ORBIT’s Fourth Quarter Revenues Increased 28% to $13.7Million with Operational Profit Reaching $1Million Total Revenues in 2013 Increased to $46.6 Million; Order Pipeline Grows to $35 Million
Netanya, Israel: March 5, 2014 – ORBIT Communication Systems, a leading provider of elite mission-critical connectivity solutions for Satellite Communication, Earth Observation Communication Management systems and Tracking Telemetry systems, announced today its quarterly results for the fourth quarter of 2013.
ORBIT’s revenues totaled $13.7 million in Q4 2013, an increase of 27% compared to revenues in the same quarter of 2012 ($10.8 million). ORBIT’s annual revenues of $46.6 million in 2013 represent an increase of 13% compared to 2012 (to $41.2 million).
The revenue growth in the last quarter and in 2013 are mainly due to the signing of several meaningful and strategic contracts during the past year, which are beginning to make their mark on the company’s financial results, as well as the constant growth of the order pipeline, reaching $35 million by the end of 2013. ORBIT’s gross profit totaled $4.6 million in Q4 2013 (33.6% of its incomes), an increase of 42% compared to approximately $3.2 million ($30.1% of the incomes) in the same quarter of 2012.
The increase in gross profit and in the gross profit rate in the 4th quarter stems from the change in the sales mix and better use of the company’s services platform. Additionally, the improvement in the gross profit can be attributed to the reliance on the sale of a new generation of technologies and products in the areas of antennas, audio and communication systems, as well as advanced solutions for telemetry and earth observation, which are characterized by higher profits.
ORBIT’s operating profit grew in the fourth quarter of 2013 by approximately $1 million, an almost seven-fold increase compared to $130,000 in Q4 2012. In 2013, the operating profit totaled approximately $630,000, compared to an operating loss of $560,000 in 2012. ORBIT’s return to operational profit in 2013 and the sharp increase in operating profit in the 4th quarter are mainly the result of revenue growth, the improved gross margins and continued reduction in operating expenses.
ORBIT’s net profit increased to $781,000 in the 4th quarter, compared to net profit of $69,000 in the 4th quarter of 2012. In 2013 the net loss decreased to $588,000, compared to net loss of $787,000 last year. The basic loss per share was 6 cents per share in 2012. The earnings before interest, taxes, depreciation and amortizations of ORBIT (EBITDA) is approximately $1.3 million in the 4th quarter, compared to approximately $310,000 in 2012.
Ofer Greenberger, ORBT’s CEO: “We are very pleased with the transition to yearly operational profit and from the significant improvement in our results in the second half of 2013 and in the 4th quarter. In recent quarters, the results of the strategic change that the company has been going through over the last two years are evident. This includes the establishment of a competitive and balanced sales mix that matches the large business potential existing in all three of our target markets: SatCom solutions in the Ka field for Maritime and Airborne communication; Communication Management Systems and Video tracking for aircrafts; and providing complete solutions for the telemetry and earth observation segment. All of these are rapidly growing markets, characterized by increased demand for ORBIT’s leading and unique solutions.”
“We have made major R&D investments in new products and solutions in different segments in the past few quarters, and the 40% increase in our order pipeline, reaching $35 million at the end of 2013, is solid proof that the company’s products are generating increased demand in our target markets.”
“In parallel, we continue to increase our installed base and have signed several strategic contracts with large maritime communication customers and aircraft manufacturers, including those serving the passenger aircraft market. We believe that these contracts will provide the framework for meaningful business growth in the future. ORBIT’s competitive position today is better than ever, with a wide product mix and balanced geographical – 2 – distribution. We are determined to continue to implement our strategic plan to grow and enhance our profitability.”
About ORBIT Communication Systems
ORBIT is a global provider of highly engineered mission-critical communications systems and solution for maritime, aerospace, and earth observation applications in commercial, defense and homeland security markets. ORBIT’s portfolio includes mobile Satellite Communications systems, Tracking and Telemetry solutions, Communications Management Systems and ground stations for remote sensing and satellite tracking, which are deployed on thousands of marine, airborne and ground platforms worldwide. ORBIT’s customers include over 20 leading Navies, major integrators, communication service providers, earth observation organizations and Space Agencies.
ORBIT is a public company traded in Tel-Aviv Stock Exchange (TASE: ORBI). The company boasts an international sales and customer support network that includes the United States, Europe and the Far East in addition to its international technical services centers located around the world.