Delaware
|
001-33118
|
41-2118289
|
(State or Other Jurisdiction
of Incorporation)
|
(Commission
File Number)
|
(I.R.S. Employer
Identification No.)
|
2115 Linwood Avenue, Suite 100
Fort Lee, New Jersey
|
07024 |
(Address of principal executive offices) | (Zip code) |
ORBCOMM Inc.
|
||||
By | /s/ Robert G. Costantini | |||
Name: Title: |
Robert G. Costantini
Executive Vice President and
Chief Financial Officer |
Exhibit
Number |
Description of Exhibit
|
|
99.1
|
Press Release of the Company dated August 9, 2011.
|
Three months ended June 30,
|
Six months ended June 30,
|
|||
2011
|
2010
|
2011
|
2010
|
|
Total Revenues
|
$10,809
|
$7,837
|
$18,692
|
$15,254
|
Service Revenues
|
$8,980
|
$7,277
|
$16,377
|
$14,159
|
Product Sales
|
$1,829
|
$560
|
$2,315
|
$1,095
|
Net Loss attributable to ORBCOMM Inc.
|
$(541)
|
$(3,296)
|
$(1,272)
|
$(4,031)
|
Net Loss per Common Share (diluted)
|
$(0.01)
|
$(0.08)
|
$(0.03)
|
$(0.09)
|
Average Shares Outstanding (diluted)
|
44,211,000
|
42,613,000
|
43,472,000
|
42,561,000
|
EBITDA (1) (3)
|
$1,081
|
$(2,399)
|
$1,612
|
$(1,726)
|
Adjusted EBITDA (2) (3)
|
$1,747
|
$1,566
|
$2,546
|
$2,816
|
●
|
ORBCOMM Inc. completed the acquisition of substantially all of the assets of StarTrak Systems, LLC from Alanco Technologies, Inc. StarTrak is an innovator and leading provider of tracking, monitoring and control services for the refrigerated transport market. Under its ReeferTrak® and GenTrakTM brands, the company provides customers with the ability to proactively monitor, manage and remotely control their refrigerated transport assets.
|
●
|
Novus International, Inc. (Novus), a global leader in animal nutrition and health, received the American Feed Industry Association’s (AFIA) first-ever Information Technology (IT) Innovation Award for their bulk liquid inventory management solution enabled by ORBCOMM’s satellite network. Novus pioneered a vendor-managed inventory for bulk liquid feed ingredients with the introduction of an automated remote monitoring system known as AIMS® in 1993. In 2009-10, Novus upgraded the AIMS infrastructure by incorporating ORBCOMM’s satellite communications network with Novus’s enhanced remote monitoring technology to improve inventory management throughout the bulk liquid supply chain.
|
●
|
Field Intelligence, Inc. and Controls, Inc. have partnered to provide a global monitoring solution for the diesel and natural gas engine market using ORBCOMM’s satellite communications services. Field Intelligence’s fully integrated, turnkey solution allows Controls’ customers to track engine equipment anywhere in the world and monitor engine performance, including alarm functions and maintenance alerts. This advanced telemetry product gives customers the flexibility to achieve a higher level of engine support, improving equipment utilization and efficiency for their assets worldwide.
|
●
|
Prime Inc., a refrigerated, flatbed, and tanker carrier, has begun broad deployment of StarTrak’s two-way communication reefer management system, Sentry. The initial deployment of more than 1,500 systems by year-end represents a strong partnership with a leader in refrigerated transportation.
|
●
|
Hirschbach Motor Lines Inc. has also begun deployment of StarTrak’s Sentry system. The deployment of just over 800 systems include valuable applications like Tractor ID, advanced Fuel Monitoring, and Geo-Fencing, all fully integrated to Hirschbach’s dispatch system. When the Sentry management system is fully deployed, Hirschbach will have one of the most sophisticated two-way monitored and controlled reefer fleets in North America.
|
●
|
StarTrak marked the successful first year of working together with Qualcomm and their mutual customers. Industry leading companies such as Prime Inc., CR England Inc, Navajo Transportation and Henderson Trucking are deploying the solution throughout their fleets and integrating StarTrak into their core business processes while additional companies are in pilot
|
Contacts
Investor Inquiries:
Lucas Binder
VP, Business Development and Investor Relations
ORBCOMM Inc.
703-433-6505
binder.lucas@orbcomm.com
|
Media Inquiries:
Jennifer Lattif
Senior Account Executive
The Abernathy MacGregor Group
212-371-5999
jcl@abmac.com
|
ORBCOMM Inc.
|
Condensed Consolidated Balance Sheets
|
(in thousands, except share data)
|
(Unaudited)
|
June 30, | December 31, | |||||
2011 | 2010 | |||||
ASSETS
|
||||||
Current assets:
|
||||||
Cash and cash equivalents
|
$ |
24,718
|
$ |
17,026
|
||
Restricted cash
|
1,000
|
1,000
|
||||
Marketable securities
|
54,788
|
67,902
|
||||
Accounts receivable, net of allowances for doubtful accounts of $511 and $557
|
8,350
|
4,536
|
||||
Inventories
|
2,139
|
172
|
||||
Prepaid expenses and other current assets
|
1,721
|
1,377
|
||||
Deferred income taxes
|
90
|
117
|
||||
Total current assets
|
92,806
|
92,130
|
||||
Satellite network and other equipment, net
|
73,486
|
71,684
|
||||
Goodwill
|
9,099
|
-
|
||||
Intangible assets, net
|
7,876
|
1,114
|
||||
Restricted cash
|
2,220
|
3,030
|
||||
Deferred income taxes
|
105
|
141
|
||||
Other assets
|
1,383
|
1,092
|
||||
Other investment
|
-
|
2,278
|
||||
Total assets
|
$ |
186,975
|
$ |
171,469
|
||
LIABILITIES AND EQUITY
|
||||||
Current liabilities:
|
||||||
Accounts payable
|
$ |
3,272
|
$ |
2,143
|
||
Accrued liabilities
|
6,861
|
6,043
|
||||
Current portion of note payable
|
125
|
-
|
||||
Current portion of deferred revenue
|
2,286
|
2,134
|
||||
Total current liabilities
|
12,544
|
10,320
|
||||
Note payable - related party
|
1,606
|
1,416
|
||||
Note payable, net of current portion
|
3,490
|
-
|
||||
Deferred revenue, net of current portion
|
1,400
|
1,239
|
||||
Other liabilities
|
258
|
375
|
||||
Total liabilities
|
19,298
|
13,350
|
||||
Commitments and contingencies
|
||||||
Equity:
|
||||||
ORBCOMM Inc. stockholders' equity
|
||||||
Preferred Stock Series A, par value $0.001; 1,000,000 shares authorized;
|
||||||
183,550 and 0 shares issued and outstanding
|
1,834
|
-
|
||||
Common stock, par value $0.001; 250,000,000 shares authorized; 45,630,194 and
|
||||||
42,616,950 shares issued and outstanding
|
46
|
43
|
||||
Additional paid-in capital
|
243,260
|
234,125
|
||||
Accumulated other comprehensive income
|
1,206
|
1,126
|
||||
Accumulated deficit
|
(77,856
|
) |
(76,584
|
) | ||
Total ORBCOMM Inc. stockholders' equity
|
168,490
|
158,710
|
||||
Noncontrolling interests
|
(813
|
) |
(591
|
) | ||
Total equity
|
167,677
|
158,119
|
||||
Total liabilities and equity
|
$ |
186,975
|
$ |
171,469
|
ORBCOMM Inc.
|
Condensed Consolidated Statements of Operations
|
(in thousands, except per share data)
|
(Unaudited)
|
Three months ended | Six months ended | |||||||||||
June 30, | June 30, | |||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||
Revenues:
|
||||||||||||
Service revenues
|
$ |
8,980
|
$ |
7,277
|
$ |
16,377
|
$ |
14,159
|
||||
Product sales
|
1,829
|
560
|
2,315
|
1,095
|
||||||||
Total revenues
|
10,809
|
7,837
|
18,692
|
15,254
|
||||||||
Costs and expenses (1):
|
||||||||||||
Costs of services
|
3,775
|
3,060
|
7,238
|
6,196
|
||||||||
Costs of product sales
|
1,366
|
349
|
1,656
|
672
|
||||||||
Selling, general and administrative
|
4,649
|
4,020
|
9,070
|
8,182
|
||||||||
Product development
|
281
|
159
|
455
|
323
|
||||||||
Acquisition-related costs
|
778
|
-
|
1,035
|
-
|
||||||||
Total costs and expenses
|
10,849
|
7,588
|
19,454
|
15,373
|
||||||||
Income (loss) from operations
|
(40
|
) |
249
|
(762
|
) |
(119
|
) | |||||
Other income (expense):
|
||||||||||||
Interest income
|
44
|
55
|
98
|
92
|
||||||||
Other income (expense)
|
(307
|
) |
39
|
(206
|
) |
(81
|
) | |||||
Interest expense
|
(78
|
) |
(48
|
) |
(126
|
) |
(96
|
) | ||||
Total other income (expense)
|
(341
|
) |
46
|
(234
|
) |
(85
|
) | |||||
Income (loss) from continuing operations before income taxes
|
(381
|
) |
295
|
(996
|
) |
(204
|
) | |||||
Income taxes
|
195
|
-
|
306
|
-
|
||||||||
Income (loss) from continuing operations
|
(576
|
) |
295
|
(1,302
|
) |
(204
|
) | |||||
Loss from discontinued operations
|
-
|
(3,479
|
) |
-
|
(3,570
|
) | ||||||
Net loss
|
(576
|
) |
(3,184
|
) |
(1,302
|
) |
(3,774
|
) | ||||
Less: Net income (loss) attributable to the noncontrolling interests
|
(35
|
) |
112
|
(30
|
) |
257
|
||||||
Net loss attributable to ORBCOMM Inc.
|
$ |
(541
|
) | $ |
(3,296
|
) | $ |
(1,272
|
) | $ |
(4,031
|
) |
Net loss attributable to ORBCOMM Inc.:
|
||||||||||||
Income (loss) from continuing operations
|
$ |
(541
|
) | $ |
183
|
$ |
(1,272
|
) | $ |
(461
|
) | |
Loss from discontinued operations
|
-
|
(3,479
|
) |
-
|
(3,570
|
) | ||||||
Net loss attributable to ORBCOMM Inc.
|
$ |
(541
|
) | $ |
(3,296
|
) | $ |
(1,272
|
) | $ |
(4,031
|
) |
Per share information-basic:
|
||||||||||||
Income (loss) from continuing operations
|
$ |
(0.01
|
) | $ |
0.00
|
$ |
(0.03
|
) | $ |
(0.01
|
) | |
Loss from discontinued operations
|
-
|
(0.08
|
) |
-
|
(0.08
|
) | ||||||
Net loss attributable to ORBCOMM Inc.
|
$ |
(0.01
|
) | $ |
(0.08
|
) | $ |
(0.03
|
) | $ |
(0.09
|
) |
Per share information-diluted:
|
||||||||||||
Income (loss) from continuing operations
|
$ |
(0.01
|
) | $ |
0.00
|
$ |
(0.03
|
) | $ |
(0.01
|
) | |
Loss from discontinued operations
|
-
|
(0.08
|
) |
-
|
(0.08
|
) | ||||||
Net loss attributable to ORBCOMM Inc.
|
$ |
(0.01
|
) | $ |
(0.08
|
) | $ |
(0.03
|
) | $ |
(0.09
|
) |
Weighted average common shares outstanding:
|
||||||||||||
Basic
|
44,211
|
42,563
|
43,472
|
42,561
|
||||||||
Diluted
|
44,211
|
42,613
|
43,472
|
42,561
|
||||||||
(1) Stock-based compensation included in costs and expenses:
|
||||||||||||
Costs of services
|
$ |
25
|
$ |
29
|
$ |
60
|
$ |
43
|
||||
Selling, general and administrative
|
364
|
557
|
589
|
973
|
||||||||
Product development
|
7
|
6
|
10
|
8
|
||||||||
$ |
396
|
$ |
592
|
$ |
659
|
$ |
1,024
|
ORBCOMM Inc.
|
Condensed Consolidated Statements of Cash Flows
|
(in thousands)
|
(Unaudited)
|
Six months ended | |||||||
June 30, | |||||||
2011 | 2010 | ||||||
Cash flows from operating activities:
|
|||||||
Net loss
|
$ |
(1,302
|
) | $ |
(3,774
|
) | |
Adjustments to reconcile net loss to net cash provided by
|
|||||||
operating activities:
|
|||||||
Change in allowance for doubtful accounts
|
(46
|
) |
(232
|
) | |||
|
Depreciation and amortization
|
2,550
|
2,301
|
||||
Accretion on note payable - related party
|
66
|
66
|
|||||
Amortization of debt discount for the 6% secured promissory note issued
|
|||||||
in connection with the acquisition of StarTrak
|
3
|
-
|
|||||
Loss on dispostion of other investment in Alanco
|
305
|
-
|
|||||
Stock-based compensation
|
659
|
1,024
|
|||||
Foreign exchange (gains) losses
|
(10
|
) |
83
|
||||
Amortization of premium on marketable securities
|
801
|
384
|
|||||
Deferred income taxes
|
65
|
-
|
|||||
Gain on settlement of vendor liabilities
|
-
|
(220
|
) | ||||
Dividend received in common stock from other investment
|
(84
|
) |
-
|
||||
Impairment charge-net assets held for sale
|
-
|
3,261
|
|||||
Changes in operating assets and liabilities:
|
|||||||
Accounts receivable
|
(2,223
|
) |
(621
|
) | |||
Inventories
|
119
|
11
|
|||||
Prepaid expenses and other assets
|
(24
|
) |
(50
|
) | |||
Accounts payable and accrued liabilities
|
(315
|
) |
(803
|
) | |||
Deferred revenue
|
(85
|
) |
(359
|
) | |||
Other liabilities
|
(61
|
) |
-
|
||||
Net cash provided by operating activities of continuing operations
|
418
|
1,071
|
|||||
Net cash provided by operating activities of discontinued operations
|
-
|
23
|
|||||
Net cash provided by operating activities
|
418
|
1,094
|
|||||
Cash flows from investing activities:
|
|||||||
Capital expenditures
|
(3,844
|
) |
(2,655
|
) | |||
Purchases of marketable securities
|
(47,497
|
) |
(91,800
|
) | |||
Proceeds from maturities of marketable securities
|
59,810
|
45,070
|
|||||
Purchase of other investment
|
-
|
(1,356
|
) | ||||
Acquisition of net assets of StarTrak, net of cash acquired of $321
|
(1,876
|
) |
-
|
||||
Change in restricted cash
|
810
|
(50
|
) | ||||
Net cash provided by (used in) investing activities
|
7,403
|
(50,791
|
) | ||||
Cash flows from financing activities
|
|||||||
Principal payment of note payable
|
(200
|
) |
-
|
||||
Payment upon exercise of SARs
|
(24
|
) |
-
|
||||
Net cash used in financing activities
|
(224
|
) |
-
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
95
|
34
|
|||||
Net increase (decrease) in cash and cash equivalents
|
7,692
|
(49,663
|
) | ||||
Cash and cash equivalents:
|
|||||||
Beginning of period
|
17,026
|
65,292
|
|||||
End of period
|
$ |
24,718
|
$ |
15,629
|
Three months ended
|
Six months ended
|
||||||||
June 30,
|
June 30,
|
||||||||
(in thousands)
|
2011
|
2010
|
2011
|
2010
|
|||||
Net Income (Loss) attributable to ORBCOMM Inc.
|
$(541
|
) |
$(3,296
|
) |
$(1,272
|
) |
$(4,031
|
) | |
Net interest (income) expense
|
34
|
(7
|
) |
28
|
4
|
||||
Provision for income taxes
|
195
|
-
|
306
|
-
|
|||||
Depreciation and amortization
|
1,393
|
904
|
2,550
|
2,301
|
|||||
EBITDA
|
1,081
|
(2,399)
|
1,612
|
(1,726)
|
|||||
Stock-based compensation
|
396
|
592
|
659
|
1,024
|
|||||
Loss on disposition of other investment in Alanco
|
305
|
-
|
305
|
-
|
|||||
Impairment Charge
|
-
|
3,261
|
-
|
3,261
|
|||||
Noncontrolling interests
|
(35
|
) |
112
|
(30
|
) |
257
|
|||
Adjusted EBITDA
|
$1,747
|
$1,566
|
$2,546
|
$2,816
|
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