The company saw a decrease in product sales and an increase in service revenues, this equated in the company having very modest total revenue increase year over year ($27.6M from $27.3M).
The decrease of $3.1M in product sales seemed to have come from the company’s Japanese subsidiary; however, for the first few months of 2010 Japanese hardware sales have shown signs of improvement.
Service revenues were flat in the 4th quarter compared to 4t
h quarter 2008 and product sales were down, leading to lower revenue in 4th quarter 2009 compared to 2008. On a good note, the company saw an uptick in billable subscriber communicators, and management sees this trend continuing as early as the 1st quarter of 2010.
ORBC was able to successfully complete the negotiations for its insurance settlement and received $44.25M this will be extremely helpful with building and launching its next generation satellites.
There were two business related bright spots for ORBC in 2010; the agreement with Lloyd’s List Intelligence, which should give service revenues an incremental boost, and the partnership with Xact Technology.
Management is excited for 2010 and during questions they said that they are experiencing momentum they haven’t seen since the first half of 2008.
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