Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 01, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | ORBC | |
Entity Registrant Name | ORBCOMM Inc. | |
Entity Central Index Key | 1,361,983 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 70,986,705 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 15,465 | $ 27,077 |
Accounts receivable, net of allowance for doubtful accounts of $1,326 and $1,233, respectively | 38,128 | 29,816 |
Inventories | 20,416 | 20,712 |
Prepaid expenses and other current assets | 7,576 | 5,646 |
Restricted cash | 1,000 | |
Deferred income taxes | 508 | 508 |
Total current assets | 82,093 | 84,759 |
Satellite network and other equipment, net | 232,167 | 229,970 |
Goodwill | 114,038 | 112,425 |
Intangible assets, net | 88,298 | 93,172 |
Other assets | 7,662 | 6,573 |
Total assets | 524,258 | 526,899 |
Current liabilities: | ||
Accounts payable | 14,356 | 13,895 |
Accrued liabilities | 25,630 | 24,186 |
Current portion of deferred revenue | 8,373 | 7,652 |
Total current liabilities | 48,359 | 45,733 |
Note payable - related party | 1,264 | 1,241 |
Note payable | 150,000 | 150,000 |
Deferred revenue, net of current portion | 4,411 | 6,024 |
Deferred tax liabilities | 18,972 | 18,440 |
Other liabilities | 4,294 | 5,705 |
Total liabilities | 227,300 | 227,143 |
Commitments and contingencies | ||
ORBCOMM Inc. stockholders' equity | ||
Common stock, par value $0.001; 250,000,000 shares authorized; 71,009,088 and 70,613,642 shares issued at June 30, 2016 and December 31, 2015 | 71 | 71 |
Additional paid-in capital | 384,355 | 381,659 |
Accumulated other comprehensive income (loss) | (496) | (1,174) |
Accumulated deficit | (87,689) | (81,424) |
Less treasury stock, at cost; 29,990 shares at June 30, 2016 and December 31, 2015 | (96) | (96) |
Total ORBCOMM Inc. stockholders' equity | 296,495 | 299,393 |
Noncontrolling interest | 463 | 363 |
Total equity | 296,958 | 299,756 |
Total liabilities and equity | 524,258 | 526,899 |
Series A Convertible Preferred Stock [Member] | ||
ORBCOMM Inc. stockholders' equity | ||
Series A Convertible Preferred Stock, par value $0.001; 1,000,000 shares authorized; 35,051 and 35,759 shares issued and outstanding | $ 350 | $ 357 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Allowances for doubtful accounts | $ 1,326 | $ 1,233 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 71,009,088 | 70,613,642 |
Treasury stock, shares | 29,990 | 29,990 |
Series A Convertible Preferred Stock [Member] | ||
Preferred Stock, par value | $ 0.001 | $ 0.001 |
Preferred Stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred Stock, shares issued | 35,051 | 35,759 |
Preferred Stock, shares outstanding | 35,051 | 35,759 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues: | ||||
Service revenues | $ 27,694 | $ 24,011 | $ 54,608 | $ 47,785 |
Product sales | 22,370 | 20,872 | 39,016 | 39,428 |
Total revenues | 50,064 | 44,883 | 93,624 | 87,213 |
Cost of revenues, exclusive of depreciation and amortization shown below: | ||||
Cost of services | 9,351 | 8,318 | 18,539 | 16,022 |
Cost of product sales | 17,200 | 14,790 | 28,650 | 28,738 |
Gross profit | 23,513 | 21,775 | 46,435 | 42,453 |
Operating expenses: | ||||
Selling, general and administrative | 11,056 | 11,025 | 22,812 | 22,466 |
Product development | 1,952 | 1,818 | 3,909 | 3,426 |
Depreciation and amortization | 11,551 | 6,640 | 20,510 | 13,095 |
Impairment loss - satellite network | 12,748 | 12,748 | ||
Acquisition - related and integration costs | 569 | 1,110 | 933 | 3,561 |
Loss from operations | (1,615) | (11,566) | (1,729) | (12,843) |
Other income (expense): | ||||
Interest income | 95 | 85 | 183 | 156 |
Other income (expense) | 99 | 204 | (91) | 392 |
Interest expense | (2,445) | (1,332) | (4,144) | (2,574) |
Total other (expense) | (2,251) | (1,043) | (4,052) | (2,026) |
Loss before income taxes | (3,866) | (12,609) | (5,781) | (14,869) |
Income taxes | 216 | (386) | 378 | 91 |
Net loss | (4,082) | (12,223) | (6,159) | (14,960) |
Less: Net income (loss) attributable to the noncontrolling interests | 87 | (15) | 106 | 121 |
Net loss attributable to ORBCOMM Inc. | (4,169) | (12,208) | (6,265) | (15,081) |
Net loss attributable to ORBCOMM Inc. common stockholders | $ (4,169) | $ (12,217) | $ (6,265) | $ (15,099) |
Per share information-basic: | ||||
Net loss attributable to ORBCOMM Inc. common stockholders | $ (0.06) | $ (0.17) | $ (0.09) | $ (0.21) |
Per share information-diluted: | ||||
Net loss attributable to ORBCOMM Inc. common stockholders | $ (0.06) | $ (0.17) | $ (0.09) | $ (0.21) |
Weighted average common shares outstanding: | ||||
Basic | 70,900 | 70,427 | 70,800 | 70,333 |
Diluted | 70,900 | 70,427 | 70,800 | 70,333 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (4,082) | $ (12,223) | $ (6,159) | $ (14,960) |
Other comprehensive income (loss) - Foreign currency translation adjustments | 171 | (56) | 672 | (544) |
Other comprehensive income (loss) | 171 | (56) | 672 | (544) |
Comprehensive loss | (3,911) | (12,279) | (5,487) | (15,504) |
Less: Comprehensive (income) loss attributable to noncontrolling interests | (94) | 371 | (100) | 175 |
Comprehensive loss attributable to ORBCOMM Inc. | $ (4,005) | $ (11,908) | $ (5,587) | $ (15,329) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (6,159) | $ (14,960) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Change in allowance for doubtful accounts | (24) | 246 |
Change in the fair value of acquisition-related contingent consideration | 29 | (732) |
Amortization of the fair value adjustment related to warranty liabilities acquired through acquisitions | (57) | (12) |
Amortization of deferred financing fees | 383 | 220 |
Depreciation and amortization | 20,510 | 13,095 |
Impairment loss - satellite network | 12,748 | |
Stock-based compensation | 2,605 | 2,235 |
Foreign exchange loss (gain) | 84 | (273) |
Deferred income taxes | 623 | (271) |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | (7,294) | 7,772 |
Inventories | 951 | (4,525) |
Prepaid expenses and other assets | (3,714) | (1,061) |
Accounts payable and accrued liabilities | 1,300 | (8,255) |
Deferred revenue | (1,223) | 806 |
Other liabilities | (108) | 302 |
Net cash provided by operating activities | 7,906 | 7,335 |
Cash flows from investing activities: | ||
Acquisition of businesses, net of cash acquired | (3,452) | (133,408) |
Capital expenditures | (16,864) | (22,818) |
Cash held for acquisition | 123,000 | |
Change in restricted cash | 1,000 | |
Other | (198) | |
Net cash used in investing activities | (19,514) | (33,226) |
Cash flows from financing activities: | ||
Proceeds received from issuance of long-term debt | 10,000 | |
Cash paid for debt issuance costs | (842) | |
Proceeds received from exercise of stock options | 244 | |
Payment of deferred purchase consideration | (342) | |
Principal payment of note payable | (10,000) | |
Principal payments of capital leases | (48) | |
Net cash used in financing activities | (342) | (646) |
Effect of exchange rate changes on cash and cash equivalents | 338 | (300) |
Net decrease in cash and cash equivalents | (11,612) | (26,837) |
Beginning of period | 27,077 | 91,565 |
End of period | 15,465 | 64,728 |
Cash paid for | ||
Interest | 4,400 | 4,508 |
Income taxes | (101) | 384 |
Noncash investing and financing activities: | ||
Capital expenditures incurred not yet paid | 1,817 | 976 |
Capital expenditure milestone payable incurred not yet paid | 5,070 | |
Stock-based compensation related to capital expenditures | 131 | 78 |
Series A convertible preferred stock dividend paid in kind | 18 | |
Common stock issued as payment for MPUs | 358 | |
Common stock issued as payment for contingent consideration | 352 | |
Acquisition-related contingent consideration | $ 514 | $ 542 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Series A Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] | Noncontrolling Interests [Member] |
Beginning balances at Dec. 31, 2014 | $ 308,509 | $ 909 | $ 70 | $ 376,297 | $ (583) | $ (68,137) | $ (96) | $ 49 |
Beginning balances, shares at Dec. 31, 2014 | 90,973 | 70,109,488 | 29,990 | |||||
Vesting of restricted stock units, shares | 227,382 | |||||||
Stock-based compensation | 2,073 | 2,073 | ||||||
Common stock issued as payment for MPUs | 358 | 358 | ||||||
Common stock issued as payment for MPUs, shares | 54,801 | |||||||
Series A convertible preferred stock dividend | $ 18 | (18) | ||||||
Series A convertible preferred stock dividend, shares | 1,813 | |||||||
Exercise of SARs, shares | 44,502 | |||||||
Exercise of stock options | 244 | 244 | ||||||
Exercise of stock options, shares | 50,000 | |||||||
Net income (loss) | (14,960) | (15,081) | 121 | |||||
Foreign currency translation adjustments | (544) | (598) | 54 | |||||
Ending balances at Jun. 30, 2015 | 295,680 | $ 927 | $ 70 | 378,972 | (1,181) | (83,236) | $ (96) | 224 |
Ending balances, shares at Jun. 30, 2015 | 92,786 | 70,486,173 | 29,990 | |||||
Beginning balances at Dec. 31, 2015 | 299,756 | $ 357 | $ 71 | 381,659 | (1,174) | (81,424) | $ (96) | 363 |
Beginning balances, shares at Dec. 31, 2015 | 35,759 | 70,613,642 | 29,990 | |||||
Vesting of restricted stock units, shares | 261,730 | |||||||
Stock-based compensation | 2,337 | 2,337 | ||||||
Conversion of preferred stock to common stock | $ (7) | 7 | ||||||
Conversion of preferred stock to common stock, shares | (708) | 1,178 | ||||||
Payment of contingent consideration | 352 | 352 | ||||||
Payment of contingent consideration, shares | 35,464 | |||||||
Exercise of SARs, shares | 97,074 | |||||||
Net income (loss) | (6,159) | (6,265) | 106 | |||||
Foreign currency translation adjustments | 672 | 678 | (6) | |||||
Ending balances at Jun. 30, 2016 | $ 296,958 | $ 350 | $ 71 | $ 384,355 | $ (496) | $ (87,689) | $ (96) | $ 463 |
Ending balances, shares at Jun. 30, 2016 | 35,051 | 71,009,088 | 29,990 |
Organization and Business
Organization and Business | 6 Months Ended |
Jun. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Business | 1. Organization and Business ORBCOMM Inc. (“ORBCOMM” or the “Company”), a Delaware corporation, is a global provider of Machine-to-Machine (“M2M”) and Internet of Things (“IoT”) solutions, including network connectivity, devices, device management and web reporting applications. The Company’s M2M and IoT products and services are designed to track, monitor, control and enhance security for a variety of assets, such as trailers, trucks, rail cars, sea containers, generators, fluid tanks, marine vessels, diesel or electric powered generators (“gensets”), oil and gas wells, pipeline monitoring equipment, irrigation control systems and utility meters, in industries for transportation & distribution, heavy equipment, oil & gas, maritime and government. Additionally, the Company provides satellite Automatic Identification Service (“AIS”) data services to assist in vessel navigation and to improve maritime safety for government and commercial customers worldwide. using multiple network platforms, including The Company’s satellite-based customer solution offerings uses small, low power, mobile satellite subscriber communicators for remote asset connectivity, and the Company’s terrestrial-based solutions utilizes cellular data modems with subscriber identity modules (“SIMS”). The Company also resells service using the two-way Inmarsat satellite network to provide higher bandwidth, low-latency satellite products and services, leveraging the Company’s IsatDataPro (“IDP”) technology. The Company’s customer solutions provide access to data gathered over these systems via connections to other public or private networks, including the Internet. The Company provides what it believes is the most versatile, leading-edge M2M and IoT solutions to enable its customers to run their business more efficiently. |
Summary of Significant Accounti
Summary of Significant Accounting Principles | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Principles | 2. Summary of Significant Accounting Principles 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 (“U.S. 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, 2015. The accompanying financial statements are unaudited and, in the opinion of management, 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. 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 for 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 June 30, 2016 and December 31, 2015. The Company has no guarantees or other funding obligations to those entities. The Company had no equity in or losses of those investees for the quarters and six months ended June 30, 2016 and 2015. Acquisition-related and Integration Costs Acquisition-related and integration costs are expensed as incurred and are presented separately on the condensed consolidated statement of operations. These costs may include professional services expenses and 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 its 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,” The carrying value of the Company’s financial instruments, including cash, accounts receivable and accounts payable approximated their fair value due to the short-term nature of these items. The carrying value of the Secured Credit Facilities, as defined below, approximated its fair value as the debt is at variable interest rates. The fair value of the Note-payable related party is deminimus. 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. There were no customers with revenues greater than 10% of the Company’s consolidated total revenues for the quarters and six months ended June 30, 2016 and 2015. One customer, Hub City Terminals, Inc., comprised 11.3% of the Company’s consolidated accounts receivable as of June 30, 2016. One customer, Caterpillar Inc., comprised 11.6% of the Company’s consolidated accounts receivable as of December 31, 2015, respectively. As of June 30, 2016, the Company did not maintain in-orbit insurance coverage for its ORBCOMM Generation 1 (“OG1”) satellites to address the risk of potential systemic anomalies, failures or catastrophic events affecting its satellite constellation. The Company maintains in-orbit insurance coverage for its ORBCOMM Generation 2 (“OG2”) satellites, as described in “Note 15 – Commitments and Contingencies.” Inventories Inventories are stated at the lower of cost or market, determined on a first-in, first-out basis. At June 30, 2016 and December 31, 2015, inventory consisted primarily of finished goods and purchased parts to be utilized by its contract manufacturer totaling $15,575 and $16,912, respectively, and $4,841 and $3,800, respectively, of raw materials, net of inventory obsolescence. 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 slow moving and obsolete inventories when identified. Valuation of Long-lived Assets Property and equipment and other long-lived assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company measures recoverability by comparing the carrying amount to the projected cash flows the assets are expected to generate. An impairment loss is recognized to the extent that carrying value exceeds fair value. Our satellite constellation and related assets are evaluated as a single asset group whenever facts or circumstances indicate that the carrying value may not be recoverable. If indicators of impairment are identified, recoverability of long-lived assets is measured by comparing their carrying amount to the projected cash flows the assets are expected to generate. Determining whether an impairment has occurred typically requires the use of significant estimates and assumptions, including the allocation of cash flows to assets or asset groups and, if required, an estimate of fair value for those assets or asset groups. If a satellite were to fail while in-orbit, the resulting loss would be charged to expense in the period it is determined that the satellite is not recoverable. The amount of any such loss would be reduced to the extent of insurance proceeds estimated to be received. Refer to “Note 6 – Satellite Network and Other Equipment” for more information. 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 May 2014, the FASB issued Accounting Standards Update (“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. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In July 2015, the FASB deferred the effective date of ASU No. 2014-09 for all entities by one year. As a result, the new standard is effective for the Company on January 1, 2018. Early adoption prior to the original effective date 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 February 2016, the FASB issued ASU No. 2016-02 “Leases (Topic 842)” (“ASU 2016-02”), which is effective for the fiscal years beginning after December 15, 2018. ASU 2016-02 requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative and quantitative disclosures. Early adoption is permitted. The Company is in the process of evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and related disclosures, if any. In March 2016, the FASB issued ASU 2016-09 “ Improvements to Employee Share Based Payment Accounting Compensation – Stock Compensation |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | 3. Acquisitions Skygistics Ltd. On May 26, 2016, pursuant to an Asset Purchase Agreement entered into on April 11, 2016 among a wholly owned subsidiary of the Company and Skygistics Propriety Limited and Satconnect Propriety Limited (the “Sellers”), the Company completed the acquisition of substantially all of the assets of Skygistics (PTY) Ltd. (“Skygistics”), for a purchase price of $3,835, subject to net working capital adjustments, and additional contingent consideration of up to $954, subject to certain operational milestones (the “Skygistics Acquisition”). Preliminary Estimated Purchase Price Allocation The Skygistics Acquisition has been accounted for using the acquisition method of accounting in accordance with FASB ASC Topic 805 “ Business Combinations Amount Cash and cash equivalents $ 383 Accounts receivable 989 Inventories 292 Other current assets 112 Property, plant and equipment 418 Deferred tax assets 90 Intangible assets 1,071 Total identifiable assets acquired 3,355 Accounts payable and accrued expenses 410 Other liabilities 11 Total liabilities assumed 421 Net identifiable assets acquired 2,934 Goodwill 1,415 Total preliminary purchase price $ 4,349 Intangible Assets 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 “Customer List Valuation Technique”). The discount rate used to arrive at the present value at the acquisition date of the customer lists was 19%. The remaining useful lives of customer lists were based on the customer attrition and the projected economic benefit of these customers. The Company recorded a customer list intangible asset in the amount of $1,071 and assigned an estimated useful life of 13 years to the customer list. Goodwill The Skygistics Acquisition provides a broad range of satellite and cellular connectivity options as well as telematics solutions centered around the management of remote and mobile assets to more than 250 telematics and enterprise customers. Indemnification Asset In connection with the Asset Purchase Agreement, the Company entered into an escrow agreement with the Sellers and an escrow agent. Under the terms of the escrow agreement, $757 was placed in an escrow account through August 2017 to fund any indemnification obligations owed to the Company under the Asset Purchase Agreement. On June 1, 2016, $304 was released from the escrow fund to the Sellers in accordance with the terms of the escrow agreement. Contingent Consideration Additional consideration is conditionally due to the Sellers upon achievement of certain financial milestones through April 2017. 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 the Company’s 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 June 30, 2016, the Company recorded $514 in other non-current liabilities on the condensed consolidated balance sheet. WAM Technologies, LLC On October 6, 2015, pursuant to an Asset Purchase Agreement entered into by a wholly owned subsidiary of the Company, WAM Technologies, LLC (“WAM”) and the individual owners of WAM (the “Sellers”), the Company completed the acquisition of substantially all of the assets of WAM for total consideration of $8,689, inclusive of a working capital settlement of $189, of which $1,100 was deposited in escrow in connection with certain indemnification obligations (the “WAM Acquisition”). Preliminary Estimated Purchase Price Allocation The WAM Acquisition has been accounted for using the Acquisition Method. The excess of the purchase price over the net assets was recorded as goodwill. The total consideration for the WAM Acquisition was $8,689 in a debt-free, cash-free transaction. The preliminary estimated purchase price allocation for the WAM Acquisition is as follows: Amount Accounts receivable $ 563 Property, plant and equipment 122 Intangible assets 4,810 Total identifiable assets acquired 5,495 Accounts payable and accrued expenses 204 Deferred revenues 7,326 Total liabilities assumed 7,530 Net identifiable assets acquired (2,035 ) Goodwill 10,724 Total preliminary purchase price $ 8,689 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 “Technology and Trademark Valuation Technique”). The estimated fair value of the customer lists was determined using the Customer List Valuation Technique. The discount rate used to arrive at the present value at the acquisition date of the customer lists, technology and trademarks was 26%. 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 Useful life (years) Amount Customer lists - one customer 10 $ 3,720 Customer lists - all other customers 11 600 Technology 10 450 Trademarks 1 40 $ 4,810 Goodwill The WAM Acquisition expands and strengthens the Company’s cold chain monitoring solutions, which include trailers, rail cars, gensets and sea containers. With the addition of WAM’s installed base, the Company is expected to become a leader in monitoring cargo shipments. These factors contributed to a preliminary estimated purchase price resulting in recognition of goodwill. The goodwill attributable to the WAM Acquisition is deductible for tax purposes. Indemnification Asset In connection with the Asset Purchase Agreement, the Company entered into an escrow agreement with the Sellers and an escrow agent. Under the terms of the escrow agreement, $1,100 was placed in an escrow account through December 2017 to fund any indemnification obligations owed to the Company under the Asset Purchase Agreement. Unaudited Pro Forma Results of Operation The following tables present the unaudited pro forma consolidated operating results for the Company, as though the WAM Acquisition had occurred as of the beginning of the prior annual reporting period. The unaudited pro forma results reflect certain adjustments related to past operating performance, acquisition costs and acquisition accounting adjustments, such as increased depreciation and amortization expense based on the fair valuation of assets acquired and the related tax effects. The pro forma results do not include any anticipated synergies which may be achievable subsequent to the acquisition date. Accordingly, such pro forma amounts are not necessarily indicative of the results that actually would have occurred had the acquisition been completed on the dates indicated, nor are they indicative of the future operating results of the combined company: Three Months Ended June 30, 2015 As Reported WAM Acquisition Pro Forma Net revenues $ 44,883 $ 1,518 $ 46,401 Net (loss) income attributable to common shareholders $ (12,217 ) $ 193 $ (12,024 ) Earnings per share: Basic $ (0.17 ) $ (0.17 ) Diluted $ (0.17 ) $ (0.17 ) Six Months Ended June 30, 2015 As Reported WAM Acquisition Pro Forma Net revenues $ 87,213 $ 3,606 $ 90,819 Net (loss) income attributable to common shareholders $ (15,099 ) $ 655 $ (14,444 ) Earnings per share: Basic $ (0.21 ) $ (0.21 ) Diluted $ (0.21 ) $ (0.21 ) InSync Software, Inc. On January 16, 2015, pursuant to a Share Purchase Agreement entered into by the Company, IDENTEC Group AG (“IDENTEC”) and InSync Software, Inc. (“InSync”), the Company completed the acquisition of 100% of the outstanding shares of InSync from IDENTEC for an aggregate consideration of (i) $10,850 in cash, comprised of various components and inclusive of net working capital adjustments of $250, of which $1,320 was deposited in escrow in connection with certain indemnification obligations; and (ii) additional contingent consideration of up to $5,000 (the “InSync Acquisition”). The InSync Acquisition supports the Company’s strategy to provide the most complete set of applications and capabilities in the M2M and IoT industry, while broadening the Company’s market access to a wide range of industries. SkyWave Mobile Communications Inc. On January 1, 2015, pursuant to an Arrangement Agreement dated November 1, 2014, among the Company, the Company’s acquisition subsidiary, SkyWave Mobile Communications Inc. (“SkyWave”) and the representatives of certain SkyWave shareholders, the Company completed the acquisition of 100% of the outstanding shares of SkyWave for total consideration of $130,203 consisting of (i) $122,373 cash consideration, inclusive of a working capital settlement of $300, of which $10,600 was deposited in escrow in connection with certain indemnification obligations; and (ii) $7,500 in the form of a promissory note settled by the transfer of assets to Inmarsat Global Limited (“Inmarsat”) pursuant to an agreement with Inmarsat (the “SkyWave Acquisition”). The $7,500 note was not considered part of the purchase price for accounting purposes. The SkyWave Acquisition furthers the Company’s strategy to provide the most complete set of options and capabilities in the industry. SkyWave’s distribution channels in South America, Asia and the Middle East, along with Inmarsat’s support, provide the Company with broader global distribution and provide the Company access to new geographies in Eastern Europe and Asia while adding diverse vertical markets, such as security and marine. The addition of SkyWave’s higher bandwidth, low-latency satellite products and services that leverage the IDP technology, which is now jointly owned by the Company and Inmarsat, also further expands the breadth of the Company’s solutions portfolio. 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, inclusive of 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 (the “Euroscan Acquisition”). The Euroscan Acquisition allowed 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. 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 through March 2017. 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 June 30, 2016, the Company recorded $1,027 in accrued expenses on the condensed consolidated balance sheet in connection with the contingent consideration. As of December 31, 2015, the Company recorded $1,719 in other non-current liabilities on the condensed consolidated balance sheet in connection with the contingent consideration. Changes in the fair value of the contingent consideration obligations are recorded in the condensed consolidated statement of operations. The Company recorded a reduction of the contingent liability of $198 in selling, general and administrative (“SG&A”) expenses in the condensed consolidated statements of operations in the quarter ended June 30, 2016 due to a decrease in the estimated fair value of the contingent consideration. The Company recorded an increase of the contingent liability of $182 in SG&A expenses in the condensed consolidated statements of operations in the six months ended June 30, 2016 in connection with the achievement of one operational milestone. A total of $694 was paid to MWL Management B.V. and R.Q. Management B.V. in cash and common stock of the Company during the quarter ended June 30, 2016 upon achievement of this milestone. For the quarter ended June 30, 2016, charges of $22 were recorded to SG&A for accretion associated with the contingent consideration. For the quarter and six months ended June 30, 2015, charges of $88 and $176, respectively, were recorded in SG&A expenses in the condensed consolidated statement of operations for accretion associated with the contingent consideration. |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 4. Stock-based Compensation On April 20, 2016, the stockholders of the Company approved the ORBCOMM Inc. 2016 Long-Term Incentives Plan (the “2016 LTIP”). The 2016 LTIP replaces the Company’s 2006 Long-Term Incentive Plan (the “2006 LTIP”). The number of shares authorized for delivery under the 2016 LTIP is 6,949,400 shares, including 1,949,400 shares that remained available under the 2006 LTIP as of February 17, 2016. As of June 30, 2016, there were 7,097,975 shares available for grant under the 2016 LTIP. Total stock-based compensation recorded by the Company for the quarters ended June 30, 2016 and 2015 was $1,219 and $1,104, respectively, and for the six months ended June 30, 2016 and 2015 was $2,605 and $2,235, respectively. Total capitalized stock-based compensation for the quarters ended June 30, 2016 and 2015 was $65 and $50, respectively, and for the six months ended June 30, 2016 and 2015 was $131 and $78, respectively. The following table summarizes the components of stock-based compensation expense in the condensed consolidated statements of operations for the quarters and six months ended June 30, 2016 and 2015: Quarter ended Six months ended June 30, June 30, 2016 2015 2016 2015 Cost of services $ 158 $ 85 $ 333 $ 199 Cost of product sales 10 10 22 24 Selling, general and administrative 956 952 2,034 1,881 Product development 95 57 216 131 Total $ 1,219 $ 1,104 $ 2,605 $ 2,235 As of June 30, 2016, the Company had unrecognized compensation costs for stock appreciation rights and restricted stock units totaling $3,707. Time-Based Stock Appreciation Rights A summary of the Company’s time-based Stock Appreciation Rights (“SARs”) for the six months ended June 30, 2016 is as follows: Weighted- Average Aggregate Weighted- Remaining Intrinsic Number of Average Contractual Value Shares Exercise Price Term (years) (In thousands) Outstanding at January 1, 2016 4,109,184 $ 5.22 Granted — — Exercised (226,700 ) 5.23 Forfeited or expired — — Outstanding at June 30, 2016 3,882,484 $ 5.25 5.05 $ 20,475 Exercisable at June 30, 2016 3,717,284 $ 5.23 4.83 $ 19,877 Vested and expected to vest at June 30, 2016 3,882,484 $ 5.25 5.05 $ 20,475 For the quarters ended June 30, 2016 and 2015, the Company recorded stock-based compensation expense of $71 and $529 relating to these SARs, respectively. For the six months ended June 30, 2016 and 2015, the Company recorded stock-based compensation expense of $165 and $958 relating to these SARs, respectively. As of June 30, 2016, $727 of total unrecognized compensation cost related to these SARs is expected to be recognized through August 2018. The intrinsic value of the time-based SARs exercised during the six months ended June 30, 2016 was $929. Performance-Based Stock Appreciation Rights A summary of the Company’s performance-based SARs for the six months ended June 30, 2016 is as follows: Weighted- Average Aggregate Weighted- Remaining Intrinsic Number of Average Contractual Value Shares Exercise Price Term (years) (In thousands) Outstanding at January 1, 2016 778,774 $ 6.33 Granted — — Exercised (12,450 ) 2.91 Forfeited or expired (1,000 ) 5.65 Outstanding at June 30, 2016 765,324 $ 6.34 3.86 $ 3,569 Exercisable at June 30, 2016 765,324 $ 6.34 3.86 $ 3,569 Vested and expected to vest at June 30, 2016 765,324 $ 6.34 3.86 $ 3,569 For the quarters ended June 30, 2016 and 2015, the Company recorded stock-based compensation expense of $0 and $3 relating to these SARs, respectively. For the six months ended June 30, 2016 and 2015, the Company recorded stock-based compensation of $2 and $16 relating to these SARs, respectively. As of June 30, 2016, there is no unrecognized compensation cost related to these SARs expected to be recognized. The intrinsic value of the performance-based SARs exercised during the six months ended June 30, 2016 was $89. 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 the 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. The Company did not grant time-based or performance-based SARs during the six months ended June 30, 2016. Six months ended June 30, 2015 Risk-free interest rate 1.35% and 1.82% Expected life (years) 6.0 Estimated volatility factor 64.0% Expected dividends None Time-based Restricted Stock Units A summary of the Company’s time-based Restricted Stock Units (“RSUs”) for the six months ended June 30, 2016 is as follows: Shares Weighted- Average Grant Date Fair Value Balance at January 1, 2016 366,004 $ 6.63 Granted 159,945 9.08 Vested (75,470 ) 6.41 Forfeited or expired (5,899 ) 6.78 Balance at June 30, 2016 444,580 $ 7.55 For the quarters ended June 30, 2016 and 2015, the Company recorded stock-based compensation expense of $588 and $100 related to these RSUs, respectively. For the six months ended June 30, 2016 and 2015, the Company recorded stock-based compensation expense of $1,150 and $271 related to these RSUs, respectively. As of June 30, 2016, $1,993 of total unrecognized compensation cost related to these RSUs is expected to be recognized through June 2019. Performance-based Restricted Stock Units A summary of the Company’s performance-based RSUs for the six months ended June 30, 2016 is as follows: Shares Weighted- Average Grant Date Fair Value Balance at January 1, 2016 499,369 $ 6.66 Granted — — Vested (175,389 ) 6.53 Forfeited or expired (66,158 ) 6.56 Balance at June 30, 2016 257,822 $ 6.66 For the quarters ended June 30, 2016 and 2015, the Company recorded stock-based compensation expense of $354 and $308 related to these RSUs, respectively. For the six months ended June 30, 2016 and 2015, the Company recorded stock-based compensation expense of $879 and $750 related to these RSUs, respectively. As of June 30, 2016, $987 of total unrecognized compensation cost related to these RSUs is expected to be recognized through March 2017. 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 of each year in the performance period. The MPUs will vest at the end of each year in the 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’ annual 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 of cash and stock 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 fair value of the awards 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: Six Months Ended June 30, 2016 2015 Risk-free interest rate 0.35% 0.11% to 0.83% Estimated volatility factor 34.0% 31.0% to 38.0% Expected dividends None None For the quarters ended June 30, 2016 and 2015, the Company recorded stock-based compensation expense of $194 and $164 relating to these MPUs, respectively. For the six months ended June 30, 2016 and 2015, the Company recorded stock-based compensation expense of $397 and $240 relating to these MPUs, respectively. In January 2015, the Company issued 54,801 shares of its common stock as payment of MPUs in connection with achieving the fiscal year 2013 and 2014 stock performance target. Employee Stock Purchase Plan The Company’s Board of Directors adopted the ORBCOMM Inc. Employee Stock Purchase Plan (“ESPP”) on February 16, 2016 and the Company’s shareholders approved the ESPP on April 20, 2016. Under the terms of the ESPP, 5,000,000 shares of the Company’s common stock are available for issuance, and eligible employees may have up to 10% of their gross pay deducted from their payroll up to a maximum of $25,000 per year to purchase shares of ORBCOMM common stock at a discount of up to 15% of its fair market value, subject to certain conditions and limitations. For the quarter ended June 30, 2016, the Company recorded stock-based compensation expense of $12 relating to the ESPP. |
Net Income (Loss) Attributable
Net Income (Loss) Attributable to ORBCOMM Inc. Common Stockholders | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Attributable to ORBCOMM Inc. Common Stockholders | 5. Net Income (Loss) Attributable to ORBCOMM Inc. Common Stockholders The Company accounts for earnings per share (“EPS”) in accordance with FASB ASC Topic 260, “ Earnings Per Share Quarter Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Net loss attributable to ORBCOMM Inc. common stockholders $ (4,169 ) $ (12,217 ) $ (6,265 ) $ (15,099 ) Weighted average number of common shares outstanding: Basic number of common shares outstanding 70,900 70,427 70,800 70,333 Dilutive effect of unvested SARs and RSUs and shares of Series A convertible preferred stock — — — — Diluted number of common shares outstanding 70,900 70,427 70,800 70,333 Earnings per share: Basic $ (0.06 ) $ (0.17 ) $ (0.09 ) $ (0.21 ) Diluted $ (0.06 ) $ (0.17 ) $ (0.09 ) $ (0.21 ) The following represents amounts not included in diluted EPS as their impact was anti-dilutive under the treasury stock method: Quarter ended Six Months Ended June 30, June 30, (Shares in thousands) 2016 2015 2016 2015 SARs * * * * * Not applicable due to the loss for the period. The computation of net loss attributable to ORBCOMM Inc. common stockholders for the quarters and six months ended June 30, 2016 and 2015 is as follows: Quarter Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Net loss attributable to ORBCOMM Inc. $ (4,169 ) $ (12,208 ) $ (6,265 ) $ (15,081 ) Preferred stock dividends on Series A convertible preferred stock — (9 ) — (18 ) Net loss attributable to ORBCOMM Inc. common stockholders $ (4,169 ) $ (12,217 ) $ (6,265 ) $ (15,099 ) |
Satellite Network and Other Equ
Satellite Network and Other Equipment | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, December 31, (years) 2016 2015 Land $ 381 $ 381 Satellite network 1-10 244,541 104,088 Capitalized software 3-7 21,851 13,201 Computer hardware 3 4,414 4,027 Other 2-7 7,121 6,853 Assets under construction 11,340 147,288 289,648 275,838 Less: accumulated depreciation and amortization (57,481 ) (45,868 ) $ 232,167 $ 229,970 During the quarters ended June 30, 2016 and 2015, the Company capitalized costs attributable to the design and development of internal-use software in the amount of $1,233 and $877, respectively. During the six months ended June 30, 2016 and 2015, the Company capitalized costs attributable to the design and development of internal-use software in the amount of $2,188 and $1,770, respectively. Depreciation and amortization expense for the quarters ended June 30, 2016 and 2015 was $8,483 and $4,005, respectively, including amortization of internal-use software of $794 and $408, respectively. Depreciation and amortization expense for the six months ended June 30, 2016 and 2015 was $14,380 and $7,851, respectively, including amortization of internal-use software of $1,645 and $784, respectively. As of June 30, 2016, assets under construction primarily consist of costs associated with acquiring, developing and testing software and hardware for internal and external use that have not yet been placed into service. As of December 31, 2015, 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 OG2 satellites and upgrades to its infrastructure and ground segment. During the quarter ended March 31, 2016, the Company recorded an impairment loss on one of its leased AIS satellites. Upon abandonment of the satellite, the Company no longer expects future cash flows to be generated from this asset. The impairment loss of $466 was determined based on the net carrying value of the asset at the time of the impairment and was recorded in depreciation and amortization in the condensed consolidated statement of operations in the quarter ended March 31, 2016. In addition, the Company decreased satellite network and other equipment, net and the associated accumulated depreciation on the condensed consolidated balance sheet by $2,374 and $1,908, respectively, as of June 30, 2016. On December 21, 2015, the Company launched the remaining 11 of its OG2 satellites aboard a Space Exploration Technologies Corp. (“SpaceX”) Falcon 9 launch vehicle. On March 1, 2016, following an in-orbit testing period, the Company initiated commercial service for the 11 OG2 satellites. As a result of the 11 OG2 satellites being placed into service, the Company reclassified $137,772 of costs out of assets under construction and into satellite network on March 1, 2016, and began depreciating the satellites over an estimated 10-year life. During the six months ended June 30, 2016 and 2015, the Company recorded $8,949 and $4,501 of depreciation in connection with its OG2 satellite constellation, respectively. In June 2015, the Company lost communication with one of its in-orbit OG2 satellites. The Company recorded a non-cash impairment charge of $12,748 on the condensed consolidated statement of operations in the quarter ended June 30, 2015 to write off the net book value of the satellite. In addition, the Company decreased satellite network and other equipment, net and the associated accumulated depreciation on the condensed consolidated balance sheet by $13,788 and $1,040, respectively, as of December 31, 2015. In January 2015, the Company lost communication with one of its OG1 Plane B satellites. In the quarter ended March 31, 2015, the Company removed $137 from satellite network and accumulated depreciation, respectively, representing the fully depreciated value of the satellite. In September 2015, the satellite re-established communication with the Company’s ground stations. There was no impact on the condensed consolidated balance sheet for the re-establishment of communications with this satellite. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 $ 112,425 Additions through acquisitions 1,415 Other measurement period adjustments 198 Balance at June 30, 2016 $ 114,038 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: June 30, 2016 December 31, 2015 Useful life Accumulated Accumulated (years) Cost amortization Net Cost amortization Net Customer lists 5-14 $ 91,283 $ (15,638 ) $ 75,645 $ 90,212 $ (11,319 ) $ 78,893 Patents and technology 5-10 16,575 (5,035 ) 11,540 16,390 (4,090 ) 12,300 Trade names and trademarks 1-2 2,885 (1,772 ) 1,113 2,885 (906 ) 1,979 $ 110,743 $ (22,445 ) $ 88,298 $ 109,487 $ (16,315 ) $ 93,172 As of March 31, 2016, the Company reviewed the useful lives for its trade name and trademark intangible assets and determined there to be events and circumstances to warrant a revision of the remaining amortization period. In accordance with FASB ASC 350 “ Intangibles – Goodwill and Other The weighted-average amortization period for the intangible assets is 10.0 years. The weighted-average amortization period for customer lists, patents and technology and trade names and trademarks is 10.4, 9.2 and 1.2 years, respectively. Amortization expense was $3,068 and $2,635 for the quarter ended June 30, 2016 and 2015, respectively. Amortization expense was $6,130 and $5,244 for the six months ended June 30, 2016 and 2015, respectively. Estimated annual amortization expense for intangible assets subsequent to June 30, 2016 is as follows: Amount 2016 (remaining) $ 6,187 2017 10,719 2018 10,465 2019 10,429 2020 10,146 2021 9,686 Thereafter 30,666 $ 88,298 |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | 8. Accrued Liabilities The Company’s accrued liabilities consisted of the following: June 30, December 31, 2016 2015 Accrued compensation and benefits $ 5,568 $ 7,082 Warranty 1,928 2,321 Corporate income tax payable 191 204 Contingent consideration 1,027 — Accrued satellite network and other equipment 959 1,642 Accrued inventory purchases 1,475 1,676 Milestone payable 5,070 3,185 Accrued interest expense 1,006 1,017 Accrued airtime charges 870 834 Other accrued expenses 7,536 6,225 $ 25,630 $ 24,186 For the six months ended June 30, 2016 and 2015, changes in accrued warranty obligations consisted of the following: June 30, 2016 2015 Beginning balance $ 2,322 $ 1,470 Warranty liabilities assumed from acquisition — 450 Amortization of fair value adjustment of warranty liabilities acquired through acquisitions (57 ) (12 ) Reduction of warranty liabilities assumed in connection with acquisitions (384 ) (174 ) Warranty expense 512 662 Warranty charges (465 ) (167 ) Ending balance $ 1,928 $ 2,229 |
Deferred Revenues
Deferred Revenues | 6 Months Ended |
Jun. 30, 2016 | |
Deferred Revenue Disclosure [Abstract] | |
Deferred Revenues | 9. Deferred Revenues Deferred revenues consisted of the following: June 30, December 31, 2016 2015 Service activation fees $ 9,359 $ 10,800 Prepaid services 3,032 2,624 Warranty revenues 393 252 12,784 13,676 Less current portion (8,373 ) (7,652 ) Long-term portion $ 4,411 $ 6,024 |
Note Payable-Related Party
Note Payable-Related Party | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 and December 31, 2015, the principal balance of the note payable was €1,138 and it had a carrying value of $1,264 and $1,241, 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 June 30, 2017. |
Note Payable
Note Payable | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Note Payable | 11. Note Payable 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 $45,000 9.5% per annum Senior Notes (“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 Facility”), the proceeds of which were drawn and used on January 16, 2015 to partially finance the InSync Acquisition; and (iv) a term loan facility in an aggregate principal amount of up to $70,000 (the “Term B3 Facility”), the proceeds of which were drawn on December 30, 2014 and used on January 1, 2015 to partially finance the SkyWave 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. In connection with entering into the Credit Agreement, and the subsequent funding of the Initial Term Loan Facility, Revolving Credit Facility, Term B2 Facility and the Term B3 Facility, the Company incurred debt issuance costs of approximately $4,721. For the quarter and six months ended June 30, 2016, amortization of the debt issuance costs was $227 and $454, respectively. For the quarter and six months ended June 30, 2015, amortization of the debt issuance costs was $239 and $458, respectively. For the six months ended June 30, 2016, the Company capitalized $744, of interest expense and amortization of the debt issuance costs associated with the Initial Term Loan Facility and Revolving Credit Facility to construction of the OG2 satellites. The Company capitalized interest expense and deferred issuance costs associated with these facilities through March 1, 2016, the date the final 11 OG2 satellites were placed in service. The Company recorded charges of $2,445 and $4,144 to interest expense on its statement of operations for the quarter and six months ended June 30, 2016, respectively, related to interest expense and amortization of debt issuance costs associated with the Term B2 and Term B3 Facilities and the Initial Term Loan Facility and Revolving Credit Facility after the OG2 satellites were placed in service on March 1, 2016. At June 30, 2016, no amounts were outstanding under the Revolving Credit Facility. The net availability under the Revolving Credit Facility was $10,000 as of June 30, 2016. As of June 30, 2016, the Company was in compliance with all financial covenants. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | 12. Stockholders’ Equity Series A convertible preferred stock During the six months ended June 30, 2016, the Company did not issue dividends to the holders of the Series A convertible preferred stock. As of June 30, 2016, dividends in arrears were $11. Common Stock As of June 30, 2016, the Company has reserved 17,451,870 shares of common stock for future issuances related to employee stock compensation plans. On April 20, 2016, the stockholders of the Company approved the 2016 LTIP, which replaced the 2006 LTIP. The number of shares authorized for delivery under the 2016 LTIP is 6,949,400 shares, including 1,949,400 shares that remained available under the 2006 LTIP as of February 17, 2016. In addition, the stockholders of the Company approved the ESPP, under which 5,000,000 shares of the Company’s common stock are available for issuance. Prior to the approval of the 2016 LTIP and ESPP, the Company had reserved 7,451,870 shares of common stock for future issuances related to employee stock compensation plans. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | 13. Segment Information The Company operates in one reportable segment, M2M data communications. Other than satellites in orbit, goodwill and intangible assets, long-lived assets outside of the United States are not significant. The Company’s foreign exchange exposure is limited as approximately 83% of the Company’s consolidated revenue is collected in US dollars. The following table summarizes revenues on a percentage basis by geographic regions, based on the region in which the customer is located. Quarter Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 United States 65 % 64 % 63 % 64 % South America 10 % 14 % 11 % 14 % Japan 2 % 2 % 2 % 2 % Europe 16 % 19 % 18 % 19 % Other 7 % 1 % 6 % 1 % 100 % 100 % 100 % 100 % |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 14. Income taxes For the quarter ended June 30, 2016, the Company’s income tax provision was $216, compared to a tax benefit of $(386) for the prior year period. The change in the income tax provision for the quarter ended June 30, 2016 primarily related to a change in the geographical mix of income which increased taxable non-U.S. earnings before income taxes when compared to the prior year period and higher deferred tax expense in the current period related an increase in amortization of tax deductible goodwill. For the six months ended June 30, 2016, the Company’s income tax provision was $378 compared to $91 for the prior year period. The change in the income tax provision for the six months ended June 30, 2016 primarily related to a change in the geographical mix of income which increased taxable non-U.S. earnings before income taxes when compared to the prior year period and higher deferred tax expense in the current period related an increase in amortization of tax deductible goodwill. If the Company’s current estimates change in future periods, the impact on the deferred tax assets and liabilities may change correspondingly. As of June 30, 2016 and December 31, 2015, the Company maintained a valuation allowance against its net deferred tax assets primarily attributable to operations in the United States, as the realization of such assets was not considered more likely than not. There were no changes to the Company’s unrecognized tax benefits during the six months ended June 30, 2016. 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 six months ended June 30, 2016. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. Commitments and Contingencies In April 2014, the Company obtained launch and one year from launch 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 11 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 paid in December 2015. The majority of the premium payments are recorded as satellite network and other equipment, net in the condensed consolidated balance sheet. 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 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. In June 2015, the Company lost communication with one of its in-orbit OG2 satellites. The Company recorded a non-cash impairment charge of $12,748 on the condensed consolidated statement of operations to write off the net book value of the satellite. In addition, the Company decreased satellite network and other equipment, net and the associated accumulated depreciation on the condensed consolidated balance sheet by $13,788 and $1,040, respectively. The Company notified its in-orbit insurers that the loss of the OG2 satellite resulted in a constructive total loss of that satellite. Under the insurance terms mentioned above, this satellite will be the first of the three satellite deductible in the aggregate for both Launch One and Launch Two, under which no claim is payable. On July 14, 2015, the Company obtained an additional one year in-orbit insurance for the five mission one OG2 satellites for a maximum total of $40,000. The additional in-orbit coverage took effect on July 15, 2015, following the end of the coverage period for the initial launch and one year in-orbit insurance for Launch One. This additional policy contains a one satellite deductible across the five in-orbit OG2 satellites whereby claims are payable in excess of the first satellite that is a total loss or constructive total loss. The policy is also subject to a specific exclusion for losses that have resulted from an anomaly with the same signatures as the initial OG2 satellite loss. There are other specified exclusions and material change limitations customary in the industry which include losses resulting from war, antisatellite devices, insurrection, terrorist acts, government confiscation, radioactive contamination, electromagnetic interference, loss of revenue and third party liability. On July 15, 2016, the Company extended the in-orbit insurance policy for the five mission one OG2 satellites through December 21, 2016, under the same terms, for a premium of $179. Airtime credits In 2001, in connection with the organization of ORBCOMM Europe 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 for the following reasons: (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 June 30, 2016 and 2015 airtime credits used totaled approximately $7 and $7, respectively. For the six months ended June 30, 2016 and 2015, airtime credits used totaled approximately $14 and $15, respectively. As of June 30, 2016 and 2015, unused credits granted by the Company were approximately $2,023 and $2,053, respectively. |
Summary of Significant Accoun23
Summary of Significant Accounting Principles (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
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 (“U.S. 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, 2015. The accompanying financial statements are unaudited and, in the opinion of management, 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. |
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 for 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 June 30, 2016 and December 31, 2015. The Company has no guarantees or other funding obligations to those entities. The Company had no equity in or losses of those investees for the quarters and six months ended June 30, 2016 and 2015. |
Acquisition-related and Integration Costs | Acquisition-related and Integration Costs Acquisition-related and integration costs are expensed as incurred and are presented separately on the condensed consolidated statement of operations. These costs may include professional services expenses and 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 its 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,” The carrying value of the Company’s financial instruments, including cash, accounts receivable and accounts payable approximated their fair value due to the short-term nature of these items. The carrying value of the Secured Credit Facilities, as defined below, approximated its fair value as the debt is at variable interest rates. The fair value of the Note-payable related party is deminimus. |
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. There were no customers with revenues greater than 10% of the Company’s consolidated total revenues for the quarters and six months ended June 30, 2016 and 2015. One customer, Hub City Terminals, Inc., comprised 11.3% of the Company’s consolidated accounts receivable as of June 30, 2016. One customer, Caterpillar Inc., comprised 11.6% of the Company’s consolidated accounts receivable as of December 31, 2015, respectively. As of June 30, 2016, the Company did not maintain in-orbit insurance coverage for its ORBCOMM Generation 1 (“OG1”) satellites to address the risk of potential systemic anomalies, failures or catastrophic events affecting its satellite constellation. The Company maintains in-orbit insurance coverage for its ORBCOMM Generation 2 (“OG2”) satellites, as described in “Note 15 – Commitments and Contingencies.” |
Inventories | Inventories Inventories are stated at the lower of cost or market, determined on a first-in, first-out basis. At June 30, 2016 and December 31, 2015, inventory consisted primarily of finished goods and purchased parts to be utilized by its contract manufacturer totaling $15,575 and $16,912, respectively, and $4,841 and $3,800, respectively, of raw materials, net of inventory obsolescence. 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 slow moving and obsolete inventories when identified. |
Valuation of Long-lived Assets | Valuation of Long-lived Assets Property and equipment and other long-lived assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company measures recoverability by comparing the carrying amount to the projected cash flows the assets are expected to generate. An impairment loss is recognized to the extent that carrying value exceeds fair value. Our satellite constellation and related assets are evaluated as a single asset group whenever facts or circumstances indicate that the carrying value may not be recoverable. If indicators of impairment are identified, recoverability of long-lived assets is measured by comparing their carrying amount to the projected cash flows the assets are expected to generate. Determining whether an impairment has occurred typically requires the use of significant estimates and assumptions, including the allocation of cash flows to assets or asset groups and, if required, an estimate of fair value for those assets or asset groups. If a satellite were to fail while in-orbit, the resulting loss would be charged to expense in the period it is determined that the satellite is not recoverable. The amount of any such loss would be reduced to the extent of insurance proceeds estimated to be received. Refer to “Note 6 – Satellite Network and Other Equipment” for more information. |
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 May 2014, the FASB issued Accounting Standards Update (“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. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In July 2015, the FASB deferred the effective date of ASU No. 2014-09 for all entities by one year. As a result, the new standard is effective for the Company on January 1, 2018. Early adoption prior to the original effective date 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 February 2016, the FASB issued ASU No. 2016-02 “Leases (Topic 842)” (“ASU 2016-02”), which is effective for the fiscal years beginning after December 15, 2018. ASU 2016-02 requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative and quantitative disclosures. Early adoption is permitted. The Company is in the process of evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and related disclosures, if any. In March 2016, the FASB issued ASU 2016-09 “ Improvements to Employee Share Based Payment Accounting Compensation – Stock Compensation |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Skygistics Ltd. [Member] | |
Purchase Price Allocation for Acquisition | The preliminary estimated purchase price allocation for the Skygistics Acquisition is as follows: Amount Cash and cash equivalents $ 383 Accounts receivable 989 Inventories 292 Other current assets 112 Property, plant and equipment 418 Deferred tax assets 90 Intangible assets 1,071 Total identifiable assets acquired 3,355 Accounts payable and accrued expenses 410 Other liabilities 11 Total liabilities assumed 421 Net identifiable assets acquired 2,934 Goodwill 1,415 Total preliminary purchase price $ 4,349 |
WAM Technologies, LLC [Member] | |
Purchase Price Allocation for Acquisition | The preliminary estimated purchase price allocation for the WAM Acquisition is as follows: Amount Accounts receivable $ 563 Property, plant and equipment 122 Intangible assets 4,810 Total identifiable assets acquired 5,495 Accounts payable and accrued expenses 204 Deferred revenues 7,326 Total liabilities assumed 7,530 Net identifiable assets acquired (2,035 ) Goodwill 10,724 Total preliminary purchase price $ 8,689 |
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 Useful life (years) Amount Customer lists - one customer 10 $ 3,720 Customer lists - all other customers 11 600 Technology 10 450 Trademarks 1 40 $ 4,810 |
Summary of Pro Forma Results of Operation | The following tables present the unaudited pro forma consolidated operating results for the Company, as though the WAM Acquisition had occurred as of the beginning of the prior annual reporting period. The unaudited pro forma results reflect certain adjustments related to past operating performance, acquisition costs and acquisition accounting adjustments, such as increased depreciation and amortization expense based on the fair valuation of assets acquired and the related tax effects. The pro forma results do not include any anticipated synergies which may be achievable subsequent to the acquisition date. Accordingly, such pro forma amounts are not necessarily indicative of the results that actually would have occurred had the acquisition been completed on the dates indicated, nor are they indicative of the future operating results of the combined company: Three Months Ended June 30, 2015 As Reported WAM Acquisition Pro Forma Net revenues $ 44,883 $ 1,518 $ 46,401 Net (loss) income attributable to common shareholders $ (12,217 ) $ 193 $ (12,024 ) Earnings per share: Basic $ (0.17 ) $ (0.17 ) Diluted $ (0.17 ) $ (0.17 ) Six Months Ended June 30, 2015 As Reported WAM Acquisition Pro Forma Net revenues $ 87,213 $ 3,606 $ 90,819 Net (loss) income attributable to common shareholders $ (15,099 ) $ 655 $ (14,444 ) Earnings per share: Basic $ (0.21 ) $ (0.21 ) Diluted $ (0.21 ) $ (0.21 ) |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 six months ended June 30, 2016 and 2015: Quarter ended Six months ended June 30, June 30, 2016 2015 2016 2015 Cost of services $ 158 $ 85 $ 333 $ 199 Cost of product sales 10 10 22 24 Selling, general and administrative 956 952 2,034 1,881 Product development 95 57 216 131 Total $ 1,219 $ 1,104 $ 2,605 $ 2,235 |
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 six months ended June 30, 2016 is as follows: Weighted- Average Aggregate Weighted- Remaining Intrinsic Number of Average Contractual Value Shares Exercise Price Term (years) (In thousands) Outstanding at January 1, 2016 4,109,184 $ 5.22 Granted — — Exercised (226,700 ) 5.23 Forfeited or expired — — Outstanding at June 30, 2016 3,882,484 $ 5.25 5.05 $ 20,475 Exercisable at June 30, 2016 3,717,284 $ 5.23 4.83 $ 19,877 Vested and expected to vest at June 30, 2016 3,882,484 $ 5.25 5.05 $ 20,475 |
Performance-Based Stock Appreciation Rights [Member] | |
Summary of Stock Appreciation Rights | A summary of the Company’s performance-based SARs for the six months ended June 30, 2016 is as follows: Weighted- Average Aggregate Weighted- Remaining Intrinsic Number of Average Contractual Value Shares Exercise Price Term (years) (In thousands) Outstanding at January 1, 2016 778,774 $ 6.33 Granted — — Exercised (12,450 ) 2.91 Forfeited or expired (1,000 ) 5.65 Outstanding at June 30, 2016 765,324 $ 6.34 3.86 $ 3,569 Exercisable at June 30, 2016 765,324 $ 6.34 3.86 $ 3,569 Vested and expected to vest at June 30, 2016 765,324 $ 6.34 3.86 $ 3,569 |
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 the 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. The Company did not grant time-based or performance-based SARs during the six months ended June 30, 2016. Six months ended June 30, 2015 Risk-free interest rate 1.35% and 1.82% Expected life (years) 6.0 Estimated volatility factor 64.0% Expected dividends 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 six months ended June 30, 2016 is as follows: Shares Weighted- Average Grant Date Fair Value Balance at January 1, 2016 366,004 $ 6.63 Granted 159,945 9.08 Vested (75,470 ) 6.41 Forfeited or expired (5,899 ) 6.78 Balance at June 30, 2016 444,580 $ 7.55 |
Performance-Based Restricted Stock Units [Member] | |
Summary of Restricted Stock Units | A summary of the Company’s performance-based RSUs for the six months ended June 30, 2016 is as follows: Shares Weighted- Average Grant Date Fair Value Balance at January 1, 2016 499,369 $ 6.66 Granted — — Vested (175,389 ) 6.53 Forfeited or expired (66,158 ) 6.56 Balance at June 30, 2016 257,822 $ 6.66 |
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: Six Months Ended June 30, 2016 2015 Risk-free interest rate 0.35% 0.11% to 0.83% Estimated volatility factor 34.0% 31.0% to 38.0% Expected dividends None None |
Net Income (Loss) Attributabl26
Net Income (Loss) Attributable to ORBCOMM Inc. Common Stockholders (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Calculations of EPS | The following sets forth the basic and diluted calculations of EPS for the quarters and six months ended June 30, 2016 and 2015: Quarter Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Net loss attributable to ORBCOMM Inc. common stockholders $ (4,169 ) $ (12,217 ) $ (6,265 ) $ (15,099 ) Weighted average number of common shares outstanding: Basic number of common shares outstanding 70,900 70,427 70,800 70,333 Dilutive effect of unvested SARs and RSUs and shares of Series A convertible preferred stock — — — — Diluted number of common shares outstanding 70,900 70,427 70,800 70,333 Earnings per share: Basic $ (0.06 ) $ (0.17 ) $ (0.09 ) $ (0.21 ) Diluted $ (0.06 ) $ (0.17 ) $ (0.09 ) $ (0.21 ) |
Schedule of Amounts Not Included in Diluted EPS | The following represents amounts not included in diluted EPS as their impact was anti-dilutive under the treasury stock method: Quarter ended Six Months Ended June 30, June 30, (Shares in thousands) 2016 2015 2016 2015 SARs * * * * * Not applicable due to the loss for the period. |
Summary of Net Loss Attributable to ORBCOMM Inc. Common Stockholders | The computation of net loss attributable to ORBCOMM Inc. common stockholders for the quarters and six months ended June 30, 2016 and 2015 is as follows: Quarter Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Net loss attributable to ORBCOMM Inc. $ (4,169 ) $ (12,208 ) $ (6,265 ) $ (15,081 ) Preferred stock dividends on Series A convertible preferred stock — (9 ) — (18 ) Net loss attributable to ORBCOMM Inc. common stockholders $ (4,169 ) $ (12,217 ) $ (6,265 ) $ (15,099 ) |
Satellite Network and Other E27
Satellite Network and Other Equipment (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Text Block [Abstract] | |
Summary of Satellite Network and Other Equipment | Satellite network and other equipment consisted of the following: Useful life June 30, December 31, (years) 2016 2015 Land $ 381 $ 381 Satellite network 1-10 244,541 104,088 Capitalized software 3-7 21,851 13,201 Computer hardware 3 4,414 4,027 Other 2-7 7,121 6,853 Assets under construction 11,340 147,288 289,648 275,838 Less: accumulated depreciation and amortization (57,481 ) (45,868 ) $ 232,167 $ 229,970 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Components of Goodwill | Goodwill consisted of the following: Amount Balance at January 1, 2016 $ 112,425 Additions through acquisitions 1,415 Other measurement period adjustments 198 Balance at June 30, 2016 $ 114,038 |
Components of Intangible Assets | The Company’s intangible assets consisted of the following: June 30, 2016 December 31, 2015 Useful life Accumulated Accumulated (years) Cost amortization Net Cost amortization Net Customer lists 5-14 $ 91,283 $ (15,638 ) $ 75,645 $ 90,212 $ (11,319 ) $ 78,893 Patents and technology 5-10 16,575 (5,035 ) 11,540 16,390 (4,090 ) 12,300 Trade names and trademarks 1-2 2,885 (1,772 ) 1,113 2,885 (906 ) 1,979 $ 110,743 $ (22,445 ) $ 88,298 $ 109,487 $ (16,315 ) $ 93,172 |
Estimated Annual Amortization Expense for Intangible Assets | Estimated annual amortization expense for intangible assets subsequent to June 30, 2016 is as follows: Amount 2016 (remaining) $ 6,187 2017 10,719 2018 10,465 2019 10,429 2020 10,146 2021 9,686 Thereafter 30,666 $ 88,298 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Payables And Accruals [Abstract] | |
Components of Accrued Liabilities | The Company’s accrued liabilities consisted of the following: June 30, December 31, 2016 2015 Accrued compensation and benefits $ 5,568 $ 7,082 Warranty 1,928 2,321 Corporate income tax payable 191 204 Contingent consideration 1,027 — Accrued satellite network and other equipment 959 1,642 Accrued inventory purchases 1,475 1,676 Milestone payable 5,070 3,185 Accrued interest expense 1,006 1,017 Accrued airtime charges 870 834 Other accrued expenses 7,536 6,225 $ 25,630 $ 24,186 |
Summary of Accrued Warranty Obligations | For the six months ended June 30, 2016 and 2015, changes in accrued warranty obligations consisted of the following: June 30, 2016 2015 Beginning balance $ 2,322 $ 1,470 Warranty liabilities assumed from acquisition — 450 Amortization of fair value adjustment of warranty liabilities acquired through acquisitions (57 ) (12 ) Reduction of warranty liabilities assumed in connection with acquisitions (384 ) (174 ) Warranty expense 512 662 Warranty charges (465 ) (167 ) Ending balance $ 1,928 $ 2,229 |
Deferred Revenues (Tables)
Deferred Revenues (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Deferred Revenue Disclosure [Abstract] | |
Summary of Deferred Revenues | Deferred revenues consisted of the following: June 30, December 31, 2016 2015 Service activation fees $ 9,359 $ 10,800 Prepaid services 3,032 2,624 Warranty revenues 393 252 12,784 13,676 Less current portion (8,373 ) (7,652 ) Long-term portion $ 4,411 $ 6,024 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 region in which the customer is located. Quarter Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 United States 65 % 64 % 63 % 64 % South America 10 % 14 % 11 % 14 % Japan 2 % 2 % 2 % 2 % Europe 16 % 19 % 18 % 19 % Other 7 % 1 % 6 % 1 % 100 % 100 % 100 % 100 % |
Organization and Business - Add
Organization and Business - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2016Satellite | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of micro satellites owned | 41 |
Summary of Significant Accoun33
Summary of Significant Accounting Principles - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016USD ($)Customer | Jun. 30, 2015USD ($)Customer | Jun. 30, 2016USD ($)Customer | Jun. 30, 2015USD ($)Customer | Dec. 31, 2015USD ($)Customer | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Equity method investments | $ 0 | $ 0 | $ 0 | ||
Guarantee or other funding obligations under equity method investment | 0 | 0 | |||
Losses from equity method investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Number of customers with revenues greater than 10% | Customer | 0 | 0 | 0 | 0 | |
Inventories finished goods and purchased parts | $ 15,575,000 | $ 15,575,000 | 16,912,000 | ||
Inventories raw materials | $ 4,841,000 | $ 4,841,000 | $ 3,800,000 | ||
Warranty period | 1 year | ||||
Hub City Terminals Inc. [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of customers with accounts receivable greater than 10% | Customer | 1 | ||||
Caterpillar Inc. [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of customers with accounts receivable greater than 10% | Customer | 1 | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Hub City Terminals Inc. [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Customers with accounts receivable greater than 10% | 11.30% | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Caterpillar Inc. [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Customers with accounts receivable greater than 10% | 11.60% |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ / shares in Units, $ in Thousands | Jun. 01, 2016USD ($) | May 26, 2016USD ($) | Oct. 06, 2015USD ($) | Jan. 16, 2015USD ($) | Jan. 02, 2015USD ($) | Mar. 11, 2014USD ($)$ / sharesshares | Jun. 30, 2016USD ($)Customer | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Customer | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Jan. 01, 2015USD ($) |
Business Acquisition [Line Items] | ||||||||||||
Estimated Useful life (years) | 10 years | |||||||||||
Portion of contingent consideration in accrued expenses | $ 1,027 | $ 1,027 | ||||||||||
Customer Lists [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Estimated Useful life (years) | 10 years 4 months 24 days | |||||||||||
Skygistics Ltd. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition effective date | May 26, 2016 | |||||||||||
Arrangement Agreement date | Apr. 11, 2016 | |||||||||||
Cash consideration paid | $ 3,835 | |||||||||||
Aggregate consideration payable in cash and common stock | 4,349 | |||||||||||
Business acquisition contingent consideration at fair value | 514 | |||||||||||
Intangible assets | 1,071 | $ 1,071 | ||||||||||
Portion of contingent consideration in other non-current liabilities | 514 | 514 | ||||||||||
Skygistics Ltd. [Member] | Indemnification Asset [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Amount deposited in escrow to fund any indemnification obligations | $ 757 | $ 757 | ||||||||||
Amount released to sellers in escrow to fund any indemnification obligations | $ 304 | |||||||||||
Skygistics Ltd. [Member] | Telematics And Enterprise Customers [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of customers | Customer | 250 | 250 | ||||||||||
Skygistics Ltd. [Member] | Customer Lists [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Discount rate to reflect risk characteristics of intangible assets | 19.00% | |||||||||||
Intangible assets | $ 1,071 | $ 1,071 | ||||||||||
Estimated Useful life (years) | 13 years | |||||||||||
Skygistics Ltd. [Member] | Maximum [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Contingent consideration payable | $ 954 | |||||||||||
WAM Technologies, LLC [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition effective date | Oct. 6, 2015 | |||||||||||
Cash consideration paid | $ 8,689 | |||||||||||
Aggregate consideration payable in cash and common stock | $ 8,689 | |||||||||||
Intangible assets | 4,810 | 4,810 | ||||||||||
Amount deposited in escrow to fund any indemnification obligations | 1,100 | |||||||||||
Working capital settlement | $ 189 | |||||||||||
WAM Technologies, LLC [Member] | Indemnification Asset [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Amount deposited in escrow to fund any indemnification obligations | 1,100 | $ 1,100 | ||||||||||
WAM Technologies, LLC [Member] | Technology and Trademarks [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Discount rate to reflect risk characteristics of intangible assets | 26.00% | |||||||||||
InSync Software, Inc [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition effective date | Jan. 16, 2015 | |||||||||||
Aggregate consideration payable in cash and common stock | $ 10,850 | |||||||||||
Amount deposited in escrow to fund any indemnification obligations | 1,320 | |||||||||||
Working capital settlement | $ 250 | |||||||||||
Outstanding equity percentage | 100.00% | |||||||||||
InSync Software, Inc [Member] | Maximum [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Contingent consideration payable | $ 5,000 | |||||||||||
SkyWave Mobile Communications Inc. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition effective date | Jan. 1, 2015 | |||||||||||
Arrangement Agreement date | Nov. 1, 2014 | |||||||||||
Cash consideration paid | $ 130,203 | |||||||||||
Aggregate consideration payable in cash and common stock | 122,373 | |||||||||||
Amount deposited in escrow to fund any indemnification obligations | $ 10,600 | |||||||||||
Working capital settlement | $ 300 | |||||||||||
Outstanding equity percentage | 100.00% | |||||||||||
Business acquisition, settled by promissory note | $ 7,500 | |||||||||||
Euroscan Holding B.V. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition effective date | Mar. 11, 2014 | |||||||||||
Cash consideration paid | $ 29,163 | |||||||||||
Portion of contingent consideration in other non-current liabilities | $ 1,719 | |||||||||||
Outstanding equity percentage | 100.00% | |||||||||||
Number of common stock shares issued for consideration | shares | 291,230 | |||||||||||
Common stock issued, per share | $ / shares | $ 7.70 | |||||||||||
Portion of contingent consideration in accrued expenses | 1,027 | $ 1,027 | ||||||||||
Contingent consideration accretion recorded in Selling, general and administrative expenses | 22 | $ 88 | $ 176 | |||||||||
Change in fair value of earn-outs amounts | (198) | $ 182 | ||||||||||
Euroscan Holding B.V. [Member] | Maximum [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Contingent consideration payable | $ 6,547 | |||||||||||
MWL Management B.V. and R.Q. Management B.V [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Total consideration paid in cash common stock upon achievement of operational milestone | $ 694 |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation for Acquisition (Detail) $ in Thousands | Jun. 30, 2016USD ($) |
Skygistics Ltd. [Member] | |
Business Acquisition [Line Items] | |
Cash and cash equivalents | $ 383 |
Accounts receivable | 989 |
Inventories | 292 |
Other current assets | 112 |
Property, plant and equipment | 418 |
Deferred tax assets | 90 |
Intangible assets | 1,071 |
Total identifiable assets acquired | 3,355 |
Accounts payable and accrued expenses | 410 |
Other liabilities | 11 |
Total liabilities assumed | 421 |
Net identifiable assets acquired | 2,934 |
Goodwill | 1,415 |
Total preliminary purchase price | 4,349 |
WAM Technologies, LLC [Member] | |
Business Acquisition [Line Items] | |
Accounts receivable | 563 |
Property, plant and equipment | 122 |
Intangible assets | 4,810 |
Total identifiable assets acquired | 5,495 |
Accounts payable and accrued expenses | 204 |
Deferred revenues | 7,326 |
Total liabilities assumed | 7,530 |
Net identifiable assets acquired | (2,035) |
Goodwill | 10,724 |
Total preliminary purchase price | $ 8,689 |
Acquisitions - Summary of Usefu
Acquisitions - Summary of Useful Lives of Customer Relationships Based on Customer Attrition (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Estimated Useful life (years) | 10 years |
WAM Technologies, LLC [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Total intangible assets | $ 4,810 |
WAM Technologies, LLC [Member] | Customer Lists One Customer [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Estimated Useful life (years) | 10 years |
Total intangible assets | $ 3,720 |
WAM Technologies, LLC [Member] | Customer Lists All Other Customers [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Estimated Useful life (years) | 11 years |
Total intangible assets | $ 600 |
WAM Technologies, LLC [Member] | Technology [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Estimated Useful life (years) | 10 years |
Total intangible assets | $ 450 |
WAM Technologies, LLC [Member] | Trademarks [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Estimated Useful life (years) | 1 year |
Total intangible assets | $ 40 |
Acquisitions - Summary of Pro F
Acquisitions - Summary of Pro Forma Results of Operation (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2015 | Jun. 30, 2015 | |
Business Acquisition [Line Items] | ||
Net revenues | $ 44,883 | $ 87,213 |
Net (loss) income attributable to common shareholders | $ (12,217) | $ (15,099) |
Earnings per share: | ||
Basic | $ (0.17) | $ (0.21) |
Diluted | $ (0.17) | $ (0.21) |
Pro Forma [Member] | ||
Business Acquisition [Line Items] | ||
Net revenues | $ 46,401 | $ 90,819 |
Net (loss) income attributable to common shareholders | $ (12,024) | $ (14,444) |
Earnings per share: | ||
Basic | $ (0.17) | $ (0.21) |
Diluted | $ (0.17) | $ (0.21) |
WAM Technologies, LLC [Member] | ||
Business Acquisition [Line Items] | ||
Net revenues | $ 1,518 | $ 3,606 |
Net (loss) income attributable to common shareholders | $ 193 | $ 655 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) - USD ($) | Apr. 20, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Feb. 17, 2016 | Dec. 31, 2015 | Jan. 31, 2015 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Stock-based compensation | $ 1,219,000 | $ 1,104,000 | $ 2,605,000 | $ 2,235,000 | ||||
Stock-based compensation, capitalized | 65,000 | 50,000 | 131,000 | 78,000 | ||||
Unrecognized compensation costs for all share-based payment arrangements | $ 3,707,000 | $ 3,707,000 | ||||||
Common stock, shares issued | 71,009,088 | 71,009,088 | 70,613,642 | |||||
Time-Based Stock Appreciation Rights [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Stock-based compensation | $ 71,000 | 529,000 | $ 165,000 | 958,000 | ||||
Unrecognized compensation costs for all share-based payment arrangements | 727,000 | 727,000 | ||||||
Intrinsic value of SARs | 929,000 | $ 929,000 | ||||||
Number of shares, granted | 0 | |||||||
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 | ||||||
Intrinsic value of SARs | 89,000 | 89,000 | ||||||
Stock-based compensation expense | 0 | 3,000 | $ 2,000 | 16,000 | ||||
Number of shares, granted | 0 | |||||||
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 | 1,993,000 | $ 1,993,000 | ||||||
Stock-based compensation expense | 588,000 | 100,000 | $ 1,150,000 | 271,000 | ||||
Number of shares, granted | 159,945 | |||||||
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 | 987,000 | $ 987,000 | ||||||
Stock-based compensation expense | 354,000 | 308,000 | 879,000 | 750,000 | ||||
Performance Units [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ 194,000 | $ 164,000 | $ 397,000 | $ 240,000 | ||||
Maximum percentage of MPUs for senior executives | 15.00% | 15.00% | ||||||
Fair value period of MPUs | 3 years | |||||||
Market Performance Units [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Term of MPUs | 3 years | |||||||
Common stock, shares issued | 54,801 | |||||||
2016 LTIP [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of shares authorized under the plan | 6,949,400 | 6,949,400 | ||||||
Number of shares available for grant | 7,097,975 | 7,097,975 | ||||||
2006 LTIP [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of shares authorized under the plan | 1,949,400 | |||||||
ESPP [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of shares authorized under the plan | 5,000,000 | |||||||
Stock-based compensation expense | $ 12,000 | |||||||
Maximum percentage deductible from employees' gross pay | 10.00% | |||||||
Maximum amount deductible from employees gross pay | $ 25,000 | |||||||
ESPP [Member] | Maximum [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Maximum percentage of discount on common stock fair market value | 15.00% |
Stock-based Compensation - Summ
Stock-based Compensation - Summary Components of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation | $ 1,219 | $ 1,104 | $ 2,605 | $ 2,235 |
Cost of Services [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation | 158 | 85 | 333 | 199 |
Cost of Product Sales [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation | 10 | 10 | 22 | 24 |
Selling, General and Administrative [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation | 956 | 952 | 2,034 | 1,881 |
Product Development [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation | $ 95 | $ 57 | $ 216 | $ 131 |
Stock-based Compensation - Su40
Stock-based Compensation - Summary of Stock Appreciation Rights (Detail) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($)$ / sharesshares | |
Time-Based Stock Appreciation Rights [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Outstanding, Beginning Balance | 4,109,184 |
Number of Shares, Granted | 0 |
Number of Shares, Exercised | (226,700) |
Number of Shares, Outstanding, Ending Balance | 3,882,484 |
Number of Shares, Exercisable | 3,717,284 |
Number of Shares, Vested and expected to vest | 3,882,484 |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ / shares | $ 5.22 |
Weighted-Average Exercise Price, Exercised | $ / shares | 5.23 |
Weighted-Average Exercise Price, Outstanding, Ending Balance | $ / shares | 5.25 |
Weighted-Average Exercise Price, Exercisable | $ / shares | 5.23 |
Weighted-Average Exercise Price, Vested and expected to vest | $ / shares | $ 5.25 |
Weighted-Average Remaining Contractual Term, Outstanding | 5 years 18 days |
Weighted-Average Remaining Contractual Term, Exercisable | 4 years 9 months 29 days |
Weighted-Average Remaining Contractual Term, Vested and expected to vest | 5 years 18 days |
Aggregate Intrinsic Value, Outstanding, Ending balance | $ | $ 20,475 |
Aggregate Intrinsic Value, Exercisable | $ | 19,877 |
Aggregate Intrinsic Value, Vested and expected to vest | $ | $ 20,475 |
Performance-Based Stock Appreciation Rights [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Outstanding, Beginning Balance | 778,774 |
Number of Shares, Granted | 0 |
Number of Shares, Exercised | (12,450) |
Number of Shares, Forfeited or expired | (1,000) |
Number of Shares, Outstanding, Ending Balance | 765,324 |
Number of Shares, Exercisable | 765,324 |
Number of Shares, Vested and expected to vest | 765,324 |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ / shares | $ 6.33 |
Weighted-Average Exercise Price, Exercised | $ / shares | 2.91 |
Weighted-Average Exercise Price, Forfeited or expired | $ / shares | 5.65 |
Weighted-Average Exercise Price, Outstanding, Ending Balance | $ / shares | 6.34 |
Weighted-Average Exercise Price, Exercisable | $ / shares | 6.34 |
Weighted-Average Exercise Price, Vested and expected to vest | $ / shares | $ 6.34 |
Weighted-Average Remaining Contractual Term, Outstanding | 3 years 10 months 10 days |
Weighted-Average Remaining Contractual Term, Exercisable | 3 years 10 months 10 days |
Weighted-Average Remaining Contractual Term, Vested and expected to vest | 3 years 10 months 10 days |
Aggregate Intrinsic Value, Outstanding, Ending balance | $ | $ 3,569 |
Aggregate Intrinsic Value, Exercisable | $ | 3,569 |
Aggregate Intrinsic Value, Vested and expected to vest | $ | $ 3,569 |
Stock-based Compensation - Fair
Stock-based Compensation - Fair Value of Stock Appreciation Rights Estimated, Black-Scholes Option Pricing Model (Detail) - Performance-Based Stock Appreciation Rights [Member] | 6 Months Ended |
Jun. 30, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Risk-free interest rate, Minimum | 1.35% |
Risk-free interest rate, Maximum | 1.82% |
Expected life (years) | 6 years |
Estimated volatility factor, Minimum | 64.00% |
Estimated volatility factor, Maximum | 64.60% |
Stock-based Compensation - Su42
Stock-based Compensation - Summary of Restricted Stock Units (Detail) | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Time-Based Restricted Stock Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Outstanding, Beginning Balance | shares | 366,004 |
Number of Shares, Granted | shares | 159,945 |
Number of Shares, Vested | shares | (75,470) |
Number of Shares, Forfeited or expired | shares | (5,899) |
Number of Shares, Outstanding, Ending Balance | shares | 444,580 |
Weighted-Average Grant Date Fair Value | $ / shares | $ 6.63 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 9.08 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 6.41 |
Weighted-Average Grant Date Fair Value, Forfeited or expired | $ / shares | 6.78 |
Weighted-Average Grant Date Fair Value | $ / shares | $ 7.55 |
Performance-Based Restricted Stock Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Outstanding, Beginning Balance | shares | 499,369 |
Number of Shares, Vested | shares | (175,389) |
Number of Shares, Forfeited or expired | shares | (66,158) |
Number of Shares, Outstanding, Ending Balance | shares | 257,822 |
Weighted-Average Grant Date Fair Value | $ / shares | $ 6.66 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 6.53 |
Weighted-Average Grant Date Fair Value, Forfeited or expired | $ / shares | 6.56 |
Weighted-Average Grant Date Fair Value | $ / shares | $ 6.66 |
Stock-based Compensation - Fa43
Stock-based Compensation - Fair Value of Market Performance Units Estimated, Monte Carlo Simulation Model (Detail) - Performance Units [Member] - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate, Minimum | 0.35% | 0.11% |
Risk-free interest rate, Maximum | 0.68% | 0.83% |
Estimated volatility factor, Minimum | 34.00% | 31.00% |
Estimated volatility factor, Maximum | 37.00% | 38.00% |
Expected dividends | $ 0 | $ 0 |
Net Income (Loss) Attributabl44
Net Income (Loss) Attributable to ORBCOMM Inc. Common Stockholders - Summary of Basic and Diluted Calculations of EPS (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net loss attributable to ORBCOMM Inc. common stockholders | $ (4,169) | $ (12,217) | $ (6,265) | $ (15,099) |
Weighted average number of common shares outstanding: | ||||
Basic number of common shares outstanding | 70,900 | 70,427 | 70,800 | 70,333 |
Diluted number of common shares outstanding | 70,900 | 70,427 | 70,800 | 70,333 |
Earnings per share: | ||||
Basic | $ (0.06) | $ (0.17) | $ (0.09) | $ (0.21) |
Diluted | $ (0.06) | $ (0.17) | $ (0.09) | $ (0.21) |
Net Income (Loss) Attributabl45
Net Income (Loss) Attributable to ORBCOMM Inc. Common Stockholders - Summary of Net Loss Attributable to ORBCOMM Inc. Common Stockholders (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net loss attributable to ORBCOMM Inc. | $ (4,169) | $ (12,208) | $ (6,265) | $ (15,081) |
Preferred stock dividends on Series A convertible preferred stock | (9) | (18) | ||
Net loss attributable to ORBCOMM Inc. common stockholders | $ (4,169) | $ (12,217) | $ (6,265) | $ (15,099) |
Satellite Network and Other E46
Satellite Network and Other Equipment - Summary of Satellite Network and Other Equipment (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 289,648 | $ 275,838 |
Less: accumulated depreciation and amortization | (57,481) | (45,868) |
Property, plant and equipment, net | 232,167 | 229,970 |
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 | $ 244,541 | 104,088 |
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 | $ 21,851 | 13,201 |
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, gross | $ 4,414 | 4,027 |
Property, plant and equipment, useful life | 3 years | |
Other [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 7,121 | 6,853 |
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 | $ 11,340 | $ 147,288 |
Satellite Network and Other E47
Satellite Network and Other Equipment - Additional Information (Detail) $ in Thousands | Mar. 01, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 21, 2015Satellite | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) |
Property Plant And Equipment [Line Items] | ||||||||||
Depreciation and amortization expense | $ 11,551 | $ 6,640 | $ 20,510 | $ 13,095 | ||||||
Non-cash impairment charge | 12,748 | 12,748 | ||||||||
Internal-use Software [Member] | ||||||||||
Property Plant And Equipment [Line Items] | ||||||||||
Company capitalized costs attributable to the design and development of internal-use software | 1,233 | 877 | 2,188 | 1,770 | ||||||
Amortization of internal-use software | 794 | 408 | 1,645 | 784 | ||||||
Fixed Assets [Member] | ||||||||||
Property Plant And Equipment [Line Items] | ||||||||||
Depreciation and amortization expense | $ 8,483 | $ 4,005 | 14,380 | 7,851 | ||||||
Satellite Network [Member] | ||||||||||
Property Plant And Equipment [Line Items] | ||||||||||
Impairment loss on asset | $ 466 | |||||||||
Removal/decrease in satellite network and other equipment, net | $ 137 | 2,374 | ||||||||
Accumulated depreciation on equipment | 1,908 | |||||||||
OG2 Satellites [Member] | ||||||||||
Property Plant And Equipment [Line Items] | ||||||||||
Number of satellites | Satellite | 11 | |||||||||
Reclassification of costs out of assets under construction into satellite network | $ 137,772 | |||||||||
Satellites, life in years | 10 years | |||||||||
OG2 Satellites Constellation [Member] | ||||||||||
Property Plant And Equipment [Line Items] | ||||||||||
Depreciation | $ 8,949 | $ 4,501 | ||||||||
OG2 Satellite Impairment [Member] | ||||||||||
Property Plant And Equipment [Line Items] | ||||||||||
Removal/decrease in satellite network and other equipment, net | $ 13,788 | |||||||||
Non-cash impairment charge | $ 12,748 | |||||||||
Accumulated depreciation on equipment | $ 1,040 |
Goodwill and Intangible Asset48
Goodwill and Intangible Assets - Components of Goodwill (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Beginning balance | $ 112,425 |
Additions through acquisitions | 1,415 |
Other measurement period adjustments | 198 |
Ending balance | $ 114,038 |
Goodwill and Intangible Asset49
Goodwill and Intangible Assets - Components of Intangible Assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, Cost | $ 110,743 | $ 109,487 |
Finite lived intangible assets, Accumulated amortization | (22,445) | (16,315) |
Finite lived intangible assets, Net | 88,298 | 93,172 |
Customer Lists [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, Cost | 91,283 | 90,212 |
Finite lived intangible assets, Accumulated amortization | (15,638) | (11,319) |
Finite lived intangible assets, Net | $ 75,645 | 78,893 |
Customer Lists [Member] | Minimum [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Useful life (years) | 5 years | |
Customer Lists [Member] | Maximum [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Useful life (years) | 14 years | |
Patents and Technology [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, Cost | $ 16,575 | 16,390 |
Finite lived intangible assets, Accumulated amortization | (5,035) | (4,090) |
Finite lived intangible assets, Net | $ 11,540 | 12,300 |
Patents and Technology [Member] | Minimum [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Useful life (years) | 5 years | |
Patents and Technology [Member] | Maximum [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Useful life (years) | 10 years | |
Trade Names and Trademarks [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, Cost | $ 2,885 | 2,885 |
Finite lived intangible assets, Accumulated amortization | (1,772) | (906) |
Finite lived intangible assets, Net | $ 1,113 | $ 1,979 |
Trade Names and Trademarks [Member] | Minimum [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Useful life (years) | 1 year | |
Trade Names and Trademarks [Member] | Maximum [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Useful life (years) | 2 years |
Goodwill and Intangible Asset50
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Weighted-average amortization period for intangible assets | 10 years | |||
Amortization of intangible assets | $ 3,068 | $ 2,635 | $ 6,130 | $ 5,244 |
Customer Lists [Member] | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Weighted-average amortization period for intangible assets | 10 years 4 months 24 days | |||
Patents and Technology [Member] | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Weighted-average amortization period for intangible assets | 9 years 2 months 12 days | |||
Trade Names and Trademarks [Member] | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Weighted-average amortization period for intangible assets | 1 year 2 months 12 days |
Goodwill and Intangible Asset51
Goodwill and Intangible Assets - Estimated Annual Amortization Expense for Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2016 (remaining) | $ 6,187 | |
2,017 | 10,719 | |
2,018 | 10,465 | |
2,019 | 10,429 | |
2,020 | 10,146 | |
2,021 | 9,686 | |
Thereafter | 30,666 | |
Finite lived intangible assets, Net | $ 88,298 | $ 93,172 |
Accrued Liabilities - Component
Accrued Liabilities - Components of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Payables And Accruals [Abstract] | ||
Accrued compensation and benefits | $ 5,568 | $ 7,082 |
Warranty | 1,928 | 2,321 |
Corporate income tax payable | 191 | 204 |
Contingent consideration | 1,027 | |
Accrued satellite network and other equipment | 959 | 1,642 |
Accrued inventory purchases | 1,475 | 1,676 |
Milestone payable | 5,070 | 3,185 |
Accrued interest expense | 1,006 | 1,017 |
Accrued airtime charges | 870 | 834 |
Other accrued expenses | 7,536 | 6,225 |
Total accrued liabilities | $ 25,630 | $ 24,186 |
Accrued Liabilities - Summary o
Accrued Liabilities - Summary of Accrued Warranty Obligations (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Payables And Accruals [Abstract] | ||
Beginning balance | $ 2,322 | $ 1,470 |
Warranty liabilities assumed from acquisition | 450 | |
Amortization of fair value adjustment of warranty liabilities acquired through acquisitions | (57) | (12) |
Reduction of warranty liabilities assumed in connection with acquisitions | (384) | (174) |
Warranty expense | 512 | 662 |
Warranty charges | (465) | (167) |
Ending balance | $ 1,928 | $ 2,229 |
Deferred Revenues - Summary of
Deferred Revenues - Summary of Deferred Revenues (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Deferred Revenue Disclosure [Abstract] | ||
Service activation fees | $ 9,359 | $ 10,800 |
Prepaid services | 3,032 | 2,624 |
Warranty revenues | 393 | 252 |
Total deferred revenue | 12,784 | 13,676 |
Less current portion | (8,373) | (7,652) |
Long-term portion | $ 4,411 | $ 6,024 |
Note Payable-Related Party - Ad
Note Payable-Related Party - Additional Information (Detail) € in Thousands, $ in Thousands | 6 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2016EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | |
Debt Disclosure [Abstract] | ||||
Principal balance of the note payable | € | € 1,138 | € 1,138 | ||
Note payable — related party | $ | $ 1,264 | $ 1,241 | ||
Note payable estimated life | 6 years |
Note Payable - Additional Infor
Note Payable - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Sep. 30, 2014 | |
Debt Instrument [Line Items] | |||||
Interest expense | $ 2,445,000 | $ 1,332,000 | $ 4,144,000 | $ 2,574,000 | |
Secured Credit Facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs | 4,721,000 | 4,721,000 | |||
Amortization of debt issuance costs | 227,000 | $ 239,000 | 454,000 | $ 458,000 | |
Capitalization of interest expense and amortization of debt issuance costs | 744,000 | ||||
Interest expense | 2,445,000 | 4,144,000 | |||
Amounts outstanding under Revolving Credit Facility | 0 | 0 | |||
Net availability under the Revolving Credit Facility | $ 10,000,000 | $ 10,000,000 | |||
Secured Credit Facilities [Member] | Credit Agreement [Member] | Base Rate [Member] | |||||
Debt Instrument [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 Instrument [Line Items] | |||||
Interest rate, Description | LIBOR plus 4.75% | ||||
Interest rate, Percentage | 4.75% | ||||
Secured Credit Facilities [Member] | Credit Agreement [Member] | LIBOR Floor [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, Description | LIBOR floor of 1.00% | ||||
Interest rate, Percentage | 1.00% | ||||
Maximum [Member] | Secured Credit Facilities [Member] | Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Issuance of secured credit facility | $ 160,000,000 | ||||
Consolidated leverage ratio | 5 | ||||
Maximum [Member] | Revolving Credit Facility [Member] | Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Issuance of secured credit facility | 10,000,000 | ||||
Minimum [Member] | Secured Credit Facilities [Member] | Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Consolidated leverage ratio | 1 | ||||
Consolidated liquidation cost | $ 7,500,000 | ||||
Senior Notes [Member] | Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Issuance of secured credit facility | $ 45,000,000 | ||||
Note bears interest rate | 9.50% | ||||
Secured Credit Facilities , Maturity period | 5 years | ||||
Initial Term Loan Facility [Member] | Maximum [Member] | Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Issuance of secured credit facility | $ 70,000,000 | ||||
Term B2 Facility [Member] | Maximum [Member] | Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Issuance of secured credit facility | 10,000,000 | ||||
Term B3 Facility [Member] | Maximum [Member] | Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Issuance of secured credit facility | $ 70,000,000 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Apr. 20, 2016 | Feb. 17, 2016 | |
Class Of Stock [Line Items] | |||
Common stock, capital shares reserved for future issuance | 17,451,870 | ||
Prior to the Approval of 2016 LTIP and ESPP [Member] | |||
Class Of Stock [Line Items] | |||
Common stock, capital shares reserved for future issuance | 7,451,870 | ||
2016 LTIP [Member] | |||
Class Of Stock [Line Items] | |||
Number of shares authorized under the plan | 6,949,400 | 6,949,400 | |
2006 LTIP [Member] | |||
Class Of Stock [Line Items] | |||
Number of shares authorized under the plan | 1,949,400 | ||
ESPP [Member] | |||
Class Of Stock [Line Items] | |||
Number of shares authorized under the plan | 5,000,000 | ||
Series A Convertible Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Preferred stock dividends issued | 0 | ||
Dividends in arrears | $ 11 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2016Segment | |
Segment Reporting Information [Line Items] | |
Number of reporting segments | 1 |
Maximum [Member] | |
Segment Reporting Information [Line Items] | |
Percentage of foreign revenue collected in US dollars | 83.00% |
Segment Information - Summary o
Segment Information - Summary of Revenues on Percentage Basis by Geographic Regions (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting 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 Reporting Information [Line Items] | ||||
Revenues on a percentage basis by geographic regions, based on the country | 65.00% | 64.00% | 63.00% | 64.00% |
South America [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues on a percentage basis by geographic regions, based on the country | 10.00% | 14.00% | 11.00% | 14.00% |
Japan [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues on a percentage basis by geographic regions, based on the country | 2.00% | 2.00% | 2.00% | 2.00% |
Europe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues on a percentage basis by geographic regions, based on the country | 16.00% | 19.00% | 18.00% | 19.00% |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues on a percentage basis by geographic regions, based on the country | 7.00% | 1.00% | 6.00% | 1.00% |
Income taxes - Additional Infor
Income taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision (benefit) | $ 216,000 | $ (386,000) | $ 378,000 | $ 91,000 |
Unrecognized tax benefits, period change | 0 | |||
Interest and penalties related to uncertain tax positions | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Jul. 15, 2016 | Jul. 14, 2015 | Jun. 30, 2015 | Apr. 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2001 |
Long Term Purchase Commitment [Line Items] | |||||||||
Non-cash impairment charge | $ 12,748 | $ 12,748 | |||||||
Procurement Agreement [Member] | Airtime [Member] | Europe [Member] | |||||||||
Long Term Purchase Commitment [Line Items] | |||||||||
Credits provided | $ 3,736 | ||||||||
Credits used | $ 7 | 7 | $ 14 | 15 | |||||
Unused credits granted | $ 2,053 | $ 2,023 | $ 2,053 | $ 2,023 | $ 2,053 | ||||
In-orbit OG2 Satellites One [Member] | |||||||||
Long Term Purchase Commitment [Line Items] | |||||||||
Non-cash impairment charge | 12,748 | ||||||||
Removal/decrease in satellite network and other equipment, net | 13,788 | ||||||||
Accumulated depreciation on equipment | $ 1,040 | ||||||||
Launch Plus One Year In Orbit Insurance Coverage for First Launch of Six Satellites [Member] | |||||||||
Long Term Purchase Commitment [Line Items] | |||||||||
Insurance coverage on launch of satellite program | $ 66,000 | ||||||||
Launch Vehicle Flight Only Insurance Coverage for First Launch of Six Satellites [Member] | |||||||||
Long Term Purchase Commitment [Line Items] | |||||||||
Insurance coverage on launch of satellite program | 22,000 | ||||||||
First Launch of Six Satellites [Member] | |||||||||
Long Term Purchase Commitment [Line Items] | |||||||||
Premium cost for launch of satellite | 9,953 | ||||||||
Launch Plus One Year In Orbit Insurance Coverage for Second Launch of Eleven Satellites [Member] | |||||||||
Long Term Purchase Commitment [Line Items] | |||||||||
Insurance coverage on launch of satellite program | 120,000 | ||||||||
Launch Vehicle Flight Only Insurance Coverage for Second Launch of Eleven Satellites [Member] | |||||||||
Long Term Purchase Commitment [Line Items] | |||||||||
Insurance coverage on launch of satellite program | 22,000 | ||||||||
Second Launch of Eleven Satellites [Member] | |||||||||
Long Term Purchase Commitment [Line Items] | |||||||||
Premium cost for launch of satellite | $ 16,454 | ||||||||
Percentage of premium as to aggregate premium | 5.00% | ||||||||
Launch Plus One Year In-orbit Insurance Coverage for Five Satellites [Member] | |||||||||
Long Term Purchase Commitment [Line Items] | |||||||||
Insurance coverage on launch of satellite program | $ 40,000 | ||||||||
Launch Plus One Year In-orbit Insurance Coverage for Five Satellites [Member] | Subsequent Event [Member] | |||||||||
Long Term Purchase Commitment [Line Items] | |||||||||
Extended insurance premium cost for satellites | $ 179 | ||||||||
Extended insurance coverage end date | Dec. 21, 2016 |