Well that was interesting. 4 analysts were updating their spreadsheets while while the call progressed. ORBC provided first time guidance for 2Q that was confusing. It sounded like revs would be down Q/Q but they are really up on a sequential basis ex back billing and foreign currency. But the acquisition will add $600K this Q to service. One analyst kept pressing that messaging prices must be down but CEO says no. They only later in the call provided the amount of $1MM for back billing in Q1. Never mind--- one of them pushed the sell button and 40,000 shares got dumped from $4.20 to $3,88. The stock is illiquid so down she goes. That guidance thing can be deadly.
EBITDA was good at $3.6MM vs $3.2MM. The launch of OG2 birds is scheduled for July. Capex is 35MM next two quarters and they have $93MM in cash. The CAT business was discussed and it is as safe as always--they have a 15 year history with CAT and Iridium is disparate to get it with old technology-not much chance.
All this quarterly earnings biz is a waste of time. They are progressing to take massive market share in a growing business. The company will take a quantum leap at some point. This year is nervous water because as so many things are happening. These guys are great managers and they will pull it off. Upside 20 points-downside 1 point. The stock at $4.03 is back in buy range. Load up.