ORBCOMM Inc. (ORBC), a global provider of Machine-to-Machine (M2M) solutions, today announced financial results for the first quarter ended March 31, 2014. The following financial highlights are in thousands of dollars, except per share amounts.

(1) EBITDA is defined as earnings attributable to ORBCOMM Inc. before interest income (expense), provision for income taxes and depreciation and amortization.

(2) Adjusted EBITDA is defined as EBITDA, adjusted for stock-based compensation expense, noncontrolling interests, impairment loss, non-capitalized satellite launch and in-orbit insurance, insurance recovery, and acquisition-related costs.

(3) A table presenting EBITDA and Adjusted EBITDA, reconciled to GAAP Net Income, is among other financial tables at the end of this release.

Recent Highlights:

– For the first quarter of 2014, Total Revenues were up 15.7% year-over-year to $19.4 million. Service Revenues were up 3.9% to $14.4 million over the prior year. The increase in Service Revenues in the first quarter over the prior year period would have been over 10% excluding a one-time benefit in Q1-2013 due to a customer back billing adjustment. First quarter 2014 Product Sales of $4.9 million were 74.0% higher than prior year. Service and Product Revenues in Q1-2014 include a partial month of Euroscan.

– ORBCOMM is modifying its definition of Adjusted EBITDA to adjust for Acquisition-related costs and non-capitalized satellite launch and in-orbit insurance when incurred, to better reflect the on-going business. Adjusted EBITDA for the first quarter of 2014 was $3.6 million when adjusting for $1.2 million in Acquisition-related costs. The first quarter 2013 comparable Adjusted EBITDA is also $3.6 million from $3.2 million previously reported.

– ORBCOMMs basic EPS is ($0.01) for the first quarter of 2014 compared to $0.02 for the comparable period last year. ORBCOMMs Acquisition-related costs equal $0.02 per share in the quarter compared to $0.01 per share in the comparable period last year.
Net subscriber communicator additions were 26,000 in the first quarter of 2014, bringing the total billable subscriber communicators to 889,000 at March 31, 2014, compared to 777,000 at the end of the first quarter last year. Billable subscriber communicators
increased 14% year-over-year.

– ORBCOMM closed on two major new customers in the cold chain business.

– On May 7, 2014, ORBCOMM announced that it will offer its portfolio of M2M solutions to government customers under Corp Tens General Services Administration (GSA) schedule. A long-time ORBCOMM partner, Corp Ten is a leading provider of integrated GPS tracking and information management solutions for the federal government. As part of Corp Tens GSA schedule, ORBCOMM can efficiently market its M2M products and services, including satellite and cellular connectivity from ORBCOMM and its global network partners, asset tracking and monitoring devices, satellite modems, Radio Frequency Identification tags and web reporting applications, directly to federal, state and local government agencies. The GSA schedule allows government agencies to purchase commercial goods and services using pre-negotiated terms and pricing in order to streamline the procurement process.

– On April 30, 2014, ORBCOMM announced the scheduled launch date of May 10, 2014 for six next generation OG2 satellites from Cape Canaveral Air Force Base in Florida aboard a dedicated SpaceX Falcon 9 rocket. OG2 satellites are far more advanced than its current OG1 satellites and will provide existing customers with significant enhancements, such as faster message delivery, larger message sizes and better coverage at higher latitudes, while drastically increasing network capacity.

– On April 22, 2014, ORBCOMM announced that its partner, Savi Technology (Savi (SVNTQ)), has been awarded a five-year U.S. Department of Defense contract as the sole provider to the $204 million RFID-IV program, which currently has a $102 million ceiling. The RFID-IV program offers a wide range of technology solutions, including newly-upgraded Radio Frequency Identification, satellite-based Enhanced In-Transit Visibility and Advanced Intrusion Tracking Detection products and services, for tracking of personnel, equipment and sustainment cargo worldwide. In support of the RFID-IV program, ORBCOMM and Savi will offer satellite and RFID tags as well as other sensor technologies using ORBCOMMs global communications networks, which will enhance the visibility and security of government cargo in transit.

– On April 16, 2014, ORBCOMM announced that it has relocated its Innovation and Network Control Center to a newly renovated facility just minutes from its current location in Dulles, VA. ORBCOMM is leasing more than 27,000 square feet at the Loudoun Gateway office complex, which is located at 22970 Indian Creek Drive, Suite 300, Sterling, VA 20166.

– Full financials available from the ORBCOMM web site (PDF).