also been strong over the past two months, thus adding to its parent company’s building momentum.”

   Orbcomm drastically narrowed its net losses from $3.3 million in the second quarter of 2010 to $541,000 in the most recent quarter. The company’s EBITDA result was a positive gain of $1.1 million, compared with an EBITDA loss of $2.4 million in the prior year period.

    The company billable subscriber base increased 12.3 percent to 606,000 customers. Its net subscriber additions during the quarter were about 17,000, which comprised of more than 18,000 satellite additions and a decrease of 1,000 terrestrial subscribers during the quarter.

   “We are pleased to have completed the StarTrak acquisition and see the business contributing to Orbcomm’s growth strategy. Our plan to add capabilities and services is being confirmed with the success we have seen at StarTrak,” Orbcomm CEO Marc Eisenberg said in a statement.