Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 03, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'ORBC | ' |
Entity Registrant Name | 'ORBCOMM Inc. | ' |
Entity Central Index Key | '0001361983 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 55,266,947 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $40,554 | $68,354 |
Accounts receivable, net of allowance for doubtful accounts of $629 and $279, respectively | 16,679 | 14,098 |
Inventories | 12,013 | 5,186 |
Prepaid expenses and other current assets | 3,702 | 1,768 |
Deferred income taxes | 623 | 623 |
Total current assets | 73,571 | 90,029 |
Satellite network and other equipment, net | 179,241 | 133,028 |
Goodwill | 39,929 | 20,335 |
Intangible assets, net | 27,012 | 11,636 |
Restricted cash | 1,195 | 2,195 |
Other assets | 4,336 | 2,997 |
Deferred income taxes | 1,253 | 1,254 |
Total assets | 326,537 | 261,474 |
Current liabilities: | ' | ' |
Accounts payable | 7,169 | 2,575 |
Accrued expenses | 18,407 | 9,827 |
Current portion of deferred revenue | 3,782 | 3,087 |
Total current liabilities | 29,358 | 15,489 |
Note payable - related party | 1,446 | 1,571 |
Note payable | 45,000 | 45,000 |
Deferred revenue, net of current portion | 2,347 | 2,373 |
Deferred tax liabilities | 7,331 | 2,439 |
Other liabilities | 5,783 | 1,654 |
Total liabilities | 91,265 | 68,526 |
Commitments and contingencies | ' | ' |
ORBCOMM Inc. stockholders' equity | ' | ' |
Preferred Stock Series A, par value $0.001; 1,000,000 shares authorized; 89,144 and 102,054 shares issued and outstanding, respectively | 891 | 1,019 |
Common stock, par value $0.001; 250,000,000 share authorized; 55,276,060 and 48,216,480 shares issued, respectively | 55 | 48 |
Additional paid-in capital | 297,203 | 255,358 |
Accumulated other comprehensive income | -253 | 235 |
Accumulated deficit | -62,496 | -63,416 |
Less treasury stock, at cost; 29,990 shares at September 30, 2014 and December 31, 2013, respectively | -96 | -96 |
Total ORBCOMM Inc. stockholders' equity | 235,304 | 193,148 |
Noncontrolling interest | -32 | -200 |
Total equity | 235,272 | 192,948 |
Total liabilities and equity | $326,537 | $261,474 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowances for doubtful accounts | $629 | $279 |
Preferred Stock, par value | $0.00 | $0.00 |
Preferred Stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred Stock, shares issued | 89,144 | 102,054 |
Preferred Stock, shares outstanding | 89,144 | 102,054 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 55,276,060 | 48,216,480 |
Treasury stock, shares | 29,990 | 29,990 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Service revenues | $15,184 | $13,767 | $44,512 | $41,174 |
Product sales | 7,942 | 5,926 | 22,262 | 13,798 |
Total revenues | 23,126 | 19,693 | 66,774 | 54,972 |
Cost of revenues, exclusive of depreciation and amortization shown below: | ' | ' | ' | ' |
Cost of services | 5,291 | 5,149 | 14,991 | 14,312 |
Cost of product sales | 5,524 | 4,058 | 16,098 | 10,255 |
Gross profit | 12,311 | 10,486 | 35,685 | 30,405 |
Operating expenses: | ' | ' | ' | ' |
Selling, general and administrative | 8,720 | 6,213 | 23,840 | 18,662 |
Product development | 788 | 706 | 2,108 | 1,970 |
Depreciation and amortization | 2,481 | 1,586 | 6,470 | 4,214 |
Acquisition-related costs | 247 | 771 | 1,613 | 1,391 |
Income from operations | 75 | 1,210 | 1,654 | 4,168 |
Other income (expense): | ' | ' | ' | ' |
Interest income | 14 | 5 | 31 | 34 |
Other income | 62 | 41 | 107 | 382 |
Interest expense | -2 | -3 | -3 | -54 |
Total other income | 74 | 43 | 135 | 362 |
Income before income taxes | 149 | 1,253 | 1,789 | 4,530 |
Income taxes | 145 | 254 | 745 | 603 |
Net income | 4 | 999 | 1,044 | 3,927 |
Less: Net income attributable to the noncontrolling interests | 37 | 13 | 105 | 147 |
Net (loss) income attributable to ORBCOMM Inc. | -33 | 986 | 939 | 3,780 |
Net (loss) income attributable to ORBCOMM Inc. common stockholders | ($33) | $971 | $920 | $3,734 |
Per share information-basic: | ' | ' | ' | ' |
Net (loss) income attributable to ORBCOMM Inc. common stockholders | $0 | $0.02 | $0.02 | $0.08 |
Per share information-diluted: | ' | ' | ' | ' |
Net (loss) income attributable to ORBCOMM Inc. common stockholders | $0 | $0.02 | $0.02 | $0.08 |
Weighted average common shares outstanding: | ' | ' | ' | ' |
Basic | 55,247 | 47,498 | 54,561 | 47,213 |
Diluted | 55,247 | 48,728 | 56,275 | 48,475 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $4 | $999 | $1,044 | $3,927 |
Other comprehensive loss, net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustments | -367 | -109 | -425 | -310 |
Other comprehensive loss | -367 | -109 | -425 | -310 |
Comprehensive (loss) income | -363 | 890 | 619 | 3,617 |
Less: Comprehensive loss (income) attributable to noncontrolling interests | -93 | 20 | -168 | -129 |
Comprehensive (loss) income attributable to ORBCOMM Inc. | ($456) | $910 | $451 | $3,488 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $1,044 | $3,927 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Change in allowance for doubtful accounts | 350 | 94 |
Change in the fair value of acquisition-related contingent consideration | -579 | -153 |
Amortization of the fair value adjustment related to warranty liabilities acquired through acquisitions | -156 | -63 |
Depreciation and amortization | 6,470 | 4,214 |
Stock-based compensation | 2,627 | 1,894 |
Foreign exchange (gains) losses | -192 | 19 |
Amortization of premium on marketable securities | ' | 187 |
Increase in fair value of indemnification assets | -126 | -138 |
Loss on settlement agreement in connection with the indemnification assets | 97 | ' |
Deferred income taxes | 333 | 198 |
Other | 201 | ' |
Changes in operating assets and liabilities, net of acquisition: | ' | ' |
Accounts receivable | -73 | -1,746 |
Inventories | -5,576 | 1,368 |
Prepaid expenses and other assets | -716 | -909 |
Accounts payable and accrued liabilities | 1,178 | -2,573 |
Deferred revenue | 614 | -902 |
Other liabilities | 388 | 34 |
Net cash provided by operating activities | 5,884 | 5,451 |
Cash flows from investing activities, net of acquisition: | ' | ' |
Acquisition of businesses | -28,883 | -5,098 |
Capital expenditures | -41,892 | -25,985 |
Proceeds received from settlement agreement in connection with the indemnification assets | 691 | ' |
Proceeds from warranty claim on acquired inventory | 167 | ' |
Purchases of marketable securities | ' | -51,448 |
Proceeds from maturities of marketable securities | ' | 79,230 |
Net cash used in investing activities | -69,917 | -3,301 |
Cash flows from financing activities | ' | ' |
Proceeds received from issuance of common stock in connection with public offering, net of underwriters' discounts and commissions and offering costs of $2,228 | 36,607 | ' |
Proceeds received from issuance of $45,000 Senior Notes | ' | 45,000 |
Cash paid for debt issuance costs | ' | -1,287 |
Proceeds received from exercise of stock options | 62 | 760 |
Payment of deferred purchase consideration | -25 | ' |
Principal payment of note payable | ' | -3,450 |
Principal payments of capital leases | -135 | -160 |
Net cash provided by financing activities | 36,509 | 40,863 |
Effect of exchange rate changes on cash and cash equivalents | -276 | -300 |
Net (decrease) increase in cash and cash equivalents | -27,800 | 42,713 |
Beginning of period | 68,354 | 34,783 |
End of period | 40,554 | 77,496 |
Cash paid for | ' | ' |
Interest | 3,206 | 3,191 |
Income taxes | 237 | 1,332 |
Noncash investing and financing activities: | ' | ' |
Capital expenditures incurred not yet paid | 6,372 | 6,717 |
Stock-based compensation included in capital expenditures | 227 | 86 |
Series A convertible preferred stock dividend paid in-kind | 19 | 46 |
Issuance of common stock as consideration for acquisition of businesses | 2,243 | 1,633 |
Common stock issued as form of payment for MPUs | 213 | ' |
Acquisition-related contingent consideration | 4,809 | 1,539 |
Gateway and components recorded in inventory in prior years which were used for construction under satellite network and other equipment | ' | 31 |
Unpaid debt issuance costs included in accrued liabilities | $1,524 | $46 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (Parenthetical) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Statement of Cash Flows [Abstract] | ' |
Issuance of senior notes | $45,000 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Changes in Equity (USD $) | Total | Euroscan Holding B.V. [Member] | MobileNet [Member] | Series A Convertible Preferred Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] | Noncontrolling Interests [Member] |
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Euroscan Holding B.V. [Member] | MobileNet [Member] | USD ($) | Euroscan Holding B.V. [Member] | MobileNet [Member] | USD ($) | USD ($) | USD ($) | USD ($) |
USD ($) | USD ($) | USD ($) | ||||||||||||
Beginning balances at Dec. 31, 2012 | $182,388 | ' | ' | $1,612 | $47 | ' | ' | $248,469 | ' | ' | $633 | ($67,956) | ($96) | ($321) |
Beginning balances, shares at Dec. 31, 2012 | ' | ' | ' | 161,359 | 46,783,568 | ' | ' | ' | ' | ' | ' | ' | 29,990 | ' |
Vesting of restricted stock units, shares | ' | ' | ' | ' | 83,821 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation | 1,796 | ' | ' | ' | ' | ' | ' | 1,796 | ' | ' | ' | ' | ' | ' |
Conversion of Series A convertible preferred stock to common stock | ' | ' | ' | -370 | ' | ' | ' | 370 | ' | ' | ' | ' | ' | ' |
Conversion of Series A convertible preferred stock to common stock, shares | ' | ' | ' | -37,017 | 61,673 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock as purchase price consideration for acquisition | 1,633 | ' | 1,633 | ' | ' | ' | ' | ' | ' | 1,633 | ' | ' | ' | ' |
Issuance of common stock as purchase price consideration for acquisition, shares | ' | ' | ' | ' | ' | ' | 329,344 | ' | ' | ' | ' | ' | ' | ' |
Series A convertible preferred stock dividend | ' | ' | ' | 46 | ' | ' | ' | ' | ' | ' | ' | -46 | ' | ' |
Series A convertible preferred stock dividend, shares | ' | ' | ' | 4,647 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of SARs, shares | ' | ' | ' | ' | 167,377 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of stock options | 760 | ' | ' | ' | 1 | ' | ' | 759 | ' | ' | ' | ' | ' | ' |
Exercise of stock options, shares | ' | ' | ' | ' | 308,004 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 3,927 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,780 | ' | 147 |
Foreign currency translation adjustments | -310 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -292 | ' | ' | -18 |
Ending balances at Sep. 30, 2013 | 190,194 | ' | ' | 1,288 | 48 | ' | ' | 253,027 | ' | ' | 341 | -64,222 | -96 | -192 |
Ending balances, shares at Sep. 30, 2013 | ' | ' | ' | 128,989 | 47,733,787 | ' | ' | ' | ' | ' | ' | ' | 29,990 | ' |
Beginning balances at Dec. 31, 2013 | 192,948 | ' | ' | 1,019 | 48 | ' | ' | 255,358 | ' | ' | 235 | -63,416 | -96 | -200 |
Beginning balances, shares at Dec. 31, 2013 | ' | ' | ' | 102,054 | 48,216,480 | ' | ' | ' | ' | ' | ' | ' | 29,990 | ' |
Vesting of restricted stock units, shares | ' | ' | ' | ' | 279,538 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation | 2,580 | ' | ' | ' | ' | ' | ' | 2,580 | ' | ' | ' | ' | ' | ' |
Proceeds received from issuance of common stock in connection with public offering, net of underwriters' discounts and commissions and offering costs of $2,228 | 36,607 | ' | ' | ' | 6 | ' | ' | 36,601 | ' | ' | ' | ' | ' | ' |
Proceeds received from issuance of common stock in connection with public offering, net of underwriters' discounts and commissions and offering costs, shares | ' | ' | ' | ' | 6,325,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued as form of payment for MPUs | 213 | ' | ' | ' | ' | ' | ' | 213 | ' | ' | ' | ' | ' | ' |
Common stock issued as form of payment for MPUs, shares | ' | ' | ' | ' | 33,594 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of Series A convertible preferred stock to common stock | ' | ' | ' | -147 | ' | ' | ' | 147 | ' | ' | ' | ' | ' | ' |
Conversion of Series A convertible preferred stock to common stock, shares | ' | ' | ' | -14,850 | 24,740 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock as purchase price consideration for acquisition | 2,243 | 2,243 | ' | ' | ' | 1 | ' | ' | 2,242 | ' | ' | ' | ' | ' |
Issuance of common stock as purchase price consideration for acquisition, shares | ' | ' | ' | ' | ' | 291,230 | ' | ' | ' | ' | ' | ' | ' | ' |
Series A convertible preferred stock dividend | ' | ' | ' | 19 | ' | ' | ' | ' | ' | ' | ' | -19 | ' | ' |
Series A convertible preferred stock dividend, shares | ' | ' | ' | 1,940 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of SARs, shares | ' | ' | ' | ' | 84,686 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of stock options | 62 | ' | ' | ' | ' | ' | ' | 62 | ' | ' | ' | ' | ' | ' |
Exercise of stock options, shares | ' | ' | ' | ' | 20,792 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 1,044 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 939 | ' | 105 |
Foreign currency translation adjustments | -425 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -488 | ' | ' | 63 |
Ending balances at Sep. 30, 2014 | $235,272 | ' | ' | $891 | $55 | ' | ' | $297,203 | ' | ' | ($253) | ($62,496) | ($96) | ($32) |
Ending balances, shares at Sep. 30, 2014 | ' | ' | ' | 89,144 | 55,276,060 | ' | ' | ' | ' | ' | ' | ' | 29,990 | ' |
Condensed_Consolidated_Stateme5
Condensed Consolidated Statements of Changes in Equity (Parenthetical) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Statement of Stockholders' Equity [Abstract] | ' |
Underwriters' discounts and commissions and offering costs | $2,228 |
Overview
Overview | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Overview | ' |
1. Overview | |
ORBCOMM Inc. (“ORBCOMM” or the “Company”), a Delaware corporation, is a global wireless data communications company focused on machine-to-machine (“M2M”) communications. The Company’s services are designed to enable businesses and government agencies to track, monitor, and control and communicate with fixed and mobile assets. The Company operates a two-way global wireless data messaging system optimized for narrowband data communication. The Company also provides customers with technology to proactively monitor, manage and remotely control refrigerated transportation and other mobile assets. This technology enables the Company to expand its global technology platform by transferring capabilities across new and existing vertical markets and deliver complementary products to our channel partners and resellers worldwide. The Company provides these services through a constellation of 31 owned low-Earth orbit, or LEO, satellites, comprised of 25 first generation satellites and six next-generation satellites placed into service in September 2014, two AIS microsatellites and accompanying ground infrastructure, as well as terrestrial-based cellular communication services through reseller agreements with major cellular wireless providers. The Company’s satellite-based system uses small, low power, fixed or mobile satellite subscriber communicators (“Communicators”) for connectivity, and cellular wireless subscriber identity modules (“SIMS”) that are connected to the cellular wireless providers’ networks, with these systems capable of being connected to other public or private networks, including the Internet (collectively, the “ORBCOMM System”). |
Summary_of_Significant_Account
Summary of Significant Accounting Principals | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Summary of Significant Accounting Principals | ' | ||||||||||||||||
2. Summary of Significant Accounting Principals | |||||||||||||||||
Basis of Presentation | |||||||||||||||||
The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to SEC rules. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. In the opinion of management, the financial statements as of September 30, 2014 and for the quarters and nine months ended September 30, 2014 and 2013 include all adjustments (including normal recurring accruals) necessary for a fair presentation of the consolidated financial position, results of operations, comprehensive income and cash flows for the periods presented. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. The financial statements include the accounts of the Company, its wholly-owned and majority-owned subsidiaries, and investments in variable interest entities in which the Company is determined to be the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation. The portions of majority-owned subsidiaries that the Company does not own are reflected as noncontrolling interests in the condensed consolidated balance sheets. | |||||||||||||||||
The Company has made certain reclassifications to prior period information to conform to the current period presentation, including (i) the reclassification of depreciation and amortization from cost of services, cost of product sales, product development and selling, general and administrative (“SG&A”) expenses into its own caption in the condensed consolidated statements of operations and (ii) the inclusion of a gross profit subtotal caption on the condensed consolidated statements of operations. These reclassifications had no effect on previously reported net income. | |||||||||||||||||
Investments | |||||||||||||||||
Investments in entities over which the Company has the ability to exercise significant influence but does not have a controlling interest are accounted for under the equity method of accounting. The Company considers several factors in determining whether it has the ability to exercise significant influence with respect to investments, including, but not limited to, direct and indirect ownership level in the voting securities, active participation on the board of directors, approval of operating and budgeting decisions and other participatory and protective rights. Under the equity method, the Company’s proportionate share of the net income or loss of such investee is reflected in the Company’s condensed consolidated results of operations. When the Company does not exercise significant influence over the investee the investment is accounted under the cost method. | |||||||||||||||||
Although the Company owns interests in companies that it accounts for pursuant to the equity method, the investments in those entities had no carrying value as of September 30, 2014 and December 31, 2013. The Company has no guarantees or other funding obligations to those entities. The Company had no equity or losses of those investees for the quarters and nine months ended September 30, 2014 and 2013. | |||||||||||||||||
Acquisition-related Costs | |||||||||||||||||
Acquisition-related costs are expensed as incurred and are presented separately on the condensed consolidated statement of operations. These costs may include professional services expenses, as well as identifiable integration costs, directly relating to acquisitions. | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The Company has no financial assets or liabilities that are measured at fair value on a recurring basis. However, if certain triggering events occur the Company is required to evaluate the non-financial assets for impairment and any resulting asset impairment would require that a non-financial asset be recorded at the fair value. Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820 “Fair Value Measurement Disclosure,” prioritizes inputs used in measuring fair value into a hierarchy of three levels: Level 1 – unadjusted quoted prices for identical assets or liabilities traded in active markets; Level 2 – inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and Level 3 – unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions that market participants would use in pricing. | |||||||||||||||||
The carrying value of the Company’s financial instruments, including cash, accounts receivable, note receivable and accounts payable approximated their fair value due to the short-term nature of these items. The carrying value of the Senior Notes approximated its fair value due to its recent issuance. | |||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||
The Company’s customers are primarily commercial organizations. Accounts receivable are generally unsecured. | |||||||||||||||||
Accounts receivable are due in accordance with payment terms included in contracts negotiated with customers. Amounts due from customers are stated net of an allowance for doubtful accounts. The Company determines its allowance for doubtful accounts by considering a number of factors, including the length of time accounts are past due, the customer’s current ability to pay its obligations to the Company and the condition of the general economy and the industry as a whole. The Company writes-off accounts receivable when they are deemed uncollectible. | |||||||||||||||||
The following table presents customers with revenues greater than 10% of the Company’s consolidated total revenues for the periods shown: | |||||||||||||||||
Three Months ended | Nine Months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Caterpillar Inc. | 13.5 | % | 14.7 | % | 13.3 | % | 18.1 | % | |||||||||
Komatsu Ltd. | 11.6 | % | 11.8 | % | 11.3 | % | 12 | % | |||||||||
The following table presents customers with accounts receivable greater than 10% of the Company’s consolidated accounts receivable for the periods shown: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Caterpillar Inc. | 19 | % | 20.9 | % | |||||||||||||
As of September 30, 2014, the Company did not maintain in-orbit insurance coverage for its first generation satellites to address the risk of potential systemic anomalies, failures or catastrophic events affecting its satellite constellation. | |||||||||||||||||
In connection with the next-generation satellite launch, as discussed in “Note 6 – Satellite Network and Other Equipment,” the Launch One coverage, as defined below, under the in-orbit insurance obtained by the Company in April 2014, took effect in July 2014. Refer to “Note 15 – Commitments and Contingencies” for more information regarding the coverage obtained through the policy. | |||||||||||||||||
Inventories | |||||||||||||||||
Inventories are stated at the lower of cost or market, determined on a first-in, first-out basis. Inventory consists primarily of raw materials and purchased parts to be utilized by its contract manufacturer. The Company reviews inventory quantities on hand and evaluates the realizability of inventories and adjusts the carrying value as necessary based on forecasted product demand. A provision is made for potential losses on obsolete inventories when identified. | |||||||||||||||||
Restricted Cash | |||||||||||||||||
Restricted cash of $2,195, principally consists of the remaining cash collateral of $2,000 for a performance bond required by the U.S. Federal Communications Commission (“FCC”) in connection with the construction, launch and operation of the next-generation satellites that was authorized in the March 21, 2008 FCC Space License modification. Under the terms of the performance bond, the cash collateral will be reduced in increments of $1,000 upon completion of specified milestones. The Company certified completion of the fourth milestone and the FCC refunded the Company $1,000 in October 2014. Accordingly, as of September 30, 2014, the Company classified $1,000 of restricted cash in prepaid expenses and other current assets and $1,195 in restricted cash on the condensed consolidated balance sheet. | |||||||||||||||||
Warranty Costs | |||||||||||||||||
The Company accrues for one-year warranty coverage on product sales estimated at the time of sale based on historical costs to repair or replace products for customers compared to historical product revenues. The warranty accrual is included in accrued liabilities on the condensed consolidated balance sheet. Refer to “Note 8 – Accrued Liabilities” for more information. | |||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In June 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-12 “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (“ASU 2014-12”), which is effective for the fiscal years beginning after December 15, 2015. ASU 2014-12 requires a reporting entity to treat a performance target that affects vesting and that could be achieved after the requisite service period as a performance condition. A reporting entity should apply FASB ASC Topic 718 “Compensation – Stock Compensation,” to awards with performance conditions that affect vesting. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements. | |||||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09 “Revenue from Contracts with Customers” (“ASU 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. | |||||||||||||||||
In August 2014, the FASB issued ASU No. 2014-15 “Presentation of Financial Statements – Going Concern” (“ASU 2015-15”) related to the disclosures around going concern. The new standard provides guidance around management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on our financial statements. |
Acquisitions
Acquisitions | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Acquisitions | ' | ||||||||
3. Acquisitions | |||||||||
Euroscan Holding B.V. | |||||||||
On March 11, 2014, pursuant to the Share Purchase Agreement entered into by the Company and MWL Management B.V., R.Q. Management B.V., WBB GmbH, ING Corporate Investments Participaties B.V. and Euroscan Holding B.V., as sellers (the “Share Purchase Agreement”), the Company completed the acquisition of 100% of the outstanding equity of Euroscan Holding B.V., including, indirectly, its wholly-owned subsidiaries Euroscan B.V., Euroscan GmbH Vertrieb Technischer Geräte, Euroscan Technology Ltd. and Ameriscan, Inc. (collectively, the “Euroscan Group” or “Euroscan”) for an aggregate consideration of (i) $29,163 (€20,999), subject to net working capital adjustments and net cash (on a debt free, cash free basis); (ii) issuance of 291,230 shares of the Company’s common stock, valued at $7.70 per share, which reflected the Company’s closing price on the acquisition date; and (iii) additional contingent considerations of up to $6,547, €4,714 (the “Euroscan Acquisition”). As this acquisition was effective on March 11, 2014, the results of operations of Euroscan were included in the condensed consolidated financial statements beginning March 12, 2014. | |||||||||
Preliminary Estimated Purchase Price Allocation | |||||||||
The transaction has been accounted for using the acquisition method of accounting. This method requires that assets acquired and liabilities assumed in a business combination be recognized at their fair values as of the acquisition date. The excess of the preliminary purchase price over the preliminary net assets was recorded as goodwill. The preliminary allocation of the purchase price was based upon a preliminary valuation and the estimates and assumptions are subject to change. The purchase price allocation will be finalized in connection with the final working capital settlement. The Company anticipates finalizing the purchase price allocation by the first quarter of 2015. During the quarter ended September 30, 2014, the Company recorded a measurement period adjustment relating to accounts receivable and other working capital adjustments, which impacted goodwill by $220. The preliminary estimated purchase price allocation for the acquisition is as follows: | |||||||||
Amount | |||||||||
Cash | $ | 280 | |||||||
Accounts receivable | 2,852 | ||||||||
Inventory | 1,394 | ||||||||
Other current assets | 579 | ||||||||
Property, plant and equipment | 324 | ||||||||
Intangible assets | 17,400 | ||||||||
Other noncurrent assets | 543 | ||||||||
Total identifiable assets acquired | 23,372 | ||||||||
Accounts payable and accrued expenses | 2,576 | ||||||||
Deferred revenues | 44 | ||||||||
Deferred tax liabilities | 4,558 | ||||||||
Total liabilities assumed | 7,178 | ||||||||
Net identifiable assets acquired | 16,194 | ||||||||
Goodwill | 20,011 | ||||||||
Total preliminary purchase price | $ | 36,205 | |||||||
Contingent Consideration | |||||||||
Additional consideration is conditionally due to MWL Management B.V. and R.Q. Management B.V. upon achievement of financial and operational milestones. The fair value measurement of the contingent consideration obligation is determined using Level 3 unobservable inputs supported by little or no market activity based on our own assumptions. The estimated fair value of the contingent consideration was determined based on the Company’s preliminary estimates using the probability-weighted discounted cash flow approach. As of September 30, 2014, the Company recorded $2,257 in accrued expenses and $2,849 in other non-current liabilities on the condensed consolidated balance sheet. Changes in the fair value of the contingent consideration obligations are recorded in the condensed consolidated statement of operations. For the quarter and nine months ended September 30, 2014, charges of $137 and $297, respectively, were recorded in SG&A expenses for accretion associated with the contingent consideration. | |||||||||
Intangible Assets | |||||||||
The estimated fair value of the technology and trademark intangible assets was determined using the “relief from royalty method” under the income approach, which is a valuation technique that provides an estimate of the fair value of an asset based on the costs savings that are available through ownership of the asset by the avoidance of paying royalties to license the use of the assets from another owner. The estimated fair value of the customer lists was determined using the “excess earnings method” under the income approach, which represents the total income to be generated by the asset. Some of the more significant assumptions inherent in the development of those asset valuations include the projected revenue associated with the asset, the appropriate discount rate to select in order to measure the risk inherent in each future cash flow stream, the assessment of each asset’s life cycle, as well as other factors. The discount rate used to arrive at the present value at the acquisition date of the customer lists, technology and trademarks was 17.5%. The remaining useful lives of the technology and trademarks were based on historical product development cycles, the projected rate of technology migration and a market participant’s use of these intangible assets and the pattern of projected economic benefit of these intangible assets. The remaining useful lives of customer lists were based on the customer attrition and the projected economic benefit of these customers. | |||||||||
Estimated | Amount | ||||||||
Useful life | |||||||||
(years) | |||||||||
Customer lists | 12 | $ | 14,400 | ||||||
Technology | 10 | 2,400 | |||||||
Trademarks | 10 | 600 | |||||||
$ | 17,400 | ||||||||
Goodwill | |||||||||
The Euroscan Acquisition allows the Company to complement its North American Operations in M2M by adding a significant distribution channel in Europe and other key geographies where Euroscan has market share. These factors contributed to a preliminary estimated purchase price resulting in the recognition of goodwill. The goodwill recorded as part of the acquisition is partially related to the establishment of a deferred tax liability for the intangible assets which have no tax basis and, therefore, will not result in a future tax deduction. In October 2014, the Company reached a conclusion to make the Internal Revenue Code (“IRS”) Section 338g election to treat the acquisition as a deemed asset sale. The election has been made prospectively and did not have an impact on the opening balance sheet. | |||||||||
Indemnification Asset | |||||||||
In connection with the Share Purchase Agreement, the Company entered into an escrow agreement with MWL Management B.V., R.Q. Management B.V and an escrow agent. Under the terms of this escrow agreement, €1,000 was placed in an escrow account through March 11, 2016 to fund any indemnification obligations to the Company under the Share Purchase Agreement. Under the terms of the escrow agreement, the escrow amount is subject to reduction and early release to the extent no unresolved claims exist in the amount of €250 at the end of each 6 month interval in the period from March 12, 2014 through March 11, 2016. | |||||||||
Sensor Enabled Notification System | |||||||||
On October 1, 2013, pursuant the Asset Purchase Agreement entered into by the Company and Comtech Mobile Datacom Corporation (“Comtech”), the Company acquired certain assets and liabilities of Comtech’s Sensor Enabled Notification System (“SENS”) operations for a total cash consideration of $1,978 (the “SENS Acquisition”). The SENS Acquisition gave the Company access to a customer base that included military, international, government and commercial customers, as well as expanded reach in growing regions, such as Middle East, Asia and South America. The Company’s purchase price allocation has been finalized as of September 30, 2014. | |||||||||
GlobalTrak | |||||||||
On April 3, 2013, pursuant to the Asset Purchase Agreement dated March 13, 2013 among the Company and System Planning Corporation (“SPC” and collectively the “GlobalTrak Asset Purchase Agreement”), the Company acquired certain assets and liabilities of GlobalTrak for total consideration of $2,990 (the “GlobalTrak Acquisition”), of which $500 was deposited in escrow with a third party escrow agent. The GlobalTrak Acquisition gives the Company access to a customer base that includes military, international, government and commercial customers, as well as expanded reach in growing regions, such as the Middle East, Asia and South America. | |||||||||
Measurement Period Adjustments | |||||||||
In April 2014, the Company reduced warranty liabilities assumed in connection with the GlobalTrak Acquisition. As a result, the Company recorded a measurement period adjustment in April 2014 relating to warranties, which decreased goodwill and warranty liability by $250. The Company’s purchase price allocation has been finalized as of April 2, 2014. | |||||||||
Indemnification Asset | |||||||||
In April 2014, the Company entered into an agreement with SPC to settle claims relating to breaches of representations and warranties under the GlobalTrak Asset Purchase Agreement. Under the terms of the agreement, SPC agreed to direct the third party escrow agent to release $167 from the escrow and distribute to the Company. Following the settlement of indemnification claims, the Company notified the escrow agent to release the remaining funds from escrow and distribute to SPC. As a result of the settlement, in April 2014 the Company decreased goodwill by $167. | |||||||||
MobileNet, Inc. | |||||||||
On April 1, 2013, pursuant to an Asset Purchase Agreement dated March 13, 2013 among the Company and MobileNet, Inc. (“MobileNet”), the Company acquired substantially all of the assets of MobileNet for a total consideration $6,404 consisting of cash, shares of common stock and contingent considerations (the “MobileNet Acquisition”). The MobileNet Acquisition enabled the Company to offer MobileNet’s complete fleet management solution directly to original equipment manufacturers, dealers and fleet owners. The Company’s purchase price allocation has been finalized as of March 31, 2014. | |||||||||
Contingent Consideration | |||||||||
Additional consideration in connection with the MobileNet Acquisition is conditionally due to MobileNet for the achievement of certain service revenue milestones attributable to the MobileNet business. The Company estimated the fair value of the contingent earn-out amounts using a probability-weighted discount model and a discount rate of 18%. The Company recorded a reduction of the contingent liability of $132 and $902 in SG&A expenses in the condensed consolidated statement of operations in the quarter and nine months ended September 30, 2014, respectively. As of September 30, 2014 the balance of the contingent liability, recorded in accrued expenses on the condensed consolidated balance sheet, was $16. As of December 31, 2013, the balance of the contingent liability, recorded in other liabilities on the consolidated balance sheet was $918. | |||||||||
LMS | |||||||||
On January 12, 2012, pursuant to an Asset Purchase Agreement dated December 23, 2011 among the Company, StarTrak Logistics Management Solutions, LLC, PAR Technology Corporation, PAR Government Systems Corporation (collectively “PAR”) and Par Logistics Management Systems Corporation (“LMS”), the Company acquired the assets and assumed certain liabilities of LMS, a wholly-owned subsidiary of PAR, for consideration of $6,863 consisting of cash, shares of common stock and contingent considerations (the “LMS Acquisition”). The LMS Acquisition enhanced the Company’s position in transportation solutions and expanded its satellite, terrestrial and dual mode offerings. | |||||||||
Contingent Consideration | |||||||||
Additional consideration in connection with the LMS Acquisition is conditionally due to PAR upon the achievement of certain sales targets through 2014. The Company estimated the fair value of the contingent earn-out amounts using a probability-weighted discounted cash flow model. In April 2014, the Company paid $25 to PAR in connection with the achievement of the first tranche of milestones as set forth in the LMS Asset Purchase Agreement. As of September 30, 2014, the balance of the contingent liability of $207 was recorded in accrued expenses on the condensed consolidated balance sheet. As of December 31, 2013, $24 and $184 was included in accrued liabilities and other liabilities on the consolidated balance sheet, respectively. For the quarter and nine months ended September 30, 2014, charges of $8 and $24 were recorded in SG&A expenses for accretion associated with the contingent consideration, respectively. | |||||||||
StarTrak | |||||||||
On May 16, 2011, pursuant to an Asset Purchase Agreement dated February 23, 2011 among the Company, Alanco Technologies (“Alanco”) and StarTrak Systems, LLC (“StarTrak”), the Company acquired substantially all of the assets of StarTrak, a wholly-owned subsidiary of Alanco, for total consideration of $18,242 (“the StarTrak Acquisition”). The acquisition of StarTrak enabled the Company to create a global technology platform to transfer capabilities across new and existing vertical markets and deliver complementary products to the Company’s channel partners and resellers worldwide. | |||||||||
Warranty Liabilities and Escrow Agreement | |||||||||
As a result of the StarTrak Acquisition, the Company recorded warranty obligations on StarTrak’s product sales, which provide for costs to replace or fix the product. One-year warranty coverage is accrued on product sales which provide for costs to replace or fix the product. | |||||||||
Additionally, in connection with the StarTrak Acquisition, the Company entered into an escrow agreement with Alanco. Under the terms of the escrow agreement, 166,611 shares of common stock were issued to Alanco and placed in an escrow account to cover 50% of certain costs relating to fuel sensor warranty obligations incurred by the Company. On February 24, 2014 the Company and Alanco entered into a settlement agreement to distribute the 166,611 shares of common stock from the escrow account to Alanco. In consideration for agreeing to distribute these shares of common stock, the Company received $691 from Alanco. The Company recorded a loss of $0 and $97 for the difference between the value of the indemnification asset and the amount received from Alanco, which was recorded in SG&A expenses in the condensed consolidated statements of operations in the quarter and nine months ended September 30, 2014, respectively. In addition, the Company recorded a gain of $126 on the fair value of the common stock held in escrow. This gain was recorded as a reduction to SG&A expenses in the condensed consolidated statement of operations in the nine months ended September 30, 2014. |
Stockbased_Compensation
Stock-based Compensation | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Stock-based Compensation | ' | ||||||||||||||||
4. Stock-based Compensation | |||||||||||||||||
The Company’s stock-based compensation plans consist of its 2006 Long-Term Incentives Plan (the “2006 LTIP”) and its 2004 Stock Option Plan. As of September 30, 2014, there were 3,371,115 shares available for grant under the 2006 LTIP and no shares available for grant under the 2004 Stock Option Plan. | |||||||||||||||||
Total stock-based compensation recorded by the Company for the quarters ended September 30, 2014 and 2013 was $852 and $674, respectively, and for the nine months ended September 30, 2014 and 2013 was $2,627 and $1,894, respectively. Total capitalized stock-based compensation for the quarters ended September 30, 2014 and 2013 was $99 and $35, respectively, and for the nine months ended September 30, 2014 and 2013 was $227 and $86, respectively. | |||||||||||||||||
The following table summarizes the components of stock-based compensation expense in the condensed consolidated statements of operations for the quarters and nine months ended September 30, 2014 and 2013: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Cost of services | $ | 49 | $ | 81 | $ | 127 | $ | 202 | |||||||||
Cost of product sales | (7 | ) | 24 | 42 | 71 | ||||||||||||
Selling, general and administrative | 763 | 452 | 2,283 | 1,444 | |||||||||||||
Product development | 47 | 117 | 175 | 177 | |||||||||||||
Total | $ | 852 | $ | 674 | $ | 2,627 | $ | 1,894 | |||||||||
As of September 30, 2014, the Company had unrecognized compensation costs for stock appreciation rights and restricted stock unit arrangements totaling $1,792. | |||||||||||||||||
2006 LTIP | |||||||||||||||||
Time-Based Stock Appreciation Rights | |||||||||||||||||
A summary of the Company’s time-based Stock Appreciation Rights (“SARs”) for the nine months ended September 30, 2014 is as follows: | |||||||||||||||||
Number of | Weighted-Average | Weighted-Average | Aggregate | ||||||||||||||
Shares | Exercise Price | Remaining | Intrinsic | ||||||||||||||
Contractual | Value | ||||||||||||||||
Term (years) | (In thousands) | ||||||||||||||||
Outstanding at January 1, 2014 | 3,611,567 | $ | 4.2 | ||||||||||||||
Granted | 75,000 | 7.3 | |||||||||||||||
Exercised | (117,700 | ) | 3.36 | ||||||||||||||
Forfeited or expired | (68,700 | ) | 4.93 | ||||||||||||||
Outstanding at September 30, 2014 | 3,500,167 | $ | 4.29 | 6.16 | $ | 5,619 | |||||||||||
Exercisable at September 30, 2014 | 2,876,034 | $ | 3.97 | 5.53 | $ | 5,462 | |||||||||||
Vested and expected to vest at September 30, 2014 | 3,500,167 | $ | 4.29 | 6.16 | $ | 5,619 | |||||||||||
For the quarters ended September 30, 2014 and 2013, the Company recorded stock-based compensation expense of $344 and $363 relating to these SARs, respectively. For the nine months ended September 30, 2014 and 2013, the Company recorded stock-based compensation expense of $1,185 and $1,007 relating to these SARs, respectively. As of September 30, 2014, $1,044 of total unrecognized compensation cost related to these SARs is expected to be recognized through July 2017. | |||||||||||||||||
The weighted-average grant date fair value of the time-based SARs granted during the nine months ended September 30, 2014 was $4.49. | |||||||||||||||||
The intrinsic value of the SARs exercised was $389 for the nine months ended September 30, 2014. | |||||||||||||||||
Performance-Based Stock Appreciation Rights | |||||||||||||||||
A summary of the Company’s performance-based SARs for the nine months ended September 30, 2014 is as follows: | |||||||||||||||||
Number of | Weighted-Average | Weighted-Average | Aggregate | ||||||||||||||
Shares | Exercise Price | Remaining | Intrinsic Value | ||||||||||||||
Contractual | (In thousands) | ||||||||||||||||
Term (years) | |||||||||||||||||
Outstanding at January 1, 2014 | 865,713 | $ | 5.37 | ||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (59,012 | ) | 3.52 | ||||||||||||||
Forfeited or expired | (13,600 | ) | 6.33 | ||||||||||||||
Outstanding at September 30, 2014 | 793,101 | $ | 5.49 | 5.62 | $ | 1,420 | |||||||||||
Exercisable at September 30, 2014 | 793,101 | $ | 5.49 | 5.62 | $ | 1,420 | |||||||||||
Vested and expected to vest at September 30, 2014 | 793,101 | $ | 5.49 | 5.62 | $ | 1,420 | |||||||||||
For the quarters ended September 30, 2014 and 2013, the Company recorded stock-based compensation of $0 and $44 relating to these SARs, respectively. For the nine months ended September 30, 2014 and 2013, the Company recorded stock-based compensation of $47 and $166 relating to these SARs, respectively. As of September 30, 2014, the Company had no unrecognized compensation cost related to these SARs. | |||||||||||||||||
The intrinsic value of the SARs exercised was $171 for the nine months ended September 30, 2014. | |||||||||||||||||
The fair value of each time-based and performance-based SAR award is estimated on the date of grant using the Black-Scholes option pricing model with the assumptions described below. For the periods indicated the expected volatility was based on the Company’s historical volatility over the expected terms of SAR awards. Estimated forfeitures were based on voluntary and involuntary termination behavior, as well as analysis of actual forfeitures. The risk-free interest rate was based on the U.S. Treasury yield curve at the time of the grant over the expected term of the SAR grants. | |||||||||||||||||
Nine months ended September 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Risk-free interest rate | 1.81% and 1.94% | 0.91% to 1.99% | |||||||||||||||
Expected life (years) | 6 | 5.5 and 6.0 | |||||||||||||||
Estimated volatility factor | 66.07% and 67.34% | 68.39% to 69.92% | |||||||||||||||
Expected dividends | None | None | |||||||||||||||
Time-based Restricted Stock Units | |||||||||||||||||
A summary of the Company’s time-based Restricted Stock Units (“RSUs”) for the nine months ended September 30, 2014 is as follows: | |||||||||||||||||
Shares | Weighted-Average | ||||||||||||||||
Grant Date Fair Value | |||||||||||||||||
Balance at January 1, 2014 | 85,270 | $ | 3.32 | ||||||||||||||
Granted | 90,255 | 7.04 | |||||||||||||||
Vested | (65,270 | ) | 3.83 | ||||||||||||||
Forfeited or expired | — | — | |||||||||||||||
Balance at September 30, 2014 | 110,255 | $ | 6.06 | ||||||||||||||
For the quarters ended September 30, 2014 and 2013, the Company recorded stock-based compensation expense of $169 and $145 related to these RSUs, respectively. For the nine months ended September 30, 2014 and 2013, the Company recorded stock-based compensation expense of $426 and $285 related to these RSUs, respectively. As of September 30, 2014, $274 of total unrecognized compensation cost related to these RSUs is expected to be recognized through December 2015. | |||||||||||||||||
Performance-based Restricted Stock Units | |||||||||||||||||
A summary of the Company’s performance-based RSUs for the nine months ended September 30, 2014 is as follows: | |||||||||||||||||
Shares | Weighted-Average | ||||||||||||||||
Grant Date Fair Value | |||||||||||||||||
Balance at January 1, 2014 | 313,000 | $ | 4.26 | ||||||||||||||
Granted | 125,650 | 6.18 | |||||||||||||||
Vested | (208,868 | ) | 3.96 | ||||||||||||||
Forfeited or expired | (64,307 | ) | 4.28 | ||||||||||||||
Balance at September 30, 2014 | 165,475 | $ | 6.09 | ||||||||||||||
For the quarters ended September 30, 2014 and 2013, the Company recorded stock-based compensation expense of $264 and $27 related to these RSUs, respectively. For the nine months ended September 30, 2014 and 2013, the Company recorded stock-based compensation expense of $695 and $252 related to these RSUs, respectively. As of September 30, 2014, $474 of total unrecognized compensation cost related to these RSUs is expected to be recognized through March 2015. | |||||||||||||||||
The fair values of the time-based and performance-based RSU awards are based upon the closing stock price of the Company’s common stock on the date of grant. | |||||||||||||||||
Performance Units | |||||||||||||||||
The Company grants Market Performance Units (“MPUs”) to its senior executives based on stock price performance over a three-year period measured on December 31 for each performance period. The MPUs will vest at the end of each performance period only if the Company satisfies the stock price performance targets and continued employment by the senior executives through the dates the Compensation Committee has determined that the targets have been achieved. The value of the MPUs that will be earned each year ranges up to 15% of each of the senior executives’ 2013 base salaries depending on the Company’s stock price performance target for that year. The value of the MPUs can be paid in either cash or common stock or a combination at the Company’s option. The MPUs are classified as a liability and are revalued at the end of each reporting period based on the awards fair value over a three-year period. | |||||||||||||||||
As the MPUs contain both a performance and service condition, the MPUs have been treated as a series of three separate awards, or tranches, for purposes of recognizing stock-based compensation expense. The Company recognizes stock-based compensation expense on a tranche-by-tranche basis over the requisite service period for that specific tranche. The Company estimated the fair value of the MPUs using a Monte Carlo Simulation Model that used the following assumptions: | |||||||||||||||||
Nine months ended September 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Risk-free interest rate | 0.02% to 0.70% | 0.03% to 0.46% | |||||||||||||||
Estimated volatility factor | 34.00% to 40.00% | 40.00% | |||||||||||||||
Expected dividends | None | None | |||||||||||||||
For the quarters ended September 30, 2014 and 2013, the Company recorded stock-based compensation of $75 and $95 relating to these MPUs, respectively. For the nine months ended September 30, 2014 and 2013, the Company recorded stock-based compensation of $274 and $184 relating to these MPUs, respectively. | |||||||||||||||||
2004 Stock Option Plan | |||||||||||||||||
A summary of the status of the Company’s stock options as of September 30, 2014 is as follows: | |||||||||||||||||
Number of | Weighted-Average | Weighted-Average | Aggregate | ||||||||||||||
Shares | Exercise Price | Remaining | Intrinsic Value | ||||||||||||||
Contractual | (In thousands) | ||||||||||||||||
Term (years) | |||||||||||||||||
Outstanding at January 1, 2014 | 88,446 | $ | 4.04 | ||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (20,792 | ) | 2.98 | ||||||||||||||
Forfeited or expired | (17,654 | ) | 2.91 | ||||||||||||||
Outstanding at September 30, 2014 | 50,000 | $ | 4.88 | 0.59 | $ | 44 | |||||||||||
Exercisable at September 30, 2014 | 50,000 | $ | 4.88 | 0.59 | $ | 44 | |||||||||||
Vested and expected to vest at September 30, 2014 | 50,000 | $ | 4.88 | 0.59 | $ | 44 | |||||||||||
The intrinsic value of the stock options exercised was $58 for the nine months ended September 30, 2014. |
Net_Loss_Income_Attributable_t
Net (Loss) Income Attributable to ORBCOMM Inc. Common Stockholders | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Net (Loss) Income Attributable to ORBCOMM Inc. Common Stockholders | ' | ||||||||||||||||
5. Net (Loss) Income Attributable to ORBCOMM Inc. Common Stockholders | |||||||||||||||||
The Company accounts for earnings per share (“EPS”) in accordance with ASC Topic 260, “Earnings Per Share” (“ASC 260”) and related guidance, which requires two calculations of EPS to be disclosed: basic and diluted. The numerator in calculating basic and diluted EPS is an amount equal to the net (loss) income attributable to ORBCOMM Inc. common stockholders for the periods presented. The denominator in calculating basic EPS is the weighted average shares outstanding for the respective periods. The denominator in calculating diluted EPS is the weighted average shares outstanding, plus the dilutive effect of stock option grants, unvested SAR and RSU grants and shares of Series A convertible preferred stock for the respective periods. The following sets forth the basic calculations of EPS for the quarters ended September 30, 2014 and 2013 and diluted calculations of EPS for the quarter ended September 30, 2013 and nine months ended September 30, 2014 and 2014: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In thousands, expect per share data) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Net (loss) income attributable to ORBCOMM Inc. common stockholders | $ | (33 | ) | $ | 971 | $ | 920 | $ | 3,734 | ||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||
Basic number of common shares outstanding | 55,247 | 47,498 | 54,561 | 47,213 | |||||||||||||
Dilutive effect of grants of stock options, unvested SAR’s and RSU’s and shares of Series A convertible preferred stock | — | 1,230 | 1,714 | 1,262 | |||||||||||||
Diluted number of common shares outstanding | 55,247 | 48,728 | 56,275 | 48,475 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | (0.00 | ) | $ | 0.02 | $ | 0.02 | $ | 0.08 | ||||||||
Diluted | $ | (0.00 | ) | $ | 0.02 | $ | 0.02 | $ | 0.08 | ||||||||
The following represents amounts not included in the above calculation of diluted EPS as their impact was anti-dilutive under the treasury stock method: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(Shares in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
SAR’s | 1,008 | 3,486 | 737 | 3,563 | |||||||||||||
RSU’s | — | 289 | — | 277 | |||||||||||||
Stock Options | — | 236 | — | 160 | |||||||||||||
The computation of net (loss) income attributable to ORBCOMM Inc. common stockholders for the quarters and nine months ended September 30, 2014 and 2013 is as follows: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net (loss) income attributable to ORBCOMM Inc. | $ | (33 | ) | $ | 986 | $ | 939 | $ | 3,780 | ||||||||
Preferred stock dividends on Series A convertible preferred stock | — | (15 | ) | (19 | ) | (46 | ) | ||||||||||
Net (loss) income attributable to ORBCOMM Inc. common stockholders | $ | (33 | ) | $ | 971 | $ | 920 | $ | 3,734 | ||||||||
Satellite_Network_and_Other_Eq
Satellite Network and Other Equipment | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Text Block [Abstract] | ' | ||||||||||
Satellite Network and Other Equipment | ' | ||||||||||
6. Satellite Network and Other Equipment | |||||||||||
Satellite network and other equipment consisted of the following: | |||||||||||
Useful life | September 30, | December 31, | |||||||||
(years) | 2014 | 2013 | |||||||||
Land | $ | 381 | $ | 381 | |||||||
Satellite network | 10-Jan | 118,081 | 29,362 | ||||||||
Capitalized software | 7-Mar | 6,149 | 4,563 | ||||||||
Computer hardware | 3 | 2,644 | 2,419 | ||||||||
Other | 7-Feb | 4,682 | 2,125 | ||||||||
Assets under construction | 76,378 | 118,806 | |||||||||
208,315 | 157,656 | ||||||||||
Less: accumulated depreciation and amortization | (29,074 | ) | (24,628 | ) | |||||||
$ | 179,241 | $ | 133,028 | ||||||||
During the nine months ended September 30, 2014 and 2013, the Company capitalized costs attributable to the design and development of internal-use software in the amount of $2,084 and $1,259, respectively. | |||||||||||
Depreciation and amortization expense for the quarters ended September 30, 2014 and 2013 was $1,708 and $1,223, respectively, including amortization of internal-use software of $259 and $234, respectively. Depreciation and amortization expense for the nine months ended September 30, 2014 and 2013 was $4,446 and $3,235, respectively, including amortization of internal-use software of $669 and $462, respectively. | |||||||||||
Assets under construction primarily consist of milestone payments pursuant to procurement agreements which includes the design, development, launch and other direct costs relating to the construction of the next-generation satellites and upgrades to its infrastructure and ground segment. Refer to “Note 15 – Commitments and Contingencies” for more information regarding the construction of the Company’s next-generation satellites. | |||||||||||
On July 14, 2014, the Company launched six of its next-generation OG2 satellites aboard a Space Exploration Technologies Corp. (“SpaceX”) Falcon 9 launch vehicle. The OG2 satellites were separated from the Falcon 9 vehicle into orbit. On September 15, 2014, following an in-orbit testing period, the Company initiated commercial service for the six OG2 satellites. The satellites provide both M2M messaging and AIS service for its global customers. As a result of the six satellites being placed into service, the Company reclassified $83,361 of costs out of assets under construction and into satellite network on September 15, 2014, and began depreciating the satellites over a 10-year life. During the quarter and nine months ended September 30, 2014, the Company recorded $347 of depreciation in connection with the satellites placed into service. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||||||||||||||||
7. Goodwill and Intangible Assets | |||||||||||||||||||||||||||
Goodwill represents the excess of the purchase price of an acquired business over the estimated fair values of the underlying net tangible and intangible assets. | |||||||||||||||||||||||||||
Goodwill consisted of the following: | |||||||||||||||||||||||||||
Amount | |||||||||||||||||||||||||||
Balance at January 1, 2014 | $ | 20,335 | |||||||||||||||||||||||||
Additions through acquisitions | 20,011 | ||||||||||||||||||||||||||
Measurement period adjustments | (417 | ) | |||||||||||||||||||||||||
Balance at September 30, 2014 | $ | 39,929 | |||||||||||||||||||||||||
During the nine months ended September 30, 2014, the following key items impacted goodwill: | |||||||||||||||||||||||||||
• | The Company recognized goodwill of $20,011 in connection with the Euroscan Acquisition; | ||||||||||||||||||||||||||
• | The Company reduced its warranty liabilities in connection with the GlobalTrak Acquisition and recognized a decrease in goodwill of $250; and | ||||||||||||||||||||||||||
• | The Company recognized a decrease in goodwill of $167 in connection with an agreement entered into by the Company and SPC to settle claims relating to breaches of representation and warranties under the GlobalTrak Asset Purchase Agreement. | ||||||||||||||||||||||||||
Goodwill is allocated to the Company’s one reportable segment, which is its only reporting unit. | |||||||||||||||||||||||||||
The Company’s intangible assets consisted of the following: | |||||||||||||||||||||||||||
Useful life | September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
(years) | Cost | Accumulated | Net | Cost | Accumulated | Net | |||||||||||||||||||||
amortization | amortization | ||||||||||||||||||||||||||
Customer lists | 5, 7, 10 and 12 | $ | 21,850 | $ | (2,443 | ) | $ | 19,407 | $ | 7,450 | $ | (1,183 | ) | $ | 6,267 | ||||||||||||
Patents and technology | 5 and 10 | 8,380 | (2,032 | ) | 6,348 | 5,980 | (1,398 | ) | 4,582 | ||||||||||||||||||
Trade names and trademarks | 3, 5 and 10 | 1,690 | (433 | ) | 1,257 | 1,090 | (303 | ) | 787 | ||||||||||||||||||
$ | 31,920 | $ | (4,908 | ) | $ | 27,012 | $ | 14,520 | $ | (2,884 | ) | $ | 11,636 | ||||||||||||||
The weighted-average amortization period for the intangible assets is 10.81 years. The weighted-average amortization period for customer lists, patents and technology and trade names and trademarks is 11.27, 9.73 and 9.30 years, respectively. | |||||||||||||||||||||||||||
Amortization expense was $773 and $362 for the quarters ended September 30, 2014 and 2013, respectively, and was $2,024 and $979 for the nine months ended September 30, 2014 and 2013, respectively. | |||||||||||||||||||||||||||
Estimated annual amortization expense for intangible assets subsequent to September 30, 2014 is as follows: | |||||||||||||||||||||||||||
Amount | |||||||||||||||||||||||||||
2014 (remaining) | $ | 773 | |||||||||||||||||||||||||
2015 | 3,091 | ||||||||||||||||||||||||||
2016 | 3,088 | ||||||||||||||||||||||||||
2017 | 2,939 | ||||||||||||||||||||||||||
2018 | 2,901 | ||||||||||||||||||||||||||
Thereafter | 14,220 | ||||||||||||||||||||||||||
$ | 27,012 | ||||||||||||||||||||||||||
Accrued_Liabilities
Accrued Liabilities | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accrued Liabilities | ' | ||||||||
8. Accrued Liabilities | |||||||||
The Company’s accrued liabilities consisted of the following: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Accrued compensation and benefits | $ | 3,214 | $ | 3,438 | |||||
Warranty | 1,188 | 2,199 | |||||||
Corporate income tax payable | 294 | 81 | |||||||
Contingent earn-out amount | 2,480 | 24 | |||||||
AIS deployment and license agreement | 60 | 192 | |||||||
Accrued satellite network and other equipment | 624 | 212 | |||||||
Milestone payable | 5,460 | — | |||||||
Accrued credit facility financing fees | 1,524 | — | |||||||
Other accrued expenses | 3,563 | 3,681 | |||||||
$ | 18,407 | $ | 9,827 | ||||||
For the nine months ended September 30, 2014 and 2013, changes in accrued warranty obligations consisted of the following: | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Balance at January 1, | $ | 2,199 | $ | 2,762 | |||||
Warranty liabilities assumed from acquisition | 96 | 38 | |||||||
Amortization of fair value adjustment of warranty liabilities acquired through acquisitions | (156 | ) | (63 | ) | |||||
Reduction of warranty liabilities assumed in connection with acquisitions | (648 | ) | — | ||||||
Warranty expense | 278 | 211 | |||||||
Warranty charges | (581 | ) | (607 | ) | |||||
Balance at September 30, | $ | 1,188 | $ | 2,341 | |||||
Deferred_Revenues
Deferred Revenues | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Deferred Revenue Disclosure [Abstract] | ' | ||||||||
Deferred Revenues | ' | ||||||||
9. Deferred Revenues | |||||||||
Deferred revenues consisted of the following: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Service activation fees | $ | 3,312 | $ | 3,135 | |||||
Prepaid services | 2,606 | 1,949 | |||||||
Warranty revenues | 195 | 272 | |||||||
Prepaid product revenues | 16 | 104 | |||||||
6,129 | 5,460 | ||||||||
Less current portion | (3,782 | ) | (3,087 | ) | |||||
Long-term portion | $ | 2,347 | $ | 2,373 | |||||
Note_PayableRelated_Party
Note Payable-Related Party | 9 Months Ended |
Sep. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
Note Payable-Related Party | ' |
10. Note Payable-Related Party | |
In connection with the acquisition of a majority interest in Satcom in 2005, the Company recorded an indebtedness to OHB Technology A.G. (formerly known as OHB Teledata A.G.), a stockholder of the Company. At September 30, 2014 and December 31, 2013, the principal balance of the note payable was €1,138 and it had a carrying value of $1,446 and $1,571, respectively. The carrying value was based on the note’s estimated fair value at the time of acquisition. The difference between the carrying value and principal balance was being amortized to interest expense over the estimated life of the note of six years which ended in September 30, 2011. This note does not bear interest and has no fixed repayment term. Repayment will be made from the distribution profits, as defined in the note agreement, of ORBCOMM Europe LLC, a wholly owned subsidiary of the Company. The note has been classified as long-term and the Company does not expect any repayments to be required prior to September 30, 2015. |
Note_Payable
Note Payable | 9 Months Ended |
Sep. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
Note Payable | ' |
11. Note Payable | |
$45,000 9.5% Senior Notes | |
On January 4, 2013, the Company issued $45,000 aggregate principal amount of Senior Notes (“Senior Notes”) due January 4, 2018. Interest is payable quarterly at a rate of 9.5% per annum. The Senior Notes are secured by a first priority security interest in substantially all of the Company’s and its subsidiaries’ assets. The covenants in the Senior Notes limits the Company’s ability to, among other things, (i) incur additional indebtedness and liens; (ii) sell, transfer, lease or otherwise dispose of the Company’s or subsidiaries assets; or (iii) merge or consolidate with other companies. The Company is also required to obtain launch and one year in-orbit insurance for the next-generation satellites under the terms of the Senior Notes. The Company must also comply with a maintenance covenant of either having available liquidity of $10,000 (the sum of (a) cash and cash equivalents plus (b) the total amount available to be borrowed under a working capital facility) or a leverage ratio (consolidated total debt to consolidated adjusted EBITDA, adjusted for stock-based compensation, certain other non-cash items and other agreed upon other charges) of not more than 4.5 to 1.0. In connection with the issuance of the Senior Notes, the Company incurred approximately $1,390 of debt issuance costs, which will be amortized through January 4, 2018. For the quarters ended September 30, 2014 and 2013, amortization of the debt issuance costs was $66 and $66, respectively. For the nine months ended September 30, 2014 and 2013, amortization of the debt issuance costs was $202 and $197, respectively. For the quarters and nine months ended September 30, 2014 and 2013, the Company capitalized all of the interest expense and amortization of the debt issuance costs to construction of the next-generation satellites. | |
As of September 30, 2014, the Company was in compliance with all financial covenants. | |
On October 10, 2014, the Company redeemed the Senior Notes. Refer to “Note 16 – Subsequent Events” for more information. | |
Secured Credit Facilities | |
On September 30, 2014, the Company entered into a credit agreement (the “Credit Agreement”) with Macquarie CAF LLC (“Macquarie” or the “Lender”) in order to refinance the Company’s Senior Notes. Pursuant to the Credit Agreement, the Lender provided secured credit facilities (“the Secured Credit Facilities”) in an aggregate amount of $160,000 comprised of (i) a term loan facility in an aggregate principal amount of up to $70,000 (the “Initial Term Loan Facility”); (ii) a $10,000 revolving credit facility (the “Revolving Credit Facility”); (iii) a term loan facility in an aggregate principal amount of up to $10,000 (the “Term B2”), the proceeds of which, if drawn, may be used to finance a potential acquisition; and (iv) a term loan facility in an aggregate principal amount of up to $70,000 (the “Term B3”), the proceeds of which, if drawn, may be used to finance an additional potential acquisition. Proceeds of the Initial Term Loan Facility and Revolving Credit Facility were funded on October 10, 2014 and were used to repay in full the Company’s Senior Notes and pay certain related fees, expenses and accrued interest, as well as for general corporate purposes. | |
The Secured Credit Facilities mature five years after the initial fund date of the Initial Term Loan Facility (the “Maturity Date”), but are subject to mandatory prepayments in certain circumstances. The Secured Credit Facilities will bear interest, at the Company’s election, of a per annum rate equal to either (a) a base rate plus 3.75% or (b) LIBOR plus 4.75%, with a LIBOR floor of 1.00%. | |
The Secured Credit Facilities will be secured by a first priority security interest in substantially all of the Company’s and its subsidiaries’ assets. Subject to the terms set forth in the Credit Agreement, the Company may make optional prepayments on the Secured Credit Facilities at any time prior to the Maturity Date. The remaining principal balance is due on the Maturity Date. | |
The Credit Agreement contains customary representations and warranties, conditions to funding, covenants and events of default. The covenants set forth in the Credit Agreement include, among other things, prohibitions on the Company and its subsidiaries against incurring certain indebtedness and investments (other than permitted acquisitions and other exceptions as specified therein), providing certain guarantees and incurring certain liens. In addition, the Credit Agreement includes a leverage ratio and consolidated liquidity covenant, as defined, whereby the Company is permitted to have a maximum consolidated leverage ratio as of the last day of any fiscal quarter of up to 5.00 to 1.00 and a minimum consolidated liquidity of $7,500 as of the last day of any fiscal quarter. The Credit Agreement provides for certain events of default, the occurrence of which could result in the acceleration of the Company’s obligations under the Credit Agreement. Funding of the Term B2 is subject to additional approvals by the Lender. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2014 | |
Equity [Abstract] | ' |
Stockholders' Equity | ' |
12. Stockholders’ Equity | |
Series A convertible preferred stock | |
During the nine months ended September 30, 2014, holders of the Series A convertible preferred stock converted 14,850 shares into 24,740 shares of the Company’s common stock. During the nine months ended September 30, 2014, the Company issued dividends in the amount of 1,940 shares to the holders of the Series A convertible preferred stock. As of September 30, 2014, dividends in arrears were $18. | |
Common Stock | |
In January 2014, the Company issued 33,594 shares of its common stock as a form of payment in connection with MPUs for achieving the fiscal year 2013 stock performance target. | |
On January 17, 2014, the Company completed a public offering of 6,325,000 shares of its common stock including 825,000 shares sold upon full exercise of the underwriters’ overallotment option at a price of $6.15 per share. The Company received net proceeds of approximately $36,607 after deducting underwriters’ discounts and commissions and offering costs. | |
As of September 30, 2014, the Company has reserved 7,990,113 shares of common stock for future issuances related to employee stock compensation plans. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
13. Segment Information | |||||||||||||||||
The Company operates in one reportable segment, M2M data communications. Other than satellites in orbit, long-lived assets outside of the United States are not significant. The following table summarizes revenues on a percentage basis by geographic regions, based on the country in which the customer is located. | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
United States | 72 | % | 84 | % | 75 | % | 85 | % | |||||||||
Japan | 7 | % | 9 | % | 6 | % | 9 | % | |||||||||
Europe | 17 | % | 3 | % | 15 | % | 3 | % | |||||||||
Other | 4 | % | 4 | % | 4 | % | 3 | % | |||||||||
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
Income_taxes
Income taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income taxes | ' |
14. Income taxes | |
For the quarter ended September 30, 2014, the Company’s income tax provision was $145 resulting from foreign income tax expense of $108 from income generated by our international operations and $37 of amortization of tax goodwill generated from acquisitions offset, in part, by deferred tax credits related to amortization of intangible assets with no tax basis. For the quarter ended September 30, 2013, the Company’s income tax provision was $254, resulting from a foreign income tax expense of $167 from income generated by ORBCOMM Japan and $87 of amortization of tax goodwill generated from acquisitions. | |
For the nine months ended September 30, 2014, the Company’s income tax provision was $745 resulting from foreign income tax expense of $412 from income generated by our international operations and $333 of amortization of tax goodwill generated from acquisitions offset, in part, by deferred tax credits related to amortization of intangible assets with no tax basis. For the nine months ended September 30, 2013, the Company’s income tax provision was $603, resulting from a foreign income tax expense of $364 from income generated by ORBCOMM Japan and $239 of amortization of tax goodwill generated from acquisitions. | |
As of September 30, 2014 and December 31, 2013, the Company maintained a valuation allowance against all of its net deferred tax assets, excluding goodwill, attributable to operations in the United States and all other foreign jurisdictions, except for Japan, as the realization of such assets was not considered more likely than not. | |
As of September 30, 2014, the Company had unrecognized tax benefits of $775. There were no changes to the Company’s unrecognized tax benefits during the nine months ended September 30, 2014. The Company does not expect any significant changes to its unrecognized tax positions during the next twelve months. | |
The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. No interest and penalties related to uncertain tax positions were recognized during the quarter and nine months ended September 30, 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
15. Commitments and Contingencies | |
Next-generation satellites | |
On May 5, 2008, the Company entered into a procurement agreement with Sierra Nevada Corporation (“SNC”) pursuant to which SNC is constructing eighteen low-earth-orbit satellites in three sets of satellites (“shipsets”) for the Company’s next-generation satellites (the “Initial Satellites”). Under the agreement, SNC is also providing launch support services, a test satellite (excluding the mechanical structure), a satellite software simulator and the associated ground support equipment. | |
The total contract price for the Initial Satellites under the procurement agreement is $117,000, subject to reduction upon failure to achieve certain in-orbit operational milestones with respect to the Initial Satellites or if the pre-ship reviews of each shipset are delayed more than 60-120 days after the specified time periods described below. The Company has agreed to pay SNC up to $1,500 in incentive payments for the successful operation of the Initial Satellites five years following the successful completion of in-orbit testing for the third shipset of eight satellites. | |
On August 31, 2010, the Company entered into two additional task order agreements with SNC in connection with the procurement agreement discussed above. Under the terms of the launch vehicle changes task order agreement, SNC will perform the activities to launch eighteen of the Company’s next-generation satellites on a Space Exploration Technologies Corp. (“SpaceX”) Falcon 1e or Falcon 9 launch vehicle. The total price for the launch activities is cost reimbursable up to $4,110 that is cancelable by the Company, less a credit of $1,528. Under the terms of the engineering change requests and enhancements task order agreement, SNC will design and make changes to each of the next-generation satellites in order to accommodate an additional payload-to-bus interface. The total price for the engineering changes requests is cost reimbursable up to $317. Both task order agreements are payable monthly as the services are performed, provided that with respect to the launch vehicle changes task order agreement, the credit in the amount of $1,528 will first be deducted against amounts accrued thereunder until the entire balance is expended. | |
On August 23, 2011, the Company and SNC entered into a definitive First Amendment to the procurement agreement (the “First Amendment”). The First Amendment amends certain terms of the procurement agreement dated May 5, 2008 and supplements or amends five separate task order agreements, dated as of May 20, 2010 (Task Order #1), August 31, 2010 (Task Orders #2 and #3), and December 15, 2010 (Task Orders #4 and #5) (collectively with Task Order #6, the “Original Task Orders”). On July 3, 2012, the Company and SNC entered into an additional task order agreement (“Task Order #6”) for SNC to perform final design work to enable additional payload components in satellites 3-18 to be re-programmable while in-orbit. The total price for the work under Task Order #6 is cost plus fixed fee of up to $521. In addition, the Company and SNC entered into (i) Task Order #7 on June 24, 2013 for additional work in connection with the thrust vector alignment with respect to the first eight satellites for the firm fixed price of $189; (ii) Task Order #8 on September 10, 2013 for the final design, implementation and testing of the added reprogramability of the payload for the firm fixed price of $1,650; (iii) Task Order #9 on January 14, 2014 for additional work in connection with the thrust vector alignment with respect to the remaining nine satellites for the firm fixed price of $127; and (iv) Task Order #10 on April 18, 2014 for additional software work on a cost plus fixed fee basis estimated at $175. | |
The First Amendment modifies the milestone payment schedule under the procurement agreement dated May 5, 2008 but does not change the total contract price (excluding optional satellites and costs under the Original Task Orders) of $117,000. Payments under the Amendment extend into the second quarter of 2014, subject to SNC’s successful completion of each payment milestone. The First Amendment also settles the liquidated delay damages triggered under the procurement agreement dated May 5, 2008 and provides an ongoing mechanism for the Company to obtain pricing proposals to order up to thirty optional satellites substantially identical to the Initial Satellites for which firm fixed pricing previously had expired under the procurement agreement dated May 5, 2008. The Company is anticipating $3,900 in total liquidated delay damages will be available to offset milestone and task order payments. | |
On March 20, 2014, the Company and SNC entered into a definitive Second Amendment to the procurement agreement (the “Second Amendment”). The Second Amendment amends certain terms of the procurement agreement dated May 5, 2008, as amended by the First Amendment and supplemented by nine separate Task Orders, dated as of May 20, 2010 (Task Order #1), August 31, 2010 (Task Orders #2 and #3), December 15, 2010 (Task Orders #4 and #5), July 3, 2012 (Task Order # 6), June 24, 2013 (Task Order #7), September 10, 2013 (Task Order #8), and January 14, 2014 (Task Order #9 and collectively the “Task Orders”). The Second Amendment modifies the number of satellites in each shipset to reflect the actual number of satellites to be launched in each of the two missions. The Second Amendment also modifies the payment milestone schedule under the First Amendment but does not change the total contract price (excluding optional satellites and costs under the Task Orders) of $117,000. | |
As of September 30, 2014, the Company has made milestone payments of $74,490 to SNC under the procurement agreement. The Company does not anticipate making payments under the agreement during the remainder of 2014. | |
On December 21, 2012, the Company and SpaceX entered into a Launch Services Agreement (the “Falcon 9 Agreement”) pursuant to which SpaceX will provide launch services (the “Launch Services”) for the carriage into low-Earth-orbit of up to 17 ORBCOMM next-generation satellites. Under the Falcon 9 Agreement, SpaceX will also provide to the Company satellite-to-launch vehicle integration and launch support services, as well as certain related optional services. The total price under the Falcon 9 Agreement (excluding any optional services) is $42,600 subject to certain adjustments, which reflects pricing agreed under the 2009 agreement for Launch Services. The amounts due under the Falcon 9 Agreement are payable by the Company in installments from the date of execution of the Falcon 9 Agreement through the performance of each Launch Service. | |
The Falcon 9 Agreement anticipated that the Launch Services for 17 Satellites would be performed by the second quarter of 2014, subject to certain rights of ORBCOMM and SpaceX to reschedule the Launch Services as needed. Either the Company or SpaceX may postpone and reschedule either Launch Service based on satellite and launch vehicle readiness, among other factors, subject to the payment of certain fees by the party requesting or causing the delay following 6 months of delay with respect to either of the two Launch Services. | |
Both the Company and SpaceX have customary termination rights under the Falcon 9 Agreement, including for material breaches and aggregate delays beyond 365 days by the other party. The Company has the right to terminate either of the Launch Services subject to the payment of a termination fee in an amount that would be based on the date ORBCOMM exercises its termination right. | |
On July 14, 2014, the Company launched six of its next-generation OG2 satellites aboard a SpaceX Falcon 9 launch vehicle. The OG2 satellites were separated from the Falcon 9 vehicle into orbit. On September 15, 2014, following an in-orbit testing period, the Company initiated commercial service for the six OG2 satellites. The satellites provide both M2M messaging and AIS service for its global customers. | |
As of September 30, 2014, the Company has made milestone payments of $36,391 under the Falcon 9 Agreement. The Company anticipates making payments of approximately $2,663 during the remainder of 2014. | |
On September 21, 2012, SpaceX and the Company entered into a Secondary Payload Launch Services Agreement totaling $4,000 of the original $46,600 to launch the next-generation prototype which occurred on October 7, 2012. | |
In April 2014, the Company obtained launch and one year in-orbit insurance for the OG2 satellite program. For the first launch of six satellites, the Company obtained (i) a maximum total of $66,000 of launch plus one year in-orbit insurance coverage; and (ii) $22,000 of launch vehicle flight only insurance coverage (“Launch One”). The total premium cost for Launch One was $9,953. For the second launch of eleven satellites, the Company obtained (i) a maximum total of $120,000 of launch plus one year in-orbit insurance coverage; and (ii) $22,000 of launch vehicle flight only insurance coverage (“Launch Two”). The total premium cost for Launch Two is $16,454. In April 2014, the Company paid the total premium for Launch One and 5% of the total premium for Launch Two, with the balance of the premium cost for Launch Two becoming due 30 days prior to the scheduled launch of the second mission. The majority of the premium payments are recorded satellite network and other equipment, net in the condensed consolidated balance sheet as of September 30, 2014. The Launch One coverage took effect on July 14, 2014, following the launch and insertion of the first six satellites into orbit. | |
The policy contains a three satellite deductible across both missions under the launch plus one-year insurance coverage whereby claims are payable in excess of the first three satellites in the aggregate for both Launch One and Launch Two combined that are total losses or constructive total losses. The launch vehicle only coverage requires the loss of all satellites on the applicable mission as a result of the launch vehicle flight in order to collect under that portion of the insurance policy. The policy is also subject to specified exclusions and material change limitations customary in the industry. These exclusions include losses resulting from war, anti-satellite devices, insurrection, terrorist acts, government confiscation, radioactive contamination, electromagnetic interference, loss of revenue and third party liability. | |
Airtime credits | |
In 2001, in connection with the organization of ORBCOMM Europe LLC and the reorganization of the ORBCOMM business in Europe, the Company agreed to grant certain country representatives in Europe approximately $3,736 in airtime credits. The Company has not recorded the airtime credits as a liability as (i) the Company has no obligation to pay the unused airtime credits if they are not utilized; and (ii) the airtime credits are earned by the country representatives only when the Company generates revenue from the country representatives. The airtime credits have no expiration date. Accordingly, the Company is recording airtime credits as services are rendered and these airtime credits are recorded net of revenues from the country representatives. For the quarters ended September 30, 2014 and 2013, airtime credits used totaled approximately $8 each period, respectively. For the nine months ended September 30, 2014 and 2013, airtime credits used totaled approximately $23 each period, respectively. As of September 30, 2014 and December 31, 2013, unused credits granted by the Company were approximately $2,074 and $2,097, respectively. | |
Development and Production Agreement | |
In February 2014, the Company entered into an agreement with a vendor to develop and manufacture products over a 5-year period. Future minimum payments over the term of the agreement total $4,817. |
Subsequent_Events
Subsequent Events | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Subsequent Events [Abstract] | ' | |||
Subsequent Events | ' | |||
16. Subsequent Events | ||||
On September 30, 2014, in connection with entering into the Credit Agreement, the Company issued notice to the holder of the Senior Notes regarding its election to redeem in full the aggregate $45,000 principal amount. The Senior Notes were redeemed on October 10, 2014, resulting in an early termination penalty of $1,800 and an additional expense associated with the remaining unamortized debt issuance cost, all of which will be reflected in the fourth quarter of 2014. | ||||
On October 10, 2014, under the Credit Agreement, the Company made borrowings of $70,000 under the Initial Term Loan Facility, a portion of which was used to repay in full the Company’s Senior Notes, and $10,000 under the Revolving Credit Facility. | ||||
Acquisition of SkyWave | ||||
On November 1, 2014, the Company, Soar Acquisition Inc., a wholly owned subsidiary of ORBCOMM (“ORBCOMM Sub”), SkyWave Mobile Communications Inc. (“SkyWave”) and Randy Taylor Professional Corporation (the “Shareholder Representative”) entered into an Arrangement Agreement (“Arrangement Agreement”) pursuant to which ORBCOMM Sub will acquire all of the outstanding shares in the capital of SkyWave by way of a Plan of Arrangement (the “Arrangement”) under the Business Corporations Act (Ontario) (the “Acquisition”). The aggregate purchase price to be paid by the Company under the Arrangement for 100% of SkyWave’s outstanding shares is $130,000, subject to certain adjustments (the “Purchase Price”). The Company will acquire SkyWave on a cash-free debt-free basis. $7,500 of the Purchase Price will be paid to Inmarsat Canada Holdings Inc., a subsidiary of Inmarsat, in the form of a promissory note in exchange for a portion of its interest in SkyWave. The promissory note will provide an off-set for the $7,500 to be paid by Inmarsat under the agreement with Inmarsat as described below in “Agreement with Inmarsat.” In connection with the Arrangement, ORBCOMM Sub and the Shareholder Representative will also enter into an Escrow Agreement with an escrow agent, pursuant to which $10,600 will be held in escrow to cover certain SkyWave indemnity obligations. | ||||
The Company expects to fund the payment of the cash portion of the Purchase Price and expenses incurred in connection with the Acquisition through a combination of existing cash on its balance sheet, additional borrowings under its Credit Agreement and net proceeds from a public offering of shares of its common stock, as described below. | ||||
Agreement with Inmarsat | ||||
In connection with the Acquisition and the entry into the Arrangement Agreement, the Company and Inmarsat have entered into an Asset Purchase and Cooperation Agreement with respect to Inmarsat’s services to SkyWave post-Acquisition as well as the purchase, upon consummation of the Acquisition, of certain assets of SkyWave by affiliates of Inmarsat (the “Inmarsat Agreement”), and which, upon consummation of the Acquisition, will replace or amend certain of the Company’s and SkyWave’s existing arrangements with Inmarsat. SkyWave will also become party to the Inmarsat Agreement upon the consummation of the Acquisition. Pursuant to the terms of the Inmarsat Agreement, the following transactions will occur upon consummation of the Acquisition: | ||||
• | SkyWave will transfer and assign to Inmarsat a one-half, undivided joint ownership interest in and to the IDP technology and the IDP baseband designs (collectively, the “IDP Rights”); | |||
• | SkyWave will transfer and assign to Inmarsat all of SkyWave’s right, title and interest in all earth station-related assets currently installed in Inmarsat’s earth stations (the “Earth Station Assets”); | |||
• | In consideration of the transfer and assignment of the IDP Rights and the Earth Station Assets, Inmarsat will pay to SkyWave $7.5 million on the closing date of the Acquisition as well as certain royalty amounts payable upon certain events in the first five years after the closing date; | |||
• | The term of the lease contract between SkyWave and Inmarsat relating to Inmarsat M2M satellite communications services other than IDP will be extended until the earlier of the end of global availability of Inmarsat’s third generation satellite constellation or the relevant services are withdrawn by Inmarsat; | |||
• | The term of SkyWave’s IDP Distribution Agreement over Inmarsat’s I-4 satellite constellation will be extended to at least November 1, 2022, subject to certain exceptions; and | |||
• | Inmarsat will offer SkyWave amended IDP airtime pricing and contract terms. | |||
Unless otherwise agreed, the Inmarsat Agreement will terminate if the Acquisition has not been completed in accordance with the Arrangement Agreement by March 31, 2015 or the Arrangement Agreement has been amended between the effective date of the Inmarsat Agreement and the closing date in a manner adversely affecting Inmarsat without the prior written consent of Inmarsat. | ||||
Public Offering | ||||
On November 7, 2014, the Company issued a press release announcing the pricing of its public offering of 12,857,143 shares of its common stock, at a price of $5.60 per share, under its effective shelf registration on Form S-3, as filed with the SEC on April 9, 2014. |
Summary_of_Significant_Account1
Summary of Significant Accounting Principals (Policies) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Basis of Presentation | ' | ||||||||||||||||
Basis of Presentation | |||||||||||||||||
The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to SEC rules. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. In the opinion of management, the financial statements as of September 30, 2014 and for the quarters and nine months ended September 30, 2014 and 2013 include all adjustments (including normal recurring accruals) necessary for a fair presentation of the consolidated financial position, results of operations, comprehensive income and cash flows for the periods presented. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. The financial statements include the accounts of the Company, its wholly-owned and majority-owned subsidiaries, and investments in variable interest entities in which the Company is determined to be the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation. The portions of majority-owned subsidiaries that the Company does not own are reflected as noncontrolling interests in the condensed consolidated balance sheets. | |||||||||||||||||
The Company has made certain reclassifications to prior period information to conform to the current period presentation, including (i) the reclassification of depreciation and amortization from cost of services, cost of product sales, product development and selling, general and administrative (“SG&A”) expenses into its own caption in the condensed consolidated statements of operations and (ii) the inclusion of a gross profit subtotal caption on the condensed consolidated statements of operations. These reclassifications had no effect on previously reported net income. | |||||||||||||||||
Investments | ' | ||||||||||||||||
Investments | |||||||||||||||||
Investments in entities over which the Company has the ability to exercise significant influence but does not have a controlling interest are accounted for under the equity method of accounting. The Company considers several factors in determining whether it has the ability to exercise significant influence with respect to investments, including, but not limited to, direct and indirect ownership level in the voting securities, active participation on the board of directors, approval of operating and budgeting decisions and other participatory and protective rights. Under the equity method, the Company’s proportionate share of the net income or loss of such investee is reflected in the Company’s condensed consolidated results of operations. When the Company does not exercise significant influence over the investee the investment is accounted under the cost method. | |||||||||||||||||
Although the Company owns interests in companies that it accounts for pursuant to the equity method, the investments in those entities had no carrying value as of September 30, 2014 and December 31, 2013. The Company has no guarantees or other funding obligations to those entities. The Company had no equity or losses of those investees for the quarters and nine months ended September 30, 2014 and 2013. | |||||||||||||||||
Acquisition-related Costs | ' | ||||||||||||||||
Acquisition-related Costs | |||||||||||||||||
Acquisition-related costs are expensed as incurred and are presented separately on the condensed consolidated statement of operations. These costs may include professional services expenses, as well as identifiable integration costs, directly relating to acquisitions. | |||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The Company has no financial assets or liabilities that are measured at fair value on a recurring basis. However, if certain triggering events occur the Company is required to evaluate the non-financial assets for impairment and any resulting asset impairment would require that a non-financial asset be recorded at the fair value. Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820 “Fair Value Measurement Disclosure,” prioritizes inputs used in measuring fair value into a hierarchy of three levels: Level 1 – unadjusted quoted prices for identical assets or liabilities traded in active markets; Level 2 – inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and Level 3 – unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions that market participants would use in pricing. | |||||||||||||||||
The carrying value of the Company’s financial instruments, including cash, accounts receivable, note receivable and accounts payable approximated their fair value due to the short-term nature of these items. The carrying value of the Senior Notes approximated its fair value due to its recent issuance. | |||||||||||||||||
Concentration of Credit Risk | ' | ||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||
The Company’s customers are primarily commercial organizations. Accounts receivable are generally unsecured. | |||||||||||||||||
Accounts receivable are due in accordance with payment terms included in contracts negotiated with customers. Amounts due from customers are stated net of an allowance for doubtful accounts. The Company determines its allowance for doubtful accounts by considering a number of factors, including the length of time accounts are past due, the customer’s current ability to pay its obligations to the Company and the condition of the general economy and the industry as a whole. The Company writes-off accounts receivable when they are deemed uncollectible. | |||||||||||||||||
The following table presents customers with revenues greater than 10% of the Company’s consolidated total revenues for the periods shown: | |||||||||||||||||
Three Months ended | Nine Months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Caterpillar Inc. | 13.5 | % | 14.7 | % | 13.3 | % | 18.1 | % | |||||||||
Komatsu Ltd. | 11.6 | % | 11.8 | % | 11.3 | % | 12 | % | |||||||||
The following table presents customers with accounts receivable greater than 10% of the Company’s consolidated accounts receivable for the periods shown: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Caterpillar Inc. | 19 | % | 20.9 | % | |||||||||||||
As of September 30, 2014, the Company did not maintain in-orbit insurance coverage for its first generation satellites to address the risk of potential systemic anomalies, failures or catastrophic events affecting its satellite constellation. | |||||||||||||||||
In connection with the next-generation satellite launch, as discussed in “Note 6 – Satellite Network and Other Equipment,” the Launch One coverage, as defined below, under the in-orbit insurance obtained by the Company in April 2014, took effect in July 2014. Refer to “Note 15 – Commitments and Contingencies” for more information regarding the coverage obtained through the policy. | |||||||||||||||||
Inventories | ' | ||||||||||||||||
Inventories | |||||||||||||||||
Inventories are stated at the lower of cost or market, determined on a first-in, first-out basis. Inventory consists primarily of raw materials and purchased parts to be utilized by its contract manufacturer. The Company reviews inventory quantities on hand and evaluates the realizability of inventories and adjusts the carrying value as necessary based on forecasted product demand. A provision is made for potential losses on obsolete inventories when identified. | |||||||||||||||||
Restricted Cash | ' | ||||||||||||||||
Restricted Cash | |||||||||||||||||
Restricted cash of $2,195, principally consists of the remaining cash collateral of $2,000 for a performance bond required by the U.S. Federal Communications Commission (“FCC”) in connection with the construction, launch and operation of the next-generation satellites that was authorized in the March 21, 2008 FCC Space License modification. Under the terms of the performance bond, the cash collateral will be reduced in increments of $1,000 upon completion of specified milestones. The Company certified completion of the fourth milestone and the FCC refunded the Company $1,000 in October 2014. Accordingly, as of September 30, 2014, the Company classified $1,000 of restricted cash in prepaid expenses and other current assets and $1,195 in restricted cash on the condensed consolidated balance sheet. | |||||||||||||||||
Warranty Costs | ' | ||||||||||||||||
Warranty Costs | |||||||||||||||||
The Company accrues for one-year warranty coverage on product sales estimated at the time of sale based on historical costs to repair or replace products for customers compared to historical product revenues. The warranty accrual is included in accrued liabilities on the condensed consolidated balance sheet. Refer to “Note 8 – Accrued Liabilities” for more information. | |||||||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In June 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-12 “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (“ASU 2014-12”), which is effective for the fiscal years beginning after December 15, 2015. ASU 2014-12 requires a reporting entity to treat a performance target that affects vesting and that could be achieved after the requisite service period as a performance condition. A reporting entity should apply FASB ASC Topic 718 “Compensation – Stock Compensation,” to awards with performance conditions that affect vesting. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements. | |||||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09 “Revenue from Contracts with Customers” (“ASU 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. | |||||||||||||||||
In August 2014, the FASB issued ASU No. 2014-15 “Presentation of Financial Statements – Going Concern” (“ASU 2015-15”) related to the disclosures around going concern. The new standard provides guidance around management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on our financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Principals (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Customers with Revenues Greater than 10% | ' | ||||||||||||||||
The following table presents customers with revenues greater than 10% of the Company’s consolidated total revenues for the periods shown: | |||||||||||||||||
Three Months ended | Nine Months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Caterpillar Inc. | 13.5 | % | 14.7 | % | 13.3 | % | 18.1 | % | |||||||||
Komatsu Ltd. | 11.6 | % | 11.8 | % | 11.3 | % | 12 | % | |||||||||
Customers with Accounts Receivable Greater than 10% | ' | ||||||||||||||||
The following table presents customers with accounts receivable greater than 10% of the Company’s consolidated accounts receivable for the periods shown: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Caterpillar Inc. | 19 | % | 20.9 | % |
Acquisitions_Tables
Acquisitions (Tables) (Euroscan Holding B.V. [Member]) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Euroscan Holding B.V. [Member] | ' | ||||||||
Purchase Price Allocation for Acquisition | ' | ||||||||
The preliminary estimated purchase price allocation for the acquisition is as follows: | |||||||||
Amount | |||||||||
Cash | $ | 280 | |||||||
Accounts receivable | 2,852 | ||||||||
Inventory | 1,394 | ||||||||
Other current assets | 579 | ||||||||
Property, plant and equipment | 324 | ||||||||
Intangible assets | 17,400 | ||||||||
Other noncurrent assets | 543 | ||||||||
Total identifiable assets acquired | 23,372 | ||||||||
Accounts payable and accrued expenses | 2,576 | ||||||||
Deferred revenues | 44 | ||||||||
Deferred tax liabilities | 4,558 | ||||||||
Total liabilities assumed | 7,178 | ||||||||
Net identifiable assets acquired | 16,194 | ||||||||
Goodwill | 20,011 | ||||||||
Total preliminary purchase price | $ | 36,205 | |||||||
Summary of Useful Lives of Customer Relationships Based on Customer Attrition | ' | ||||||||
The remaining useful lives of customer lists were based on the customer attrition and the projected economic benefit of these customers. | |||||||||
Estimated | Amount | ||||||||
Useful life | |||||||||
(years) | |||||||||
Customer lists | 12 | $ | 14,400 | ||||||
Technology | 10 | 2,400 | |||||||
Trademarks | 10 | 600 | |||||||
$ | 17,400 | ||||||||
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Summary Components of Stock-Based Compensation Expense | ' | ||||||||||||||||
The following table summarizes the components of stock-based compensation expense in the condensed consolidated statements of operations for the quarters and nine months ended September 30, 2014 and 2013: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Cost of services | $ | 49 | $ | 81 | $ | 127 | $ | 202 | |||||||||
Cost of product sales | (7 | ) | 24 | 42 | 71 | ||||||||||||
Selling, general and administrative | 763 | 452 | 2,283 | 1,444 | |||||||||||||
Product development | 47 | 117 | 175 | 177 | |||||||||||||
Total | $ | 852 | $ | 674 | $ | 2,627 | $ | 1,894 | |||||||||
Time-Based Stock Appreciation Rights [Member] | ' | ||||||||||||||||
Summary of Stock Appreciation Rights | ' | ||||||||||||||||
A summary of the Company’s time-based Stock Appreciation Rights (“SARs”) for the nine months ended September 30, 2014 is as follows: | |||||||||||||||||
Number of | Weighted-Average | Weighted-Average | Aggregate | ||||||||||||||
Shares | Exercise Price | Remaining | Intrinsic | ||||||||||||||
Contractual | Value | ||||||||||||||||
Term (years) | (In thousands) | ||||||||||||||||
Outstanding at January 1, 2014 | 3,611,567 | $ | 4.2 | ||||||||||||||
Granted | 75,000 | 7.3 | |||||||||||||||
Exercised | (117,700 | ) | 3.36 | ||||||||||||||
Forfeited or expired | (68,700 | ) | 4.93 | ||||||||||||||
Outstanding at September 30, 2014 | 3,500,167 | $ | 4.29 | 6.16 | $ | 5,619 | |||||||||||
Exercisable at September 30, 2014 | 2,876,034 | $ | 3.97 | 5.53 | $ | 5,462 | |||||||||||
Vested and expected to vest at September 30, 2014 | 3,500,167 | $ | 4.29 | 6.16 | $ | 5,619 | |||||||||||
Performance-Based Stock Appreciation Rights [Member] | ' | ||||||||||||||||
Summary of Stock Appreciation Rights | ' | ||||||||||||||||
A summary of the Company’s performance-based SARs for the nine months ended September 30, 2014 is as follows: | |||||||||||||||||
Number of | Weighted-Average | Weighted-Average | Aggregate | ||||||||||||||
Shares | Exercise Price | Remaining | Intrinsic Value | ||||||||||||||
Contractual | (In thousands) | ||||||||||||||||
Term (years) | |||||||||||||||||
Outstanding at January 1, 2014 | 865,713 | $ | 5.37 | ||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (59,012 | ) | 3.52 | ||||||||||||||
Forfeited or expired | (13,600 | ) | 6.33 | ||||||||||||||
Outstanding at September 30, 2014 | 793,101 | $ | 5.49 | 5.62 | $ | 1,420 | |||||||||||
Exercisable at September 30, 2014 | 793,101 | $ | 5.49 | 5.62 | $ | 1,420 | |||||||||||
Vested and expected to vest at September 30, 2014 | 793,101 | $ | 5.49 | 5.62 | $ | 1,420 | |||||||||||
Fair Value of Stock Appreciation Rights Estimated | ' | ||||||||||||||||
The fair value of each time-based and performance-based SAR award is estimated on the date of grant using the Black-Scholes option pricing model with the assumptions described below. For the periods indicated the expected volatility was based on the Company’s historical volatility over the expected terms of SAR awards. Estimated forfeitures were based on voluntary and involuntary termination behavior, as well as analysis of actual forfeitures. The risk-free interest rate was based on the U.S. Treasury yield curve at the time of the grant over the expected term of the SAR grants. | |||||||||||||||||
Nine months ended September 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Risk-free interest rate | 1.81% and 1.94% | 0.91% to 1.99% | |||||||||||||||
Expected life (years) | 6 | 5.5 and 6.0 | |||||||||||||||
Estimated volatility factor | 66.07% and 67.34% | 68.39% to 69.92% | |||||||||||||||
Expected dividends | None | None | |||||||||||||||
Time-Based Restricted Stock Units [Member] | ' | ||||||||||||||||
Summary of Restricted Stock Units | ' | ||||||||||||||||
A summary of the Company’s time-based Restricted Stock Units (“RSUs”) for the nine months ended September 30, 2014 is as follows: | |||||||||||||||||
Shares | Weighted-Average | ||||||||||||||||
Grant Date Fair Value | |||||||||||||||||
Balance at January 1, 2014 | 85,270 | $ | 3.32 | ||||||||||||||
Granted | 90,255 | 7.04 | |||||||||||||||
Vested | (65,270 | ) | 3.83 | ||||||||||||||
Forfeited or expired | — | — | |||||||||||||||
Balance at September 30, 2014 | 110,255 | $ | 6.06 | ||||||||||||||
Performance-Based Restricted Stock Units [Member] | ' | ||||||||||||||||
Summary of Restricted Stock Units | ' | ||||||||||||||||
A summary of the Company’s performance-based RSUs for the nine months ended September 30, 2014 is as follows: | |||||||||||||||||
Shares | Weighted-Average | ||||||||||||||||
Grant Date Fair Value | |||||||||||||||||
Balance at January 1, 2014 | 313,000 | $ | 4.26 | ||||||||||||||
Granted | 125,650 | 6.18 | |||||||||||||||
Vested | (208,868 | ) | 3.96 | ||||||||||||||
Forfeited or expired | (64,307 | ) | 4.28 | ||||||||||||||
Balance at September 30, 2014 | 165,475 | $ | 6.09 | ||||||||||||||
Performance Units [Member] | ' | ||||||||||||||||
Fair Value of Stock Appreciation Rights Estimated | ' | ||||||||||||||||
As the MPUs contain both a performance and service condition, the MPUs have been treated as a series of three separate awards, or tranches, for purposes of recognizing stock-based compensation expense. The Company recognizes stock-based compensation expense on a tranche-by-tranche basis over the requisite service period for that specific tranche. The Company estimated the fair value of the MPUs using a Monte Carlo Simulation Model that used the following assumptions: | |||||||||||||||||
Nine months ended September 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Risk-free interest rate | 0.02% to 0.70% | 0.03% to 0.46% | |||||||||||||||
Estimated volatility factor | 34.00% to 40.00% | 40.00% | |||||||||||||||
Expected dividends | None | None | |||||||||||||||
Stock Options [Member] | ' | ||||||||||||||||
Summary of Stock Options | ' | ||||||||||||||||
A summary of the status of the Company’s stock options as of September 30, 2014 is as follows: | |||||||||||||||||
Number of | Weighted-Average | Weighted-Average | Aggregate | ||||||||||||||
Shares | Exercise Price | Remaining | Intrinsic Value | ||||||||||||||
Contractual | (In thousands) | ||||||||||||||||
Term (years) | |||||||||||||||||
Outstanding at January 1, 2014 | 88,446 | $ | 4.04 | ||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (20,792 | ) | 2.98 | ||||||||||||||
Forfeited or expired | (17,654 | ) | 2.91 | ||||||||||||||
Outstanding at September 30, 2014 | 50,000 | $ | 4.88 | 0.59 | $ | 44 | |||||||||||
Exercisable at September 30, 2014 | 50,000 | $ | 4.88 | 0.59 | $ | 44 | |||||||||||
Vested and expected to vest at September 30, 2014 | 50,000 | $ | 4.88 | 0.59 | $ | 44 | |||||||||||
Net_Loss_Income_Attributable_t1
Net (Loss) Income Attributable to ORBCOMM Inc. Common Stockholders (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Summary of Basic and Diluted Calculations of EPS | ' | ||||||||||||||||
The following sets forth the basic calculations of EPS for the quarters ended September 30, 2014 and 2013 and diluted calculations of EPS for the quarter ended September 30, 2013 and nine months ended September 30, 2014 and 2014: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In thousands, expect per share data) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Net (loss) income attributable to ORBCOMM Inc. common stockholders | $ | (33 | ) | $ | 971 | $ | 920 | $ | 3,734 | ||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||
Basic number of common shares outstanding | 55,247 | 47,498 | 54,561 | 47,213 | |||||||||||||
Dilutive effect of grants of stock options, unvested SAR’s and RSU’s and shares of Series A convertible preferred stock | — | 1,230 | 1,714 | 1,262 | |||||||||||||
Diluted number of common shares outstanding | 55,247 | 48,728 | 56,275 | 48,475 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | (0.00 | ) | $ | 0.02 | $ | 0.02 | $ | 0.08 | ||||||||
Diluted | $ | (0.00 | ) | $ | 0.02 | $ | 0.02 | $ | 0.08 | ||||||||
Schedule of Amounts Not Included in Calculation of Diluted EPS | ' | ||||||||||||||||
The following represents amounts not included in the above calculation of diluted EPS as their impact was anti-dilutive under the treasury stock method: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(Shares in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
SAR’s | 1,008 | 3,486 | 737 | 3,563 | |||||||||||||
RSU’s | — | 289 | — | 277 | |||||||||||||
Stock Options | — | 236 | — | 160 | |||||||||||||
Summary of Net (Loss) Income Attributable to ORBCOMM Inc. Common Stockholders | ' | ||||||||||||||||
The computation of net (loss) income attributable to ORBCOMM Inc. common stockholders for the quarters and nine months ended September 30, 2014 and 2013 is as follows: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net (loss) income attributable to ORBCOMM Inc. | $ | (33 | ) | $ | 986 | $ | 939 | $ | 3,780 | ||||||||
Preferred stock dividends on Series A convertible preferred stock | — | (15 | ) | (19 | ) | (46 | ) | ||||||||||
Net (loss) income attributable to ORBCOMM Inc. common stockholders | $ | (33 | ) | $ | 971 | $ | 920 | $ | 3,734 | ||||||||
Satellite_Network_and_Other_Eq1
Satellite Network and Other Equipment (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Text Block [Abstract] | ' | ||||||||||
Summary of Satellite Network and Other Equipment | ' | ||||||||||
Satellite network and other equipment consisted of the following: | |||||||||||
Useful life | September 30, | December 31, | |||||||||
(years) | 2014 | 2013 | |||||||||
Land | $ | 381 | $ | 381 | |||||||
Satellite network | 10-Jan | 118,081 | 29,362 | ||||||||
Capitalized software | 7-Mar | 6,149 | 4,563 | ||||||||
Computer hardware | 3 | 2,644 | 2,419 | ||||||||
Other | 7-Feb | 4,682 | 2,125 | ||||||||
Assets under construction | 76,378 | 118,806 | |||||||||
208,315 | 157,656 | ||||||||||
Less: accumulated depreciation and amortization | (29,074 | ) | (24,628 | ) | |||||||
$ | 179,241 | $ | 133,028 | ||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Components of Goodwill | ' | ||||||||||||||||||||||||||
Goodwill consisted of the following: | |||||||||||||||||||||||||||
Amount | |||||||||||||||||||||||||||
Balance at January 1, 2014 | $ | 20,335 | |||||||||||||||||||||||||
Additions through acquisitions | 20,011 | ||||||||||||||||||||||||||
Measurement period adjustments | (417 | ) | |||||||||||||||||||||||||
Balance at September 30, 2014 | $ | 39,929 | |||||||||||||||||||||||||
Components of Intangible Assets | ' | ||||||||||||||||||||||||||
The Company’s intangible assets consisted of the following: | |||||||||||||||||||||||||||
Useful life | September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
(years) | Cost | Accumulated | Net | Cost | Accumulated | Net | |||||||||||||||||||||
amortization | amortization | ||||||||||||||||||||||||||
Customer lists | 5, 7, 10 and 12 | $ | 21,850 | $ | (2,443 | ) | $ | 19,407 | $ | 7,450 | $ | (1,183 | ) | $ | 6,267 | ||||||||||||
Patents and technology | 5 and 10 | 8,380 | (2,032 | ) | 6,348 | 5,980 | (1,398 | ) | 4,582 | ||||||||||||||||||
Trade names and trademarks | 3, 5 and 10 | 1,690 | (433 | ) | 1,257 | 1,090 | (303 | ) | 787 | ||||||||||||||||||
$ | 31,920 | $ | (4,908 | ) | $ | 27,012 | $ | 14,520 | $ | (2,884 | ) | $ | 11,636 | ||||||||||||||
Estimated Annual Amortization Expense for Intangible Assets | ' | ||||||||||||||||||||||||||
Estimated annual amortization expense for intangible assets subsequent to September 30, 2014 is as follows: | |||||||||||||||||||||||||||
Amount | |||||||||||||||||||||||||||
2014 (remaining) | $ | 773 | |||||||||||||||||||||||||
2015 | 3,091 | ||||||||||||||||||||||||||
2016 | 3,088 | ||||||||||||||||||||||||||
2017 | 2,939 | ||||||||||||||||||||||||||
2018 | 2,901 | ||||||||||||||||||||||||||
Thereafter | 14,220 | ||||||||||||||||||||||||||
$ | 27,012 | ||||||||||||||||||||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Components of Accrued Liabilities | ' | ||||||||
The Company’s accrued liabilities consisted of the following: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Accrued compensation and benefits | $ | 3,214 | $ | 3,438 | |||||
Warranty | 1,188 | 2,199 | |||||||
Corporate income tax payable | 294 | 81 | |||||||
Contingent earn-out amount | 2,480 | 24 | |||||||
AIS deployment and license agreement | 60 | 192 | |||||||
Accrued satellite network and other equipment | 624 | 212 | |||||||
Milestone payable | 5,460 | — | |||||||
Accrued credit facility financing fees | 1,524 | — | |||||||
Other accrued expenses | 3,563 | 3,681 | |||||||
$ | 18,407 | $ | 9,827 | ||||||
Summary of Accrued Warranty Obligations | ' | ||||||||
For the nine months ended September 30, 2014 and 2013, changes in accrued warranty obligations consisted of the following: | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Balance at January 1, | $ | 2,199 | $ | 2,762 | |||||
Warranty liabilities assumed from acquisition | 96 | 38 | |||||||
Amortization of fair value adjustment of warranty liabilities acquired through acquisitions | (156 | ) | (63 | ) | |||||
Reduction of warranty liabilities assumed in connection with acquisitions | (648 | ) | — | ||||||
Warranty expense | 278 | 211 | |||||||
Warranty charges | (581 | ) | (607 | ) | |||||
Balance at September 30, | $ | 1,188 | $ | 2,341 | |||||
Deferred_Revenues_Tables
Deferred Revenues (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Deferred Revenue Disclosure [Abstract] | ' | ||||||||
Summary of Deferred Revenues | ' | ||||||||
Deferred revenues consisted of the following: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Service activation fees | $ | 3,312 | $ | 3,135 | |||||
Prepaid services | 2,606 | 1,949 | |||||||
Warranty revenues | 195 | 272 | |||||||
Prepaid product revenues | 16 | 104 | |||||||
6,129 | 5,460 | ||||||||
Less current portion | (3,782 | ) | (3,087 | ) | |||||
Long-term portion | $ | 2,347 | $ | 2,373 | |||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Summary of Revenues on Percentage Basis by Geographic Regions | ' | ||||||||||||||||
The following table summarizes revenues on a percentage basis by geographic regions, based on the country in which the customer is located. | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
United States | 72 | % | 84 | % | 75 | % | 85 | % | |||||||||
Japan | 7 | % | 9 | % | 6 | % | 9 | % | |||||||||
Europe | 17 | % | 3 | % | 15 | % | 3 | % | |||||||||
Other | 4 | % | 4 | % | 4 | % | 3 | % | |||||||||
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
Overview_Additional_Informatio
Overview - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2014 | |
Satellite | |
Description Of Business [Line Items] | ' |
Number of assets operated communications and broadcasting equipment | 31 |
Number of micro satellites owned | 2 |
First Generation Satellites [Member] | ' |
Description Of Business [Line Items] | ' |
Number of assets operated communications and broadcasting equipment | 25 |
Next-Generation Satellites [Member] | ' |
Description Of Business [Line Items] | ' |
Number of assets operated communications and broadcasting equipment | 6 |
Summary_of_Significant_Account3
Summary of Significant Accounting Principals - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Oct. 31, 2014 | |
Restricted Cash [Member] | Subsequent Event [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Equity method investments | $0 | ' | $0 | ' | $0 | ' | ' |
Guarantee or other funding obligations under equity method investment | 0 | ' | 0 | ' | 0 | ' | ' |
Gain or losses from equity method investment | 0 | 0 | 0 | 0 | ' | ' | ' |
Restricted cash | 2,195,000 | ' | 2,195,000 | ' | ' | 2,000,000 | ' |
Amount of cash collateral to be reduced upon completion of specified milestones | ' | ' | ' | ' | ' | 1,000,000 | ' |
Restricted cash refunded by FCC | ' | ' | ' | ' | ' | ' | 1,000,000 |
Prepaid expenses and other current assets | 3,702,000 | ' | 3,702,000 | ' | 1,768,000 | 1,000,000 | ' |
Restricted cash | $1,195,000 | ' | $1,195,000 | ' | $2,195,000 | $1,195,000 | ' |
Warranty coverage on product sales estimated | ' | ' | '1 year | ' | ' | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Principals - Customers with Revenues Greater than 10% (Detail) (Sales [Member]) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Caterpillar Inc. [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Customers with revenues greater than 10% | 13.50% | 14.70% | 13.30% | 18.10% |
Komatsu Ltd. [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Customers with revenues greater than 10% | 11.60% | 11.80% | 11.30% | 12.00% |
Summary_of_Significant_Account5
Summary of Significant Accounting Principals - Customers with Accounts Receivable Greater than 10% (Detail) (Caterpillar Inc. [Member], Accounts Receivable [Member]) | 0 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Caterpillar Inc. [Member] | Accounts Receivable [Member] | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Customers with accounts receivable greater than 10% | 19.00% | 20.90% |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | ||||||||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Feb. 24, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 11, 2014 | Sep. 30, 2014 | Apr. 03, 2013 | Apr. 30, 2014 | Sep. 30, 2014 | Apr. 03, 2013 | Apr. 01, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Jan. 12, 2012 | Apr. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | 16-May-11 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Oct. 01, 2014 |
USD ($) | USD ($) | USD ($) | Euroscan Holding B.V. [Member] | Euroscan Holding B.V. [Member] | Euroscan Holding B.V. [Member] | Euroscan Holding B.V. [Member] | Euroscan Holding B.V. [Member] | Euroscan Holding B.V. [Member] | Euroscan Holding B.V. [Member] | GlobalTrak [Member] | GlobalTrak [Member] | GlobalTrak [Member] | GlobalTrak [Member] | MobileNet [Member] | MobileNet [Member] | MobileNet [Member] | MobileNet [Member] | LMS [Member] | LMS [Member] | LMS [Member] | LMS [Member] | LMS [Member] | LMS [Member] | LMS [Member] | StarTrak [Member] | StarTrak [Member] | StarTrak [Member] | Warranty Obligations [Member] | SENS [Member] | SENS [Member] | ||
USD ($) | EUR (€) | USD ($) | USD ($) | EUR (€) | Technology And Trademarks [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Accounts Payable and Accrued Liabilities [Member] | Accounts Payable and Accrued Liabilities [Member] | USD ($) | USD ($) | USD ($) | Subsequent Event [Member] | ||||||||
USD ($) | USD ($) | USD ($) | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding equity percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition effective date | ' | ' | ' | ' | ' | ' | ' | 11-Mar-14 | ' | ' | ' | ' | ' | 3-Apr-13 | ' | ' | ' | 1-Apr-13 | ' | ' | ' | ' | 12-Jan-12 | ' | ' | ' | ' | ' | 16-May-11 | ' | 1-Oct-14 | ' |
Aggregate consideration payable in cash and common stock | ' | ' | ' | ' | $29,163 | € 20,999 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common stock shares issued for consideration | ' | ' | ' | ' | 291,230 | 291,230 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued, per share | ' | ' | ' | ' | ' | ' | $7.70 | $7.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent consideration payable | ' | ' | ' | ' | ' | ' | 6,547 | 6,547 | 4,714 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Decrease in goodwill | ' | ' | ' | ' | ' | ' | 220 | ' | ' | ' | ' | ' | 167 | 167 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Portion of contingent consideration in accrued liabilities | 2,480 | ' | ' | 24 | ' | ' | 2,257 | 2,257 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 207 | 24 | ' | ' | ' | ' | ' | ' |
Portion of contingent consideration in other non-current liabilities | ' | ' | ' | ' | ' | ' | 2,849 | 2,849 | ' | ' | ' | ' | ' | ' | ' | ' | 16 | 16 | 918 | ' | ' | ' | ' | 184 | ' | ' | ' | ' | ' | ' | ' | ' |
Charges in fair value of earn-out amounts | ' | ' | ' | ' | ' | ' | 137 | 297 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | 24 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount rate to reflect risk characteristics of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount deposited in escrow account | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' | 500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Escrow amount to be released | ' | ' | ' | ' | ' | ' | ' | ' | 250 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total consideration to acquire certain assets and liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,990 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,242 | ' | ' | ' | ' | 1,978 |
Adjustment in goodwill and warrant liability due to acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250 | 250 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Claim settled amount through third party escrow agent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 167 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition of net assets, net of cash acquired | 28,883 | 5,098 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,404 | ' | ' | ' | 6,863 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18.00% | 18.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes in fair value of earn-out amounts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 132 | 902 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Milestone payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warranty coverage on accrued product | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' |
Shares deposited into escrow account | ' | ' | 166,611 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 166,611 | 166,611 | ' | ' | ' |
Coverage percentage of certain costs relating to fuel sensor warranty obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' |
Proceeds received from settlement agreement in connection with the indemnification assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 691 | ' | ' | ' |
Reduction in selling, general and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 97 | ' | ' | ' |
Gain on fair value of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $126 | ' | ' | ' |
Acquisitions_Purchase_Price_Al
Acquisitions - Purchase Price Allocation for Acquisition (Detail) (Euroscan Holding B.V. [Member], USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Euroscan Holding B.V. [Member] | ' |
Business Acquisition [Line Items] | ' |
Cash | $280 |
Accounts receivable | 2,852 |
Inventory | 1,394 |
Other current assets | 579 |
Property, plant and equipment | 324 |
Intangible assets | 17,400 |
Other noncurrent assets | 543 |
Total identifiable assets acquired | 23,372 |
Accounts payable and accrued expenses | 2,576 |
Deferred revenues | 44 |
Deferred tax liabilities | 4,558 |
Total liabilities assumed | 7,178 |
Net identifiable assets acquired | 16,194 |
Goodwill | 20,011 |
Total preliminary purchase price | $36,205 |
Acquisitions_Summary_of_Useful
Acquisitions - Summary of Useful Lives of Customer Relationships Based on Customer Attrition (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Estimated Useful Life (in years) | '10 years 9 months 22 days |
Customer Lists [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Estimated Useful Life (in years) | '11 years 3 months 7 days |
Euroscan Holding B.V. [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Total intangible assets | 17,400 |
Euroscan Holding B.V. [Member] | Customer Lists [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Estimated Useful Life (in years) | '12 years |
Total intangible assets | 14,400 |
Euroscan Holding B.V. [Member] | Technology [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Estimated Useful Life (in years) | '10 years |
Total intangible assets | 2,400 |
Euroscan Holding B.V. [Member] | Trademarks [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Estimated Useful Life (in years) | '10 years |
Total intangible assets | 600 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Stock-based compensation expense | $852,000 | $674,000 | $2,627,000 | $1,894,000 | ' |
Stock-based compensation, capitalized | 99,000 | 35,000 | 227,000 | 86,000 | ' |
Unrecognized compensation costs for all share-based payment arrangements | 1,792,000 | ' | 1,792,000 | ' | ' |
Time-Based Stock Appreciation Rights [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Unrecognized compensation costs for all share-based payment arrangements | 1,044,000 | ' | 1,044,000 | ' | ' |
Stock-based compensation expense | 344,000 | 363,000 | 1,185,000 | 1,007,000 | ' |
Weighted-average grant date fair value of SARs | $4.49 | ' | $4.49 | ' | ' |
Intrinsic value of SARs | 389,000 | ' | 389,000 | ' | ' |
Stock Options [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Intrinsic value of stock options exercised | 58,000 | ' | 58,000 | ' | ' |
Performance Units [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Stock-based compensation expense | 75,000 | 95,000 | 274,000 | 184,000 | ' |
Maximum percentage of MPUs for senior executives | 15.00% | ' | 15.00% | ' | ' |
Fair value period of MPUs | ' | ' | '3 years | ' | ' |
Performance-Based Stock Appreciation Rights [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Unrecognized compensation costs for all share-based payment arrangements | 0 | ' | 0 | ' | ' |
Stock-based compensation expense | 0 | 44,000 | 47,000 | 166,000 | ' |
Intrinsic value of SARs | 171,000 | ' | 171,000 | ' | ' |
Time-Based Restricted Stock Units [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Unrecognized compensation costs for all share-based payment arrangements | 274,000 | ' | 274,000 | ' | ' |
Stock-based compensation expense | 169,000 | 145,000 | 426,000 | 285,000 | ' |
Weighted-average grant date fair value of SARs | $6.06 | ' | $6.06 | ' | $3.32 |
Performance-Based Restricted Stock Units [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Unrecognized compensation costs for all share-based payment arrangements | 474,000 | ' | 474,000 | ' | ' |
Stock-based compensation expense | 264,000 | 27,000 | 695,000 | 252,000 | ' |
Weighted-average grant date fair value of SARs | $6.09 | ' | $6.09 | ' | $4.26 |
2006 LTIP [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Number of shares available for grant | 3,371,115 | ' | 3,371,115 | ' | ' |
2004 Stock Option Plan [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Number of shares available for grant | 0 | ' | 0 | ' | ' |
Intrinsic value of stock options exercised | $44,000 | ' | $44,000 | ' | ' |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary Components of Stock-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $852 | $674 | $2,627 | $1,894 |
Costs of Services [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 49 | 81 | 127 | 202 |
Costs of Product Sales [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | -7 | 24 | 42 | 71 |
Selling, General and Administrative [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 763 | 452 | 2,283 | 1,444 |
Product Development [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $47 | $117 | $175 | $177 |
StockBased_Compensation_Summar1
Stock-Based Compensation - Summary of Stock Appreciation Rights (Detail) (USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 |
Time-Based Stock Appreciation Rights [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Shares, Outstanding, Beginning Balance | 3,611,567 |
Number of Shares, Granted | 75,000 |
Number of Shares, Exercised | -117,700 |
Number of Shares, Forfeited or expired | -68,700 |
Number of Shares, Outstanding, Ending Balance | 3,500,167 |
Number of Shares, Exercisable | 2,876,034 |
Number of Shares, Vested and expected to vest | 3,500,167 |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $4.20 |
Weighted-Average Exercise Price, Granted | $7.30 |
Weighted-Average Exercise Price, Exercised | $3.36 |
Weighted-Average Exercise Price, Forfeited or expired | $4.93 |
Weighted-Average Exercise Price, Outstanding, Ending Balance | $4.29 |
Weighted-Average Exercise Price, Exercisable | $3.97 |
Weighted-Average Exercise Price, Vested and expected to vest | $4.29 |
Weighted-Average Remaining Contractual Term, Outstanding | '6 years 1 month 28 days |
Weighted-Average Remaining Contractual Term, Exercisable | '5 years 6 months 11 days |
Weighted-Average Remaining Contractual Term, Vested and expected to vest | '6 years 1 month 28 days |
Aggregate Intrinsic Value, Outstanding, Ending balance | $5,619 |
Aggregate Intrinsic Value, Exercisable | 5,462 |
Aggregate Intrinsic Value, Vested and expected to vest | 5,619 |
Performance-Based Stock Appreciation Rights [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Shares, Outstanding, Beginning Balance | 865,713 |
Number of Shares, Exercised | -59,012 |
Number of Shares, Forfeited or expired | -13,600 |
Number of Shares, Outstanding, Ending Balance | 793,101 |
Number of Shares, Exercisable | 793,101 |
Number of Shares, Vested and expected to vest | 793,101 |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $5.37 |
Weighted-Average Exercise Price, Exercised | $3.52 |
Weighted-Average Exercise Price, Forfeited or expired | $6.33 |
Weighted-Average Exercise Price, Outstanding, Ending Balance | $5.49 |
Weighted-Average Exercise Price, Exercisable | $5.49 |
Weighted-Average Exercise Price, Vested and expected to vest | $5.49 |
Weighted-Average Remaining Contractual Term, Outstanding | '5 years 7 months 13 days |
Weighted-Average Remaining Contractual Term, Exercisable | '5 years 7 months 13 days |
Weighted-Average Remaining Contractual Term, Vested and expected to vest | '5 years 7 months 13 days |
Aggregate Intrinsic Value, Outstanding, Ending balance | 1,420 |
Aggregate Intrinsic Value, Exercisable | 1,420 |
Aggregate Intrinsic Value, Vested and expected to vest | $1,420 |
StockBased_Compensation_Fair_V
Stock-Based Compensation - Fair Value of Stock Appreciation Rights Estimated, Black-Scholes Option Pricing Model (Detail) (Performance-Based Stock Appreciation Rights [Member], USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Risk-free interest rate, Minimum | 1.81% | 0.91% |
Risk-free interest rate, Maximum | 1.94% | 1.99% |
Expected life (years) | '6 years | ' |
Expected dividends | $0 | $0 |
Maximum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Expected life (years) | ' | '6 years |
Estimated volatility factor | 67.34% | 69.92% |
Minimum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Expected life (years) | ' | '5 years 6 months |
Estimated volatility factor | 66.07% | 68.39% |
StockBased_Compensation_Summar2
Stock-Based Compensation - Summary of Restricted Stock Units (Detail) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Time-Based Restricted Stock Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Shares, Outstanding, Beginning Balance | 85,270 |
Number of Shares, Granted | 90,255 |
Number of Shares, Vested | -65,270 |
Number of Shares, Forfeited or expired | ' |
Number of Shares, Outstanding, Ending Balance | 110,255 |
Weighted-Average Grant Date Fair Value, Beginning balance | $3.32 |
Weighted-Average Grant Date Fair Value, Granted | $7.04 |
Weighted-Average Grant Date Fair Value, Vested | $3.83 |
Weighted-Average Grant Date Fair Value, Forfeited or expired | ' |
Weighted-Average Grant Date Fair Value, Ending balance | $6.06 |
Performance-Based Restricted Stock Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Shares, Outstanding, Beginning Balance | 313,000 |
Number of Shares, Granted | 125,650 |
Number of Shares, Vested | -208,868 |
Number of Shares, Forfeited or expired | -64,307 |
Number of Shares, Outstanding, Ending Balance | 165,475 |
Weighted-Average Grant Date Fair Value, Beginning balance | $4.26 |
Weighted-Average Grant Date Fair Value, Granted | $6.18 |
Weighted-Average Grant Date Fair Value, Vested | $3.96 |
Weighted-Average Grant Date Fair Value, Forfeited or expired | $4.28 |
Weighted-Average Grant Date Fair Value, Ending balance | $6.09 |
StockBased_Compensation_Fair_V1
Stock-Based Compensation - Fair Value of Market Performance Units Estimated, Monte Carlo Simulation Model (Detail) (Performance Units [Member], USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Share Based Payment Award Stock Options Valuation Assumptions [Line Items] | ' | ' |
Estimated volatility factor | ' | 40.00% |
Expected dividends | $0 | $0 |
Minimum [Member] | ' | ' |
Share Based Payment Award Stock Options Valuation Assumptions [Line Items] | ' | ' |
Risk-free interest rate, Minimum | 0.02% | 0.03% |
Estimated volatility factor, Minimum | 34.00% | ' |
Maximum [Member] | ' | ' |
Share Based Payment Award Stock Options Valuation Assumptions [Line Items] | ' | ' |
Risk-free interest rate, Maximum | 0.70% | 0.46% |
Estimated volatility factor, Maximum | 40.00% | ' |
StockBased_Compensation_Summar3
Stock-Based Compensation - Summary of Stock Options (Detail) (2004 Stock Option Plan [Member], USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 |
2004 Stock Option Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Shares, Outstanding beginning balance | 88,446 |
Number of Shares, Granted | ' |
Number of Shares, Exercised | -20,792 |
Number of Shares, Forfeited or expired | -17,654 |
Number of Shares, Outstanding ending balance | 50,000 |
Number of Shares, Exercisable | 50,000 |
Number of Shares, Vested and expected to vest | 50,000 |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $4.04 |
Weighted-Average Exercise Price, Granted | ' |
Weighted-Average Exercise Price, Exercised | $2.98 |
Weighted-Average Exercise Price, Forfeited or expired | $2.91 |
Weighted-Average Exercise Price, Outstanding, Ending Balance | $4.88 |
Weighted-Average Exercise Price, Exercisable | $4.88 |
Weighted-Average Exercise Price, Vested and expected to vest | $4.88 |
Weighted-Average Remaining Contractual Term, Outstanding ending balance | '7 months 2 days |
Weighted-Average Remaining Contractual Term, Exercisable | '7 months 2 days |
Weighted-Average Remaining Contractual Term, Vested and expected to vest | '7 months 2 days |
Aggregate Intrinsic Value, Outstanding ending balance | $44 |
Aggregate Intrinsic Value, Exercisable | 44 |
Aggregate Intrinsic Value, Vested and expected to vest | $44 |
Net_Loss_Income_Attributable_t2
Net (Loss) Income Attributable to ORBCOMM Inc. Common Stockholders - Summary of Basic and Diluted Calculations of EPS (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net (loss) income attributable to ORBCOMM Inc. common stockholders | ($33) | $971 | $920 | $3,734 |
Weighted average number of common shares outstanding: | ' | ' | ' | ' |
Basic number of common shares outstanding | 55,247 | 47,498 | 54,561 | 47,213 |
Dilutive effect of grants of stock options, unvested SAR's and RSU's and shares of Series A convertible preferred stock | ' | 1,230 | 1,714 | 1,262 |
Diluted number of common shares outstanding | 55,247 | 48,728 | 56,275 | 48,475 |
Earnings per share: | ' | ' | ' | ' |
Basic | $0 | $0.02 | $0.02 | $0.08 |
Diluted | $0 | $0.02 | $0.02 | $0.08 |
Net_Loss_Income_Attributable_t3
Net (Loss) Income Attributable to ORBCOMM Inc. Common Stockholders - Schedule of Amounts Not Included in Calculation of Diluted EPS (Detail) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
SAR's [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive securities | 1,008 | 3,486 | 737 | 3,563 |
RSU's [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive securities | ' | 289 | ' | 277 |
Stock Options [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive securities | ' | 236 | ' | 160 |
Net_Loss_Income_Attributable_t4
Net (Loss) Income Attributable to ORBCOMM Inc. Common Stockholders - Summary of Net (Loss) Income Attributable to ORBCOMM Inc. Common Stockholders (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net (loss) income attributable to ORBCOMM Inc. | ($33) | $986 | $939 | $3,780 |
Preferred stock dividends on Series A convertible preferred stock | ' | -15 | -19 | -46 |
Net (loss) income attributable to ORBCOMM Inc. common stockholders | ($33) | $971 | $920 | $3,734 |
Satellite_Network_and_Other_Eq2
Satellite Network and Other Equipment - Summary of Satellite Network and Other Equipment (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $208,315 | $157,656 |
Less: accumulated depreciation and amortization | -29,074 | -24,628 |
Property, plant and equipment, net | 179,241 | 133,028 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 381 | 381 |
Satellite Network [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 118,081 | 29,362 |
Satellite Network [Member] | Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, useful life | '1 year | ' |
Satellite Network [Member] | Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, useful life | '10 years | ' |
Capitalized Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 6,149 | 4,563 |
Capitalized Software [Member] | Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, useful life | '3 years | ' |
Capitalized Software [Member] | Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, useful life | '7 years | ' |
Computer Hardware [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, useful life | '3 years | ' |
Property, plant and equipment, gross | 2,644 | 2,419 |
Other [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 4,682 | 2,125 |
Other [Member] | Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, useful life | '2 years | ' |
Other [Member] | Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, useful life | '7 years | ' |
Assets under Construction [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $76,378 | $118,806 |
Satellite_Network_and_Other_Eq3
Satellite Network and Other Equipment - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 15, 2014 | Jul. 14, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Internal-use Software [Member] | Internal-use Software [Member] | Internal-use Software [Member] | Internal-use Software [Member] | Next-generation OG2 Satellites [Member] | Next-generation OG2 Satellites [Member] | Next-generation OG2 Satellites [Member] | Next-generation OG2 Satellites [Member] | |||||
Satellite | ||||||||||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company capitalized costs attributable to the design and development of internal-use software | ' | ' | ' | ' | ' | ' | $2,084 | $1,259 | ' | ' | ' | ' |
Depreciation and amortization expense | 1,708 | 1,223 | 4,446 | 3,235 | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of internal-use software | ' | ' | ' | ' | 259 | 234 | 669 | 462 | ' | ' | ' | ' |
Number of satellites | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' |
Reclassification of costs out of assets under construction into satellite network | ' | ' | ' | ' | ' | ' | ' | ' | 83,361 | ' | ' | ' |
Satellites, life in years | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' |
Depreciation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $347 | $347 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Components of Goodwill (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Beginning balance | $20,335 |
Additions through acquisitions | 20,011 |
Measurement period adjustments | -417 |
Ending balance | $39,929 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | |||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Apr. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Segment | Euroscan Holding B.V. [Member] | Euroscan Holding B.V. [Member] | GlobalTrak [Member] | GlobalTrak [Member] | Acquired Goodwill [Member] | Customer Lists [Member] | Customer Lists [Member] | Patents and Technology [Member] | Trade Names and Trademarks [Member] | ||||
Segment | Euroscan Holding B.V. [Member] | ||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | $20,011 | ' | ' | $20,011 | ' | ' | ' | ' | ' | ' | ' |
Reduction in warranty liability | ' | ' | ' | ' | ' | ' | 250 | 250 | ' | ' | ' | ' | ' |
Decrease in goodwill | ' | ' | ' | ' | 220 | ' | 167 | 167 | ' | ' | ' | ' | ' |
Number of reportable segments goodwill is allocated | ' | ' | 1 | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' |
Weighted-average amortization period intangible assets | ' | ' | '10 years 9 months 22 days | ' | ' | ' | ' | ' | ' | '11 years 3 months 7 days | '12 years | '9 years 8 months 23 days | '9 years 3 months 18 days |
Amortization of intangible assets | $773 | $362 | $2,024 | $979 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets - Estimated Annual Amortization Expense for Intangible Assets (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
2014 (remaining) | $773 | ' |
2015 | 3,091 | ' |
2016 | 3,088 | ' |
2017 | 2,939 | ' |
2018 | 2,901 | ' |
Thereafter | 14,220 | ' |
Finite lived intangible assets, Net | $27,012 | $11,636 |
Goodwill_and_Intangible_Assets5
Goodwill and Intangible Assets - Estimated Annual Amortization Expense for Intangible Assets (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
2014 (remaining) | $773 | ' |
2015 | 3,091 | ' |
2016 | 3,088 | ' |
2017 | 2,939 | ' |
2018 | 2,901 | ' |
Thereafter | 14,220 | ' |
Finite lived intangible assets, Net | $27,012 | $11,636 |
Accrued_Liabilities_Components
Accrued Liabilities - Components of Accrued Liabilities (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Accrued compensation and benefits | $3,214 | $3,438 |
Warranty | 1,188 | 2,199 |
Corporate income tax payable | 294 | 81 |
Contingent earn-out amount | 2,480 | 24 |
AIS deployment and license agreement | 60 | 192 |
Accrued satellite network and other equipment | 624 | 212 |
Milestone payable | 5,460 | ' |
Accrued credit facility financing fees | 1,524 | ' |
Other accrued expenses | 3,563 | 3,681 |
Total accrued liabilities | $18,407 | $9,827 |
Accrued_Liabilities_Summary_of
Accrued Liabilities - Summary of Accrued Warranty Obligations (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Payables and Accruals [Abstract] | ' | ' |
Balance at January 1, | $2,199 | $2,762 |
Warranty liabilities assumed from acquisition | 96 | 38 |
Amortization of fair value adjustment of warranty liabilities acquired through acquisitions | -156 | -63 |
Reduction of warranty liabilities assumed in connection with acquisitions | -648 | ' |
Warranty expense | 278 | 211 |
Warranty charges | -581 | -607 |
Balance at September 30, | $1,188 | $2,341 |
Deferred_Revenues_Summary_of_D
Deferred Revenues - Summary of Deferred Revenues (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Revenue Disclosure [Abstract] | ' | ' |
Service activation fees | $3,312 | $3,135 |
Prepaid services | 2,606 | 1,949 |
Warranty revenues | 195 | 272 |
Prepaid product revenues | 16 | 104 |
Total deferred revenue | 6,129 | 5,460 |
Less current portion | -3,782 | -3,087 |
Long-term portion | 2,347 | 2,373 |
Total deferred revenue | $6,129 | $5,460 |
Note_PayableRelated_Party_Addi
Note Payable-Related Party - Additional Information (Detail) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | EUR (€) | USD ($) | EUR (€) | |
Debt Disclosure [Abstract] | ' | ' | ' | ' |
Principal balance of the note payable | ' | € 1,138 | ' | € 1,138 |
Carrying value note payable | $1,446 | ' | $1,571 | ' |
Note payable estimated life | '6 years | '6 years | ' | ' |
Note_Payable_Additional_Inform
Note Payable - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jan. 04, 2013 |
Secured Credit Facilities [Member] | Credit Agreement [Member] | Base Rate [Member] | ' | ' | ' | ' | ' |
Debt Obligations [Line Items] | ' | ' | ' | ' | ' |
Interest rate, Description | ' | ' | 'Base rate plus 3.75% | ' | ' |
Interest rate, Percentage | ' | ' | 3.75% | ' | ' |
Secured Credit Facilities [Member] | Credit Agreement [Member] | LIBOR [Member] | ' | ' | ' | ' | ' |
Debt Obligations [Line Items] | ' | ' | ' | ' | ' |
Interest rate, Description | ' | ' | 'LIBOR plus 4.75% | ' | ' |
Interest rate, Percentage | ' | ' | 4.75% | ' | ' |
Secured Credit Facilities [Member] | Credit Agreement [Member] | Interest Rate Floor [Member] | ' | ' | ' | ' | ' |
Debt Obligations [Line Items] | ' | ' | ' | ' | ' |
Interest rate, Description | ' | ' | 'LIBOR floor of 1.00% | ' | ' |
Interest rate, Percentage | ' | ' | 1.00% | ' | ' |
Minimum [Member] | Secured Credit Facilities [Member] | Credit Agreement [Member] | ' | ' | ' | ' | ' |
Debt Obligations [Line Items] | ' | ' | ' | ' | ' |
Consolidated leverage ratio | ' | ' | 1 | ' | ' |
Consolidated liquidation cost | ' | ' | $7,500 | ' | ' |
Maximum [Member] | Secured Credit Facilities [Member] | Credit Agreement [Member] | ' | ' | ' | ' | ' |
Debt Obligations [Line Items] | ' | ' | ' | ' | ' |
Issuance of senior secured notes | 160,000 | ' | 160,000 | ' | ' |
Consolidated leverage ratio | ' | ' | 5 | ' | ' |
Maximum [Member] | Revolving Credit Facility [Member] | Credit Agreement [Member] | ' | ' | ' | ' | ' |
Debt Obligations [Line Items] | ' | ' | ' | ' | ' |
Issuance of senior secured notes | 10,000 | ' | 10,000 | ' | ' |
9.5% Senior Secured Notes [Member] | ' | ' | ' | ' | ' |
Debt Obligations [Line Items] | ' | ' | ' | ' | ' |
Issuance of senior secured notes | ' | ' | ' | ' | 45,000 |
Note bears interest rate | 9.50% | ' | 9.50% | ' | ' |
Maturity date | ' | ' | 4-Jan-18 | ' | ' |
Debt issuance costs | ' | ' | 1,390 | ' | ' |
Amortization of debt issuance costs | 66 | 66 | 202 | 197 | ' |
9.5% Senior Secured Notes [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Debt Obligations [Line Items] | ' | ' | ' | ' | ' |
Available liquidity | 10,000 | ' | 10,000 | ' | ' |
Leverage ratio | ' | ' | 1 | ' | ' |
9.5% Senior Secured Notes [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Debt Obligations [Line Items] | ' | ' | ' | ' | ' |
Leverage ratio | ' | ' | 4.5 | ' | ' |
Senior Notes [Member] | Credit Agreement [Member] | ' | ' | ' | ' | ' |
Debt Obligations [Line Items] | ' | ' | ' | ' | ' |
Debt instrument, description | ' | ' | 'Pursuant to the Credit Agreement, the Lender provided secured credit facilities (bthe Secured Credit Facilitiesb) in an aggregate amount of $160,000 comprised of (i) a term loan facility in an aggregate principal amount of up to $70,000 (the bInitial Term Loan Facilityb); (ii) a $10,000 revolving credit facility (the bRevolving Credit Facilityb); (iii) a term loan facility in an aggregate principal amount of up to $10,000 (the bTerm B2b), the proceeds of which, if drawn, may be used to finance a potential acquisition; and (iv) a term loan facility in an aggregate principal amount of up to $70,000 (the bTerm B3b), the proceeds of which, if drawn, may be used to finance an additional potential acquisition. Proceeds of the Initial Term Loan Facility and Revolving Credit Facility were funded on October 10, 2014 and were used to repay in full the Companybs Senior Notes and pay certain related fees, expenses and accrued interest, as well as for general corporate purposes. | ' | ' |
Secured Credit Facilities , Maturity period | ' | ' | '5 years | ' | ' |
Initial Term Loan Facility [Member] | Maximum [Member] | Credit Agreement [Member] | ' | ' | ' | ' | ' |
Debt Obligations [Line Items] | ' | ' | ' | ' | ' |
Issuance of senior secured notes | 70,000 | ' | 70,000 | ' | ' |
Term B2 [Member] | Maximum [Member] | Credit Agreement [Member] | ' | ' | ' | ' | ' |
Debt Obligations [Line Items] | ' | ' | ' | ' | ' |
Issuance of senior secured notes | 10,000 | ' | 10,000 | ' | ' |
Term B3 [Member] | Maximum [Member] | Credit Agreement [Member] | ' | ' | ' | ' | ' |
Debt Obligations [Line Items] | ' | ' | ' | ' | ' |
Issuance of senior secured notes | $70,000 | ' | $70,000 | ' | ' |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 9 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Jan. 17, 2014 | Sep. 30, 2014 | Jan. 17, 2014 | Dec. 31, 2013 | Jan. 17, 2014 | Jan. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Underwriters' Overallotment Option [Member] | Performance Units [Member] | Series A Convertible Preferred Stock [Member] | Series A Convertible Preferred Stock [Member] | |||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, conversion basis | ' | ' | ' | ' | ' | ' | ' | 14,850 |
Common stock, conversion basis | ' | ' | ' | ' | ' | ' | ' | 24,740 |
Preferred stock dividends, shares | ' | ' | ' | ' | ' | ' | ' | 1,940 |
Dividends in arrears | ' | ' | ' | ' | ' | ' | $18 | ' |
Common stock issued, shares | ' | 55,276,060 | ' | 48,216,480 | ' | 33,594 | ' | ' |
Shares of common stock issued in public offering | 6,325,000 | ' | ' | ' | 825,000 | ' | ' | ' |
Public offering price per share | ' | ' | $6.15 | ' | ' | ' | ' | ' |
Net proceeds received from shares issuances | $36,607 | $36,607 | ' | ' | ' | ' | ' | ' |
Common stock, capital shares reserved for future issuance | ' | 7,990,113 | ' | ' | ' | ' | ' | ' |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2014 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of reportable segment | 1 |
Segment_Information_Summary_of
Segment Information - Summary of Revenues on Percentage Basis by Geographic Regions (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Segment Information [Line Items] | ' | ' | ' | ' |
Revenues on a percentage basis by geographic regions, based on the country | 100.00% | 100.00% | 100.00% | 100.00% |
United States [Member] | ' | ' | ' | ' |
Segment Information [Line Items] | ' | ' | ' | ' |
Revenues on a percentage basis by geographic regions, based on the country | 72.00% | 84.00% | 75.00% | 85.00% |
Japan [Member] | ' | ' | ' | ' |
Segment Information [Line Items] | ' | ' | ' | ' |
Revenues on a percentage basis by geographic regions, based on the country | 7.00% | 9.00% | 6.00% | 9.00% |
Europe [Member] | ' | ' | ' | ' |
Segment Information [Line Items] | ' | ' | ' | ' |
Revenues on a percentage basis by geographic regions, based on the country | 17.00% | 3.00% | 15.00% | 3.00% |
Other [Member] | ' | ' | ' | ' |
Segment Information [Line Items] | ' | ' | ' | ' |
Revenues on a percentage basis by geographic regions, based on the country | 4.00% | 4.00% | 4.00% | 3.00% |
Income_taxes_Additional_Inform
Income taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Taxes [Line Items] | ' | ' | ' | ' |
Income tax provision | $145,000 | $254,000 | $745,000 | $603,000 |
Goodwill generated from amortization of tax goodwill from acquisitions | 37,000 | 87,000 | 333,000 | 239,000 |
Unrecognized tax benefits | 775,000 | ' | 775,000 | ' |
Unrecognized tax benefits, period change | ' | ' | 0 | ' |
Interest and penalties related to uncertain tax positions | 0 | ' | 0 | ' |
International Operations [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Income tax provision | 145,000 | ' | 745,000 | ' |
Foreign income tax expense | 108,000 | ' | 412,000 | ' |
ORBCOMM Japan [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Income tax provision | ' | 254,000 | ' | 603,000 |
Foreign income tax expense | ' | $167,000 | ' | $364,000 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 0 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 1 Months Ended | 0 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Jul. 03, 2012 | Sep. 30, 2014 | 5-May-08 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2012 | Sep. 21, 2012 | Jul. 14, 2014 | Feb. 28, 2014 | Jun. 24, 2013 | Sep. 10, 2013 | Jan. 14, 2014 | Apr. 18, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | 5-May-08 | Sep. 30, 2014 | Aug. 31, 2010 | 5-May-08 | Sep. 30, 2014 | Dec. 31, 2013 | Aug. 31, 2010 | Aug. 31, 2010 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2011 | 5-May-08 | 5-May-08 |
Falcon 9 Agreement [Member] | Falcon 9 Agreement [Member] | Falcon 9 Agreement [Member] | Falcon 9 Agreement [Member] | Secondary Payload Launch Services Agreement [Member] | Next-generation OG2 Satellites [Member] | Development and Manufacturing Arrangement [Member] | Procurement Agreement Task Order Number Seven [Member] | Procurement Agreement Task Order Number Eight [Member] | Procurement Agreement Task Order Number Nine [Member] | Procurement Agreement Task Order Number Ten [Member] | Launch Plus One Year In Orbit Insurance Coverage for First Launch of Six Satellites [Member] | Launch Vehicle Flight Only Insurance Coverage for First Launch of Six Satellites [Member] | First Launch of Six Satellites [Member] | Launch Plus One Year In Orbit Insurance Coverage for Second Launch of Eleven Satellites [Member] | Launch Vehicle Flight Only Insurance Coverage for Second Launch of Eleven Satellites [Member] | Second Launch of Eleven Satellites [Member] | Procurement Agreement [Member] | Procurement Agreement [Member] | Procurement Agreement [Member] | Procurement Agreement [Member] | Procurement Agreement [Member] | Procurement Agreement [Member] | Procurement Agreement [Member] | Procurement Agreement [Member] | Procurement Agreement [Member] | Procurement Agreement [Member] | Procurement Agreement [Member] | Procurement Agreement [Member] | Procurement Agreement [Member] | Maximum [Member] | Minimum [Member] | |||||
Satellite | Satellite | SNC [Member] | SNC [Member] | SNC [Member] | SNC [Member] | Space Exploration Technologies Corp. (SpaceX) [Member] | Space Exploration Technologies Corp. (SpaceX) [Member] | Launch Activities [Member] | Engineering Changes [Member] | Airtime [Member] | Airtime [Member] | Airtime [Member] | Airtime [Member] | Airtime [Member] | Procurement Agreement [Member] | Procurement Agreement [Member] | ||||||||||||||||||||
Satellite | Agreement | SNC [Member] | SNC [Member] | Space Exploration Technologies Corp. (SpaceX) [Member] | Space Exploration Technologies Corp. (SpaceX) [Member] | Space Exploration Technologies Corp. (SpaceX) [Member] | Space Exploration Technologies Corp. (SpaceX) [Member] | Space Exploration Technologies Corp. (SpaceX) [Member] | SNC [Member] | SNC [Member] | ||||||||||||||||||||||||||
Satellite | Europe [Member] | Satellite | ||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contract price | ' | ' | ' | ' | ' | ' | ' | $42,600 | $4,000 | ' | $4,817 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $117,000 | ' |
Delayed shipset | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '120 days | '60 days |
Incentive payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of satellites | ' | ' | ' | ' | ' | 17 | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30 | ' |
Low-earth-orbit satellites | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost reimbursable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,110 | 317 | ' | ' | ' | ' | ' | ' | ' |
Amount of credit available | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,528 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional task order agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed fee included in price for the work task order | ' | 521 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Procurement agreement fixed price contract amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 189 | 1,650 | 127 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Procurement agreement cost plus fixed price contract amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 175 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Procurement agreement contract price excluding optional satellites | ' | ' | ' | 117,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liquidated delay damages | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,900 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Milestone payments | 74,490 | ' | ' | ' | 36,391 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Potential future milestone payments | ' | ' | 0 | ' | ' | ' | 2,663 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contract original price | ' | ' | ' | ' | ' | ' | ' | ' | 46,600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Insurance coverage on launch of satellite program | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 66,000 | 22,000 | ' | 120,000 | 22,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Premium cost for launch of satellite | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,953 | ' | ' | 16,454 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of premium as to aggregate premium | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credits provided | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | 8 | 23 | 23 | 3,736 | ' | ' |
Unused credits granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,074 | $2,097 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for developing and manufacturing products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Nov. 01, 2014 | Nov. 01, 2014 | Nov. 01, 2014 | Nov. 01, 2014 | Oct. 10, 2014 | Nov. 07, 2014 | Oct. 10, 2014 | Oct. 10, 2014 |
In Thousands, except Share data, unless otherwise specified | Sky Wave [Member] | 9.5% Senior Secured Notes [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||
Sky Wave [Member] | Sky Wave [Member] | Inmarsat Canada Holdings Inc. [Member] | IDP Rights and Earth Station Assets [Member] | Credit Agreement [Member] | Share Issuance [Member] | 9.5% Senior Secured Notes [Member] | Initial Term Loan Facility [Member] | |||||
Revolving Credit Facility [Member] | Credit Agreement [Member] | |||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Notes, redeemed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $45,000 | ' |
Redemption Date | ' | ' | ' | 10-Oct-14 | ' | ' | ' | ' | ' | ' | ' | ' |
Additional early termination penalty and remaining debt issuance cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,800 | ' |
Proceeds from debt | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' | ' | 70,000 |
Acquisition agreement date | ' | ' | 1-Nov-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price of acquisition, cash | ' | ' | ' | ' | 130,000 | ' | ' | ' | ' | ' | ' | ' |
Purchase price to be paid in form of promissory note | ' | ' | ' | ' | ' | ' | 7,500 | 7,500 | ' | ' | ' | ' |
Aggregate purchase price percentage | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' |
Cash held in escrow to cover certain indemnity obligations | $2,195 | ' | ' | ' | ' | $10,600 | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | 55,276,060 | 48,216,480 | ' | ' | ' | ' | ' | ' | ' | 12,857,143 | ' | ' |
Common stock, price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.60 | ' | ' |