AVENTURA, Fla., May 15, 2018 (GLOBE NEWSWIRE) -- Orbital Tracking Corp. (OTCQB:TRKK) (“Orbital Tracking” or the "Company") today reported financial results for the three months ended March 31, 2018.
First Quarter 2018 Highlights
- During the quarter, the Company’s wholly owned subsidiaries, Global Telesat Communications Ltd. (“GTC”) and Orbital Satcom Corp. (“OSC”), achieved combined revenue growth of 20.7%, as compared to the same period in the previous year, as well as the largest amount of revenue reported in any prior quarter. The main factors behind this growth were record levels of e-commerce sales in the EU, a further increase in recurring revenue for monthly airtime customers, and an improvement in exchange rates for sales reported in US$.
- Notable orders received by the Company during the quarter in terms of sales revenue included the supply of satellite terminals and airtime for use by a disaster preparedness organization and annual renewal of the UK’s Forestry Commission’s 750+ SPOT Gen3 messaging plans. The Company continued to attract a record number of recurring revenue customers who have opted to buy monthly or annual recurring airtime plans through the Company.
- The Company further expanded its reach into new markets through the opening of its first e-commerce storefront in Australia.
- In addition to a record quarter for sales, the Company reported a decrease in total operating expenses as compared to the same period in the previous year. Total operating expenses are inclusive of selling, general and administrative expenses, professional fees, salaries, wages and payroll taxes, depreciation and amortization.
“Having recently reported record annual revenue as a result of a consolidated annual sales increase of 27.8% for the year ended December 31, 2017, we are now pleased to report our largest grossing sales quarter for our first quarter of 2018,” said David Phipps, Chief Executive Officer of Orbital Tracking Corp. “As we continue to grow our product range, expand our international presence, and increase our recurring revenue customer base, we expect our trend of overall growth in consolidated income to continue. Furthermore, we are pleased to report that this revenue growth has been achieved without increasing total operating costs.”
First Quarter 2018 Financial Results
For the three months ended March 31, 2018, consolidated revenues reached record levels, as compared to the same period in the previous year, increasing $285,606 or 20.7% to $1,667,938, as compared to $1,382,332 for the quarter ended March 31, 2017.
Comparable revenue for the Company’s wholly owned subsidiary, Global Telesat Communications, increased 7.5% in its home currency, GBP, for the three months ended March 31,2018, as compared to the three months ended March 31, 2017. When converted to US$ for reporting purposes, total sales for Global Telesat Communications were $1,136,716 for the three months ended March 31, 2018, as compared to $941,681 for the three months ended March 31, 2017, an increase of $195,035 or 20.7%.
Comparable revenue for the Company’s wholly owned subsidiary, Orbital Satcom Corp. was $531,222 for the three months ended March 31, 2018, as compared to $440,651 for the three months ended March 31, 2017, an increase of $90,571 or 20.6%.
The Company recorded a net loss before income tax of approximately $145,458 for the three months ended March 31, 2018 as compared to a loss of $219,262, for the three months ended March 31, 2017. The decrease in the loss for the three months ended March 31, 2018 is primarily attributable to an increase in gross profit of $64,518, or 20.5% and a decrease in professional fees of $39,667 or 26.6%, offset by an increase in wages of $27,769 or 18.2%. As a percentage of sales, wages decreased from 11.1% for the three months ended March 31, 2017 to 10.8% for the three months ended March 31, 2018.
About Orbital Tracking Corp.
Orbital Tracking Corp. provides satellite based tracking, services as well as mobile voice and data communications services globally via satellite to the commercial and government users. Orbital Tracking operates various e-commerce retail and tracking portals where users around the world can purchase satellite hardware and track assets in real-time on mobile devices or PCs. For more information regarding Orbital, please visit www.orbitaltracking.com.
Certain statements in this release constitute forward-looking statements. These statements include the capabilities and success of the Company's business and any of its products, services or solutions. The words "believe," "forecast," "project," "intend," "expect," "plan," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, any of which could cause the Company to not achieve some or all of its goals or the Company's previously reported actual results, performance (finance or operating) to change or differ from future results, performance (financing and operating) or achievements, including those expressed or implied by such forward-looking statements. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, copies of which may be obtained from the SEC's website at www.sec.gov. The Company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release.
Orbital Tracking Corp