“After nearly 10 years of preparation, we are days away to launching the first of two OG2 missions. We are excited about the benefits that our advanced OG2 satellites will bring to our global M2M customer base, including significant improvements in performance and coverage,” said Marc Eisenberg, ORBCOMM’s Chief Executive Officer. “We are confident that there will be increased customer demand for the enhanced OG2 services, as well as our new backwards compatible OG2 satellite modem and developer’s kit. We will also continue to look for new ways to grow the business by adding capabilities, vertical markets and key geographies, starting with the integration of Euroscan and marketing our complete M2M solutions portfolio through their existing international distribution channels.”

“The Euroscan acquisition completed in Q1 has the ability to be a key distribution channel driving overall growth in 2014”, said Robert Costantini, Chief Financial Officer of ORBCOMM. “When combined with the positive impact we are expecting from commencement of the OG2 launches, we believe the company is poised to capture significant new revenue opportunities.”

Financial Results and Highlights

Revenues

For the first quarter ended March 31, 2014, Service Revenues increased 3.9% to $14.4 million over the prior year period in 2013 that benefited from a back billing adjustment leading to higher than usual Service Revenues in the prior period. The increase in Service Revenues in Q1 of 2014 was driven by StarTrak, AIS and the acquisitions completed after Q1-2013. Results in Japan are down slightly on a comparative basis due to continued weakness in Yen exchange rates versus last year.

Product Sales during the first quarter of 2014 were $4.9 million compared to $2.8 million during the same period last year, an increase of $2.1 million or 74.0%. The quarterly year-over-year increase in Product Sales was driven mainly by the acquisitions, but was offset by slightly lower sales at StarTrak due to the timing of shipments which slipped to the second quarter of 2014.

Total Revenues for the quarter ended March 31, 2014 were $19.4 million compared to $16.7 million during the same period of 2013, an increase of 15.7%.

Costs and Expenses

The total of direct costs and operating expenses for the first quarter of 2014 were $19.6 million compared to $15.4 million during the same period in 2013. Starting this quarter, we are presenting Depreciation and Amortization as a separate line item on a comparative basis to see the impact the OG2 constellation will have on operating expenses. Direct costs increasing year-over-year were driven by higher costs for Network and Terrestrial services, increases in Product Sales including higher manufacturing costs to launch new products, costs to operate the four companies acquired, and grow the business.

Costs of Product Sales for the first quarter of 2014 were $4.0 million compared to $2.1 million for the three months ended March 31, 2013, increasing mostly due to higher Product Sales, some additional manufacturing costs, and a charge for inventory obsolescence. Costs of Services, Product Development, Selling, General and Administrative Expenses, and Depreciation and Amortization were $14.4 million for the first quarter of 2014 compared to $12.9 million in the prior year period, increasing $1.5 million primarily due to additional operating costs from the acquisitions including higher depreciation and amortization, costs associated with first quarter activities for professional fees and employee costs, and costs in anticipation of the OG2 launch. Acquisition-related costs were $1.2 million for the first quarter of 2014 compared to $0.4 million in the prior year period mostly related to the Euroscan acquisition completed in March.

Income Before Income Taxes, Net Income, and Earnings Per Share

Income (Loss) Before Income Taxes for the first quarter of 2014 was ($0.2) million compared to $1.3 million for the first quarter of 2013. Income Before Income Taxes was lower than prior year largely due to Acquisition-related costs that were higher by $0.8 million, lower product margins and increases in other operating costs, as described above.

Net Income (Loss) attributable to ORBCOMM Inc. Common Stockholders was ($0.4) million for the three months ended March 31, 2014 compared to $1.1 million for the similar three-month period in 2013. Basic Earnings Per Share were ($0.01) for the first quarter of 2014 versus $0.02 for the first quarter of 2013.

EBITDA and Adjusted EBITDA

EBITDA for the first quarter of 2014 was $1.5 million compared to $2.5 million in the first quarter of 2013 and includes $1.2 million in Acquisition-related costs. Adjusted EBITDA, as redefined, now adding back Acquisition-related costs for both periods, was $3.6 million for the first quarter of 2014 compared to $3.6 million in the first quarter of 2013.

EBITDA and Adjusted EBITDA are non-GAAP financial measures used by the Company. Please see the financial tables at the end of the release for a reconciliation of EBITDA and Adjusted EBITDA.

Balance Sheet & Cash Flow

At March 31, 2014, Cash and Cash Equivalents and Restricted Cash were $76.9 million, compared to $70.5 million at December 31, 2013, increasing $6.3 million largely due to the $37 million in net proceeds received from the public offering of Common Stock, offset by $29 million in cash paid for the Euroscan acquisition and increases in working capital.

Cash from operating activities was $0.6 million for the quarter. Total ORBCOMM Inc. Stockholders’ Equity was $232.7 million at March 31, 2014.