|Bid||4.1100 x 800|
|Ask||4.1200 x 1400|
|Day's Range||4.0900 - 4.2200|
|52 Week Range||1.2400 - 5.8200|
|Beta (5Y Monthly)||1.15|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 28, 2020 - Nov 02, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||7.00|
Orbcomm (ORBC) delivered earnings and revenue surprises of 35.71% and 0.92%, respectively, for the quarter ended June 2020. Do the numbers hold clues to what lies ahead for the stock?
– Cash Flow from Operations up $11 Million Over Prior Year – – Total Revenue, Adjusted EBITDA and Earnings per Share Exceed Analyst Expectations – – Company Nears Completion of Integration Plan and Pivots Focus to Long-Term Growth –ROCHELLE PARK, N.J., July 30, 2020 (GLOBE NEWSWIRE) -- ORBCOMM Inc. (NASDAQ: ORBC), a global provider of Internet of Things (IoT) solutions, today announced financial results for the second quarter ended June 30, 2020.The following financial highlights are in thousands of dollars and unaudited. Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Recurring Service Revenues$37,006 $38,506 $76,859 $76,035 Other Service Revenues 1,423 1,232 2,094 2,710 Total Service Revenues 38,429 39,738 78,953 78,745 Product Sales 18,303 27,365 43,958 54,393 Total Revenues 56,732 67,103 122,911 133,138 Net Loss Attributable to ORBCOMM Inc. Common Stockholders (6,670) (6,419) (13,645) (11,909) Basic EPS (0.09) (0.08) (0.17) (0.15) EBITDA (1) 10,330 11,997 22,102 24,744 Adjusted EBITDA (1)$11,941 $14,165 $25,621 $29,303 (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 second quarter results as revenues came in as anticipated, while Adjusted EBITDA margin exceeded expectations in a challenging macro environment,” said Marc Eisenberg, ORBCOMM’s Chief Executive Officer. “Our integration plan and disciplined focus on cash management led to an improved Adjusted EBITDA margin of 21% and an $11 million increase in cash flow from operations over the prior year. We’ve added several new customers and expanded long-standing relationships, while building a pipeline of opportunities. Our integration plan is nearing completion, and we’re pivoting our innovation to focus on long-term growth. With stable recurring service revenues, a solid liquidity position and a diverse base of customers, we’re confident we will come out stronger as markets begin to stabilize and momentum grows in the back half of the year.” Financial ResultsRevenuesTotal Revenues for the second quarter of 2020 were $56.7 million compared to $67.1 million in the prior year period. Service Revenues were $38.4 million in the second quarter of 2020 compared to $39.7 million in the same period last year. Recurring Service Revenues decreased $1.5 million to $37 million in the second quarter compared to $38.5 million in the prior year quarter primarily due to the AT&T/Maersk revenues from 2019 that did not recur this year. Excluding revenues from AT&T/Maersk, Recurring Service Revenues were 99% of prior year despite headwinds from foreign exchange, dormant assets and a weak oil and gas environment. The Company added nearly 18,000 net subscriber additions in the second quarter bringing the total billable subscriber communicators to approximately 2.22 million as of June 30, 2020.Product Sales were $18.3 million in the second quarter of 2020 compared to $27.4 million in the prior year, as impacts from COVID-19 affected customer deployment schedules and resulted in many temporary customer facility closures.Gross Margin (1)GAAP Service Gross Margin, inclusive of depreciation and amortization expense, was 56.4% in the second quarter of 2020 compared to 55.3% in the prior year period. Non-GAAP Service Gross Margin, excluding depreciation and amortization expense, was 67.3% in the second quarter of 2020 compared to 66% in the prior year period. The year-over-year improvement was primarily driven by lower direct service costs achieved through the Company’s cost reduction plan.GAAP Product Gross Margin, inclusive of depreciation and amortization expense, was 25% in the second quarter of 2020 compared to 25.8% in the prior year period. Non-GAAP Product Gross Margin, excluding depreciation and amortization expense, was 27.8% in the second quarter of 2020 compared to 28.4% in the same period last year. The year-over-year decline was primarily due to lower product revenue on approximately $2 million of fixed costs.Operating ExpensesOperating Expenses for the second quarter of 2020 were $32.8 million compared to $34.2 million for the same period in 2019. The $1.4 million decrease was primarily driven by reductions in professional services, labor, travel and entertainment expenses, as well as lower product development costs.Net Income (Loss) and Earnings Per ShareNet Loss Attributable to ORBCOMM Inc. Common Stockholders for the second quarter of 2020 was $6.7 million, or $0.09 per share, compared to a Net Loss of $6.4 million, or $0.08 per share in the second quarter of 2019.EBITDA and Adjusted EBITDA (1)EBITDA for the second quarter of 2020 was $10.3 million compared to $12.0 million in the prior year period.Adjusted EBITDA for the second quarter of 2020 was $11.9 million compared to $14.2 million in the prior year period. The year-over-year decline was primarily due to the flow-through impact from lower revenue, mainly product sales, partially offset by a greater mix of high-margin service revenues and reduced operating expenses. The Company’s Adjusted EBITDA Margin in the second quarter of 2020 was 21%, relatively flat to the prior year period.Balance Sheet and Cash FlowAs of June 30, 2020, Cash and Cash Equivalents totaled $62.4 million, a decrease of $7.8 million in the quarter, which included a repayment of $15 million on the Company’s revolving credit facility, and a $10 million-dollar interest payment on the Company’s debt. Cash Flow from Operations totaled $12.6 million for the second quarter of 2020, an increase of $10.7 million over the prior year period primarily driven by improvements in working capital and margins. Capital Expenditures were $5.7 million in the second quarter of 2020.Outlook (2)As the spread of the COVID-19 pandemic continues to be unpredictable, a high degree of uncertainty remains as to the level of business disruption across the multiple markets ORBCOMM serves. That being said, ORBCOMM believes the largest impact of the pandemic to financial results will most likely have occurred in the second quarter of 2020, and anticipates improvement in the third quarter. The Company expects Total Revenues in the third quarter will be between $59 million and $62 million and anticipates Adjusted EBITDA margin in the third quarter to be approximately 21.5%. The Company intends to provide fourth quarter guidance during the earnings conference call in late October.(2) The Company’s outlook includes non-GAAP measures, such as Adjusted EBITDA and Adjusted EBITDA Margin, which exclude charges or credits not indicative of core operations, which may include but not be limited to stock-based compensation expense, acquisition-related and integration costs, impairment loss, and other significant items that currently cannot be predicted. The exact amount of these charges or credits are not currently determinable, but may be significant. Accordingly, the Company is unable to provide equivalent reconciliations from GAAP to non-GAAP for these financial measures.Investment Community Conference CallORBCOMM will host a conference call and webcast for the investment community this morning at 8:30 AM ET. Senior management will review the results, discuss ORBCOMM’s business, and address questions. To access the call, U.S. participants should dial 1-844-735-3762 at least ten minutes prior to the start of the call. International participants should dial 1-412-317-5710. To hear a live web simulcast or to listen to the archived webcast following completion of the call, please visit the Company’s investor relations website at http://investors.orbcomm.com and then select “News & Events” to access the link to the webcast. To listen to a replay of the conference call, please dial 1-877-344-7529 or 1-412-317-0088 for International callers using access code 10146215. The audio replay will be available from approximately 11:00 AM ET on July 30, 2020 through August 13, 2020. About ORBCOMM Inc.ORBCOMM (Nasdaq: ORBC) 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.Forward-Looking StatementsCertain statements discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to our plans, estimates, objectives and expectations for future events, as well as projections, business trends, and other statements that are not historical facts. Such forward-looking statements are subject to known and unknown risks and uncertainties, some of which are beyond our control, which may cause our actual results, performance or achievements, or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include but are not limited to: the impact of the novel coronavirus (COVID-19) pandemic; demand for and market acceptance of our products and services and our ability to successfully implement our business plan; our dependence on our subsidiary companies (Market Channel Affiliates (“MCAs”)) and third-party product and service developers and providers, distributors and resellers (Market Channel Partners (“MCPs”)) to develop, market and sell our products and services, especially in markets outside the United States; substantial losses we have incurred and may continue to incur; substantial competition in the telecommunications, Automatic Identification Service (“AIS”) data and industrial Internet of Things (“IoT”) industries; the inability to effect suitable investments, alliances and acquisitions or the inability to successfully integrate acquired businesses and systems; defects, errors or other insufficiencies in our products or services; failure to meet minimum service level commitments to certain of our customers; our dependence on significant customers for a substantial portion of our revenues, including key customers such as JB Hunt Transport Services, Inc., Caterpillar Inc., Komatsu Ltd., Carrier Global Corporation and Satlink S.L.; our ability to expand our business outside the United States and risks related to the economic, political and other conditions in foreign countries in which we do business; fluctuations in foreign currency exchange rates; unanticipated domestic or foreign tax or fee liabilities; the possibility we will be required to collect certain taxes in jurisdictions where we have not historically done so; economic, political and other conditions; extreme events such as man-made or natural disasters, earthquakes, severe weather or other climate change-related events; our dependence on a limited number of manufacturers for many of our products and services; interruptions, discontinuations, slowdown or loss of the supply of subscriber communicators from our vendor Sanmina Corporation; legal proceedings; our reliance on intellectual property; increased regulatory restrictions and oversight; lack of in-orbit or other insurance for our ORBCOMM Generation 1 or ORBCOMM Generation 2 satellites; our reliance on third-party wireless network service providers to deliver existing and developing services in certain areas of our business; significant interruptions, discontinuation or loss of services provided by Inmarsat plc; failure to maintain proper and effective internal controls; inaccurate estimates in accounting or incorrect financial assumptions; significant operating risks related to our satellites due to various types of potential anomalies and potential impacts of space debris or other spacecrafts; the failure of our systems or reductions in levels of service due to technological malfunctions or deficiencies or other events outside of our control; difficulty upgrading or replacing aging hardware and software we use in operating our gateway earth stations and our customers’ subscriber communicators; technical or other difficulties with our gateway earth stations; security risks related to our networks, data processing systems and software systems and those of our third-party service providers; liabilities or additional costs as a result of laws, governmental regulations and evolving views of personal privacy rights; failure of our information technology systems; cybersecurity risks; the level of our indebtedness and the terms of our $250.0 million 8.0% senior secured note indenture and our revolving credit agreement, under which we may borrow up to $25.0 million, that could restrict our business activities or our ability to execute our strategic objectives or adversely affect our financial performance; and the other risks described in our filings with the Securities and Exchange Commission (“SEC”). For more detail on these and other risks, please see our Annual Report on Form 10-K for the year ended December 31, 2019 (“Annual Report”), and other documents we file with the SEC. We undertake no obligation to publicly revise any forward-looking statements or cautionary factors, except as required by law.Contacts Investor Inquiries: Aly Bonilla Vice President, Investor Relations ORBCOMM Inc. 703-433-6360 firstname.lastname@example.org Media Inquiries: Michelle Ferris Senior Director, Corporate Communications ORBCOMM Inc. 703-433-6516 email@example.com ORBCOMM Inc. Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Revenues: Service revenues$38,429 $39,738 $78,953 $78,745 Product sales 18,303 27,365 43,958 54,393 Total revenues 56,732 67,103 122,911 133,138 Cost of revenues, exclusive of depreciation and amortization shown below: Cost of services 12,559 13,508 25,640 26,555 Cost of product sales 13,211 19,607 30,492 38,635 Operating expenses: Selling, general and administrative 17,474 17,452 37,204 34,631 Product development 2,784 3,732 6,604 7,699 Depreciation and amortization 12,409 12,526 25,773 25,204 Acquisition-related and integration costs 111 474 202 689 Loss from operations (1,816) (196) (3,004) (275) Other income (expense): Interest income 265 572 681 964 Other income (expense) (234) (300) (500) (58) Interest expense (5,410) (5,322) (10,656) (10,563) Total other expense (5,379) (5,050) (10,475) (9,657) Loss before income taxes (7,195) (5,246) (13,479) (9,932) Income tax (benefit) expense (554) 1,140 (1) 1,850 Net loss (6,641) (6,386) (13,478) (11,782) Less: Net income attributable to noncontrolling interests 29 33 167 127 Net loss attributable to ORBCOMM Inc.$(6,670) $(6,419) $(13,645) $(11,909) Net loss attributable to ORBCOMM Inc. common stockholders$(6,670) $(6,419) $(13,645) $(11,909) Per share information-basic: Net loss attributable to ORBCOMM Inc. common stockholders$(0.09) $(0.08) $(0.17) $(0.15) Per share information-diluted: Net loss attributable to ORBCOMM Inc. common stockholders$(0.09) $(0.08) $(0.17) $(0.15) Weighted average common shares outstanding: Basic 78,071 79,688 78,192 79,538 Diluted 78,071 79,688 78,192 79,538 ORBCOMM Inc. Condensed Consolidated Balance Sheets (In thousands, except par value and share data) June 30, 2020 December 31, (Unaudited) 2019 ASSETS Current assets: Cash and cash equivalents $62,355 $54,258 Accounts receivable, net of allowances for doubtful accounts of $6,666 and $4,480, respectively 48,273 60,595 Inventories 38,297 39,881 Prepaid expenses and other current assets 16,886 18,003 Total current assets 165,811 172,737 Satellite network and other equipment, net 137,021 145,553 Goodwill 166,129 166,129 Intangible assets, net 66,912 73,280 Other assets 20,783 23,149 Deferred income taxes 144 132 Total assets $556,800 $580,980 LIABILITIES AND EQUITY Current liabilities: Accounts payable $10,654 $16,722 Accrued liabilities 33,360 36,951 Current portion of deferred revenue 6,486 3,865 Total current liabilities 50,500 57,538 Note payable – related party 1,275 1,275 Notes payable, net of unamortized deferred issuance costs 247,071 246,683 Deferred revenue, net of current portion 2,844 6,771 Deferred tax liabilities 14,482 14,894 Other liabilities 15,055 16,303 Total liabilities 331,227 343,464 Commitments and contingencies Equity: ORBCOMM Inc. stockholders’ equity Series A Convertible Preferred Stock, par value $0.001; 1,000,000 shares authorized; 40,624 shares issued and outstanding at June 30, 2020 and December 31, 2019 406 406 Common stock, par value $0.001; 250,000,000 shares authorized; 77,952,878 and 78,062,451 shares issued at June 30, 2020 and December 31, 2019, respectively 78 78 Additional paid-in capital 448,908 447,681 Accumulated other comprehensive loss (676) (1,013) Accumulated deficit (224,587) (210,942) Total ORBCOMM Inc. stockholders’ equity 224,129 236,210 Noncontrolling interests 1,444 1,306 Total equity 225,573 237,516 Total liabilities and equity $556,800 $580,980 ORBCOMM Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Six Months Ended June 30, 2020 2019 Cash flows from operating activities: Net loss $(13,478) $(11,782) Adjustments to reconcile net loss to net cash provided by operating activities: Change in allowance for doubtful accounts 3,033 477 Change in the fair value of acquisition-related contingent consideration — (2,063) Amortization and write-off of deferred financing fees 388 388 Depreciation and amortization 25,773 25,204 Stock-based compensation 3,150 3,743 Foreign exchange loss 338 21 Deferred income taxes (464) (446) Other 1,109 968 Changes in operating assets and liabilities, net of acquisitions: Accounts receivable 9,345 (2,592) Inventories 1,592 672 Prepaid expenses and other assets 1,840 (2,587) Accounts payable and accrued liabilities (9,416) (2,418) Deferred revenue (1,313) (287) Other liabilities (1,113) 1,637 Net cash provided by operating activities 20,784 10,935 Cash flows from investing activities: Capital expenditures (10,517) (10,550) Subscription model capital expenditures (217) — Net cash used in investing activities (10,734) (10,550) Cash flows from financing activities: Purchases of commons stock under share repurchase program (2,527) — Payments under revolving credit facility (15,000) — Proceeds under revolving credit facility 15,000 — Payments under the Paycheck Protection Program (7,588) Proceeds under the Paycheck Protection Program 7,588 Proceeds from issuance of common stock under employee stock purchase plan 430 604 Net cash (used in) provided by financing activities (2,097) 604 Effect of exchange rate changes on cash and cash equivalents 144 40 Net increase in cash and cash equivalents 8,097 1,029 Beginning of period 54,258 53,766 End of period $62,355 $54,795 Supplemental disclosures of cash flow information: Cash paid for: Interest $10,000 $10,000 Income taxes $2,745 $1,763 Non-GAAP Financial MeasuresThe following table reconciles Net Loss Attributable to ORBCOMM Inc. to EBITDA and Adjusted EBITDA for the periods shown: Three Months Ended Six Months Ended June 30, June 30, (In thousands and unaudited)2020 2019 2020 2019 Adjustments to EBITDA Net loss attributable to ORBCOMM Inc.$(6,670) $(6,419) $(13,645) $(11,909) Income tax expense (554) 1,140 (1) 1,850 Interest income (265) (572) (681) (964) Interest expense 5,410 5,322 10,656 10,563 Depreciation and amortization 12,409 12,526 25,773 25,204 EBITDA$10,330 $11,997 $22,102 $24,744 Adjustments to Adjusted EBITDA Stock-based compensation 1,471 1,661 3,150 3,743 Noncontrolling interests 29 33 167 127 Acquisition-related and integration costs 111 474 202 689 Adjusted EBITDA$11,941 $14,165 $25,621 $29,303 The following tables reconcile GAAP Service Gross Margin to Non-GAAP Service Gross Margin and GAAP Product Gross Margin to Non-GAAP Product Gross Margin for the periods shown: Three Months Ended Six Months Ended June 30, June 30, (In thousands, except margin data and unaudited)2020 2019 2020 2019 Service revenue$38,429 $39,738 $78,953 $78,745 Minus – Cost of services, including depreciation and amortization expense 16,747 17,758 34,107 35,054 GAAP Service gross profit$21,682 $21,980 $44,846 $43,691 Plus – Depreciation and amortization expense 4,188 4,250 8,467 8,499 Non-GAAP Service gross profit$25,870 $26,230 $53,313 $52,190 GAAP Service gross margin 56.4% 55.3% 56.8% 55.5% Non-GAAP Service gross margin 67.3% 66.0% 67.5% 66.3% Three Months Ended Six Months Ended June 30, June 30, (In thousands, except margin data and unaudited)2020 2019 2020 2019 Product sales$18,303 $27,365 $43,958 $54,393 Minus – Cost of product, including depreciation and amortization expense 13,732 20,312 31,522 40,033 GAAP Product gross profit$4,571 $7,053 $12,436 $14,360 Plus – Depreciation and amortization expense 521 705 1,030 1,398 Non-GAAP Product gross profit$5,092 $7,758 $13,466 $15,758 GAAP Product gross margin 25.0% 25.8% 28.3% 26.4% Non-GAAP Product gross margin 27.8% 28.4% 30.6% 29.0% ORBCOMM publicly reports its financial information in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). To facilitate external analysis of the Company’s operating performance, ORBCOMM also presents financial information that are considered “non-GAAP financial measures” under Regulation G and related reporting requirements promulgated by the U.S. Securities and Exchange Commission. Non-GAAP measures should be considered in addition to, and not as a substitute for, or superior to, Net Income or other measures of financial performance prepared in accordance with GAAP and may be different than those presented by other companies. EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Non-GAAP Service Gross Margin and Non-GAAP Product Gross Margin are not performance measures calculated in accordance with GAAP and are therefore considered non-GAAP measures. Reconciliation tables are presented above.The Company’s outlook includes non-GAAP measures, such as Adjusted EBITDA Margin, which exclude charges or credits not indicative of core operations, which may include but not be limited to stock-based compensation expense, acquisition-related and integration costs, impairment loss, and other significant items that currently cannot be predicted. The exact amount of these charges or credits are not currently determinable, but may be significant. Accordingly, the Company is unable to provide equivalent reconciliations from GAAP to non-GAAP for these financial measures.EBITDA is defined as earnings attributable to ORBCOMM Inc. before interest income (expense), provision for income taxes, depreciation and amortization, and loss on debt extinguishment. ORBCOMM believes EBITDA is useful to its management and investors in evaluating operating performance because it is one of the primary measures used to evaluate the economic productivity of the Company’s operations, including its ability to obtain and maintain its customers, its ability to operate its business effectively, the efficiency of its employees and the profitability associated with their performance. It also helps ORBCOMM’s management and investors to meaningfully evaluate and compare the results of the Company’s operations from period to period on a consistent basis by removing the impact of its financing transactions and the depreciation and amortization impact of capital investments from its operating results. In addition, ORBCOMM management uses EBITDA in presentations to its board of directors to enable it to have the same measurement of operating performance used by management and for planning purposes, including the preparation of the annual operating budget.The Company also believes that Adjusted EBITDA, defined as EBITDA adjusted for stock-based compensation expense, noncontrolling interests, impairment loss, and acquisition-related and integration costs, is useful to investors to evaluate the Company’s core operating results and financial performance because it excludes items that are significant non-cash or non-recurring expenses reflected in the Condensed Consolidated Statements of Operations. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Total Revenues.Non-GAAP Service Gross Margin is defined as Non-GAAP Service gross profit divided by Service Revenue. Non-GAAP Service gross profit is defined as Service Revenue, minus costs of services (including depreciation and amortization expense) plus depreciation and amortization expense. Non-GAAP Product Gross Margin is defined as Non-GAAP Product gross profit divided by Product Sales. Non-GAAP Product gross profit is defined as Product Sales, minus cost of product (including depreciation and amortization expense) plus depreciation and amortization expense. The Company believes that Non-GAAP Service Gross Margin and Non-GAAP Product Gross Margin are useful to evaluate and compare the results of the Company’s operations from period to period on a consistent basis by removing the depreciation and amortization impact of capital investments from its operating results.
Next generation platform provides fleet customers with a single, unified view of all asset types, deep data insights and unparalleled processing power and bandwidth The ORBCOMM Platform The ORBCOMM Platform provides fleet customers with a single, unified view of all their transportation asset types using a single sign-on. ROCHELLE PARK, N.J., July 29, 2020 (GLOBE NEWSWIRE) -- ORBCOMM Inc. (Nasdaq: ORBC), a global provider of Internet of Things (IoT) solutions, today announced the introduction of its next generation analytics and reporting platform, which offers enhanced features, including advanced data insights and a dynamic user interface, to provide customers with a single, unified view of all their transportation asset types using a single sign-on. The new, cloud-based ORBCOMM Platform, which has the unrivaled capacity to support millions of subscribers, was built for the future to address the industry’s evolving requirements for greater processing power, data bandwidth and scalability in a 5G IoT ecosystem. The ORBCOMM Platform offers the unique ability for customers to track, monitor and control all of their transportation assets in one place – from reefers, dry trailers and trucks to chassis and dry and refrigerated shipping containers on the road, rail and at sea. The platform also includes a driver management component to enable workflow management, performance, communications and safety compliance with the Electronic Logging Device (ELD) Mandate, U.S. FMCSA Hours of Service (HOS) and Canadian working hours rules. The scalable platform can accommodate any size of operation whether the customer has one or 100,000-plus assets. The comprehensive ORBCOMM Platform also integrates with sensors for fuel, doors, cargo, temperature and more for unparalleled visibility.Using ORBCOMM’s flexible APIs and extensive integrations, the open platform can seamlessly deliver rich asset data to customers’ existing third-party or proprietary enterprise systems to facilitate optimal fleet management. In addition, customers can access increased data and utilize the platform’s advanced analytics to gain valuable insights about their assets’ performance, including benchmarks, historic trends and comparisons among asset types, enabling faster, more informed business decisions.The versatile ORBCOMM Platform supports multiple modes of communication, leveraging ORBCOMM’s extensive experience providing a broad portfolio of satellite, cellular and dual-mode IoT connectivity, which is a strong competitive advantage for the Company. The new platform’s capacity has been expanded exponentially to process more than 100,000 messages per second, which is an increase of over 1,000 times in message throughput over legacy systems. With the ORBCOMM Platform’s increased processing capability, customers can continue to expand their deployments, access a higher level of visibility and enable more sophisticated solutions in a 5G, sensor-enabled IoT ecosystem.“ORBCOMM has been a long-time technology leader and innovator in the industrial IoT market, and the ORBCOMM Platform encapsulates our ability to understand and execute on the advanced features and functionality our customers need to be successful, competitive and prepared for a 5G, sensor-enabled IoT ecosystem,” said Marc Eisenberg, ORBCOMM’s Chief Executive Officer. “The ORBCOMM Platform provides fleet customers with a complete view across all their assets, deep data insights, faster response time, greater capacity, as well as more real-time visibility – all in one place, from one provider, with one sign-on. It doesn’t get easier or more efficient than that.”In developing the new platform, ORBCOMM also focused on incorporating self-service configurability and control to enable advanced permissioning, role allocation and authority levels, helping customers improve data security, reduce business risk and extend data access throughout the organization. With the platform’s modern, intuitive and easy-to-use interface, customers can unlock relevant data for every user in the organization and customize the data they need to see through a higher level of personalized usability, including preferences, saved searches, scheduled reports, workspaces, widgets, and data filters. By leveraging the ORBCOMM Platform’s enhanced usability and utility, customers can significantly improve their fleet’s productivity and performance, while maximizing the return on their technology investment.For more information about the ORBCOMM Platform and how it can help fleets transform their business operations, please visit https://www2.orbcomm.com/platform.About ORBCOMM Inc. ORBCOMM (Nasdaq: ORBC) 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.Forward-Looking Statements Certain statements discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to our plans, objectives and expectations for future events and include statements about our expectations, beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts. Such forward-looking statements, including those concerning the Company’s expectations, are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from the results, projected, expected or implied by the forward-looking statements, some of which are beyond the Company’s control, that may cause the Company’s actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. In addition, specific consideration should be given to various factors described in Part I, Item 1A. “Risk Factors” and Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and elsewhere in our Annual Report on Form 10-K, and other documents, on file with the Securities and Exchange Commission. The Company undertakes no obligation to publicly revise any forward-looking statements or cautionary factors, except as required by law.ORBCOMM Contacts For Trade Media: For Trade Media: Sue Rutherford, VP of MarketingSusan Fall, President ORBCOMM Inc.LaunchIt PR +1 613.254.5269+1 619.890.9415 firstname.lastname@example.org@launchitpr.com email@example.com For Investors: Aly Bonilla, VP of Investor Relations ORBCOMM Inc. +1 703.433.6360 firstname.lastname@example.org email@example.com A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/33518188-6bd7-486b-af38-0d1b6adb062a
Extends telematics service term with Terex and deployment of ORBCOMM’s global IoT device and leading-edge data reporting and analytics platform ORBCOMM's leading-edge data reporting and analytics platform ORBCOMM’s next generation OEM platform has been customized to meet Terex's specific needs for monitoring various types of heavy machinery, increasing operational efficiency and providing significant cost savings to their customers. ROCHELLE PARK, NJ, July 28, 2020 (GLOBE NEWSWIRE) -- ORBCOMM Inc. (Nasdaq: ORBC), a global provider of Internet of Things (IoT) solutions, today announced that it has expanded its long-standing agreement with Terex Corporation (Terex), and extended the service term of ORBCOMM’s factory installed telematics solution to its customers. As part of the agreement, ORBCOMM and Terex will also collaborate on continued technology innovation for ORBCOMM’s industry-leading heavy equipment IoT device and cloud-based data reporting and analytics platform.Through this enhanced agreement, Terex will extend its commitment to its customer base for their use of ORBCOMM’s telematics system for seven years, with an automatic renewal for four additional years. By extending contracts, Terex will drive its continued growth and broaden its telematics offering to satisfy dealers and end-user customers as their needs shift in the future. Terex will offer ORBCOMM’s telematics system as standard across several different brands in Terex, including Powerscreen® Terex® Finlay, CBI®, Terex® Ecotec and EvoQuip.Terex will also migrate to ORBCOMM’s next generation OEM platform, FleetEdge 4, which has been customized to meet their specific needs for easily monitoring various types of heavy machinery, increasing operational efficiency and providing significant cost savings to Terex’s customers. ORBCOMM’s FleetEdge 4 platform features an improved user experience with incremental key features, including dynamic dashboards, filters and custom reports, enabling fleet managers to gain deeper insight into how their machines and entire fleets are performing. By accessing increased data and utilizing the platform’s advanced analytics, Terex customers can more effectively manage preventive maintenance, optimize fuel consumption and increase asset utilization. ORBCOMM will continue to develop the FleetEdge platform to support Terex’s future needs, including expanded machine data collection and more robust analytics.As part of their long-term investment in ORBCOMM’s IoT technology, Terex will offer factory installed deployment of ORBCOMM’s new global telematics device on its heavy machinery, ensuring that Terex’s equipment can operate anywhere in the world for years to come. In addition to providing connectivity on global LTE bands, ORBCOMM’s dual-mode device provides seamless fallback to multi-band 3G and 2G networks if 4G is not available, and to satellite when out of cellular coverage, which greatly simplifies logistics and distribution and lowers the cost of global deployments for Terex. Terex will standardize ORBCOMM’s global IoT device across a number of their telematics-enabled machines.“ORBCOMM’s enhanced agreement with Terex solidifies their commitment to their heavy machinery customers around the world by leveraging our best-in-class, dual-mode IoT technology,” said Marc Eisenberg, ORBCOMM’s Chief Executive Officer. “The unique combination of our global telematics device and next-generation data reporting and analytics platform customized for Terex enables customers to track, monitor and control their assets seamlessly into the future.”“Telematics is more important than ever right now. Being able to stay connected with your equipment, manage logistics, access critical machine information and perform remote operator support is vital,” said Paul Morris, Telematics Manager for Terex. “Terex is pleased to deliver ORBCOMM’s latest IoT technology to its global customers and leverage the critical data insights to drive further improvements in our machinery, including increased reliability, uptime and fuel efficiency.”About ORBCOMM Inc. ORBCOMM (Nasdaq: ORBC) 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.About Terex Corporation Terex Corporation is a global manufacturer of lifting and material processing products and services delivering lifecycle solutions that maximize customer return on investment. Major Terex brands include Terex, Genie and Powerscreen. Terex solutions serve a broad range of industries, including construction, infrastructure, manufacturing, shipping, transportation, refining, energy, utilities, quarrying and mining. Terex offers financial products and services to assist in the acquisition of Terex equipment through Terex Financial Services. More information about Terex is available on its website at www.Terex.com, LinkedIn at www.linkedin.com/company/terex and Facebook at www.facebook.com/TerexCorporation.Forward-Looking Statements Certain statements discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to our plans, objectives and expectations for future events and include statements about our expectations, beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts. Such forward-looking statements, including those concerning the Company’s expectations, are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from the results, projected, expected or implied by the forward-looking statements, some of which are beyond the Company’s control, that may cause the Company’s actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. In addition, specific consideration should be given to various factors described in Part I, Item 1A. “Risk Factors” and Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and elsewhere in our Annual Report on Form 10-K, and other documents, on file with the Securities and Exchange Commission. The Company undertakes no obligation to publicly revise any forward-looking statements or cautionary factors, except as required by law.ORBCOMM Contacts For Investors: For Trade Media: Aly Bonilla, VP of Investor RelationsSue Rutherford, VP of Marketing +1 703.433.6360 +1 613.254.5269 firstname.lastname@example.org email@example.com firstname.lastname@example.org email@example.com A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/012479e3-0780-415d-b444-4e776ec930f5
Orbcomm (ORBC) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
ROCHELLE PARK, N.J., July 09, 2020 -- ORBCOMM Inc. (NASDAQ: ORBC), a global provider of Internet of Things (IoT) solutions, today announced that its senior management team will.
ROCHELLE PARK, N.J., July 08, 2020 -- ORBCOMM Inc. (Nasdaq: ORBC), a global provider of Internet of Things (IoT) solutions, today announced that IHS Markit (NYSE: INFO), a.
At the end of February we announced the arrival of the first US recession since 2009 and we predicted that the market will decline by at least 20% in (Recession is Imminent: We Need A Travel Ban NOW). In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each […]
When billionaire financier Jim Simons makes a move, Wall Street pays attention. Simons is best known as the inventor of quantitative trading, using data crunching algorithms to make market predictions. He put his theories to work in the 1980s, when he founded the Renaissance Technologies hedge fund, and since then has established the best record on Wall Street, averaging a 66% annual return for over 30 years.Ask how he did it, and Simons will likely tell you that he took the emotional factor out of trading. Humans are fickle beasts, but data never lies. Take out the human factor, focus solely on the numbers and their patterns, and you can’t lose. Following this insight, Simons’ fund has brought in $100 billion in profits since 1988, and his personal fortune totals over $20 billion.It’s clear that a smart trader can build an investment strategy just by following Simons’ lead. And right now, the 13F filings show that Simons is buying, among others, penny stocks. These equities, priced below $5 per share, typically offer high upside potentials. Even a small gain in share price – just a few cents – quickly translates into a high yield return. Yes, there is risk involved, but that’s where Simons’ quantitative algorithms come in, to pick the winners.Looking into Renaissance's basket of stocks, we’ve chosen three penny stocks that TipRanks database reveals as a “Buy” and offer solid upside potential. Let’s take a closer look and see what Wall Street analysts have to say.Orbcomm, Inc. (ORBC)We’ll start with a small-cap communications company. Orbcomm controls both ground-based wireless messaging infrastructure and a network of 31 satellites, giving it global coverage. Orbcomm’s network provides machine-to-machine communications, and is heavily involved with Internet of Things. The company boasts 2 million billable subscribers in 130 countries.During the first quarter, Jim Simons' Renaissance upped the ante by 464%, adding 1,150,018 shares of the company to the fund. The fund had first bought into the stock in Q4 2019, with a purchase of 248,000 shares. Its latest buy brought its total holding to over 1.39 million shares, worth $4.8 million.Currently going for $3.43 apiece, some members of the Street believe the share price reflects an attractive entry point.Canaccord's 5-star analyst Michael Walkley sees a bright future for Orbcomm, despite the coronavirus pandemic. He writes of the company, “With a portion of ORBCOMM’s business dedicated to helping its customers transport food and medicine during these uncertain times, a strong piece of the firm’s recurring revenues remains protected… we view the risk-reward as very positive…” The analyst added, "ORBCOMM should be well positioned with its 2.2M subscriber base to drive consistent adjusted EBITDA through its high-margin recurring revenue solutions. Further, its improving cost structure and consolidated platforms should lead to longer-term margin expansion."To this end, Walkley rates ORBC a Buy along with an $8 price target. His target implies a wildly robust upside potential of 133% for the coming year. (To watch Walkley’s track record, click here)Overall, Orbcomm has 4 recent analyst reviews, and all are Buys, making the analyst consensus rating a Strong Buy. The average price target stands tall at $6.88, which suggests the stock has room to double in the next 12 months. (See Orbcomm stock analysis on TipRanks)Arcos Dorados Holdings (ARCO)Next up is Arcos, the master franchise holder for McDonalds in the Latin America & Caribbean region. The company is one of the world’s largest McDonalds franchisees, and lists some 20 countries in its franchise territory. Arcos is the largest fast-food chain in Latin America.Pulling the trigger on ARCO in the first quarter, Renaissance purchased over 563,000 shares. This is a 221% boost to the fund's holding, and brings its stake in the company to nearly $2.6 million.As you can easily imagine, the sudden halt in economic activity imposed to stop the coronavirus spread hit Arcos hard, as restaurants were among the businesses most harshly affected. Arcos saw Q1 earnings turn sharply downward, from a 16-cent Q4 profit that was nearly double the forecast to a 26-cent net loss. The Q1 loss was more than 6x worse than analysts had anticipated. Looking forward, Q2 losses are estimated to reach 70 cents per share.Yet, JPMorgan analyst Ian Luketic believes ARCO's long-term growth narrative remains strong and that its $4.59 share price reflects the ideal entry point. Luketic lays out the clear case for Arcos’ return to profitability in the wake of corona: “As stores are reopened and the company is able to adjust its cost structure, we expect to have more visibility on what to expect from margins going forward. Although margins were at a miss, we don´t expect a major negative reaction as the market is already pricing-in weak margins for 2020 and focus should be on results ahead and potential indicators of consumption pick-up.”Luketic maintains a Buy rating on this stock, and his $5.50 price target implies a 19% upside potential. His is the only recent analyst review on record for ARCO. (To watch Luketic’s track record, click here)Some stocks fly under the radar, and CATS is one of those. Luketic is the only recent analyst review of this company, and it is decidedly positive.Adecoagra SA (AGRO)Last on the list, we have an agricultural holding company. Adecoagra’s subsidiaries operate in crop farming and dairy, along with sugar, ethanol, and even energy production. The company’s field of operations is in Argentina, Brazil, and Uruguay. The company was hit on two fronts – food production and distribution were impacted by the shutdowns, while forced social lockdown policies put a heavy damper on the fuel market’s demand for ethanol. Yet, AGRO’s niche is essential, and the company is expected to benefit quickly as economies reopen. Demand is already beginning to resume for ethanol, as consumers are starting to purchase more automotive fuel. Simons’ algorithms are forward-looking, so maybe it’s no surprise that he bought into this company, picking up 415,131 shares in Q1. This holding is worth $1.9 million. Lucas Ferreira, covering this stock for JPMorgan, noted, “COVID-19 and the oil price decline drove sugar and ethanol prices down by 18%-25% year-to-date and compressed sector valuations and near-term free cash flow generation prospects.” He goes on to add that “the worst seems behind us with domestic ethanol demand surprising to the upside and the gradual reopening to give a further booster to volumes.”Ferreira’s Buy rating comes with a $6 price target that indicates a solid 31% upside potential from the current share price of $4.57. (To watch Ferreira’s track record, click here)To find good ideas for penny stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
ROCHELLE PARK, N.J., May 19, 2020 -- ORBCOMM Inc. (NASDAQ: ORBC), a global provider of Machine-to-Machine (M2M) and Internet of Things (IoT) solutions, today announced that its.
ROCHELLE PARK, N.J., May 12, 2020 -- ORBCOMM Inc. (NASDAQ: ORBC), a global provider of Machine-to-Machine (M2M) and Internet of Things (IoT) solutions, today announced that its.
Additionally, ORBCOMM will have a webcast available in the Investors section of its website at www.orbcomm.com. Today, I'm joined by Marc Eisenberg, ORBCOMM's chief executive officer; and Dean Milcos, ORBCOMM's chief financial officer.
Orbcomm Inc. (NASDAQ: ORBC) reported a net loss of $7 million in its first quarter, which company officials attributed to "a difficult environment."On a per-share basis, the telematics and asset monitoring/tracking provider reported a first quarter 2020 net loss of $0.09 per share, compared to a $0.07 net loss per share a year ago."Looking across our entire base of customers, they fall into two camps. Those who are extremely busy and those who have increased downtime," said Marc Eisenberg, president and chief executive officer of Orbcomm, during the company's earnings call on Thursday. "Many of our customers have increasing demand for their services, such as our refrigerated transportation customers, who are shipping food, pharmaceuticals and medical supplies to ensure supermarkets, drugstores and hospitals are stocked."Eisenberg said on the other end of the spectrum are businesses in the oil and gas industry, which "is an extremely tough environment and about 3% of our business."Rochelle Park, New Jersey-based Orbcomm posted total revenue of $66.2 million during the first quarter of 2020, compared to $66 million during the same period a year ago, topping several Wall Street estimates.Service revenues were $40.5 million in the first quarter, up $1.5 million or 3.9%, compared to the same period last year. Product sales decreased 4.8% year-over-year, from $27 million in the first quarter in 2019, to $25.7 million in the first quarter of 2020.Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first quarter of 2020 was $11.8 million compared to $12.7 million in the prior year period, a decrease of 7%.View more earnings on ORBCOrbcomm's key performance indicators.Orbcomm operates in transportation and distribution, heavy equipment, industrial fixed assets, oil and gas, maritime, mining, and government. Orbcomm also owns telecommunications infrastructure, including low-Earth orbit satellites and accompanying ground infrastructure.Orbcomm employs around 800 people around the world.Eisenberg said Orbcomm has not "reduced our U.S. employee count" due to the coronavirus pandemic. Orbcomm is considered an essential business by the U.S. government, and has not had to shut down any of its facilities during the stay-at-home work order. Orbcomm is also considered an essential business in Mexico, where most of its products are produced. "We are open in Mexico, continuing to produce goods," Eisenberg said. 2020 GuidanceDue to the uncertainty surrounding the level of business disruption across the multiple markets Orbcomm serves as a result of the spread of COVID-19, company officials said they are withdrawing their previously announced full-year 2020 outlook. "We do have some visibility into the second quarter based on orders received and those currently being worked on," said Dean Milcos, Orbcomm's chief financial officer. "There's uncertainty surrounding product sales in the second quarter, as some original equipment manufacturers have temporarily suspended production lines. And due to reduced onsite support, some fleets have delayed deployments."For the second quarter of 2020, Orbcomm officials anticipate recurring service revenue to be down as much as 3% over the prior year period as a result of the completion of an AT&T contract, as well as anticipating a small impact from fluctuations in foreign exchange rates. "We believe total revenues in the second quarter to be $55 million on the low end and $60 million on the high end, depending on how market conditions evolve. We anticipate adjusted EBITDA margin in the second quarter to be approximately 19%," Milcos said.See more from Benzinga * U.S. Xpress' Mix Means Steady Freight Volumes, Even As It Posts A Loss * Picking The Markets With Tightening Capacity – FreightWaves NOW * Schneider Bests Analyst Forecasts, Current Volumes Move Lower(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Shares of ORBCOMM (NASDAQ:ORBC) fell 1% in pre-market trading after the company reported Q1 results.Quarterly Results Earnings per share decreased 28.57% year over year to ($0.09), which missed the estimate of ($0.08).Revenue of $66,179,000 rose by 0.22% year over year, which beat the estimate of $66,020,000.How To Listen To The Conference Call Date: Apr 30, 2020Time: 12:04 PM ETView more earnings on ORBCWebcast URL: https://78449.choruscall.com/dataconf/productusers/orbc/mediaframe/37528/indexr.htmlRecent Stock Performance 52-week high: $8.44Company's 52-week low was at $1.24Price action over last quarter: down 15.70%Company Profile ORBCOMM Inc is a satellite communications company that primarily provides machine-to-machine communication, which is designed to track, monitor, and control fixed and mobile assets. The company operates in such markets as transportation and distribution, heavy equipment, industrial fixed assets, oil and gas, maritime, mining, and government. The company earns revenue across the United States, South America, Japan, and Europe, with the majority from the U.S. The company owns telecommunications infrastructure, specifically low Earth orbit satellites and accompanying ground infrastructure.See more from Benzinga * Dana: Q1 Earnings Insights * Recap: Meritor Q2 Earnings * Recap: Imax Q1 Earnings(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
- 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.
Over the last month the ORBCOMM Inc. (NASDAQ:ORBC) has been much stronger than before, rebounding by 77%. But that is...
ROCHELLE PARK, N.J., April 20, 2020 -- ORBCOMM Inc. (NASDAQ: ORBC), a global provider of Machine-to-Machine (M2M) and Internet of Things (IoT) solutions, today announced that.
ORBCOMM Inc. (ORBC), a global provider of Machine-to-Machine (M2M) and Internet of Things (IoT) solutions, today announced a venue change of its 2020 Annual Meeting of Shareholders. Due to the emerging public health impact of the coronavirus outbreak (COVID-19), and to support the health and well-being of the Company’s shareholders, employees, directors and our community, the Company has changed the format of its 2020 Annual Meeting of Shareholders from a physical in-person meeting to a virtual only meeting. The 2020 Annual Meeting of Shareholders will be still be held at 8:00 a.m. Eastern Time on Wednesday, April 22, 2020, but in virtual meeting format only, via a live audio webcast.
Are you ready to find some deals in the stock markets? The S&P 500 skyrocketed 7% yesterday, marking a strong trading session in what appears to be a true rally. Judging by the market charts, it looks like stocks bottomed out on March 23.Bob Doll, chief equity strategist at Nuveen, noted, "The stock market will bottom before the economy does, The stock market may have bottomed at 2,192 on the S&P."It’s a situation that gives investors an incentive to buy. We’re not in a true bull market – not by a long shot – but the recent bear has pushed prices down and the current rally is opening up the prospects of gains. All that remains is finding the right stocks to buy.And this brings us to penny stocks. After seeing heavy losses in March, investors are short of cash. Penny stocks are the natural fit; priced below $5, they offer an easy point of entry.Sure, there could be a very good reason these tickers are so affordable, but should there be even minor share price appreciation, massive percentage gains could materialize, along with hefty profits for investors.We’ve dipped into the TipRanks database, and found three penny stocks with Strong Buy consensus ratings and better than 50% upside potential over the next 12 months. Let's take a closer look.Zix Corporation (ZIXI)We start in the tech sector, where Zix, a small-cap cybersecurity company specializes in providing safety for emails. Zix’s products allow data encryption and loss prevention for mobile applications. The company boasts over 20,000 customers, and a cloud app that is used by 30% of US banks.ZIXI shares ended 2019 on a mixed note, but a solid product and strong yoy growth were the main story. Company earnings and revenue both missed the forecasts, although did better year-over-year. EPS, at 9 cents, matched the year-ago quarter, while the top line revenue of $50.4 million was significantly higher than 4Q18’s $18.5 million.Zix’s product is popular, and that underlies the review by Northland Securities analyst Nehal Chokshi. He writes, “ZIXI already has ~22% market share. We view this as an ideal market share as it demonstrates the company has an established selling motion, but has significant opportunity to drive share gains within what should be a fast-growing market…”Chokshi reiterates his Buy rating on the stock, and his $8 price target implies an impressive 100% upside potential. (To watch Chokshi’s track record, click here)Craig-Hallum’s Chad Bennett agrees that Zix is a buying proposition. He specifically points out the company’s ability to withstand the current recessionary forces unleashed by the COVID-19 pandemic. Bennett says of the stock, “Ultimately, we believe the company can be resilient in a recessionary environment. Email and security are mission-critical to a business’s operations… ZIXI’s contracts are on one- to three-year terms, so assuming a two-year average contract length, only 1/8 of ZIXI’s customers are up for renewal each quarter. We believe that the ZIXI-side of the business will be resilient in the current environment…”Bennett gives ZIXI shares a $9 price target, indicating a 125% upside, fully supporting his Buy rating. (To watch Bennett’s track record, click here)All in all, Zix supports its Strong Buy analyst consensus rating with a unanimous 4 Buy reviews. Shares are priced low, at just $4.01, and the $10.25 average price target suggests room for a hefty 155% upside potential in the coming 12 months. (See Zix stock analysis on TipRanks)Plug Power, Inc. (PLUG)With our next stock, we move into the arena of reusable energy. Plug Power is a designer and manufacturer of hydrogen fuel cells, a technology with the potential to replace conventional batteries – giving it a certain allure in the alt-fuel automotive sector. The biggest advantage of hydrogen fuel cells over batteries is the ability to run at a constant power output, avoiding the power drop that batteries experience when their charge runs low.Plug Power boasts an agreement with the USPS, and provides power cells for a fleet of electric mail delivery vehicles in Maryland. Earlier this year, Plug introduced a 125-kilowatt engine for trucks and off-road heavy-duty equipment.Plug Power is on track to achieve its goal of $1 billion in revenue by 2024, and has provided guidance toward $300 million in billings for the current year. Plug boasts a heavy order load, and needs to meet a 90% order backlog, based on new orders from established customers.In line with the company’s busy year ahead, H.C. Wainwright, analyst Amit Dayal put a Buy rating on the stock and raised his price target to $6.00 (from $4.00). His new target implies an upside of 63%. (To watch Dayal’s track record, click here)Dayal commented: “We are updating our outlook for the company and have revised our estimates upwards. With respect to 2024 outlook, we remain relatively conservative in projecting net revenues of $759.0M vs. management’s goal of $1.0B in gross billings. In line with this, we have revised our operating expense estimates for 2020 to $84.2M, compared to $76.7M previously. With this level of topline execution, and higher insourcing of MEAs contributing to margin improvements, we believe the company should start demonstrating consistent EBITDA improvements over the next few years."Also bullish is 5-star Oppenheimer analyst Colin Rusch. Rusch sees Plug as an advancing technology, with a handle on the technical issues it needs to resolve, and says of the company, “We believe PLUG continues to progress on its technology roadmap, which targets 25% cost reduction, 50% increase in MEA durability, and 25% improved power density by 2023/2024. We believe these efforts will help expand its addressable market opportunity…” Rusch’s Buy rating, like Dayal’s, is backed by a $6 price target. (To watch Rusch’s track record, click here)Overall, the hydrogen fuel-cell maker is without question a Wall Street favorite, considering TipRanks analytics indicate Plug Power as a Strong Buy. Out of 7 analysts tracked in the last 3 months, 6 are bullish on Plug stock while only 1 remains sidelined. With a return potential of 51%, the stock's consensus target price stands at $5.57 (See Plug Power stock analysis on TipRanks)Orbcomm, Inc. (ORBC)Our final stock today, Orbcomm, is a wireless messaging company with a network of 31 satellites along with ground-based infrastructure. Customers can communicate, control, monitor, and track linked fixed and mobile assets worldwide. The company’s network is deeply connected to the Internet of Things and machine-to-machine niches, and Orbcomm boasts over 2 million billable subscribers. The service is available in 130 countries.ORBC reported a loss of 3 cents per share in Q4, which actually beat the estimated 5-cent loss by 40%. Revenues, at $69.7 million, came in just under the forecast, but grew 5% year-over-year. Orbcomm had the bad timing to release this quarterly report just a week after the bottom fell out of the market in February; the stock has lost 50% so far this year, badly underperforming the overall markets.That said, Orbcomm still presents investors with growing revenues – and now, a very low point of entry to the stock. In addition, many of ORBC’s customers are in the grocery sector, where accurate tracking of delivery vehicles is essential, giving the company a valuable niche in an essential sector – a clear advantage when much of the economy is shut down in an attempt to mitigate the spread of the coronavirus epidemic.Michael Latimore, 4-star analyst with Northland Securities, notes another important factor in Orbcomm’s position -- the company’s solid foundation of parts and supplies. Latimore writes, “ORBC has enough inventory to last four months. Most of its manufacturing is done in Mexico and Germany. These plants could shut down for 1-3 months, but so far so good. China seems to be getting back to work, which helps with standard components like wired cables.”Latimore sets a $6 price target on this stock, implying a fantastic upside of 185%, and gives ORBC a Buy rating. (To watch Latimore’s track record, click here)Overall, a unanimous 3 Buy ratings give Orbcomm a Strong Buy from the analyst consensus. The stock has an average price target of $7.17, which suggests a massive 241% potential upside from the current share price of just $2.10. (See Orbcomm stock analysis on TipRanks)
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On...
– Q4 2019 Total Revenues of $69.7 Million, Up 5% Over Prior Year – – Q4 2019 Recurring Service Revenues of $40.1 Million, Up 7.3% Versus Last Year – – 2019.
ROCHELLE PARK, N.J., Feb. 18, 2020 -- ORBCOMM Inc. (NASDAQ: ORBC), a global provider of Machine-to-Machine (M2M) and Internet of Things (IoT) solutions, today announced that.
ROCHELLE PARK, N.J., Feb. 05, 2020 -- ORBCOMM Inc. (NASDAQ: ORBC), a global provider of Machine-to-Machine (M2M) and Internet of Things (IoT) solutions, today announced that.