##### Table of Contents



United States Securities and Exchange Commission
 Washington, D.C. 20549
 FORM 10-Q
 (Mark One)
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2010
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission File Number 001-33118
 ORBCOMM INC.
  Delaware
    
    41-2118289(State or other jurisdiction
    
    (I.R.S. Employerof incorporation or organization)
    
    Identification No.)
 
 
 
 Yes þ No o
 Yes o No o
  Large accelerated filer o
    
    Accelerated filer þ
    
    Non-accelerated filer o
    
    Smaller reporting company o(Do not check if a smaller reporting company)
 Yes o No þ




---



##### 



Index
 Part I  Financial InformationItem 1. Condensed Consolidated Financial Statements (Unaudited):Condensed Consolidated Balance Sheets
    
    
    3Condensed Consolidated Statements of Operations
    
    
    4Condensed Consolidated Statements of Cash Flows
    
    
    5Condensed Consolidated Statements of Equity
    
    
    6Notes to Condensed Consolidated Financial Statements
    
    
    7Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    22Item 3. Quantitative and Qualitative Disclosures about Market Risks
    
    
    30Item 4. Controls and Procedures
    
    
    30Part II  Other InformationItem 1. Legal Proceedings
    
    
    30Item 1A. Risk Factors
    
    
    30Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    30Item 3. Defaults Upon Senior Securities
    
    
    30Item 5. Other Information
    
    
    30Item 6. Exhibits
    
    
    30Signatures
    
    
    31Exhibit Index
    
    
    31Exhibit 10.1Exhibit 10.2Exhibit 10.3Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2




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ORBCOMM Inc.
 
 Condensed Consolidated Balance Sheets
 (in thousands, except share data)
 (Unaudited)
 September 30,
    
    
    December 31,2010
    
    
    2009ASSETSCurrent assets:Cash and cash equivalents
    
    $
    29,568
    
    
    $
    65,292Restricted cash
    
    
    1,000
    
    
    
    1,000Marketable securities
    
    
    57,674
    
    
    
    26,145Accounts receivable, net of allowances for doubtful accounts of $586 and $835
    
    
    4,468
    
    
    
    3,742Inventories
    
    
    183
    
    
    
    78Prepaid expenses and other current assets
    
    
    1,224
    
    
    
    1,253Current assets held for sale
    
    
    
    
    
    
    575Total current assets
    
    
    94,117
    
    
    
    98,085Satellite network and other equipment, net
    
    
    70,290
    
    
    
    73,208Intangible assets, net
    
    
    1,486
    
    
    
    2,600Restricted cash
    
    
    3,030
    
    
    
    2,980Other investment
    
    
    2,278
    
    
    
    Other assets
    
    
    1,117
    
    
    
    1,354Long term assets held for sale
    
    
    
    
    
    
    2,832Total assets
    
    $
    172,318
    
    
    $
    181,059LIABILITIES AND EQUITYCurrent liabilities:Accounts payable
    
    $
    2,571
    
    
    $
    2,696Accrued liabilities
    
    
    5,201
    
    
    
    5,889Current portion of deferred revenue
    
    
    2,493
    
    
    
    3,849Current liabilities related to assets held for sale
    
    
    
    
    
    
    79Total current liabilities
    
    
    10,265
    
    
    
    12,513Note payable  related party
    
    
    1,417
    
    
    
    1,398Deferred revenue, net of current portion
    
    
    1,288
    
    
    
    6,230Other liabilities
    
    
    431
    
    
    
    Total liabilities
    
    
    13,401
    
    
    
    20,141Commitments and contingenciesEquity:ORBCOMM Inc. stockholders equityCommon stock, par value $0.001; 250,000,000 shares authorized; 42,616,950
and 42,455,531 shares issued and outstanding
    
    
    43
    
    
    
    42Additional paid-in capital
    
    
    232,167
    
    
    
    230,512Accumulated other comprehensive income
    
    
    408
    
    
    
    76Accumulated deficit
    
    
    (76,055
    )
    
    
    (71,415
    )Total ORBCOMM Inc. stockholders equity
    
    
    156,563
    
    
    
    159,215Noncontrolling interests in ORBCOMM Japan
    
    
    2,354
    
    
    
    1,703Total equity
    
    
    158,917
    
    
    
    160,918Total liabilities and equity
    
    $
    172,318
    
    
    $
    181,059
 See notes to condensed consolidated financial statements.
  3




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##### Table of Contents



ORBCOMM Inc.
 
 Condensed Consolidated Statements of Operations
 (in thousands, except per share data)
 (Unaudited)
 Three months ended
    
    
    Nine months endedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Revenues:Service revenues
    
    $
    12,975
    
    
    $
    6,939
    
    
    $
    27,134
    
    
    $
    20,281Product sales
    
    
    937
    
    
    
    92
    
    
    
    2,032
    
    
    
    247Total revenues
    
    
    13,912
    
    
    
    7,031
    
    
    
    29,166
    
    
    
    20,528Costs and expenses(1):Costs of services
    
    
    3,081
    
    
    
    10,796
    
    
    
    9,277
    
    
    
    17,309Costs of product sales
    
    
    601
    
    
    
    42
    
    
    
    1,273
    
    
    
    138Selling, general and administrative
    
    
    3,986
    
    
    
    3,609
    
    
    
    12,168
    
    
    
    12,810Product development
    
    
    163
    
    
    
    191
    
    
    
    486
    
    
    
    532Impairment charge-satellite network
    
    
    6,509
    
    
    
    21,859
    
    
    
    6,509
    
    
    
    28,904Insurance recovery-satellite network
    
    
    
    
    
    
    (28,904
    )
    
    
    
    
    
    
    (28,904
    )Total costs and expenses
    
    
    14,340
    
    
    
    7,593
    
    
    
    29,713
    
    
    
    30,789Loss from operations
    
    
    (428
    )
    
    
    (562
    )
    
    
    (547
    )
    
    
    (10,261
    )Other income (expense):Interest income
    
    
    68
    
    
    
    7
    
    
    
    160
    
    
    
    71Other income (expense)
    
    
    105
    
    
    
    (115
    )
    
    
    24
    
    
    
    224Interest expense
    
    
    (48
    )
    
    
    (48
    )
    
    
    (144
    )
    
    
    (144
    )Total other income (expense)
    
    
    125
    
    
    
    (156
    )
    
    
    40
    
    
    
    151Loss from continuing operations
    
    
    (303
    )
    
    
    (718
    )
    
    
    (507
    )
    
    
    (10,110
    )Loss from discontinued operations
    
    
    (113
    )
    
    
    (489
    )
    
    
    (3,683
    )
    
    
    (529
    )Net loss
    
    
    (416
    )
    
    
    (1,207
    )
    
    
    (4,190
    )
    
    
    (10,639
    )Less: Net income attributable to the noncontrolling interests
    
    
    193
    
    
    
    30
    
    
    
    450
    
    
    
    95Net loss attributable to ORBCOMM Inc.
    
    $
    (609
    )
    
    $
    (1,237
    )
    
    $
    (4,640
    )
    
    $
    (10,734
    )Net loss attributable to ORBCOMM Inc.:Loss from continuing operations
    
    $
    (496
    )
    
    $
    (748
    )
    
    $
    (957
    )
    
    $
    (10,205
    )Loss from discontinued operations
    
    
    (113
    )
    
    
    (489
    )
    
    
    (3,683
    )
    
    
    (529
    )Net loss attributable to ORBCOMM Inc.
    
    $
    (609
    )
    
    $
    (1,237
    )
    
    $
    (4,640
    )
    
    $
    (10,734
    )Per share information-basic and diluted:Loss from continuing operations
    
    $
    (0.01
    )
    
    $
    (0.02
    )
    
    $
    (0.02
    )
    
    $
    (0.24
    )Loss from discontinued operations
    
    
    (0.00
    )
    
    
    (0.01
    )
    
    
    (0.09
    )
    
    
    (0.01
    )Net loss attributable to ORBCOMM Inc.
    
    $
    (0.01
    )
    
    $
    (0.03
    )
    
    $
    (0.11
    )
    
    $
    (0.25
    )Weighted average common shares outstanding:Basic and diluted
    
    
    42,604
    
    
    
    42,442
    
    
    
    42,575
    
    
    
    42,386(1) Stock-based compensation included in costs and expenses:Costs of services
    
    $
    40
    
    
    $
    14
    
    
    $
    83
    
    
    $
    48Selling, general and administrative
    
    
    561
    
    
    
    336
    
    
    
    1,534
    
    
    
    1,093Product development
    
    
    5
    
    
    
    
    
    
    
    13
    
    
    
    8$
    606
    
    
    $
    350
    
    
    $
    1,630
    
    
    $
    1,149
 See notes to condensed consolidated financial statements.
  4




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ORBCOMM Inc.
 
 Condensed Consolidated Statements of Cash Flows
 (in thousands)
 (Unaudited)
 Nine months endedSeptember 30,2010
    
    
    2009Cash flows from operating activities:Net loss
    
    $
    (4,190
    )
    
    $
    (10,639
    )Adjustments
to reconcile net loss to net cash provided by operating activities:Change in allowance for doubtful accounts
    
    
    (249
    )
    
    
    380Depreciation and amortization
    
    
    3,232
    
    
    
    11,463Accretion on note payable  related party
    
    
    98
    
    
    
    98Stock-based compensation
    
    
    1,630
    
    
    
    1,149Foreign exchange losses (gains)
    
    
    7
    
    
    
    (223
    )Amortization of premium on marketable securites
    
    
    759
    
    
    
    Dividend received in common stock for other investment
    
    
    (28
    )
    
    
    Gain on settlement of vendor liabilities
    
    
    (220
    )
    
    
    Impairment charge and loss on sale of Stellar
    
    
    3,306
    
    
    
    Impairment charge-satellite network
    
    
    6,509
    
    
    
    28,904Insurance recovery charge-satellite network
    
    
    
    
    
    
    (28,904
    )Changes in operating assets and liabilities:Accounts receivable
    
    
    (1,091
    )
    
    
    (64
    )Inventories
    
    
    (91
    )
    
    
    66Prepaid expenses and other assets
    
    
    161
    
    
    
    836Accounts payable and accrued liabilities
    
    
    (1,025
    )
    
    
    319Deferred revenue
    
    
    (6,564
    )
    
    
    (707
    )Other liabilities
    
    
    347
    
    
    
    Net cash provided by operating activities of continuing operations
    
    
    2,591
    
    
    
    2,678Net cash provided by (used in) operating activities of discontinued operations
    
    
    (26
    )
    
    
    633Net cash provided by operating activities
    
    
    2,565
    
    
    
    3,311Cash flows from investing activities:Capital expenditures
    
    
    (5,056
    )
    
    
    (25,825
    )Purchases of marketable securities
    
    
    (114,301
    )
    
    
    Proceeds from maturities of marketable securities
    
    
    82,013
    
    
    
    Purchase of other investment
    
    
    (1,356
    )
    
    
    Increase in restricted cash
    
    
    (50
    )
    
    
    (300
    )Net cash used in investing activities of continuing operations
    
    
    (38,750
    )
    
    
    (26,125
    )Net cash provided by (used in) investing activities of discontinued operations
    
    
    48
    
    
    
    (208
    )Net cash used in investing activities
    
    
    (38,702
    )
    
    
    (26,333
    )Cash flows from financing activities
    
    
    
    
    
    
    Effect of exchange rate changes on cash and cash equivalents
    
    
    413
    
    
    
    (132
    )Net decrease in cash and cash equivalents
    
    
    (35,724
    )
    
    
    (23,154
    )Cash and cash equivalents:Beginning of period
    
    
    65,292
    
    
    
    75,370End of period
    
    $
    29,568
    
    
    $
    52,216Supplemental cash flow disclosures:Noncash investing activities:Capital expenditures incurred not yet paid
    
    $
    1,545
    
    
    $
    1,138Stock-based compensation included in capital expenditures
    
    $
    25
    
    
    $
    Accounts receivable exchanged and deferred credit issued as part of
consideration for other investment
    
    $
    894
    
    
    $
    Gateway and components recorded in inventory in prior years which were
used for construction under satellite network and other equipment in 2010
    
    $
    129
    
    
    $
    
 See notes to condensed consolidated financial statements.
  5




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ORBCOMM Inc.
 
 Condensed Consolidated Statements of Equity
 Nine months ended September 30, 2010 and 2009
 (in thousands, except share data)
 (Unaudited)
 Accumulated
    
    
    
    
    
    
    NoncontrollingAdditional
    
    
    other
    
    
    
    
    
    
    interestsCommon stock
    
    
    paid-in
    
    
    comprehensive
    
    
    Accumulated
    
    
    in ORBCOMM
    
    
    TotalShares
    
    
    Amount
    
    
    capital
    
    
    income
    
    
    deficit
    
    
    Japan
    
    
    equityBalances, January 1, 2010
    
    
    42,455,531
    
    
    $
    42
    
    
    $
    230,512
    
    
    $
    76
    
    
    $
    (71,415
    )
    
    $
    1,703
    
    
    $
    160,918Vesting of restricted stock units
    
    
    161,419
    
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1Stock-based compensation
    
    
    
    
    
    
    
    
    
    
    1,655
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,655Net income (loss)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,640
    )
    
    
    450
    
    
    
    (4,190
    )Cumulative translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    332
    
    
    
    
    
    
    
    201
    
    
    
    533Balances, September 30, 2010
    
    
    42,616,950
    
    
    $
    43
    
    
    $
    232,167
    
    
    $
    408
    
    
    $
    (76,055
    )
    
    $
    2,354
    
    
    $
    158,917Balances, January 1, 2009
    
    
    42,101,834
    
    
    $
    42
    
    
    $
    229,001
    
    
    $
    381
    
    
    $
    (67,976
    )
    
    $
    1,603
    
    
    $
    163,051Vesting of restricted stock units
    
    
    353,697
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Stock-based compensation
    
    
    
    
    
    
    
    
    
    
    1,149
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,149Net income (loss)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (10,734
    )
    
    
    95
    
    
    
    (10,639
    )Cumulative translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (364
    )
    
    
    
    
    
    
    84
    
    
    
    (280
    )Balances, September 30, 2009
    
    
    42,455,531
    
    
    $
    42
    
    
    $
    230,150
    
    
    $
    17
    
    
    $
    (78,710
    )
    
    $
    1,782
    
    
    $
    153,281
 See notes to condensed consolidated financial statements.
  6




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##### Table of Contents



1. Overview
  2. Basis of Presentation
         7




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##### Table of Contents



Fair Value of Financial instruments
 Fair Value Measurement
Disclosures,
  Marketable securities
  Concentration of credit risk
    8




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##### Table of Contents



Three Months ended
    
    
    Nine Months endedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Caterpillar Inc.
    
    
    8.9
    %
    
    
    17.0
    %
    
    
    11.3
    %
    
    
    16.4
    %Komatsu Ltd.
    
    
    9.9
    %
    
    
    11.1
    %
    
    
    11.9
    %
    
    
    11.0
    %AI, formerly a division of General Electric
    
    
    6.1
    %
    
    
    15.8
    %
    
    
    10.6
    %
    
    
    15.2
    %Hitachi Construction Machinery Co., Ltd.
    
    
    9.5
    %
    
    
    
    
    
    
    11.2
    %
    
    
    
  September 30,
    
    
    December 31,2010
    
    
    2009Caterpillar Inc.
    
    
    10.6
    %
    
    
    13.9
    %AI, formerly a division of General Electric
    
    
    15.7
    %
    
    
    10.9
    %Komatsu Ltd.
    
    
    11.6
    %
    
    
    
 Income taxes
    Accounting Pronouncements
 Revenue Recognition Multiple Deliverable Revenue Arrangements
  9




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##### Table of Contents



3. Discontinued Operations
   Contingencies
  Three months ended
    
    
    Nine months endedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Revenues- Product sales
    
    $
    119
    
    
    $
    346
    
    
    $
    548
    
    
    $
    1,355Loss from discontinued operations
    
    $
    (113
    )
    
    $
    (489
    )
    
    $
    (3,683
    )
    
    $
    (529
    )
  December 31,2009Inventories, current
    
    $
    575Current assets
    
    
    575Other equipment, net
    
    
    707Inventories, long term
    
    
    2,125Current liabilities
    
    
    79
  10




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##### Table of Contents



4. Comprehensive Loss
  Three months ended
    
    
    Nine months endedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Net loss
    
    $
    (416
    )
    
    $
    (1,207
    )
    
    $
    (4,190
    )
    
    $
    (10,639
    )Foreign currency translation adjustment
    
    
    86
    
    
    
    269
    
    
    
    533
    
    
    
    (280
    )Comprehensive loss
    
    
    (330
    )
    
    
    (938
    )
    
    
    (3,657
    )
    
    
    (10,919
    )Comprehensive income attributable to noncontrolling interests
    
    
    319
    
    
    
    199
    
    
    
    651
    
    
    
    179Comprehensive loss attributable to ORBCOMM Inc.
    
    $
    (649
    )
    
    $
    (1,137
    )
    
    $
    (4,308
    )
    
    $
    (11,098
    )
 5. Stock-based Compensation
   Three months ended
    
    
    Nine months endedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Stock appreciation rights
    
    $
    466
    
    
    $
    228
    
    
    $
    1,232
    
    
    $
    704Restricted stock units
    
    
    140
    
    
    
    122
    
    
    
    398
    
    
    
    421Stock options
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    24Total
    
    $
    606
    
    
    $
    350
    
    
    $
    1,630
    
    
    $
    1,149
  Time-Based Stock Appreciation Rights
   11




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##### Table of Contents



Weighted-AverageRemaining
    
    
    AggregateNumber of
    
    
    Weighted-Average
    
    
    Contractual
    
    
    Intrinsic ValueShares
    
    
    Exercise Price
    
    
    Term (years)
    
    
    (In thousands)Outstanding at January 1, 2010
    
    
    1,166,667
    
    
    $
    5.23Granted
    
    
    828,000
    
    
    
    2.46Forfeited or expired
    
    
    (12,000
    )
    
    
    2.46Outstanding at September 30, 2010
    
    
    1,982,667
    
    
    $
    4.09
    
    
    
    8.25
    
    
    $
    14Exercisable at September 30, 2010
    
    
    755,000
    
    
    $
    5.46
    
    
    
    7.38
    
    
    $
    5Vested and expected to vest at September 30, 2010
    
    
    1,982,667
    
    
    $
    4.09
    
    
    
    8.25
    
    
    $
    14
  Performance-Based Stock Appreciation Rights
   Weighted-AverageRemaining
    
    
    AggregateNumber of
    
    
    Weighted-Average
    
    
    Contractual
    
    
    Intrinsic ValueShares
    
    
    Exercise Price
    
    
    Term (years)
    
    
    (In thousands)Outstanding at January 1, 2010
    
    
    280,146
    
    
    $
    9.59Granted
    
    
    306,000
    
    
    
    2.46Forfeited or expired
    
    
    (25,000
    )
    
    
    1.96Outstanding at September 30, 2010
    
    
    561,146
    
    
    $
    6.04
    
    
    
    8.19
    
    
    $
    4Exercisable at September 30, 2010
    
    
    259,146
    
    
    $
    10.22
    
    
    
    6.76
    
    
    $
    4Vested and expected to vest at September 30, 2010
    
    
    508,383
    
    
    $
    6.42
    
    
    
    8.06
    
    
    $
    4
   12




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##### Table of Contents



Nine months endedSeptember 30,2010
    
    2009Risk-free interest rate
    
    2.27% and 2.65%
    
    2.34%Expected life (years)
    
    5.5 and 6.0
    
    6.0Estimated volatility
    
    85.95% and 83.67%
    
    55.03%Expected dividends
    
    None
    
    None
 Time-Based Restricted Stock Units
   Weighted-AverageShares
    
    
    Grant Date Fair ValueBalance at January 1, 2010
    
    
    238,753
    
    
    $
    3.18Granted
    
    
    79,290
    
    
    
    2.27Vested
    
    
    (131,419
    )
    
    
    2.39Forfeited or expired
    
    
    
    
    
    
    Balance at September 30, 2010
    
    
    186,624
    
    
    $
    3.35
    13




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##### Table of Contents



Performance-Based Restricted Stock Units
   2004 Stock Option Plan
  Weighted-AverageRemaining
    
    
    AggregateNumber of
    
    
    Weighted-Average
    
    
    Contractual
    
    
    Intrinsic ValueShares
    
    
    Exercise Price
    
    
    Term (years)
    
    
    (In thousands)Outstanding at January 1, 2010
    
    
    782,079
    
    
    $
    2.98Granted
    
    
    
    
    
    
    Exercised
    
    
    
    
    
    
    Forfeited or expired
    
    
    (1,250
    )
    
    
    4.26Outstanding at September 30, 2010
    
    
    780,829
    
    
    $
    2.98
    
    
    
    3.44
    
    
    $
    Exercisable at September 30, 2010
    
    
    780,829
    
    
    $
    2.98
    
    
    
    3.44
    
    
    $
    Vested and expected to vest at September 30, 2010
    
    
    780,829
    
    
    $
    2.98
    
    
    
    3.44
    
    
    $
    
 6. Net Loss per Common Share
  Nine Months endedSeptember 30,2010
    
    
    2009SARs
    
    
    2,543,813
    
    
    
    1,416,813RSUs
    
    
    186,624
    
    
    
    268,753Stock options
    
    
    780,829
    
    
    
    782,0793,511,266
    
    
    
    2,467,645
  14




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##### Table of Contents



7. Investments
  Marketable securities
  September 30, 2010
    
    
    December 31, 2009Gross
    
    
    Gross
    
    
    
    
    
    
    Gross
    
    
    GrossFair
    
    
    Unrealized
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealized
    
    
    UnrealizedValue
    
    
    Losses
    
    
    Gains
    
    
    Value
    
    
    Losses
    
    
    GainsU.S. government and
agency obligations
    
    $
    25,319
    
    
    $
    1
    
    
    $
    7
    
    
    $
    13,009
    
    
    $
    
    
    
    $
    1Corporate obligations
    
    
    28,025
    
    
    
    18
    
    
    
    2
    
    
    
    11,211
    
    
    
    7
    
    
    
    FDIC-insured certificates
of deposit
    
    
    4,319
    
    
    
    1
    
    
    
    
    
    
    
    1,919
    
    
    
    
    
    
    
    $
    57,663
    
    
    $
    20
    
    
    $
    9
    
    
    $
    26,139
    
    
    $
    7
    
    
    $
    1
   Cost method investment
      15




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##### Table of Contents



8. Satellite Network and Other Equipment
  Useful life
    
    September 30,
    
    
    December 31,(years)
    
    2010
    
    
    2009Land
    
    
    
    $
    381
    
    
    $
    381Satellite network
    
    1-10
    
    
    30,784
    
    
    
    27,814Capitalized software
    
    3-5
    
    
    1,369
    
    
    
    1,318Computer hardware
    
    5
    
    
    1,242
    
    
    
    1,144Other
    
    5-7
    
    
    1,272
    
    
    
    1,105Assets under construction
    
    
    
    
    62,365
    
    
    
    66,45097,413
    
    
    
    98,212Less: accumulated depreciation and amortization
    
    
    
    
    (27,123
    )
    
    
    (25,004
    )$
    70,290
    
    
    $
    73,208
     9. Restricted Cash
   16




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##### Table of Contents



10. Intangible Assets
  September 30, 2010
    
    
    December 31, 2009Useful life
    
    
    
    
    
    
    Accumulated
    
    
    
    
    
    
    
    
    
    
    Accumulated(years)
    
    
    Cost
    
    
    amortization
    
    
    Net
    
    
    Cost
    
    
    amortization
    
    
    NetAcquired licenses
    
    
    6
    
    
    $
    8,115
    
    
    $
    (6,629
    )
    
    $
    1,486
    
    
    $
    8,115
    
    
    $
    (5,515
    )
    
    $
    2,600
   Years ending December 31,Remainder of 2010
    
    $
    3722011
    
    
    1,114$
    1,486
 11. Accrued Liabilities
  September 30,
    
    
    December 31,2010
    
    
    2009Accrued compensation and benefits
    
    $
    1,655
    
    
    $
    1,812Accrued interest
    
    
    842
    
    
    
    797Deferred rent payable
    
    
    100
    
    
    
    919Other accrued expenses
    
    
    2,604
    
    
    
    2,361$
    5,201
    
    
    $
    5,889
 12. Deferred Revenues
  September 30,
    
    
    December 31,2010
    
    
    2009Service activation fees
    
    $
    2,386
    
    
    $
    2,563Manufacturing license fees
    
    
    33
    
    
    
    44Prepaid services
    
    
    1,362
    
    
    
    1,035Professional services
    
    
    
    
    
    $
    6,4373,781
    
    
    
    10,079Less current portion
    
    
    (2,493
    )
    
    
    (3,849
    )Long-term portion
    
    $
    1,288
    
    
    $
    6,230
  17




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13. Note Payable
  14. Stockholders Equity
  15. Geographic Information
  Three months ended
    
    
    Nine months endedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009United States
    
    
    85
    %
    
    
    88
    %
    
    
    82
    %
    
    
    87
    %Japan
    
    
    12
    %
    
    
    9
    %
    
    
    14
    %
    
    
    10
    %Other
    
    
    3
    %
    
    
    3
    %
    
    
    4
    %
    
    
    3
    %100
    %
    
    
    100
    %
    
    
    100
    %
    
    
    100
    %
   18




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16. Commitments and Contingencies
 Procurement agreements in connection with next-generation satellites
        19




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AIS Satellite Deployment and License Agreement
    20




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Airtime credits
  Litigation
   21




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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
 Safe Harbor Statement Under the Private Securities Litigation Reform of Act 1995.
  Overview
     22




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Discontinued Operations
   Cost Method Investment
   23




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Critical Accounting Policies
  EBITDA
   The following table (in thousands) reconciles our net loss to EBITDA for the periods shown:
 Three months ended September 30,
    
    
    Nine months ended September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Net loss
    
    $
    (609
    )
    
    $
    (1,237
    )
    
    $
    (4,640
    )
    
    $
    (10,734
    )Interest income
    
    
    (68
    )
    
    
    (7
    )
    
    
    (160
    )
    
    
    (71
    )Interest expense
    
    
    48
    
    
    
    48
    
    
    
    144
    
    
    
    144Depreciation and amortization
    
    
    931
    
    
    
    8,884
    
    
    
    3,232
    
    
    
    11,482EBITDA
    
    $
    302
    
    
    $
    7,688
    
    
    $
    (1,424
    )
    
    $
    821
    24




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##### Table of Contents



Results of Operations
 Revenues
   i.e.
  Three months ended September 30,
    
    
    Nine months ended September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009% of
    
    
    
    
    
    
    % of
    
    
    
    
    
    
    % of
    
    
    
    
    
    
    % ofTotal
    
    
    
    
    
    
    Total
    
    
    
    
    
    
    Total
    
    
    
    
    
    
    TotalService revenues
    
    $
    12,975
    
    
    
    93.3
    %
    
    $
    6,939
    
    
    
    98.7
    %
    
    $
    27,134
    
    
    
    93.0
    %
    
    $
    20,281
    
    
    
    98.8
    %Product sales
    
    
    937
    
    
    
    6.7
    %
    
    
    92
    
    
    
    1.3
    %
    
    
    2,032
    
    
    
    7.0
    %
    
    
    247
    
    
    
    1.2
    %$
    13,912
    
    
    
    100.0
    %
    
    $
    7,031
    
    
    
    100.0
    %
    
    $
    29,166
    
    
    
    100.0
    %
    
    $
    20,528
    
    
    
    100.0
    %
   Service revenues
     Product sales
    25




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Costs of services
     Costs of product sales
     Selling, general and administrative expenses
    Product development expenses
     26




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Impairment Charge and Insurance Recovery  Satellite Network
      Other income (expense)
    Loss from continuing operations
   Loss from discontinued operations
   Noncontrolling interests
   27




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##### Table of Contents



Net loss attributable to ORBCOMM Inc.
   Liquidity and Capital Resources
 Overview
  Operating activities
    Investing activities
    Financing activities
  Future Liquidity and Capital Resource Requirements
   28




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Contractual Obligations
  Next-Generation Satellite Procurement Agreement with Sierra Nevada Corporation (SNC)
  AIS Satellite Deployment and License Agreement
   Off-Balance Sheet Arrangements
  Recent accounting pronouncements
 Revenue Recognition Multiple Deliverable Revenue Arrangements.
  29




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Item 3. Quantitative and Qualitative Disclosures about Market Risks
  Concentration of credit risk
  Three Months ended
    
    
    Nine Months endedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Caterpillar Inc.
    
    
    8.9
    %
    
    
    17.0
    %
    
    
    11.3
    %
    
    
    16.4
    %Komatsu Ltd.
    
    
    9.9
    %
    
    
    11.1
    %
    
    
    11.9
    %
    
    
    11.0
    %AI, formerly a division of General Electric
    
    
    6.1
    %
    
    
    15.8
    %
    
    
    10.6
    %
    
    
    15.2
    %Hitachi Construction Machinery Co., Ltd.
    
    
    9.5
    %
    
    
    
    
    
    
    11.2
    %
    
    
    
 
 Item 4. Disclosure Controls and Procedures
 Evaluation of the Companys disclosure controls and procedures.
 Internal Control over Financial Reporting.
 
 PART II  OTHER INFORMATION
 
 Item 1. Legal Proceedings
  
 Item 1A. Risk Factors
  
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
  
 Item 3. Defaults Upon Senior Securities
   30




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Item 5. Other Information
     31




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32




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33




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34




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Item 6. Exhibits
 10.1
    
    
    Launch Vehicle changes task order agreement dated August 31, 2010, between the Company and Sierra Nevada Corporation.10.2
    
    
    Engineering change requests and enhancements task order agreement dated August 31, 2010,
between the Company and  Sierra Nevada Corporation.10.3
    
    
    Settlement agreement and specific
release dated September 27, 2010, between the Company and OHB-System AG.31.1
    
    
    Certification of President and Chief Executive Officer required by Rule 13a-14(a).31.2
    
    
    Certification of Executive Vice President and Chief Financial Officer required by Rule 13a-14(a).32.1
    
    
    Certification of President and Chief Executive Officer required by Rule 13a-14(b) and 18 U.S.C.
Section 1350.32.2
    
    
    Certification of Executive Vice President and Chief Financial Officer required by Rule 13a-14(b)
and 18 U.S.C. Section 1350.
  35




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SIGNATURES
  ORBCOMM Inc.
(Registrant)Date: November 9, 2010
    /s/ Marc J. EisenbergMarc J. Eisenberg,President and Chief Executive Officer
(Principal Executive Officer)Date: November 9, 2010
    /s/ Robert G. CostantiniRobert G. Costantini,Executive Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer) 
 EXHIBIT INDEX
 ExhibitNo.
    
    Description10.1
    
    
    Launch Vehicle changes task order agreement dated August 31, 2010, between the Company and Sierra Nevada Corporation.10.2
    
    
    Engineering change requests and enhancements task order agreement dated August 31, 2010,
between the Company and  Sierra Nevada Corporation.10.3
    
    
    Settlement agreement and specific
release dated September 27, 2010, between the Company and OHB-System AG.31.1
    
    
    Certification of Chief Executive Officer and President required by Rule 13a-14(a).31.2
    
    
    Certification of Executive Vice President and Chief Financial Officer required by Rule 13a-14(a).32.1
    
    
    Certification of Chief Executive Officer and President required by Rule 13a-14(b) and 18 U.S.C.
Section 1350.32.2
    
    
    Certification of Executive Vice President and Chief Financial Officer required by Rule 13a-14(b)
and 18 U.S.C. Section 1350.
  36