– Total Revenues of $66.2 Million, In Line with Guidance –
– Service and Product Gross Margins Increase Over Last Year –
– Cash Flow from Operations of $8.2 Million –ROCHELLE PARK, N.J., April 30, 2020 (GLOBE NEWSWIRE) — ORBCOMM Inc. (NASDAQ: ORBC), a global provider of Machine-to-Machine (M2M) and Internet of Things (IoT) solutions, today announced financial results for the first quarter ended March 31, 2020.The following financial highlights are in thousands of dollars and unaudited.(1) Non-GAAP financial measure. See “Non-GAAP Financial Measures” for a reconciliation of GAAP to Non-GAAP financial measures included with the financial tables at the end of this release.“We’re pleased with our results in the first quarter despite facing a difficult environment,” said Marc Eisenberg, ORBCOMM’s Chief Executive Officer. “Service and product margins improved over the prior year, which led to solid Adjusted EBITDA and cash flow generation. The transition for our employees to working remotely has been seamless with minimal disruption to global business operations. As such, we continue to ship products, support customers and execute on our technology roadmap during these unprecedented times. We are disciplined in managing the business, so we can emerge from these challenging times as a more efficient and better-performing company.”Financial ResultsRevenuesTotal Revenues for the first quarter of 2020 were $66.2 million compared to $66 million in the prior year period. The Company added about 60,000 net subscriber additions in the first quarter bringing the total billable subscriber communicators to approximately 2.20 million as of March 31, 2020. Service Revenues were $40.5 million in the first quarter of 2020, up $1.5 million or 3.9% compared to the same period last year. Recurring Service Revenues increased 6.2% to $39.9 million in the first quarter compared to the prior year quarter. The improvement was driven by a favorable $1.9 million accounting adjustment and from new subscribers added over the last twelve months. Other Service Revenues, comprised of installation services, professional services and software licenses, were $0.7 million in the quarter.Product Sales were $25.7 million in the first quarter of 2020 compared to $27 million in the first quarter of 2019 as a portion of device shipments were pushed out at the end of March as market conditions changed.Gross Margin (1)
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