Orbcomm’s network control center in Sterling, VA. Photo Credit: Orbcomm

Orbcomm, a global provider of Industrial Internet of Things (IIOT) solutions, has announced financial results for the first quarter ended March 31. Total revenue of $68 million was up $16.1 million, or 30.9 percent, compared to $51.9 million during the same period of 2017.

Service revenue of $38 million was up $8.5 million, or 28.7 percent over the prior year period that included organic growth of 7.9 percent. Recurring service revenue increased 31.4 percent to $36.7 million.

Product sales of $30 million grew $7.6 million, or 33.8 percent, compared to $22.4 million. Most of the growth occurred in the transportation, marine and heavy equipment markets.

Total cost of revenue and operating expenses was $72.2 million compared to $52.3 million. The increase was due to higher revenues for services and products, and the acquisitions completed after the first quarter of 2017.

Loss before income taxes was $9.1 million versus $2.7 million. The quarterly loss widened mostly due to higher costs from the 2017 acquisitions, and higher interest expense of $2.8 million.

Net loss attributable to Orbcomm common stockholders was $10.1 million compared to $3.3 million in 2017. The increase is attributable to higher depreciation and amortization of $1.2 million, higher interest expense of $2.8 million, and higher operating costs, mostly associated with acquisitions completed after the first quarter of 2017. Basic Earnings Per Diluted Share (EPS) saw a loss of $0.13 per share versus a loss of $0.05 in 2017.

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) were $7.8 million compared to $10.6 million in 2017. Adjusted EBITDA was $10.1 million, or 14.9 percent of total revenue, versus $12.4 million in 2017.