ORBCOMM Inc. (NASDAQ:ORBC), a global provider of industrial Internet of Things (IoT) solutions, has announced financial results for the first quarter ended March 31, 2018, the company said.
Total Revenues of USD 68.0 million for the first quarter of 2018 were up USD 16.1 million or 30.9% compared to USD 51.9 million during the same period of 2017.
Service Revenues of USD 38.0 million in the first quarter of 2018, were up USD 8.5 million or 28.7% over the prior year period that included organic growth of 7.9%. Recurring Service Revenue increased 31.4% to USD 36.7 million compared to the first quarter of 2017 and grew 3.3% sequentially over the fourth quarter of 2017.
Other Service Revenue was USD 1.3 million, down USD 0.3 million versus the first quarter of 2017. Other Service Revenue is comprised of installation services, professional services and software licenses.
Product Sales of USD 30.0 million grew USD 7.6 million or 33.8% compared to USD 22.4 million in the first quarter last year. Most of the growth occurred in the Transportation, Marine, and Heavy Equipment markets.
Revenue contribution margins for Service Revenues and Product Sales in the first quarter of 2018 were 59.1% and 21.6%, improving sequentially from 57.5% and 12.7%, respectively, in the fourth quarter of 2017.
ORBCOMM is a global leader and innovator in the industrial Internet of Things, providing solutions that connect businesses to their assets to deliver increased visibility and operational efficiency. The company offers a broad set of asset monitoring and control solutions, including seamless satellite and cellular connectivity, unique hardware and powerful applications, all backed by end-to-end customer support, from installation to deployment to customer care. ORBCOMM has a diverse customer base including premier OEMs, solutions customers and channel partners spanning transportation, supply chain, warehousing and inventory, heavy equipment, maritime, natural resources, and government. For more information, visit www.orbcomm.com.