Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 28, 2019 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ORBC | |
Entity Registrant Name | ORBCOMM Inc. | |
Entity Central Index Key | 0001361983 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 78,286,252 | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common stock, par value $0.001 per share | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-33118 | |
Entity Tax Identification Number | 41-2118289 | |
Entity Address, Address Line One | 395 W. Passaic Street | |
Entity Address, City or Town | Rochelle Park | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07662 | |
City Area Code | 703 | |
Local Phone Number | 433-6300 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 50,904 | $ 53,766 |
Accounts receivable, net of allowance for doubtful accounts of $4,334 and $4,072, respectively | 61,563 | 57,665 |
Inventories | 38,224 | 34,300 |
Prepaid expenses and other current assets | 19,314 | 15,553 |
Total current assets | 170,005 | 161,284 |
Satellite network and other equipment, net | 149,769 | 160,070 |
Goodwill | 166,129 | 166,129 |
Intangible assets, net | 76,529 | 86,264 |
Other assets | 25,153 | 12,603 |
Deferred income taxes | 127 | 109 |
Total assets | 587,712 | 586,459 |
Current liabilities: | ||
Accounts payable | 17,395 | 15,527 |
Accrued liabilities | 41,754 | 35,735 |
Current portion of deferred revenue | 2,308 | 5,954 |
Total current liabilities | 61,457 | 57,216 |
Note payable - related party | 1,241 | 1,298 |
Notes payable, net of unamortized deferred issuance costs | 246,489 | 245,907 |
Deferred revenue, net of current portion | 8,771 | 5,471 |
Deferred tax liabilities | 15,012 | 16,109 |
Other liabilities | 14,162 | 2,600 |
Total liabilities | 347,132 | 328,601 |
Commitments and contingencies | ||
ORBCOMM Inc. stockholders' equity | ||
Common stock, par value $0.001; 250,000,000 shares authorized; 78,286,252 and 79,008,243 shares issued at September 30, 2019 and December 31, 2018, respectively | 78 | 79 |
Additional paid-in capital | 448,833 | 449,343 |
Accumulated other comprehensive loss | (1,132) | (381) |
Accumulated deficit | (208,441) | (192,507) |
Less treasury stock, at cost; 98,276 and 29,990 shares at September 30, 2019 and December 31, 2018, respectively | (433) | (96) |
Total ORBCOMM Inc. stockholders' equity | 239,311 | 256,832 |
Noncontrolling interests | 1,269 | 1,026 |
Total equity | 240,580 | 257,858 |
Total liabilities and equity | 587,712 | 586,459 |
Series A Convertible Preferred Stock [Member] | ||
ORBCOMM Inc. stockholders' equity | ||
Series A Convertible Preferred Stock, par value $0.001; 1,000,000 shares authorized; 40,624 and 39,442 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively | $ 406 | $ 394 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Allowances for doubtful accounts | $ 4,334 | $ 4,072 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 78,286,252 | 79,008,243 |
Treasury stock, shares | 98,276 | 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 | 40,624 | 39,442 |
Preferred Stock, shares outstanding | 40,624 | 39,442 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues: | ||||
Revenues | $ 67,707 | $ 69,609 | $ 197,552 | $ 204,957 |
Total revenues | 69,193 | 71,042 | 202,331 | 209,803 |
Operating expenses: | ||||
Selling, general and administrative | 18,211 | 14,823 | 52,842 | 51,352 |
Product development | 3,686 | 3,816 | 11,385 | 9,671 |
Depreciation and amortization | 12,794 | 12,081 | 37,998 | 36,146 |
Acquisition-related and integration costs | 4 | 395 | 693 | 1,495 |
Income (loss) from operations | 2,290 | 2,484 | 2,015 | (2,928) |
Other income (expense): | ||||
Interest income | 444 | 648 | 1,408 | 1,576 |
Other income (expense) | 188 | 120 | 130 | 108 |
Interest expense | (5,287) | (5,232) | (15,850) | (15,733) |
Total other expense | (4,655) | (4,464) | (14,312) | (14,049) |
Loss before income taxes | (2,365) | (1,980) | (12,297) | (16,977) |
Income taxes | 1,504 | 1,242 | 3,354 | 3,410 |
Net loss | (3,869) | (3,222) | (15,651) | (20,387) |
Less: Net income attributable to noncontrolling interests | 144 | 73 | 271 | 216 |
Net loss attributable to ORBCOMM Inc. | (4,013) | (3,295) | (15,922) | (20,603) |
Net loss attributable to ORBCOMM Inc. common stockholders | $ (4,025) | $ (3,295) | $ (15,934) | $ (20,614) |
Per share information-basic: | ||||
Net loss attributable to ORBCOMM Inc. common stockholders | $ (0.05) | $ (0.04) | $ (0.20) | $ (0.27) |
Per share information-diluted: | ||||
Net loss attributable to ORBCOMM Inc. common stockholders | $ (0.05) | $ (0.04) | $ (0.20) | $ (0.27) |
Weighted average common shares outstanding: | ||||
Basic | 79,695 | 78,649 | 79,591 | 77,158 |
Diluted | 79,695 | 78,649 | 79,591 | 77,158 |
Service [Member] | ||||
Revenues: | ||||
Revenues | $ 40,550 | $ 38,473 | $ 119,295 | $ 114,940 |
Cost of revenues, exclusive of depreciation and amortization shown below: | ||||
Cost of goods and services sold | 12,568 | 12,764 | 39,123 | 40,704 |
Product [Member] | ||||
Revenues: | ||||
Revenues | 27,157 | 31,136 | 78,257 | 90,017 |
Total revenues | 28,643 | 32,569 | 83,036 | 94,863 |
Cost of revenues, exclusive of depreciation and amortization shown below: | ||||
Cost of goods and services sold | $ 19,640 | $ 24,679 | $ 58,275 | $ 73,363 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (3,869) | $ (3,222) | $ (15,651) | $ (20,387) |
Other comprehensive loss - foreign currency translation adjustments | (561) | (159) | (779) | (561) |
Other comprehensive loss | (561) | (159) | (779) | (561) |
Comprehensive loss | (4,430) | (3,381) | (16,430) | (20,948) |
Less: Comprehensive income attributable to noncontrolling interests | (133) | (71) | (243) | (209) |
Comprehensive loss attributable to ORBCOMM Inc. | $ (4,563) | $ (3,452) | $ (16,673) | $ (21,157) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (15,651) | $ (20,387) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Change in allowance for doubtful accounts | 1,766 | 2,995 |
Change in the fair value of acquisition-related contingent consideration | (2,063) | (5,494) |
Amortization and write-off of deferred financing fees | 582 | 582 |
Depreciation and amortization | 37,998 | 36,146 |
Stock-based compensation | 5,406 | 5,747 |
Foreign exchange (gain) loss | (194) | 64 |
Deferred income taxes | (1,097) | (1,847) |
Other | 1,971 | |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | (5,972) | (14,490) |
Inventories | (3,973) | 5,554 |
Prepaid expenses and other assets | (3,338) | 601 |
Accounts payable and accrued liabilities | 6,960 | (11,493) |
Deferred revenue | (348) | 1,687 |
Other liabilities | (1,246) | (595) |
Net cash provided by (used in) operating activities | 20,801 | (930) |
Cash flows from investing activities: | ||
Capital expenditures | (16,234) | (17,163) |
Other | 650 | |
Net cash used in investing activities | (16,234) | (16,513) |
Cash flows from financing activities: | ||
Proceeds from public offering of common stock, net of underwriters’ discounts and commissions and offering costs of $1,705 | 27,967 | |
Payments under revolving credit facility | (14,000) | |
Proceeds under revolving credit facility | 14,000 | |
Proceeds from issuance of common stock under employee stock purchase plan | 604 | 668 |
Purchases of common stock under share repurchase program | (7,875) | |
Net cash (used in) provided by financing activities | (7,271) | 28,635 |
Effect of exchange rate changes on cash and cash equivalents | (158) | (128) |
Net (decrease) increase in cash and cash equivalents | (2,862) | 11,064 |
Beginning of period | 53,766 | 34,830 |
End of period | 50,904 | 45,894 |
Cash paid for: | ||
Interest | 10,000 | 10,036 |
Income taxes | 2,439 | 3,221 |
Noncash investing and financing activities: | ||
Capital expenditures incurred not yet paid | 785 | 332 |
Stock-based compensation related to capital expenditures | 539 | 410 |
Series A convertible preferred stock dividend paid-in-kind | 12 | 11 |
Common stock issued as payment for MPUs | $ 502 | $ 827 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Cash Flows [Abstract] | ||
Underwriters' discounts and commisions and offering costs | $ 1,705 | $ 1,705 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Total | Series A Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] | Noncontrolling Interests [Member] |
Beginning balances at Dec. 31, 2017 | $ 246,396 | $ 376 | $ 74 | $ 411,298 | $ 256 | $ (166,245) | $ (96) | $ 733 |
Beginning balances, shares at Dec. 31, 2017 | 37,544 | 74,436,579 | 29,990 | |||||
Vesting of restricted stock units | 1 | $ 1 | ||||||
Vesting of restricted stock units, shares | 519,362 | |||||||
Stock-based compensation | 5,650 | 5,650 | ||||||
Proceeds from offering of common stock | 27,967 | $ 3 | 27,964 | |||||
Proceeds from offering of common stock, shares | 3,450,000 | |||||||
Issuance of common stock under employee stock purchase plan | 668 | 668 | ||||||
Issuance of common stock under employee stock purchase plan, shares | 81,525 | |||||||
Common stock issued as payment for MPUs | 827 | 827 | ||||||
Common stock issued as payment for MPUs, shares | 81,277 | |||||||
Exercise of SARs | 1 | $ 1 | ||||||
Exercise of SARs, shares | 230,630 | |||||||
Net income (loss) | (20,387) | (20,603) | 216 | |||||
Series A convertible preferred stock dividend | $ 11 | (11) | ||||||
Series A convertible preferred stock dividend, shares | 1,128 | |||||||
Foreign currency translation adjustments | (561) | (554) | (7) | |||||
Ending balances at Sep. 30, 2018 | 260,562 | $ 387 | $ 79 | 446,407 | (298) | (186,859) | $ (96) | 942 |
Ending balances, shares at Sep. 30, 2018 | 38,672 | 78,799,373 | 29,990 | |||||
Beginning balances at Jun. 30, 2018 | 261,605 | $ 387 | $ 79 | 444,069 | (141) | (183,564) | $ (96) | 871 |
Beginning balances, shares at Jun. 30, 2018 | 38,672 | 78,593,002 | 29,990 | |||||
Vesting of restricted stock units, shares | 29,013 | |||||||
Stock-based compensation | 2,338 | 2,338 | ||||||
Exercise of SARs, shares | 177,358 | |||||||
Net income (loss) | (3,222) | (3,295) | 73 | |||||
Foreign currency translation adjustments | (159) | (157) | (2) | |||||
Ending balances at Sep. 30, 2018 | 260,562 | $ 387 | $ 79 | 446,407 | (298) | (186,859) | $ (96) | 942 |
Ending balances, shares at Sep. 30, 2018 | 38,672 | 78,799,373 | 29,990 | |||||
Beginning balances at Dec. 31, 2018 | 257,858 | $ 394 | $ 79 | 449,343 | (381) | (192,507) | $ (96) | 1,026 |
Beginning balances, shares at Dec. 31, 2018 | 39,442 | 79,008,243 | 29,990 | |||||
Vesting of restricted stock units | 1 | $ 1 | ||||||
Vesting of restricted stock units, shares | 614,132 | |||||||
Stock-based compensation | 5,920 | 5,920 | ||||||
Issuance of common stock under employee stock purchase plan | 604 | 604 | ||||||
Issuance of common stock under employee stock purchase plan, shares | 113,703 | |||||||
Common stock issued as payment for MPUs | 502 | 502 | ||||||
Common stock issued as payment for MPUs, shares | 60,885 | |||||||
Common stock repurchased under share repurchase program | (7,875) | $ (2) | (7,536) | $ (337) | ||||
Common stock repurchased under share repurchase program, Shares | (1,513,743) | 68,286 | ||||||
Exercise of SARs, shares | 3,032 | |||||||
Net income (loss) | (15,651) | (15,922) | 271 | |||||
Series A convertible preferred stock dividend | $ 12 | (12) | ||||||
Series A convertible preferred stock dividend, shares | 1,182 | |||||||
Foreign currency translation adjustments | (779) | (751) | (28) | |||||
Ending balances at Sep. 30, 2019 | 240,580 | $ 406 | $ 78 | 448,833 | (1,132) | (208,441) | $ (433) | 1,269 |
Ending balances, shares at Sep. 30, 2019 | 40,624 | 78,286,252 | 98,276 | |||||
Beginning balances at Jun. 30, 2019 | 251,103 | $ 394 | $ 80 | 454,587 | (582) | (204,416) | $ (96) | 1,136 |
Beginning balances, shares at Jun. 30, 2019 | 39,442 | 79,753,545 | 29,990 | |||||
Vesting of restricted stock units, shares | 46,450 | |||||||
Stock-based compensation | 1,782 | 1,782 | ||||||
Common stock repurchased under share repurchase program | $ (7,875) | $ (2) | (7,536) | $ (337) | ||||
Common stock repurchased under share repurchase program, Shares | (1,582,029) | (1,513,743) | 68,286 | |||||
Net income (loss) | $ (3,869) | (4,013) | 144 | |||||
Series A convertible preferred stock dividend | $ 12 | (12) | ||||||
Series A convertible preferred stock dividend, shares | 1,182 | |||||||
Foreign currency translation adjustments | (561) | (550) | (11) | |||||
Ending balances at Sep. 30, 2019 | $ 240,580 | $ 406 | $ 78 | $ 448,833 | $ (1,132) | $ (208,441) | $ (433) | $ 1,269 |
Ending balances, shares at Sep. 30, 2019 | 40,624 | 78,286,252 | 98,276 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Statement Of Stockholders Equity [Abstract] | |
Underwriters' discounts and commissions and offering costs | $ 1,705 |
Organization and Business
Organization and Business | 9 Months Ended |
Sep. 30, 2019 | |
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 industrial Internet of Things (“IoT”) solutions, including network connectivity, devices, device management and web reporting applications. The Company’s industrial 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, power 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 the transportation and supply chain, heavy equipment, fixed asset monitoring, and maritime industries, as well as for governments. 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. Through two acquisitions in 2017, the Company added vehicle fleet management, as well as in-cab and vehicle fleet solutions to its transportation product portfolio. The Company provides its services using multiple network platforms, including its own constellation of low-Earth orbit satellites and accompanying ground infrastructure, as well as terrestrial-based cellular communication services obtained through reseller agreements with major cellular (Tier One) wireless providers. The Company also offers customer solutions utilizing additional satellite network service options that the Company obtains through service agreements entered into with multiple mobile satellite providers. The Company’s satellite-based customer solution offerings use small, low-power, mobile satellite subscriber communicators for remote asset connectivity, and the Company’s terrestrial-based solutions utilize cellular data modems with subscriber identity modules (“SIMs”). The Company also resells service using the two-way Inmarsat plc satellite network to provide higher bandwidth, low-latency satellite products and services, leveraging the Company’s IsatDataPro 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 is dedicated to providing what it believes are the most versatile, leading-edge industrial IoT solutions in its markets to enable its customers to run their businesses more efficiently. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies 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, 2018. 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 on 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 investees 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 September 30, 2019 and December 31, 2018. The Company has no guarantees or other funding obligations to those entities and the Company had no equity in the earnings or losses of those investees for the quarters and nine months ended September 30, 2019 and 2018. Acquisition-Related and Integration Costs Acquisition-related and integration costs include professional services expenses and identifiable integration costs directly attributable to acquisitions. Revenue Recognition On January 1, 2018, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2014-09 “Revenue from Contracts with Customers” (“ASU 2014-09”). The Company reviewed its contract portfolio and determined its application of ASU 2014-09 did not have a material impact on the comparability of revenue recognized prior to the adoption of ASU 2014-09. The Company derives recurring service revenues primarily from monthly fees for industrial IoT connectivity services that consist of subscriber-based and recurring monthly usage fees for each subscriber communicator or SIM activated for use on its satellite network, other satellite networks and cellular wireless networks that the Company resells to its resellers, Market Channel Partners (“MCPs”) and Market Channel Affiliates (“MCAs”), and direct customers. In addition, the Company earns recurring service revenues from subscription-based services providing recurring AIS data services to government and commercial customers worldwide. The Company also earns recurring service revenues from activations of subscriber communicators and SIMs, optional separately-priced extended warranty service agreements extending beyond the initial warranty period, typically one year, which are billed to the customer upon shipment of a subscriber communicator, and royalty fees relating to the manufacture of subscriber communicators under a manufacturing agreement. Service revenues derived from usage fees are generally based upon the data transmitted by a customer, the overall number of subscriber communicators and/or SIMs activated by each customer, and whether the Company provides services through its value-added portal. Using the output method, these service revenues are recognized over time, as services are rendered, or at a point in time, based on the contract terms. AIS service revenues are generated over time from monthly subscription-based services supplying AIS data to its customers and resellers, using the output method. In addition, data analytics service revenues are generated from monthly subscription-based services supplying analytical data to its customers, using the output method. Revenues from the activation of both subscriber communicators and SIMs are initially recorded as deferred revenues and are, thereafter, recognized on a ratable basis using a time-based output method, generally over three years, the estimated life of the subscriber communicator. Revenues from separately-priced extended warranty service agreements extending beyond the initial warranty period, typically one year, are initially recorded as deferred revenues and are, thereafter, recognized on a ratable basis using a time-based output method, generally over two to five years. Revenues generated from royalties relating to the manufacture of subscriber communicators by third parties are recognized as earned when the third party notifies the Company of the units it has manufactured and a unique serial number is assigned to each unit by the Company. The Company earns other service revenues from installation services and engineering, technical and management support services. Revenues generated from installation services are recognized at a point in time when the services are completed. Revenues generated from engineering, technical and management support services to customers are recognized over time as the service is provided. The Company also generates other service revenues through the sale of software licenses to its customers, which are recognized at a point in time when the license is provided to the customer. Product sales are derived from sales of industrial IoT subscriber communicators, including telematics devices, modems or cellular wireless SIMs (for the Company’s terrestrial-communication services) to the Company’s resellers (i.e., MCPs and MCAs) and direct customers. Product sales are recognized at a point in time when title transfers, when the products are shipped or when customers accept the products, depending on the specific contractual terms. Sales of subscriber communicators and SIMs are not subject to return, and title and risk of loss pass to the customer generally at the time of shipment. Amounts received prior to the performance of services under customer contracts are recognized as deferred revenues and revenue recognition is deferred until such time that all revenue recognition criteria have been met. Deferred revenue as of September 30, 2019 and December 31, 2018 consisted of the following: September 30, December 31, 2019 2018 Service activation fees $ 3,026 $ 2,813 Prepaid services 6,891 7,816 Extended warranty revenues 1,162 796 11,079 11,425 Less current portion (2,308 ) (5,954 ) Long-term portion $ 8,771 $ 5,471 During the quarter and nine months ended September 30, 2019, the Company recognized revenue of $1,330 and $4,752, respectively, which was included as deferred revenue as of December 31, 2018. Shipping costs billed to customers are included in product sales and the related costs are included as cost of product sales. The Company generates revenue from leasing arrangements of subscriber communicators, under FASB Accounting Standards Codification (“ASC”) Topic 842 “Leases” (“ASC 842”), using the estimated selling prices for each of the deliverables recognized. Product and installation revenues associated with these arrangements are recognized upon shipment or installation of the subscriber communicator, depending on the specific contractual terms. Service and warranty revenues are recognized on an accrual basis, as services are rendered, or on a cash basis, if collection from the customer is not reasonably assured at the time the service is provided. The following table summarizes the components of revenue from contracts with customers, as well as revenue recognized under ASC 842: Quarters Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Revenue from contracts with customers: Recurring service revenues $ 39,161 $ 37,192 $ 115,196 $ 111,010 Other service revenues 1,389 1,281 4,099 3,930 Total service revenues 40,550 38,473 119,295 114,940 Product sales 27,157 31,136 78,257 90,017 Total revenue from contracts with customers 67,707 69,609 197,552 204,957 Revenue recognized under ASC 842 1,486 1,433 4,779 4,846 Total revenues $ 69,193 $ 71,042 $ 202,331 $ 209,803 Revenue Recognition for Arrangements with Multiple Performance Obligations The Company enters into contracts with its customers that include multiple performance obligations, which typically include subscriber communicators, monthly usage fees and optional extended warranty service agreements. The Company evaluates each item to determine whether it represents a promise to transfer a distinct good or service to the customer and therefore is a separate performance obligation under ASU 2014-09. If a contract is separated into more than one performance obligation, the Company allocates the total transaction price to each performance obligation in an amount based on the estimated relative stand-alone selling price of each performance obligation. The Company uses an observable price to determine the stand-alone selling price for each separate performance obligation when sold on its own or a cost-plus margin approach when an observable price is not available. If an arrangement provided to a customer has a significant and incremental discount on future revenue, such discount is considered a performance obligation and a proportionate amount of the discount should be allocated to each element based on the relative stand-alone selling price of each element, regardless of the discount. The Company has determined that arrangements provided to its customers do not include significant and incremental discounts. Fair Value of Financial Instruments The Company has no financial assets or liabilities that are measured at fair value on a recurring basis. However, if certain triggering events occur, the Company is required to evaluate the non-financial assets for impairment and any resulting asset impairment would require that a non-financial asset be recorded at fair value. FASB ASC Topic 820 “Fair Value Measurement Disclosure” prioritizes inputs used in measuring fair value into a hierarchy of three levels: Level 1 - unadjusted quoted prices for identical assets or liabilities traded in active markets; Level 2 - inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and Level 3 - unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions that market participants would use in pricing. The carrying amounts of the Company’s financial instruments, including cash, accounts receivable and accounts payable approximated their fair values due to the short-term nature of these items. As of September 30, 2019, the fair value of the Senior Secured Notes, as defined below, is b Refer to “Note 10 – Notes Payable” for more information. The carrying amounts and fair values of the Company’s Senior Secured Notes are shown in the following table: September 30, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Senior Secured Notes $ 250,000 $ 256,875 $ 250,000 $ 255,000 The fair value of the note payable - related party, $1,241 book value at September 30, 2019, has a de minimis value. Concentration of Risk The Company’s customers are primarily commercial organizations. Accounts receivable are generally unsecured. Accounts receivable are due in accordance with payment terms set forth 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 who generated revenues greater than 10% of the Company’s consolidated total revenues for the quarters and nine months ended September 30, 2019 and 2018. There were no customers who generated accounts receivable greater than 10% of the Company’s consolidated accounts receivable as of September 30, 2019 and December 31, 2018. The Company is dependent on one vendor, Sanmina Corporation (“Sanmina”), a contract manufacturer with significant operations in Mexico, for the manufacture of subscriber communicators that the Company designs and sells. For the quarters ended September 30, 2019 and 2018, approximately $18,974, or 66.2%, and $23,104, or 70.9%, respectively, of the Company’s product sales was generated from the sale of the Company’s core products produced by Sanmina. For the nine months ended September 30, 2019 and 2018, approximately $54,286, or 65.4%, and $62,552, or 65.9%, respectively, of the Company’s product sales was generated from the sale of the Company’s core products produced by Sanmina. As of September 30, 2019, the Company did not maintain in-orbit insurance coverage for its ORBCOMM Generation 1 or ORBCOMM Generation 2 satellites to address the risk of potential systemic anomalies, failures or catastrophic events affecting its satellite constellation. Inventories Inventories are stated at the lower of cost or net realizable value, determined on a weighted average cost basis . At September 30, 2019 and December 31, 2018, inventory, net of inventory obsolescence, consisted primarily of finished goods and purchased parts to be utilized by its contract manufacturer totaling $30,958 and $27,701, respectively, and raw materials totaling $7,266 and $6,599, respectively. 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 their carrying amount may not be recoverable. The Company measures recoverability by comparing the carrying amounts of the assets to the projected undiscounted cash flows the assets are expected to generate. An impairment loss is recognized to the extent the carrying value exceeds the fair value. The Company’s 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. Refer to “Note 6 – Satellite Network and Other Equipment, Net” for more information. Warranty Costs The Company accrues for 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 sales. The warranty accrual is included in accrued liabilities on the Company’s condensed consolidated balance sheets. Separately-priced extended warranty coverage is recorded as warranty revenue over the term of the extended warranty coverage and the related warranty costs are recorded as incurred during the coverage period. Warranty coverage that includes additional services, such as repairs and maintenance of the product, is treated as a separate performance obligation and the related warranty and repairs/maintenance costs are recorded as incurred. Refer to “Note 8 – Accrued Liabilities” for more information. Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02 “Leases (Topic 842)” (“ASU 2016-02”), which is effective for fiscal years beginning after December 15, 2018. ASU 2016-02 requires an entity to recognize assets and liabilities arising from a lease for both finance and operating leases, along with additional qualitative and quantitative disclosures. The Company adopted the guidance prospectively as of January 1, 2019, the date of initial application. As part of the adoption, the Company elected the package of practical expedients, the short-term lease exemption and the practical expedient to not separate lease and non-lease components. The Company completed its comprehensive review of its lease portfolio for all lease types and embedded leases throughout each region. Refer to “Note 15 – Leases” for more information. In January 2017, the FASB issued ASU No. 2017-04 “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”), which will be effective for fiscal years beginning after December 15, 2019. ASU 2017-04 removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Under ASU 2017-04, goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The adoption of this standard, which will be applied prospectively, is not expected to have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13 “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which will be effective for fiscal years beginning after December 15, 2019. ASU 2016-13 introduces the current expected credit loss (CECL) model, which will require an entity to measure credit losses for certain financial instruments and financial assets. Upon initial recognition, an entity will be required to estimate a credit loss expected over the life of an exposure. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | 3. Acquisitions inthinc Technology Solutions, Inc. On June 9, 2017, pursuant to the asset purchase agreement (the “Asset Purchase Agreement”) entered into by the Company and inthinc, Inc., inthinc Technology Solutions, Inc., tiwi, Inc., inthinc Telematics, Inc., DriveAware, Inc., inthinc Chile, SP and inthinc Investors, L.P. (collectively, “Inthinc”), the Company completed the acquisition of Inthinc for an aggregate consideration of (i) $34,236 in cash on a debt-free, cash-free basis; (ii) issuance of 76,796 shares of the Company’s common stock, valued at $9.95 per share, which reflected a 20-trading day average price of the Company’s stock ending June 8, 2017; and (iii) additional contingent consideration of up to $25,000, subject to certain operational milestones, payable in stock or a combination of cash and stock at the Company’s election. Contingent Consideration Additional consideration was conditionally due to the Inthinc sellers upon achievement of certain financial milestones through June 2019. The fair value measurement of the contingent consideration obligation was determined using Level 3 unobservable inputs supported by little or no market activity and based on the Company’s own assumptions. The estimated fair value of the contingent consideration was determined based on the Company’s estimates using the probability-weighted discounted cash flow approach. As of September 30, 2019 and December 31, 2018, the Company recorded $0 and $2,063, respectively, in accrued liabilities on the condensed consolidated balance sheets in connection with the contingent consideration. All four financial milestones for this additional consideration were not met. Therefore, the Company recorded a reduction of the contingent liability of $2,063 in selling, general and administrative (“ SG&A ”) expenses o n the condensed consolidated statement of operations for the nine months ended September 30, 2019 . |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 4. Stock-Based Compensation The Company’s stock-based compensation plan consists of its 2016 Long-Term Incentives Plan (the “2016 LTIP”). As of September 30, 2019, there were 2,965,109 shares available for grant under the 2016 LTIP. Total stock-based compensation recorded by the Company for the quarters ended September 30, 2019 and 2018 was $1,663 and $2,312, respectively, and for the nine months ended September 30, 2019 and 2018 was $5,406 and $5,747, respectively. Total capitalized stock-based compensation for the quarters ended September 30, 2019 and 2018 was $80 and $166, respectively, and for the nine months ended September 30, 2019 and 2018 was $539 and $410, respectively. The following table summarizes the components of stock-based compensation expense in the condensed consolidated statements of operations for the quarters and nine months ended September 30, 2019 and 2018: Quarters Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Cost of services $ 136 $ 167 $ 442 $ 475 Cost of product sales 35 45 114 108 Selling, general and administrative 1,199 1,750 4,046 4,396 Product development 293 350 804 768 Total $ 1,663 $ 2,312 $ 5,406 $ 5,747 As of September 30, 2019, the Company had unrecognized compensation costs for all share-based payment arrangements totaling $3,278. Time-Based Stock Appreciation Rights A summary of the Company’s time-based stock appreciation rights (“SARs”) for the nine months ended September 30, 2019 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, 2019 2,199,094 $ 5.36 Granted — — Exercised (6,000 ) 6.09 Forfeited or expired — — Outstanding at September 30, 2019 2,193,094 $ 5.34 2.93 $ 2,182 Exercisable at September 30, 2019 2,163,094 $ 5.42 2.87 $ 2,261 Vested and expected to vest at September 30, 2019 2,193,094 $ 5.34 2.93 $ 2,182 For the quarters ended September 30, 2019 and 2018, the Company recorded stock-based compensation expense related to these time-based SARs of $37 and $43, respectively. For the nine months ended September 30, 2019 and 2018, the Company recorded stock-based compensation expense related to these time-based SARs of $109 and $151, respectively. As of September 30, 2019, $37 of total unrecognized compensation cost related to the SARs is expected to be recognized through December 2019. The intrinsic value of the time-based SARs exercised during the nine months ended September 30, 2019 was $18. Performance-Based Stock Appreciation Rights A summary of the Company’s performance-based SARs for the nine months ended September 30, 2019 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, 2019 233,496 $ 6.02 Granted — — Exercised — — Forfeited or expired — — Outstanding at September 30, 2019 233,496 $ 6.00 3.87 $ 367 Exercisable at September 30, 2019 233,496 $ 6.00 3.87 $ 367 Vested and expected to vest at September 30, 2019 233,496 $ 6.00 3.87 $ 367 For the quarters and nine months ended September 30, 2019 and 2018, the Company did not record any stock-based compensation expense related to the performance-based SARs. As of September 30, 2019, there was no unrecognized compensation cost related to these SARs expected to be recognized. The intrinsic value of the performance-based SARs exercised during the nine months ended September 30, 2019 was $0. The Company did not grant time-based or performance-based SARs during the nine months ended September 30, 2019. Time-Based Restricted Stock Units A summary of the Company’s time-based restricted stock units (“RSUs”) for the nine months ended September 30, 2019 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Balance at January 1, 2019 920,024 $ 9.60 Granted 130,496 7.84 Vested (452,379 ) 9.84 Forfeited or expired (38,467 ) 8.93 Balance at September 30, 2019 559,674 $ 9.15 For the quarters ended September 30, 2019 and 2018, the Company recorded stock-based compensation expense related to the time-based RSUs of $1,018 and $1,392, respectively. For the nine months ended September 30, 2019 and 2018, the Company recorded stock-based compensation expense related to the time-based RSUs of $2,857 and $3,166, respectively. As of September 30, 2019, $2,187 of total unrecognized compensation cost related to these RSUs is expected to be recognized through September 2021. Performance-Based Restricted Stock Units A summary of the Company’s performance-based RSUs for the nine months ended September 30, 2019 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Balance at January 1, 2019 613,605 $ 9.44 Granted 12,246 7.90 Vested (262,685 ) 9.90 Forfeited or expired (29,970 ) 9.46 Balance at September 30, 2019 333,196 $ 8.92 For the quarters ended September 30, 2019 and 2018, the Company recorded stock-based compensation expense related to the performance-based RSUs , respectively. related to the performance-based RSUs , respectively The fair value 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. Market Performance Units The Company grants Market Performance Units (“MPUs”) to its senior executives based on stock price performance over a three-year 15% of three-year period. As the MPUs contain both performance and service conditions, they have been treated as a series of three separate awards, or tranches, for purposes of recognizing stock-based compensation expense. The Company recognizes stock-based compensation expense on a tranche-by-tranche basis over the requisite service period for that specific tranche. The Company estimated the fair value of the MPUs using a Monte Carlo simulation model that used the following assumptions: Nine Months Ended September 30, 2019 2018 Risk-free interest rate 1.61% to 1.88% 2.19% to 2.84% Estimated volatility factor 40.0% to 54.0% 25.0% to 28.0% Expected dividends None None For the quarters ended September 30, 2019 and 2018, the Company recorded stock-based compensation expense related to these MPUs related to these MPUs As of September 30, 2019, the Company recorded $84 and $16 in accrued liabilities and other non-current liabilities related to the MPUs, respectively, on its condensed consolidated balance sheet. in accrued liabilities and other non-current liabilities related to the MPUs, respectively, on its consolidated balance sheet. In January 2019, the Company issued 60,885 shares of common stock as payment in connection with MPUs for achieving the fiscal year 2018, 2017 and 2016 MPU awards’ stock performance targets with respect to the 2018 performance year. In January 2018, the Company issued 81,277 shares of common stock as payment in connection with MPUs for achieving the fiscal year 2017, 2016 and 2015 MPU awards’ stock performance targets with respect to the 2017 performance year. Employee Stock Purchase Plan On February 16, 2016, t he Company’s board of directors adopted the ORBCOMM Inc. Employee Stock Purchase Plan (“ESPP”), which was approved by the Company’s shareholders on April 20, 2016. Under the terms of the ESPP, shares of the Company’s common stock are available for issuance and eligible employees may have up to of their gross pay deducted from their payroll, up to a maximum of per year, to purchase shares of ORBCOMM common stock at a discount of up to of its fair market value, subject to certain conditions and limitations. 81,525 |
Net Income (Loss) Attributable
Net Income (Loss) Attributable to ORBCOMM Inc. Common Stockholders | 9 Months Ended |
Sep. 30, 2019 | |
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 ASC Topic 260, “Earnings Per Share” (“ASC 260”) and related guidance, which requires two calculations of EPS to be disclosed: basic and diluted. The numerator in calculating basic and diluted EPS is an amount equal to the net income (loss) attributable to ORBCOMM Inc. common stockholders for the periods presented. The denominator in calculating basic EPS is the weighted average shares outstanding for the respective periods. The denominator in calculating diluted EPS is the weighted average shares outstanding, plus the dilutive effect of stock option grants, unvested SAR and RSU grants and shares of Series A convertible preferred stock, for the respective periods. The following table sets forth the basic and diluted EPS calculations for the quarters and nine months ended September 30, 2019 and 2018: Quarters Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Net loss attributable to ORBCOMM Inc. common stockholders $ (4,025 ) $ (3,295 ) $ (15,934 ) $ (20,614 ) Weighted average number of common shares outstanding: Basic number of common shares outstanding 79,695 78,649 79,591 77,158 Dilutive effect of grants of stock options, unvested SARs and RSUs and shares of Series A convertible preferred stock — — — — Diluted number of common shares outstanding 79,695 78,649 79,591 77,158 Earnings per share: Basic $ (0.05 ) $ (0.04 ) $ (0.20 ) $ (0.27 ) Diluted $ (0.05 ) $ (0.04 ) $ (0.20 ) $ (0.27 ) The computation of net loss attributable to ORBCOMM Inc. common stockholders for the quarters and nine months ended September 30, 2019 and 2018 is as follows: Quarters Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Net loss attributable to ORBCOMM Inc. $ (4,013 ) $ (3,295 ) $ (15,922 ) $ (20,603 ) Preferred stock dividends on Series A convertible preferred stock (12 ) — (12 ) (11 ) Net loss attributable to ORBCOMM Inc. common stockholders $ (4,025 ) $ (3,295 ) $ (15,934 ) $ (20,614 ) |
Satellite Network and Other Equ
Satellite Network and Other Equipment, Net | 9 Months Ended |
Sep. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Satellite Network and Other Equipment, Net | 6. Satellite Network and Other Equipment, Net Satellite network and other equipment, net consisted of the following: September 30, December 31, 2019 2018 Land $ 381 $ 381 Satellite network 197,916 195,886 Capitalized software 77,918 67,509 Computer hardware 6,343 5,850 Other 7,592 5,610 Assets under construction 15,217 12,489 305,367 287,725 Less: accumulated depreciation and amortization (155,598 ) (127,655 ) $ 149,769 $ 160,070 During the quarters ended September 30, 2019 and 2018, the Company capitalized internal costs attributable to the design, development and enhancement of the Company’s products and services and internal-use software of the Company capitalized internal costs attributable to the design, development and enhancement of the Company’s products and services and internal-use software of Depreciation and amortization expense for the quarters ended September 30, 2019 and 2018 was $9,544 and $8,764, respectively, including amortization of internal-use software of amortization of internal-use software of For the quarters ended September 30, 2019 and 2018, $4,236 and $4,295 of depreciation and amortization expense, respectively, relate to cost of services and $712 and $735, respectively, relate to cost of product sales, as these assets support the Company’s revenue generating activities. For the nine months ended September 30, 2019 and 2018, $12,735 and $12,872 of depreciation and amortization expense, respectively, relate to cost of services and $2,110 and $2,524, respectively, relate to cost of product sales, as these assets support the Company’s revenue generating activities. As of September 30, 2019 and December 31, 2018, assets under construction primarily consisted of costs associated with acquiring, developing and testing software and hardware for internal and external use that have not yet been placed into service. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
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 is allocated to the Company’s one reportable segment, which is its only reporting unit. Intangible assets, net consisted of the following: September 30, 2019 December 31, 2018 Useful life Accumulated Accumulated (years) Cost amortization Net Cost amortization Net Customer lists 5 - 15 $ 113,357 $ (47,835 ) $ 65,522 $ 113,357 $ (39,966 ) $ 73,391 Patents and technology 3 - 10 23,424 (12,417 ) 11,007 23,424 (10,551 ) 12,873 Trade names and trademarks 1 - 2 3,003 (3,003 ) — 3,003 (3,003 ) — $ 139,784 $ (63,255 ) $ 76,529 $ 139,784 $ (53,520 ) $ 86,264 At September 30, 2019, the weighted-average amortization period for the intangible assets was 10.5 years. At September 30, 2019, the weighted-average amortization periods for customer lists, patents and technology and trade names and trademarks were 10.9, 9.3 and 1.2 years, respectively. Amortization expense was $3,250 and $3,317 for the quarters ended September 30, 2019 and 2018, respectively. Amortization expense was $9,735 and $9,825 for the nine months ended September 30, 2019 and 2018, respectively. Estimated future amortization expense for intangible assets is as follows: Amount 2019 (remaining) $ 3,250 2020 12,721 2021 12,112 2022 11,686 2023 11,408 2024 11,122 Thereafter 14,230 $ 76,529 |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | 8. Accrued Liabilities Accrued liabilities consisted of the following: September 30, December 31, 2019 2018 Accrued compensation and benefits $ 7,866 $ 9,367 Accrued warranty obligations 5,922 5,624 Acquired customer product liabilities — 546 Corporate income tax payable 3,385 1,521 Contingent consideration amount — 2,063 VAT payable 1,963 2,286 Accrued satellite network and other equipment 227 227 Accrued inventory purchases 625 219 Accrued interest expense 10,000 5,000 Accrued professional fees 761 303 Accrued airtime charges 1,818 901 Short-term lease liability 2,791 — Other accrued expenses 6,396 7,678 $ 41,754 $ 35,735 Changes in accrued warranty obligations consisted of the following: 2019 2018 Balance at January 1, $ 5,624 $ 4,153 Warranty liabilities assumed from acquisitions — 151 Reduction of warranty liabilities assumed in connection with acquisitions (476 ) (486 ) Warranty expense 811 2,970 Warranty charges (37 ) (604 ) Balance at September 30, $ 5,922 $ 6,184 |
Note Payable-Related Party
Note Payable-Related Party | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Note Payable-Related Party | 9. Note Payable - Related Party In connection with the acquisition of a majority interest in Satcom International Group plc 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 each of September 30, 2019 and December 31, 2018, the principal balance of the note payable was €1,138, with a carrying value of $1,241 at September 30, 2019 and $1,298 at December 31, 2018. 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 six-year estimated life, which ended on September 30, 2011. This note does not bear interest and has no fixed repayment term. Repayment of the note 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, as the Company does not expect any repayments to be required prior to September 30, 2020. |
Notes Payable
Notes Payable | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Notes Payable | 10. Notes Payable Senior Secured Notes On April 10, 2017, the Company issued $250,000 aggregate principal amount of 8.0% senior secured notes due 2024 (the “Senior Secured Notes”). The Senior Secured Notes were issued pursuant to an indenture, dated as of April 10, 2017, among the Company, certain of its domestic subsidiaries party thereto (the “Guarantors”) and U.S. Bank National Association, as trustee and collateral agent (the “Indenture”). The Senior Secured Notes are unconditionally guaranteed on a senior secured basis by the Guarantors, and are secured on a first priority basis by (i) pledges of capital stock of certain of the Company’s directly and indirectly owned subsidiaries; and (ii) substantially all of the other property and assets of the Company and the Guarantors, to the extent a first priority security interest is able to be granted or perfected therein, and subject, in all cases, to certain specified exceptions, and an intercreditor agreement with the collateral agent for the Company’s revolving credit facility described below The Company has the option to redeem some or all of the Senior Secured Notes at any time on or after April 1, 2020, at redemption prices set forth in the Indenture, plus accrued and unpaid interest, if any, to the date of redemption. The Company also has the option to redeem some or all of the Senior Secured Notes at any time before April 1, 2020 at a redemption price of 100% of the principal amount of the Senior Secured Notes to be redeemed, plus a “make-whole” premium and accrued and unpaid interest, if any, to the date of redemption. In addition, at any time before April 1, 2020, the Company may redeem up to 35% of the aggregate principal amount of the Senior Secured Notes to be redeemed, plus accrued and unpaid interest, if any, to the date of redemption, with the proceeds from certain equity issuances. The Indenture contains covenants that, among other things, limit the Company’s and its restricted subsidiaries’ ability to: (i) incur or guarantee additional indebtedness; (ii) pay dividends, make other distributions or repurchase or redeem capital stock; (iii) prepay, redeem or repurchase certain indebtedness; (iv) make loans and investments; (v) sell, transfer or otherwise dispose of assets; (vi) incur or permit to exist certain liens; (vii) enter into certain types of transactions with affiliates; (viii) enter into agreements restricting the Company’s subsidiaries’ ability to pay dividends; and (ix) consolidate, amalgamate, merge or sell all or substantially all of their assets; subject, in all cases, to certain specified exceptions. Such limitations have various exceptions and baskets as set forth in the Indenture, including the incurrence by the Company and its restricted subsidiaries of indebtedness under potential new credit facilities in the aggregate principal amount at any one time outstanding not to exceed $50,000 In connection with the issuance of the Senior Secured Notes, the Company incurred debt issuance costs of approximately $5,431. For the quarters and nine months ended September 30, 2019 and 2018, amortization of the debt issuance costs was $194 and $582, respectively. The Company recorded charges of $5,194 and $15,582 to interest expense on its condensed consolidated statements of operations for the quarters and nine months ended September 30, 2019 and 2018, respectively, related to interest expense and amortization of debt issuance costs associated with the Senior Secured Notes. Revolving Credit Facility On December 18, 2017, the Company and certain of its subsidiaries entered into a senior secured revolving credit agreement (the “Revolving Credit Agreement”) with JPMorgan Chase Bank, N.A. (“JPMorgan Chase”), as administrative agent and collateral agent. The Revolving Credit Agreement provides for a revolving credit facility (the “Revolving Credit Facility”) in an aggregate principal amount of up to $25,000 for working capital and general corporate purposes and matures on December 18, 2022. The Revolving Credit Facility will bear interest at an alternative base rate or an adjusted LIBOR, plus an applicable margin of 1.50% in the case of alternative base rate loans and 2.50% in the case of adjusted LIBOR loans. The Revolving Credit Facility is secured by a first priority security interest in substantially all of the Company’s and its subsidiaries’ assets under a security agreement among the Company, its subsidiaries and JPMorgan Chase, subject to an intercreditor agreement with the indenture trustee for the Senior Secured Notes. The Revolving Credit Facility has no scheduled principal amortization until the maturity date. Subject to the terms set forth in the Revolving Credit Agreement, the Company may borrow, repay and reborrow amounts under the Revolving Credit Facility at any time prior to the maturity date. The Revolving Credit Agreement contains customary representations and warranties, conditions to funding, covenants and events of default. The Revolving Credit Agreement contains covenants that, among other things, limit the Company’s and its restricted subsidiaries’ ability to: (i) incur or guarantee additional indebtedness; (ii) pay dividends, make other distributions or repurchase or redeem capital stock; (iii) prepay, redeem or repurchase certain indebtedness; (iv) make loans and investments; (v) sell, transfer or otherwise dispose of assets; (vi) incur or permit to exist certain liens; (vii) enter into certain types of transactions with affiliates; (viii) enter into agreements restricting the Company’s subsidiaries’ ability to pay dividends; and (ix) consolidate, amalgamate, merge or sell all or substantially all of their assets; subject, in all cases, to certain specified exceptions. Such limitations have various baskets as set forth in the Revolving Credit Agreement. At September 30, 2019, no amounts were outstanding under the Revolving Credit Facility. As of September 30, 2019, the Company was in compliance with all financial covenants under the Revolving Credit Agreement. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | 11. Stockholders’ Equity Preferred Stock The Company currently has 50,000,000 shares of preferred stock authorized. Series A Convertible Preferred Stock During the quarter and nine months ended September 30, 2019, the Company issued dividends to the holders of Series A convertible preferred stock in the amount of 1,182 shares of Series A convertible preferred stock. As of September 30, 2019, dividends in arrears were $4. Common Stock As of September 30, 2019, the Company has reserved 15,161,182 shares of common stock for future issuances related to employee stock compensation plans. On April 10, 2018, the Company completed a public offering of 3,450,000 shares of its common stock, including 450,000 shares sold upon exercise in full of the underwriters’ option to purchase additional shares at a price of $8.60 per share. The Company received net proceeds of approximately $28,000 after deducting underwriters’ discounts and commissions and offering costs. On April 13, 2018, the Company filed a shelf registration statement with the SEC, registering an unspecified amount of debt and/or equity securities that the Company may offer in one or more offerings on terms to be determined at the time of sale. The shelf registration statement was automatically effective upon filing and superseded and replaced the Company’s previous shelf registration statement declared effective on April 14, 2015, which was due to expire on April 14, 2018. On August 5, 2019, the Company’s Board of Directors authorized a stock repurchase program under which the Company may repurchase up to $25,000 of the Company’s outstanding shares of common stock through open market transactions and privately negotiated transactions, until August 5, 2020. In addition, open market repurchases of common stock may be made pursuant to applicable securities laws and regulations, including Rule 10b-18, as well as Rule 10b5-1 under Securities Exchange Act of 1934, as amended. During the quarter ended September 30, 2019, the Company repurchased 1,582,029 shares at an average share price of $4.96, of which 1,513,743 shares were cancelled and 68,286 shares are held as treasury shares, to be cancelled during the fourth quarter of 2019. As of September 30, 2019, authorization for approximately $17,124 of the Company’s common stock remained available for future purchases under the repurchase program. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 12. Segment Information The Company operates in one reportable segment, industrial IoT services. 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 U.S. dollars. The following table summarizes revenues on a percentage basis by geographic region, based on the region in which the customer is located. Quarters Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 United States 54 % 58 % 52 % 64 % South America 11 % 9 % 11 % 10 % Japan 6 % 7 % 7 % 4 % Europe 18 % 18 % 18 % 15 % Other 11 % 8 % 12 % 7 % 100 % 100 % 100 % 100 % |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes For the quarters ended September 30, 2019 and 2018, the Company’s income tax expense was $1,504 and $1,242, respectively. For the nine months ended September 30, 2019 and 2018, the Company’s income tax expense was $3,354 and $3,410, respectively. The increase in the income tax provision for the quarter ended September 30, 2019 primarily related to the provision to return true-ups for multiple international entity tax returns. This resulted in an international tax expense recorded in the period. For the nine months ended September 30, 2019, the true-up was offset by lower deferred tax expense related to the amortization of goodwill. As of September 30, 2019 and December 31, 2018, 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 nine months ended September 30, 2019. 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 nine months ended September 30, 2019. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. Commitments and Contingencies Legal Proceedings From time to time, the Company is involved in various litigation matters involving claims incidental to its business and acquisitions, including employment matters, acquisition related claims, patent infringement and contractual matters, among other issues. While the outcome of any such litigation matters cannot be predicted with certainty, management currently believes that the outcome of these proceedings, including the matters described below, either individually or in the aggregate, will not have a material adverse effect on its business, results of operations or financial condition. The Company records reserves related to legal matters when losses related to such litigation or contingencies are both probable and reasonably estimable. Joseph Smith v. ORBCOMM Inc. Joseph Smith filed a complaint on June 3, 2014 against ORBCOMM Inc. and StarTrak Information Technologies LLC in the Eastern District of Texas alleging infringement of U.S. Patent No. 6,611,686 (“the ’686 Patent”). On October 8, 2015, the Company and Joseph Smith entered into a Settlement and Patent Licensing Agreement (the “Smith Settlement Agreement”), which resulted in a dismissal of the pending litigation alleging infringement of the ’686 Patent. The Smith Settlement Agreement granted an exclusive license and transfer of all rights under the ’686 Patent to the Company in exchange for a one-time payment by the Company of $100 to Mr. Smith and the sharing between Mr. Smith and the Company of any net proceeds from the licensing or enforcement of the ’686 Patent. In accordance with the terms of the Smith Settlement Agreement, the Company brought suit against CalAmp Corp. (“CalAmp”) in April 2016, which was settled on April 24, 2017 (the “CalAmp Settlement”). Pursuant to the CalAmp Settlement, no payments were made by either the Company or CalAmp and each of the Company and CalAmp granted the other royalty-free licenses and covenants not to sue for the patents-in-suit as well as general releases in order to resolve the litigation between CalAmp and the Company. Mr. Smith claims that the Company received significant non-monetary consideration in the CalAmp Settlement (by virtue of the releases and covenants not to sue for the counterclaims and countersuits brought by CalAmp) in excess of the costs incurred by the Company to pursue CalAmp and is entitled to 50% of the value of such claimed non-monetary net proceeds under the Smith Settlement Agreement. On February 22, 2019, Mr. Smith filed a Demand for Arbitration asserting these claims, for an amount of $4,000 plus attorney’s fees. The Company believes these claims by Mr. Smith to be without merit and intends to defend itself vigorously. Pursuant to a Settlement and General Release Agreement dated August 20, 2019 (“Second Smith Settlement Agreement”), Mr. Smith and the Company settled the pending arbitration action described above in part. Under the Second Smith Settlement Agreement, the parties agreed that the arbitrator’s award, if any, shall not exceed the amount of $800 and shall not be less than the amount of $200. If the award in the arbitrator’s final decision is greater than the amount of $800, the amount of the award shall be considered modified to reflect the amount of $800. If the award in the arbitrator’s final decision is less than the amount of $200, the award shall be considered modified to reflect the amount of $200. On or about August 23, 2019, the Company paid Mr. Smith the $200 minimum payment called for under the Second Smith Settlement Agreement. To the extent the arbitrator’s award exceeds $200, within five (5) business days after the award is issued, the Company is required to pay Mr. Smith or his designee the excess or balance of the award over the $200 minimum amount previously paid (up to the aggregate $800 maximum). Timothy Slifkin v. ORBCOMM Inc. The Company received a letter dated January 3, 2017 from Timothy Slifkin, containing a Demand for Arbitration asserting fraudulent misrepresentations and various contractual claims based on his employment with StarTrak Information Technologies LLC and seeking a declaratory judgment establishing his ownership of the stock appreciation rights that were forfeited as a result of his termination of employment, with a total monetary claim against of the Company of $1,000, plus attorney’s fees and punitive damages. The Company believes the claims in the Demand for Arbitration to be without merit and intends to defend itself vigorously. The Company filed a motion for summary judgment. On September 20, 2019, the arbitrator granted the Company’s motion for summary judgment dismissing all of Mr. Slifkin’s claims. Airtime C redits 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 September 30, 2019 and 2018, airtime credits used totaled approximately $7 and $8, respectively. For both the nine months ended September 30, 2019 and 2018, airtime credits used totaled approximately $22. As of September 30, 2019 and 2018, unused credits granted by the Company were approximately $1,926 and $1,955, respectively. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | 15. Leases Lessee The Company determines whether an arrangement is a lease at inception. The Company has operating leases for land, office space, data centers and storage facilities, as well as office equipment and vehicles. The Company’s leases have remaining lease terms of less than one year to 14 years, some of which include options to extend the lease term for up to five years, and some of which include options to terminate the lease within one year. The Company considered these options in determining the lease term used to establish the Company’s right-of use assets and lease liabilities. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the lease term. The operating lease ROU assets also include any lease payments made in advance of lease commencements and exclude lease incentives. The lease terms used in the calculations of the operating ROU assets and operating lease liabilities include options to extend or terminate the lease when the Company is reasonably certain that it will exercise those options. Lease expense for lease payments is recognized on a straight-line basis over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company has lease agreements with lease and non-lease components, which are generally not accounted for separately. Components of lease expense are as follows: Nine Months Ended September 30, 2019 Operating lease cost $ 2,918 The Company has lease arrangements which are classified as short-term in nature. These leases meet the criteria for operating lease classification. In addition, the Company has variable lease costs associated with certain leases. Lease costs associated with the short-term leases and variable lease components, included in SG&A expenses on the Company’s condensed consolidated statements of operations, are not material. Supplemental cash flow information and non-cash activity related to the Company’s operating leases are as follows: Nine Months Ended September 30, 2019 Operating cash flow information: Cash paid for amounts included in the measurement of lease liabilities $ 3,128 Non-cash activity: Right-of-use assets obtained in exchange for lease obligations $ 15,794 Supplemental balance sheet information related to the Company’s operating leases is as follows: September 30, Balance Sheet Classification 2019 Right-of-use assets Other assets $ 13,823 Current lease liabilities Accrued liabilities $ 2,791 Non-current lease liabilities Other liabilities $ 14,124 Weighted-average remaining lease term and discount rate for the Company’s operating leases are as follows: September 30, 2019 Weighted-average remaining lease term (in years) 7.05 Weighted-average discount rate 8.0 % Maturities of lease liabilities by fiscal year for the Company’s operating leases are as follows: September 30, 2019 2019 (remaining) $ 998 2020 3,804 2021 3,257 2022 2,933 2023 2,778 Thereafter 8,551 Total lease payments 22,321 Less: Imputed interest (5,406 ) Present value of lease liabilities $ 16,915 Lessor Although most of the Company’s revenue from its product sales comes from the sale of subscriber communicators, the Company also leases some subscriber communicators to certain customers. The Company determines the existence of a lease when the customer controls the use of the identified product for a period of time defined in the lease agreement. The Company’s leases range in duration between three to five years, with payment generally collected in monthly installments. Refer to “Note 2 – Summary of Significant Accounting Policies” for more information. The Company classifies these leases as sales-type leases and recognizes revenue and cost of product sales upon delivery or installation, depending on the specific contractual terms. The Company’s leases include certain termination fees, as defined in the lease agreements, and do not typically include purchase rights at the end of the lease. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2018. 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 on 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 investees 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 September 30, 2019 and December 31, 2018. The Company has no guarantees or other funding obligations to those entities and the Company had no equity in the earnings or losses of those investees for the quarters and nine months ended September 30, 2019 and 2018. |
Acquisition-Related and Integration Costs | Acquisition-Related and Integration Costs Acquisition-related and integration costs include professional services expenses and identifiable integration costs directly attributable to acquisitions. |
Revenue Recognition | Revenue Recognition On January 1, 2018, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2014-09 “Revenue from Contracts with Customers” (“ASU 2014-09”). The Company reviewed its contract portfolio and determined its application of ASU 2014-09 did not have a material impact on the comparability of revenue recognized prior to the adoption of ASU 2014-09. The Company derives recurring service revenues primarily from monthly fees for industrial IoT connectivity services that consist of subscriber-based and recurring monthly usage fees for each subscriber communicator or SIM activated for use on its satellite network, other satellite networks and cellular wireless networks that the Company resells to its resellers, Market Channel Partners (“MCPs”) and Market Channel Affiliates (“MCAs”), and direct customers. In addition, the Company earns recurring service revenues from subscription-based services providing recurring AIS data services to government and commercial customers worldwide. The Company also earns recurring service revenues from activations of subscriber communicators and SIMs, optional separately-priced extended warranty service agreements extending beyond the initial warranty period, typically one year, which are billed to the customer upon shipment of a subscriber communicator, and royalty fees relating to the manufacture of subscriber communicators under a manufacturing agreement. Service revenues derived from usage fees are generally based upon the data transmitted by a customer, the overall number of subscriber communicators and/or SIMs activated by each customer, and whether the Company provides services through its value-added portal. Using the output method, these service revenues are recognized over time, as services are rendered, or at a point in time, based on the contract terms. AIS service revenues are generated over time from monthly subscription-based services supplying AIS data to its customers and resellers, using the output method. In addition, data analytics service revenues are generated from monthly subscription-based services supplying analytical data to its customers, using the output method. Revenues from the activation of both subscriber communicators and SIMs are initially recorded as deferred revenues and are, thereafter, recognized on a ratable basis using a time-based output method, generally over three years, the estimated life of the subscriber communicator. Revenues from separately-priced extended warranty service agreements extending beyond the initial warranty period, typically one year, are initially recorded as deferred revenues and are, thereafter, recognized on a ratable basis using a time-based output method, generally over two to five years. Revenues generated from royalties relating to the manufacture of subscriber communicators by third parties are recognized as earned when the third party notifies the Company of the units it has manufactured and a unique serial number is assigned to each unit by the Company. The Company earns other service revenues from installation services and engineering, technical and management support services. Revenues generated from installation services are recognized at a point in time when the services are completed. Revenues generated from engineering, technical and management support services to customers are recognized over time as the service is provided. The Company also generates other service revenues through the sale of software licenses to its customers, which are recognized at a point in time when the license is provided to the customer. Product sales are derived from sales of industrial IoT subscriber communicators, including telematics devices, modems or cellular wireless SIMs (for the Company’s terrestrial-communication services) to the Company’s resellers (i.e., MCPs and MCAs) and direct customers. Product sales are recognized at a point in time when title transfers, when the products are shipped or when customers accept the products, depending on the specific contractual terms. Sales of subscriber communicators and SIMs are not subject to return, and title and risk of loss pass to the customer generally at the time of shipment. Amounts received prior to the performance of services under customer contracts are recognized as deferred revenues and revenue recognition is deferred until such time that all revenue recognition criteria have been met. Deferred revenue as of September 30, 2019 and December 31, 2018 consisted of the following: September 30, December 31, 2019 2018 Service activation fees $ 3,026 $ 2,813 Prepaid services 6,891 7,816 Extended warranty revenues 1,162 796 11,079 11,425 Less current portion (2,308 ) (5,954 ) Long-term portion $ 8,771 $ 5,471 During the quarter and nine months ended September 30, 2019, the Company recognized revenue of $1,330 and $4,752, respectively, which was included as deferred revenue as of December 31, 2018. Shipping costs billed to customers are included in product sales and the related costs are included as cost of product sales. The Company generates revenue from leasing arrangements of subscriber communicators, under FASB Accounting Standards Codification (“ASC”) Topic 842 “Leases” (“ASC 842”), using the estimated selling prices for each of the deliverables recognized. Product and installation revenues associated with these arrangements are recognized upon shipment or installation of the subscriber communicator, depending on the specific contractual terms. Service and warranty revenues are recognized on an accrual basis, as services are rendered, or on a cash basis, if collection from the customer is not reasonably assured at the time the service is provided. The following table summarizes the components of revenue from contracts with customers, as well as revenue recognized under ASC 842: Quarters Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Revenue from contracts with customers: Recurring service revenues $ 39,161 $ 37,192 $ 115,196 $ 111,010 Other service revenues 1,389 1,281 4,099 3,930 Total service revenues 40,550 38,473 119,295 114,940 Product sales 27,157 31,136 78,257 90,017 Total revenue from contracts with customers 67,707 69,609 197,552 204,957 Revenue recognized under ASC 842 1,486 1,433 4,779 4,846 Total revenues $ 69,193 $ 71,042 $ 202,331 $ 209,803 Revenue Recognition for Arrangements with Multiple Performance Obligations The Company enters into contracts with its customers that include multiple performance obligations, which typically include subscriber communicators, monthly usage fees and optional extended warranty service agreements. The Company evaluates each item to determine whether it represents a promise to transfer a distinct good or service to the customer and therefore is a separate performance obligation under ASU 2014-09. If a contract is separated into more than one performance obligation, the Company allocates the total transaction price to each performance obligation in an amount based on the estimated relative stand-alone selling price of each performance obligation. The Company uses an observable price to determine the stand-alone selling price for each separate performance obligation when sold on its own or a cost-plus margin approach when an observable price is not available. If an arrangement provided to a customer has a significant and incremental discount on future revenue, such discount is considered a performance obligation and a proportionate amount of the discount should be allocated to each element based on the relative stand-alone selling price of each element, regardless of the discount. The Company has determined that arrangements provided to its customers do not include significant and incremental discounts. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company has no financial assets or liabilities that are measured at fair value on a recurring basis. However, if certain triggering events occur, the Company is required to evaluate the non-financial assets for impairment and any resulting asset impairment would require that a non-financial asset be recorded at fair value. FASB ASC Topic 820 “Fair Value Measurement Disclosure” prioritizes inputs used in measuring fair value into a hierarchy of three levels: Level 1 - unadjusted quoted prices for identical assets or liabilities traded in active markets; Level 2 - inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and Level 3 - unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions that market participants would use in pricing. The carrying amounts of the Company’s financial instruments, including cash, accounts receivable and accounts payable approximated their fair values due to the short-term nature of these items. As of September 30, 2019, the fair value of the Senior Secured Notes, as defined below, is b Refer to “Note 10 – Notes Payable” for more information. The carrying amounts and fair values of the Company’s Senior Secured Notes are shown in the following table: September 30, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Senior Secured Notes $ 250,000 $ 256,875 $ 250,000 $ 255,000 The fair value of the note payable - related party, $1,241 book value at September 30, 2019, has a de minimis value. |
Concentration of Risk | Concentration of Risk The Company’s customers are primarily commercial organizations. Accounts receivable are generally unsecured. Accounts receivable are due in accordance with payment terms set forth 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 who generated revenues greater than 10% of the Company’s consolidated total revenues for the quarters and nine months ended September 30, 2019 and 2018. There were no customers who generated accounts receivable greater than 10% of the Company’s consolidated accounts receivable as of September 30, 2019 and December 31, 2018. The Company is dependent on one vendor, Sanmina Corporation (“Sanmina”), a contract manufacturer with significant operations in Mexico, for the manufacture of subscriber communicators that the Company designs and sells. For the quarters ended September 30, 2019 and 2018, approximately $18,974, or 66.2%, and $23,104, or 70.9%, respectively, of the Company’s product sales was generated from the sale of the Company’s core products produced by Sanmina. For the nine months ended September 30, 2019 and 2018, approximately $54,286, or 65.4%, and $62,552, or 65.9%, respectively, of the Company’s product sales was generated from the sale of the Company’s core products produced by Sanmina. As of September 30, 2019, the Company did not maintain in-orbit insurance coverage for its ORBCOMM Generation 1 or ORBCOMM Generation 2 satellites to address the risk of potential systemic anomalies, failures or catastrophic events affecting its satellite constellation. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value, determined on a weighted average cost basis . At September 30, 2019 and December 31, 2018, inventory, net of inventory obsolescence, consisted primarily of finished goods and purchased parts to be utilized by its contract manufacturer totaling $30,958 and $27,701, respectively, and raw materials totaling $7,266 and $6,599, respectively. |
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 their carrying amount may not be recoverable. The Company measures recoverability by comparing the carrying amounts of the assets to the projected undiscounted cash flows the assets are expected to generate. An impairment loss is recognized to the extent the carrying value exceeds the fair value. The Company’s 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. Refer to “Note 6 – Satellite Network and Other Equipment, Net” for more information. |
Warranty Costs | Warranty Costs The Company accrues for 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 sales. The warranty accrual is included in accrued liabilities on the Company’s condensed consolidated balance sheets. Separately-priced extended warranty coverage is recorded as warranty revenue over the term of the extended warranty coverage and the related warranty costs are recorded as incurred during the coverage period. Warranty coverage that includes additional services, such as repairs and maintenance of the product, is treated as a separate performance obligation and the related warranty and repairs/maintenance costs are recorded as incurred. Refer to “Note 8 – Accrued Liabilities” for more information. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02 “Leases (Topic 842)” (“ASU 2016-02”), which is effective for fiscal years beginning after December 15, 2018. ASU 2016-02 requires an entity to recognize assets and liabilities arising from a lease for both finance and operating leases, along with additional qualitative and quantitative disclosures. The Company adopted the guidance prospectively as of January 1, 2019, the date of initial application. As part of the adoption, the Company elected the package of practical expedients, the short-term lease exemption and the practical expedient to not separate lease and non-lease components. The Company completed its comprehensive review of its lease portfolio for all lease types and embedded leases throughout each region. Refer to “Note 15 – Leases” for more information. In January 2017, the FASB issued ASU No. 2017-04 “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”), which will be effective for fiscal years beginning after December 15, 2019. ASU 2017-04 removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Under ASU 2017-04, goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The adoption of this standard, which will be applied prospectively, is not expected to have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13 “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which will be effective for fiscal years beginning after December 15, 2019. ASU 2016-13 introduces the current expected credit loss (CECL) model, which will require an entity to measure credit losses for certain financial instruments and financial assets. Upon initial recognition, an entity will be required to estimate a credit loss expected over the life of an exposure. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Deferred Revenues | Deferred revenue as of September 30, 2019 and December 31, 2018 consisted of the following: September 30, December 31, 2019 2018 Service activation fees $ 3,026 $ 2,813 Prepaid services 6,891 7,816 Extended warranty revenues 1,162 796 11,079 11,425 Less current portion (2,308 ) (5,954 ) Long-term portion $ 8,771 $ 5,471 |
Components of Revenue from Contracts with Customers | The following table summarizes the components of revenue from contracts with customers, as well as revenue recognized under ASC 842: Quarters Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Revenue from contracts with customers: Recurring service revenues $ 39,161 $ 37,192 $ 115,196 $ 111,010 Other service revenues 1,389 1,281 4,099 3,930 Total service revenues 40,550 38,473 119,295 114,940 Product sales 27,157 31,136 78,257 90,017 Total revenue from contracts with customers 67,707 69,609 197,552 204,957 Revenue recognized under ASC 842 1,486 1,433 4,779 4,846 Total revenues $ 69,193 $ 71,042 $ 202,331 $ 209,803 |
Summary of carrying and fair values of senior secured notes | The carrying amounts and fair values of the Company’s Senior Secured Notes are shown in the following table: September 30, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Senior Secured Notes $ 250,000 $ 256,875 $ 250,000 $ 255,000 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Summary Components of Stock-Based Compensation Expense | The following table summarizes the components of stock-based compensation expense in the condensed consolidated statements of operations for the quarters and nine months ended September 30, 2019 and 2018: Quarters Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Cost of services $ 136 $ 167 $ 442 $ 475 Cost of product sales 35 45 114 108 Selling, general and administrative 1,199 1,750 4,046 4,396 Product development 293 350 804 768 Total $ 1,663 $ 2,312 $ 5,406 $ 5,747 |
Time-Based Stock Appreciation Rights [Member] | |
Summary of Stock Appreciation Rights | A summary of the Company’s time-based stock appreciation rights (“SARs”) for the nine months ended September 30, 2019 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, 2019 2,199,094 $ 5.36 Granted — — Exercised (6,000 ) 6.09 Forfeited or expired — — Outstanding at September 30, 2019 2,193,094 $ 5.34 2.93 $ 2,182 Exercisable at September 30, 2019 2,163,094 $ 5.42 2.87 $ 2,261 Vested and expected to vest at September 30, 2019 2,193,094 $ 5.34 2.93 $ 2,182 |
Performance-Based Stock Appreciation Rights [Member] | |
Summary of Stock Appreciation Rights | A summary of the Company’s performance-based SARs for the nine months ended September 30, 2019 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, 2019 233,496 $ 6.02 Granted — — Exercised — — Forfeited or expired — — Outstanding at September 30, 2019 233,496 $ 6.00 3.87 $ 367 Exercisable at September 30, 2019 233,496 $ 6.00 3.87 $ 367 Vested and expected to vest at September 30, 2019 233,496 $ 6.00 3.87 $ 367 |
Time-Based Restricted Stock Units [Member] | |
Summary of Restricted Stock Units | A summary of the Company’s time-based restricted stock units (“RSUs”) for the nine months ended September 30, 2019 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Balance at January 1, 2019 920,024 $ 9.60 Granted 130,496 7.84 Vested (452,379 ) 9.84 Forfeited or expired (38,467 ) 8.93 Balance at September 30, 2019 559,674 $ 9.15 |
Performance-Based Restricted Stock Units [Member] | |
Summary of Restricted Stock Units | A summary of the Company’s performance-based RSUs for the nine months ended September 30, 2019 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Balance at January 1, 2019 613,605 $ 9.44 Granted 12,246 7.90 Vested (262,685 ) 9.90 Forfeited or expired (29,970 ) 9.46 Balance at September 30, 2019 333,196 $ 8.92 |
Market Performance Units [Member] | |
Fair Value of Stock Appreciation Rights Estimated | As the MPUs contain both performance and service conditions, they have been treated as a series of three separate awards, or tranches, for purposes of recognizing stock-based compensation expense. The Company recognizes stock-based compensation expense on a tranche-by-tranche basis over the requisite service period for that specific tranche. The Company estimated the fair value of the MPUs using a Monte Carlo simulation model that used the following assumptions: Nine Months Ended September 30, 2019 2018 Risk-free interest rate 1.61% to 1.88% 2.19% to 2.84% Estimated volatility factor 40.0% to 54.0% 25.0% to 28.0% Expected dividends None None |
Net Income (Loss) Attributabl_2
Net Income (Loss) Attributable to ORBCOMM Inc. Common Stockholders (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Calculations of EPS | The following table sets forth the basic and diluted EPS calculations for the quarters and nine months ended September 30, 2019 and 2018: Quarters Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Net loss attributable to ORBCOMM Inc. common stockholders $ (4,025 ) $ (3,295 ) $ (15,934 ) $ (20,614 ) Weighted average number of common shares outstanding: Basic number of common shares outstanding 79,695 78,649 79,591 77,158 Dilutive effect of grants of stock options, unvested SARs and RSUs and shares of Series A convertible preferred stock — — — — Diluted number of common shares outstanding 79,695 78,649 79,591 77,158 Earnings per share: Basic $ (0.05 ) $ (0.04 ) $ (0.20 ) $ (0.27 ) Diluted $ (0.05 ) $ (0.04 ) $ (0.20 ) $ (0.27 ) |
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 nine months ended September 30, 2019 and 2018 is as follows: Quarters Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Net loss attributable to ORBCOMM Inc. $ (4,013 ) $ (3,295 ) $ (15,922 ) $ (20,603 ) Preferred stock dividends on Series A convertible preferred stock (12 ) — (12 ) (11 ) Net loss attributable to ORBCOMM Inc. common stockholders $ (4,025 ) $ (3,295 ) $ (15,934 ) $ (20,614 ) |
Satellite Network and Other E_2
Satellite Network and Other Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Summary of Satellite Network and Other Equipment, Net | Satellite network and other equipment, net consisted of the following: September 30, December 31, 2019 2018 Land $ 381 $ 381 Satellite network 197,916 195,886 Capitalized software 77,918 67,509 Computer hardware 6,343 5,850 Other 7,592 5,610 Assets under construction 15,217 12,489 305,367 287,725 Less: accumulated depreciation and amortization (155,598 ) (127,655 ) $ 149,769 $ 160,070 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets | Intangible assets, net consisted of the following: September 30, 2019 December 31, 2018 Useful life Accumulated Accumulated (years) Cost amortization Net Cost amortization Net Customer lists 5 - 15 $ 113,357 $ (47,835 ) $ 65,522 $ 113,357 $ (39,966 ) $ 73,391 Patents and technology 3 - 10 23,424 (12,417 ) 11,007 23,424 (10,551 ) 12,873 Trade names and trademarks 1 - 2 3,003 (3,003 ) — 3,003 (3,003 ) — $ 139,784 $ (63,255 ) $ 76,529 $ 139,784 $ (53,520 ) $ 86,264 |
Estimated Future Amortization Expense for Intangible Assets | Estimated future amortization expense for intangible assets is as follows: Amount 2019 (remaining) $ 3,250 2020 12,721 2021 12,112 2022 11,686 2023 11,408 2024 11,122 Thereafter 14,230 $ 76,529 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Payables And Accruals [Abstract] | |
Components of Accrued Liabilities | Accrued liabilities consisted of the following: September 30, December 31, 2019 2018 Accrued compensation and benefits $ 7,866 $ 9,367 Accrued warranty obligations 5,922 5,624 Acquired customer product liabilities — 546 Corporate income tax payable 3,385 1,521 Contingent consideration amount — 2,063 VAT payable 1,963 2,286 Accrued satellite network and other equipment 227 227 Accrued inventory purchases 625 219 Accrued interest expense 10,000 5,000 Accrued professional fees 761 303 Accrued airtime charges 1,818 901 Short-term lease liability 2,791 — Other accrued expenses 6,396 7,678 $ 41,754 $ 35,735 |
Summary of Accrued Warranty Obligations | Changes in accrued warranty obligations consisted of the following: 2019 2018 Balance at January 1, $ 5,624 $ 4,153 Warranty liabilities assumed from acquisitions — 151 Reduction of warranty liabilities assumed in connection with acquisitions (476 ) (486 ) Warranty expense 811 2,970 Warranty charges (37 ) (604 ) Balance at September 30, $ 5,922 $ 6,184 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary of Revenues on Percentage Basis by Geographic Region | The following table summarizes revenues on a percentage basis by geographic region, based on the region in which the customer is located. Quarters Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 United States 54 % 58 % 52 % 64 % South America 11 % 9 % 11 % 10 % Japan 6 % 7 % 7 % 4 % Europe 18 % 18 % 18 % 15 % Other 11 % 8 % 12 % 7 % 100 % 100 % 100 % 100 % |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | Components of lease expense are as follows: Nine Months Ended September 30, 2019 Operating lease cost $ 2,918 |
Schedule of Supplemental Cash Flow Information and Non-Cash Activity Related to Operating Leases | Supplemental cash flow information and non-cash activity related to the Company’s operating leases are as follows: Nine Months Ended September 30, 2019 Operating cash flow information: Cash paid for amounts included in the measurement of lease liabilities $ 3,128 Non-cash activity: Right-of-use assets obtained in exchange for lease obligations $ 15,794 |
Schedule of Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to the Company’s operating leases is as follows: September 30, Balance Sheet Classification 2019 Right-of-use assets Other assets $ 13,823 Current lease liabilities Accrued liabilities $ 2,791 Non-current lease liabilities Other liabilities $ 14,124 |
Schedule of Weighted-Average Remaining Lease Term and Discount Rate for Operating Leases | Weighted-average remaining lease term and discount rate for the Company’s operating leases are as follows: September 30, 2019 Weighted-average remaining lease term (in years) 7.05 Weighted-average discount rate 8.0 % |
Schedule of Maturities of Lease Liabilities for Operating Leases | Maturities of lease liabilities by fiscal year for the Company’s operating leases are as follows: September 30, 2019 2019 (remaining) $ 998 2020 3,804 2021 3,257 2022 2,933 2023 2,778 Thereafter 8,551 Total lease payments 22,321 Less: Imputed interest (5,406 ) Present value of lease liabilities $ 16,915 |
Organization and Business - Add
Organization and Business - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017Acquisition | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of acquisitions | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019USD ($)Customer | Sep. 30, 2018USD ($)Customer | Sep. 30, 2019USD ($)CustomerVendor | Sep. 30, 2018USD ($)Customer | Dec. 31, 2018USD ($)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 | 0 | $ 0 | |
Earnings or losses from equity method investment | 0 | $ 0 | 0 | $ 0 | |
Revenue recognized from customer contracts | 1,330,000 | 4,752,000 | |||
Note payable - related party | $ 1,241,000 | $ 1,241,000 | $ 1,298,000 | ||
Number of customers with revenues greater than 10% | Customer | 0 | 0 | 0 | 0 | |
Number of customers with accounts receivable greater than 10% | Customer | 0 | 0 | |||
Revenues | $ 67,707,000 | $ 69,609,000 | $ 197,552,000 | $ 204,957,000 | |
Inventories finished goods and purchased parts | 30,958,000 | 30,958,000 | $ 27,701,000 | ||
Inventories raw materials | 7,266,000 | $ 7,266,000 | $ 6,599,000 | ||
Sanmina Corporation [Member] | Revenues [Member] | Customer Concentration Risk [Member] | Mexico [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of vendors | Vendor | 1 | ||||
Revenues | $ 18,974,000 | $ 23,104,000 | $ 54,286,000 | $ 62,552,000 | |
Concentration risk percentage | 66.20% | 70.90% | 65.40% | 65.90% | |
ASU 2014-09 [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Warranty period | 1 year | ||||
Estimated life of communicator | 3 years | ||||
ASU 2014-09 [Member] | Minimum [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Additional term of the agreement | 2 years | ||||
ASU 2014-09 [Member] | Maximum [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Additional term of the agreement | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Deferred Revenues (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Deferred Revenue Disclosure [Abstract] | ||
Service activation fees | $ 3,026 | $ 2,813 |
Prepaid services | 6,891 | 7,816 |
Extended warranty revenues | 1,162 | 796 |
Total deferred revenues | 11,079 | 11,425 |
Less current portion | (2,308) | (5,954) |
Long-term portion | $ 8,771 | $ 5,471 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Components of Revenue from Contracts with Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue from contracts with customers: | ||||
Total revenue from contracts with customers | $ 67,707 | $ 69,609 | $ 197,552 | $ 204,957 |
Revenue recognized under ASC 842 | 1,486 | 1,433 | 4,779 | 4,846 |
Total revenues | 69,193 | 71,042 | 202,331 | 209,803 |
Recurring Service Revenues [Member] | ||||
Revenue from contracts with customers: | ||||
Total revenue from contracts with customers | 39,161 | 37,192 | 115,196 | 111,010 |
Other Service Revenues [Member] | ||||
Revenue from contracts with customers: | ||||
Total revenue from contracts with customers | 1,389 | 1,281 | 4,099 | 3,930 |
Service [Member] | ||||
Revenue from contracts with customers: | ||||
Total revenue from contracts with customers | 40,550 | 38,473 | 119,295 | 114,940 |
Product [Member] | ||||
Revenue from contracts with customers: | ||||
Total revenue from contracts with customers | 27,157 | 31,136 | 78,257 | 90,017 |
Total revenues | $ 28,643 | $ 32,569 | $ 83,036 | $ 94,863 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Carrying Amounts and Fair Value of Senior Secured Notes (Detail) - 8.0% Senior Secured Notes due 2024 [Member] - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Carrying amount of debt | $ 250,000 | $ 250,000 |
Fair value of senior secured notes | $ 256,875 | $ 255,000 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jun. 09, 2017 | Sep. 30, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Portion of contingent consideration in accrued liabilities | $ 2,063 | ||
Inthinc [Member] | |||
Business Acquisition [Line Items] | |||
Cash consideration paid | $ 34,236 | ||
Number of common stock shares issued for consideration | 76,796 | ||
Common stock issued, per share | $ 9.95 | ||
Number of trading days for average closing price | 20 days | ||
Acquisition effective date | Jun. 9, 2017 | ||
Inthinc [Member] | SG&A [Member] | |||
Business Acquisition [Line Items] | |||
Reduction in fair value of earn-outs amounts | $ 2,063 | ||
Inthinc [Member] | Accrued Liabilities [Member] | |||
Business Acquisition [Line Items] | |||
Portion of contingent consideration in accrued liabilities | $ 0 | $ 2,063 | |
Inthinc [Member] | Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Contingent consideration payable | $ 25,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | Apr. 20, 2016 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 31, 2019 | Dec. 31, 2018 | Jan. 31, 2018 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ 1,663,000 | $ 2,312,000 | $ 5,406,000 | $ 5,747,000 | ||||
Stock-based compensation, capitalized | 80,000 | 166,000 | 539,000 | 410,000 | ||||
Unrecognized compensation costs for all share-based payment arrangements | 3,278,000 | 3,278,000 | ||||||
Accrued liabilities | 41,754,000 | 41,754,000 | $ 35,735,000 | |||||
Other non-current liabilities | $ 14,162,000 | $ 14,162,000 | $ 2,600,000 | |||||
Common stock, shares issued | 78,286,252 | 78,286,252 | 79,008,243 | |||||
Time-Based Stock Appreciation Rights [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ 37,000 | 43,000 | $ 109,000 | 151,000 | ||||
Unrecognized compensation costs for all share-based payment arrangements | 37,000 | 37,000 | ||||||
Intrinsic value of SARs | 18,000 | $ 18,000 | ||||||
Number of shares, granted | 0 | |||||||
Performance-Based Stock Appreciation Rights [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | 0 | 0 | $ 0 | 0 | ||||
Unrecognized compensation costs for all share-based payment arrangements | 0 | 0 | ||||||
Intrinsic value of SARs | 0 | $ 0 | ||||||
Number of shares, granted | 0 | |||||||
Time-Based Restricted Stock Units [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | 1,018,000 | 1,392,000 | $ 2,857,000 | 3,166,000 | ||||
Unrecognized compensation costs for all share-based payment arrangements | 2,187,000 | $ 2,187,000 | ||||||
Number of shares, granted | 130,496 | |||||||
Performance-Based Restricted Stock Units [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | 578,000 | 597,000 | $ 2,203,000 | 1,694,000 | ||||
Unrecognized compensation costs for all share-based payment arrangements | 1,054,000 | $ 1,054,000 | ||||||
Number of shares, granted | 12,246 | |||||||
Market Performance Units [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ (39,000) | 197,000 | $ 25,000 | 501,000 | ||||
Maximum percentage of MPUs for senior executives | 15.00% | 15.00% | ||||||
Fair value period of MPUs | 3 years | |||||||
Term of MPUs | 3 years | |||||||
Accrued liabilities | $ 84,000 | $ 84,000 | $ 527,000 | |||||
Other non-current liabilities | $ 16,000 | $ 16,000 | $ 131,000 | |||||
Common stock, shares issued | 60,885 | 81,277 | ||||||
2016 LTIP [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of shares available for grant | 2,965,109 | 2,965,109 | ||||||
ESPP [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ 69,000 | $ 83,000 | $ 212,000 | $ 235,000 | ||||
Number of shares authorized under the plan | 5,000,000 | |||||||
Maximum percentage deductible from employees' gross pay | 10.00% | |||||||
Maximum amount deductible from employees gross pay | $ 25,000 | |||||||
Purchases of common stock | 113,703 | 81,525 | ||||||
Share price | $ 5.68 | $ 8.21 | $ 5.68 | $ 8.21 | ||||
ESPP [Member] | Maximum [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Maximum percentage of discount on common stock's 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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation | $ 1,663 | $ 2,312 | $ 5,406 | $ 5,747 |
Cost of Services [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation | 136 | 167 | 442 | 475 |
Cost of Product Sales [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation | 35 | 45 | 114 | 108 |
Selling, General and Administrative [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation | 1,199 | 1,750 | 4,046 | 4,396 |
Product Development [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation | $ 293 | $ 350 | $ 804 | $ 768 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Appreciation Rights (Detail) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | |
Time-Based Stock Appreciation Rights [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Outstanding, Beginning Balance | 2,199,094 |
Number of Shares, Granted | 0 |
Number of Shares, Exercised | (6,000) |
Number of Shares, Outstanding, Ending Balance | 2,193,094 |
Number of Shares, Exercisable | 2,163,094 |
Number of Shares, Vested and expected to vest | 2,193,094 |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ / shares | $ 5.36 |
Weighted-Average Exercise Price, Exercised | $ / shares | 6.09 |
Weighted-Average Exercise Price, Outstanding, Ending Balance | $ / shares | 5.34 |
Weighted-Average Exercise Price, Exercisable | $ / shares | 5.42 |
Weighted-Average Exercise Price, Vested and expected to vest | $ / shares | $ 5.34 |
Weighted-Average Remaining Contractual Term, Outstanding | 2 years 11 months 4 days |
Weighted-Average Remaining Contractual Term, Exercisable | 2 years 10 months 13 days |
Weighted-Average Remaining Contractual Term, Vested and expected to vest | 2 years 11 months 4 days |
Aggregate Intrinsic Value, Outstanding | $ | $ 2,182 |
Aggregate Intrinsic Value, Exercisable | $ | 2,261 |
Aggregate Intrinsic Value, Vested and expected to vest | $ | $ 2,182 |
Performance-Based Stock Appreciation Rights [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Outstanding, Beginning Balance | 233,496 |
Number of Shares, Granted | 0 |
Number of Shares, Outstanding, Ending Balance | 233,496 |
Number of Shares, Exercisable | 233,496 |
Number of Shares, Vested and expected to vest | 233,496 |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ / shares | $ 6.02 |
Weighted-Average Exercise Price, Outstanding, Ending Balance | $ / shares | 6 |
Weighted-Average Exercise Price, Exercisable | $ / shares | 6 |
Weighted-Average Exercise Price, Vested and expected to vest | $ / shares | $ 6 |
Weighted-Average Remaining Contractual Term, Outstanding | 3 years 10 months 13 days |
Weighted-Average Remaining Contractual Term, Exercisable | 3 years 10 months 13 days |
Weighted-Average Remaining Contractual Term, Vested and expected to vest | 3 years 10 months 13 days |
Aggregate Intrinsic Value, Outstanding | $ | $ 367 |
Aggregate Intrinsic Value, Exercisable | $ | 367 |
Aggregate Intrinsic Value, Vested and expected to vest | $ | $ 367 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Restricted Stock Units (Detail) | 9 Months Ended |
Sep. 30, 2019$ / 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 | 920,024 |
Number of Shares, Granted | shares | 130,496 |
Number of Shares, Vested | shares | (452,379) |
Number of Shares, Forfeited or expired | shares | (38,467) |
Number of Shares, Outstanding, Ending Balance | shares | 559,674 |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ / shares | $ 9.60 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 7.84 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 9.84 |
Weighted-Average Grant Date Fair Value, Forfeited or expired | $ / shares | 8.93 |
Weighted-Average Exercise Price, Outstanding, Ending Balance | $ / shares | $ 9.15 |
Performance-Based Restricted Stock Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Outstanding, Beginning Balance | shares | 613,605 |
Number of Shares, Granted | shares | 12,246 |
Number of Shares, Vested | shares | (262,685) |
Number of Shares, Forfeited or expired | shares | (29,970) |
Number of Shares, Outstanding, Ending Balance | shares | 333,196 |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ / shares | $ 9.44 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 7.90 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 9.90 |
Weighted-Average Grant Date Fair Value, Forfeited or expired | $ / shares | 9.46 |
Weighted-Average Exercise Price, Outstanding, Ending Balance | $ / shares | $ 8.92 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value of Market Performance Units Estimated, Monte Carlo Simulation Model (Detail) - Market Performance Units [Member] | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate, Minimum | 1.61% | 2.19% |
Risk-free interest rate, Maximum | 1.88% | 2.84% |
Estimated volatility factor, Minimum | 40.00% | 25.00% |
Estimated volatility factor, Maximum | 54.00% | 28.00% |
Expected dividends | 0.00% | 0.00% |
Net Income (Loss) Attributabl_3
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net loss attributable to ORBCOMM Inc. common stockholders | $ (4,025) | $ (3,295) | $ (15,934) | $ (20,614) |
Weighted average number of common shares outstanding: | ||||
Basic number of common shares outstanding | 79,695 | 78,649 | 79,591 | 77,158 |
Diluted number of common shares outstanding | 79,695 | 78,649 | 79,591 | 77,158 |
Earnings per share: | ||||
Basic | $ (0.05) | $ (0.04) | $ (0.20) | $ (0.27) |
Diluted | $ (0.05) | $ (0.04) | $ (0.20) | $ (0.27) |
Net Income (Loss) Attributabl_4
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net loss attributable to ORBCOMM Inc. | $ (4,013) | $ (3,295) | $ (15,922) | $ (20,603) |
Preferred stock dividends on Series A convertible preferred stock | (12) | (12) | (11) | |
Net loss attributable to ORBCOMM Inc. common stockholders | $ (4,025) | $ (3,295) | $ (15,934) | $ (20,614) |
Satellite Network and Other E_3
Satellite Network and Other Equipment, Net - Summary of Satellite Network and Other Equipment, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Satellite network and other equipment, gross | $ 305,367 | $ 287,725 |
Less: accumulated depreciation and amortization | (155,598) | (127,655) |
Satellite network and other equipment, net | 149,769 | 160,070 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Satellite network and other equipment, gross | 381 | 381 |
Satellite Network [Member] | ||
Property Plant And Equipment [Line Items] | ||
Satellite network and other equipment, gross | 197,916 | 195,886 |
Capitalized Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Satellite network and other equipment, gross | 77,918 | 67,509 |
Computer Hardware [Member] | ||
Property Plant And Equipment [Line Items] | ||
Satellite network and other equipment, gross | 6,343 | 5,850 |
Other [Member] | ||
Property Plant And Equipment [Line Items] | ||
Satellite network and other equipment, gross | 7,592 | 5,610 |
Assets under Construction [Member] | ||
Property Plant And Equipment [Line Items] | ||
Satellite network and other equipment, gross | $ 15,217 | $ 12,489 |
Satellite Network and Other E_4
Satellite Network and Other Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization expense | $ 12,794 | $ 12,081 | $ 37,998 | $ 36,146 |
Products and Services and Internal-use Software [Member] | ||||
Property Plant And Equipment [Line Items] | ||||
Company capitalized internal costs attributable to design, development and enhancements of Company's products and services and internal-use software | 3,435 | 3,224 | 10,728 | 9,873 |
Fixed Assets [Member] | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization expense | 9,544 | 8,764 | 28,263 | 26,321 |
Fixed Assets [Member] | Service [Member] | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization expense related to cost of services and cost of product sales | 4,236 | 4,295 | 12,735 | 12,872 |
Fixed Assets [Member] | Product [Member] | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization expense related to cost of services and cost of product sales | 712 | 735 | 2,110 | 2,524 |
Internal-use Software [Member] | ||||
Property Plant And Equipment [Line Items] | ||||
Amortization of internal-use software | $ 767 | $ 818 | $ 2,373 | $ 2,590 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Components of Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, Cost | $ 139,784 | $ 139,784 |
Finite lived intangible assets, Accumulated amortization | (63,255) | (53,520) |
Finite lived intangible assets, Net | 76,529 | 86,264 |
Customer Lists [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, Cost | 113,357 | 113,357 |
Finite lived intangible assets, Accumulated amortization | (47,835) | (39,966) |
Finite lived intangible assets, Net | $ 65,522 | 73,391 |
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) | 15 years | |
Patents and Technology [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, Cost | $ 23,424 | 23,424 |
Finite lived intangible assets, Accumulated amortization | (12,417) | (10,551) |
Finite lived intangible assets, Net | $ 11,007 | 12,873 |
Patents and Technology [Member] | Minimum [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Useful life (years) | 3 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 | $ 3,003 | 3,003 |
Finite lived intangible assets, Accumulated amortization | $ (3,003) | $ (3,003) |
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 Asset_3
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Weighted-average amortization period for intangible assets | 10 years 6 months | |||
Amortization of intangible assets | $ 3,250 | $ 3,317 | $ 9,735 | $ 9,825 |
Customer Lists [Member] | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Weighted-average amortization period for intangible assets | 10 years 10 months 24 days | |||
Patents and Technology [Member] | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Weighted-average amortization period for intangible assets | 9 years 3 months 18 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 Asset_4
Goodwill and Intangible Assets - Estimated Future Amortization Expense for Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2019 (remaining) | $ 3,250 | |
2020 | 12,721 | |
2021 | 12,112 | |
2022 | 11,686 | |
2023 | 11,408 | |
2024 | 11,122 | |
Thereafter | 14,230 | |
Finite lived intangible assets, Net | $ 76,529 | $ 86,264 |
Accrued Liabilities - Component
Accrued Liabilities - Components of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Payables And Accruals [Abstract] | ||
Accrued compensation and benefits | $ 7,866 | $ 9,367 |
Accrued warranty obligations | 5,922 | 5,624 |
Acquired customer product liabilities | 546 | |
Corporate income tax payable | 3,385 | 1,521 |
Contingent consideration amount | 2,063 | |
VAT payable | 1,963 | 2,286 |
Accrued satellite network and other equipment | 227 | 227 |
Accrued inventory purchases | 625 | 219 |
Accrued interest expense | 10,000 | 5,000 |
Accrued professional fees | 761 | 303 |
Accrued airtime charges | 1,818 | 901 |
Short-term lease liability | 2,791 | |
Other accrued expenses | 6,396 | 7,678 |
Total accrued liabilities | $ 41,754 | $ 35,735 |
Accrued Liabilities - Summary o
Accrued Liabilities - Summary of Accrued Warranty Obligations (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Payables And Accruals [Abstract] | ||
Beginning balance | $ 5,624 | $ 4,153 |
Warranty liabilities assumed from acquisitions | 151 | |
Reduction of warranty liabilities assumed in connection with acquisitions | (476) | (486) |
Warranty expense | 811 | 2,970 |
Warranty charges | (37) | (604) |
Ending balance | $ 5,922 | $ 6,184 |
Note Payable-Related Party - Ad
Note Payable-Related Party - Additional Information (Detail) € in Thousands, $ in Thousands | 9 Months Ended | |||
Sep. 30, 2019USD ($) | Sep. 30, 2019EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | |
Debt Disclosure [Abstract] | ||||
Principal balance of the note payable | € | € 1,138 | € 1,138 | ||
Note payable - related party | $ | $ 1,241 | $ 1,298 | ||
Note payable estimated life | 6 years |
Notes Payable - Additional Info
Notes Payable - Additional Information (Detail) - USD ($) | Dec. 18, 2017 | Apr. 10, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Debt Instrument [Line Items] | ||||||
Interest expense | $ 5,287,000 | $ 5,232,000 | $ 15,850,000 | $ 15,733,000 | ||
8.0% Senior Secured Notes due 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Issuance of debt | $ 250,000,000 | |||||
Note bears interest rate | 8.00% | |||||
Debt instrument, maturity year | 2024 | |||||
Debt instrument, frequency of periodic payment | semi-annually | |||||
Interest payment beginning date | Oct. 1, 2017 | |||||
Maximum aggregate indebtedness outstanding | $ 50,000,000 | |||||
Debt issuance costs | 5,431,000 | 5,431,000 | ||||
Amortization of debt issuance costs | 194,000 | 194,000 | 582,000 | 582,000 | ||
Interest expense | 5,194,000 | $ 5,194,000 | $ 15,582,000 | $ 15,582,000 | ||
8.0% Senior Secured Notes due 2024 [Member] | Any Time Before April 1, 2020 [Member] | Redemption Price Plus "Make-Whole" Premium and Accrued and Unpaid Interest [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt redemption price percentage of principal amount | 100.00% | |||||
8.0% Senior Secured Notes due 2024 [Member] | Any Time Before April 1, 2020 [Member] | Redemption Price Plus Accrued and Unpaid Interest [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt redemption price percentage of principal amount | 35.00% | |||||
Revolving Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, maturity date | Dec. 18, 2022 | |||||
Interest rate, Description | The Revolving Credit Facility will bear interest at an alternative base rate or an adjusted LIBOR, plus an applicable margin of 1.50% in the case of alternative base rate loans and 2.50% in the case of adjusted LIBOR loans. | |||||
Amounts outstanding under Revolving Credit Facility | $ 0 | $ 0 | ||||
Revolving Credit Agreement [Member] | Revolving Credit Facility [Member] | Alternative Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, Percentage | 1.50% | |||||
Revolving Credit Agreement [Member] | Revolving Credit Facility [Member] | Adjusted LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, Percentage | 2.50% | |||||
Revolving Credit Agreement [Member] | Maximum [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Issuance of debt | $ 25,000,000 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Aug. 05, 2019 | Apr. 10, 2018 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Class Of Stock [Line Items] | ||||||
Common stock, capital shares reserved for future issuance | 15,161,182 | 15,161,182 | ||||
Shares of common stock issued | 3,450,000 | |||||
Net proceeds received after deducting underwriters' discounts and commissions and offering costs | $ 27,967 | |||||
Stock repurchase program, authorized amount | $ 25,000 | |||||
Stock repurchase program expiration date | Aug. 5, 2020 | |||||
Stock repurchased during period, shares | 1,582,029 | |||||
Shares repurchase price per share | $ 4.96 | |||||
Shares cancelled under repurchase program | 1,513,743 | |||||
Held in treasury stock to be cancelled | 68,286 | 68,286 | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 17,124 | $ 17,124 | ||||
Underwriters' Option [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Shares of common stock issued | 450,000 | |||||
Purchase price per share | $ 8.60 | |||||
Net proceeds received after deducting underwriters' discounts and commissions and offering costs | $ 28,000 | |||||
Series A Convertible Preferred Stock [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Preferred Stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 | |||
Preferred stock dividends issued | 1,182 | 1,182 | ||||
Dividends in arrears | $ 4 | |||||
Preferred Stock [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Preferred Stock, shares authorized | 50,000,000 | 50,000,000 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019Segment | |
Segment Reporting Information [Line Items] | |
Number of reporting segments | 1 |
Maximum [Member] | |
Segment Reporting Information [Line Items] | |
Percentage of foreign revenue collected in U.S. dollars | 83.00% |
Segment Information - Summary o
Segment Information - Summary of Revenues on Percentage Basis by Geographic Region (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenues on a percentage basis by geographic region, 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 region, based on the country | 54.00% | 58.00% | 52.00% | 64.00% |
South America [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues on a percentage basis by geographic region, based on the country | 11.00% | 9.00% | 11.00% | 10.00% |
Japan [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues on a percentage basis by geographic region, based on the country | 6.00% | 7.00% | 7.00% | 4.00% |
Europe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues on a percentage basis by geographic region, based on the country | 18.00% | 18.00% | 18.00% | 15.00% |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues on a percentage basis by geographic region, based on the country | 11.00% | 8.00% | 12.00% | 7.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 1,504,000 | $ 1,242,000 | $ 3,354,000 | $ 3,410,000 |
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 ($) | Aug. 23, 2019 | Feb. 22, 2019 | Jan. 03, 2017 | Oct. 08, 2015 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2001 |
Long Term Purchase Commitment [Line Items] | |||||||||
Demand for arbitration claims amount | $ 4,000,000 | $ 1,000,000 | |||||||
Procurement Agreement [Member] | Europe [Member] | Airtime [Member] | |||||||||
Long Term Purchase Commitment [Line Items] | |||||||||
Credits provided | $ 3,736,000 | ||||||||
Credits used | $ 7,000 | $ 8,000 | $ 22,000 | $ 22,000 | |||||
Unused credits granted | $ 1,926,000 | $ 1,955,000 | $ 1,926,000 | $ 1,955,000 | |||||
Second Smith Settlement Agreement [Member] | |||||||||
Long Term Purchase Commitment [Line Items] | |||||||||
Arbitration award description | Pursuant to a Settlement and General Release Agreement dated August 20, 2019 (“Second Smith Settlement Agreement”), Mr. Smith and the Company settled the pending arbitration action described above in part. Under the Second Smith Settlement Agreement, the parties agreed that the arbitrator’s award, if any, shall not exceed the amount of $800 and shall not be less than the amount of $200. If the award in the arbitrator’s final decision is greater than the amount of $800, the amount of the award shall be considered modified to reflect the amount of $800. If the award in the arbitrator’s final decision is less than the amount of $200, the award shall be considered modified to reflect the amount of $200. | ||||||||
Second Smith Settlement Agreement [Member] | Maximum [Member] | |||||||||
Long Term Purchase Commitment [Line Items] | |||||||||
Arbitration award payment | $ 800,000 | ||||||||
Second Smith Settlement Agreement [Member] | Minimum [Member] | |||||||||
Long Term Purchase Commitment [Line Items] | |||||||||
Arbitration award payment | $ 200,000 | ||||||||
Joseph Smith [Member] | License Agreement [Member] | |||||||||
Long Term Purchase Commitment [Line Items] | |||||||||
Proceeds from Legal Settlements | $ 100,000 | ||||||||
Percentage of claim entitled to | 50.00% |
Leases - Additional Information
Leases - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019 | |
Minimum [Member] | |
Leases [Line Items] | |
Remaining lease term, operating lease | 1 year |
Lessor sales-type, lease term | 3 years |
Maximum [Member] | |
Leases [Line Items] | |
Remaining lease term, operating lease | 14 years |
Operating leases, options to extend lease term | 5 years |
Operating leases, options to terminate lease term | 1 year |
Lessor sales-type, lease term | 5 years |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 2,918 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information and Non-Cash Activity Related to Operating Leases (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Operating cash flow information: | |
Cash paid for amounts included in the measurement of lease liabilities | $ 3,128 |
Non-cash activity: | |
Right-of-use assets obtained in exchange for lease obligations | $ 15,794 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Balance Sheet Information Related to Operating Leases (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Right-of-use assets | $ 13,823 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent |
Current lease liabilities | $ 2,791 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent |
Non-current lease liabilities | $ 14,124 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherAccruedLiabilitiesNoncurrent |
Leases - Schedule of Weighted-A
Leases - Schedule of Weighted-Average Remaining Lease Term and Discount Rate for Operating Leases (Detail) | Sep. 30, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term (in years) | 7 years 18 days |
Weighted-average discount rate | 8.00% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities for Operating Leases (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2019 (remaining) | $ 998 |
2020 | 3,804 |
2021 | 3,257 |
2022 | 2,933 |
2023 | 2,778 |
Thereafter | 8,551 |
Total lease payments | 22,321 |
Less: Imputed interest | (5,406) |
Present value of lease liabilities | $ 16,915 |