Several prominent vendors in the M2M industry have reported quarterly earnings during April and May. M2M earnings were mostly up for the first quarter of 2011 for vendors mentioned in this roundup, although Sierra Wireless reported a loss which the company's President and CEO, Jason Cohenour, called a "short-term situation" in a press release.
Module maker Sierra Wireless was somewhat unusual in reporting a loss for the Q1 2011, posting a net loss of $7.8 million, or 25 cents a share, compared with a net loss of $7.5 million, or 24 cents a share, a year ago. Revenue fell 5 percent to $144.3 million.
Machine-to-machine revenue fell 18 percent to $72.7 million. The company said it expects second-quarter revenue to remain relatively flat sequentially. The company said it expects the Japanese earthquake to hurt its second-quarter revenue by about $2 million from a total of $140-$145 million.
Gemalto, provider of digital security solutions and SIM cards, announced its revenue for the first quarter of 2011. Total revenue increased by 17% to $637 million. In its machine-to-machine segment, Gemalto posted solid $62 million revenue driven by the continuing growth of this activity in multiple industrial sectors.
Iridium Communications Inc. reported financial results for the first quarter of 2011 and updated its outlook for the full year 2011. Iridium reported first-quarter total revenue of $91.3 million, which consisted of $61.2 million of service revenue and $30.1 million of equipment and engineering and support revenue. Total revenue grew 12 percent versus the comparable period of 2010, while service revenue increased 12 percent from the year-ago period. Service revenue, which represents primarily recurring revenue from Iridium’s growing subscriber base, was 67 percent of total revenue for the first quarter of 2011.
Net income was $8.3 million for the first quarter of 2011, as compared to a net loss of $1.3 million for the first quarter of 2010. Operational EBITDA (OEBITDA) for the first quarter was $43.1 million, as compared to $33.5 million for the prior-year period, representing year-over-year growth of 29 percent and an OEBITDA margin of 47 percent. OEBITDA benefited from solid growth in commercial service, government service and equipment revenue.
The Company ended the quarter with 447,000 total billable subscribers, which compares to 359,000 for the year-ago period and 427,000 for the quarter ended December 31, 2010. Total billable subscribers grew 25 percent year-over-year, driven by ongoing strength in M2M data, handheld voice, Netted Iridium and Iridium OpenPort customers.
Single-source M2M technology provider Numerex reported consolidated revenue of $13.8 million compared to $13.0 million in the first quarter of 2010 for a 6% increase. During the quarter ended March 31, 2011, the Company reported service revenues of $9.2 million and hardware revenues of $4.6 million compared to $8.2 million in service revenues and $4.8 million in hardware revenues, respectively, during the same period in 2010.
Numerex increased subscriptions by 25% to 1,224,000 at the end of the first quarter of 2011, compared to 977,000 recorded at the end of the first quarter of 2010. During the quarter ended March 31, 2011, the Company added 53,000 net subscriptions, as compared to 40,000 net subscriptions added in the first quarter of 2010.
ORBCOMM Inc., a global satellite data communications company announced total revenues for the first quarter of 2011 were $7.9 million, an increase of 6.3% from the first quarter of 2010. Service Revenues for the first quarter were $7.4 million, an increase 7.5%, over the prior-year’s first quarter. Product Sales decreased in the first quarter of 2011 to $486,000 from $535,000 in the first quarter of 2010.
As of March 31, 2011, there were almost 589,000 billable subscriber communicators, compared to over 525,000 billable subscriber communicators as of March 31, 2010, an increase of 12.1%