ORBCOMM Inc. (Nasdaq: ORBC), a global satellite data communications company focused on two-way Machine-to-Machine (M2M) communications, today announced financial results for the fourth quarter and the full year ended December 31, 2008.

Total revenues for the 12 months ended December 31, 2008 were $30.1 million, an increase of 6.9 percent from the full year 2007 revenues. Service revenues for the full year 2008 increased 34.4 percent to $23.8 million from the comparable period of 2007 due primarily to an increase in billable subscriber communicators, the inclusion of ORBCOMM Japan, and the commencement of Automatic Identification System (AIS) revenue. Product Sales decreased for the full year 2008 by $4.2 million, or 39.8 percent, from the comparable twelve months of 2007, but would have declined 29.9 percent excluding the sale of a Gateway Earth Station (GES). Communicator unit sales in 2008 were also lower, driven by the decline in Product Sales, which were partially offset by Product Sales made by ORBCOMM Japan. The 2008 results are consistent with the Company’s efforts to focus on Service Revenue growth and let the market select the appropriate hardware among all hardware manufacturers supporting the ORBCOMM business in an effort to retain and attract hardware vendors.

For the quarter ended December 31, 2008, Total Revenues were $8.5 million, a decrease of 1.5 percent from the fourth quarter of 2007. Service Revenues for the fourth quarter increased 37.3 percent to $6.9 million from the comparable period of 2007 due primarily to an increase in billable subscriber communicators, the inclusion of ORBCOMM Japan, and a contribution from AIS revenue. Product Sales decreased in the fourth quarter by $2.0 million, or 54.7 percent, from the fourth quarter of 2007. Excluding revenues from the sale of a Gateway Earth Station (GES) of $1.5 million recognized in the fourth quarter of 2007, Product Sales decreased by 24.1 percent. Declining subscriber communicator hardware sales in 2008 also contributed to lower Product Sales during the quarter. Select this direct link to read the entire financial report.