TRKK DD
Outstanding Shares as of July - 35,174,004
TRKK is a mobile satellite services company with headquarters in both the U.S. and the U.K. To get an idea of what it does, it's important to understand the industry in which it operates. There's a common misconception that cell phones - devices such as Apple Inc.'s (AAPL) iPhone - use orbital satellites to make and receive calls. This isn't the case. The vast majority of consumer cell phones use radio transmission via a network of cell towers that receive, route and transmit the data associated with whatever form of communication is required. This is relatively cheap, efficient and - most importantly - doesn't require a signal to leave what is essentially ground level. With this sort of network transmission, however, there are areas or regions from which it's not possible to communicate with cell towers. Think remote regions such as deserts, mountains or forests. In order to communicate with devices from these regions, satellites are required.
There are four primary networks of these satellites: Globalstar, Inmarsat, Iridium and Thuraya. Just as with the retail cell network, companies build and retail devices that are compatible with the satellite networks, and retail air time for use on them. Orbital Tracking is one such retailer. Through a range of online storefronts, including its U.S. store Orbital Satcom and its European store Global Telesat, as well as a host of Amazon Inc. (AMZN) storefronts, it retails a range of satellite communication devices and the airtime required for network use.
There are also applications outside standard communication, things like satellite facilitated asset tracking, on which Orbital Tracking is focusing to bolster its handheld device business.
Highlights from First Quarter 2016
Late in the first quarter, the Company announced that it developed its first global tracking product, a dual-mode asset tracker, which will be available in the marketplace later this year following final testing and receipt of necessary regulatory and compatibility certifications. The first product designed and developed by the Company, the dual-mode tracker utilizes both cellular and satellite technology to provide truly global tracking, automatically switching between the cellular and satellite links making it an ideal solution for use in a wide array of commercial applications including in transportation, shipping, logistics, fleet management and construction.
In February, in partnership with Globalstar Europe Satellite Services Ltd., a wholly owned subsidiary of Globalstar Inc., the Company's Global Telesat Communications ("GTC"
subsidiary signed its latest government contract, a sales and support agreement with the UK Forestry Commission in connection with its purchase of up to 550 SPOT Gen3™ messengers for its remote field staff.
During the first quarter, the Company continued its global expansion with the launch of its first Asian marketplace on Amazon Japan. The launch of GTC Japan is the second international marketplace launched by the Company in the last two quarters and serves as the gateway for further expansion throughout Asia and into the Chinese market.
"The first quarter of 2016 continues the robust year-over-year and sequential growth trends established in our business late last year and reflects the large potential we see in global markets for mobile satellite services," said David Phipps, Chief Executive Officer of Orbital Tracking Corp. "As now being demonstrated in our financial results, our continued growth in product sales is producing a meaning shift in our business, one towards higher-margin, recurring revenue based on airtime usage from our growing customer base. Looking ahead to the remainder of 2016, we have reason to be optimistic that demand for our products remain strong and that top line revenue will to grow while margins continue to improve."
First Quarter 2016 Financial Results Analysis
For the first quarter ended March 31, 2016, consolidated revenues increased by 62% to approximately $1,295,264 as compared to $799,698 reported for the quarter ended March 31, 2015.
Comparable revenue increased 35.8% and 204.9% for the Company's wholly owned subsidiaries, GTC and Orbital Satcom Corp., for the three months ended March 30, 2016. Total sales for GTC were $922,223 for the three months ended March 31, 2016 as compared to $679,112 for the three months ended March 31, 2015, an increase of $243,111 or 35.8%. Total sales for Orbital Satcom Corp. were $367,771 for the three months ended March 31, 2016 as compared to $120,586 for the three months ended March 31, 2015, an increase of $247,185 or 205%.
Results in the quarter were driven by the addition of new international marketplaces, continued growth across all geographies and the addition of increasing recurring revenue derived from a 33.1% increase in monthly contract customers versus the year ago period. Sales in the quarter at the Company's third-party e-commerce sites increased by 63.5% in the UK, by 21.4% in the EU and by 5.0% in the US.
Net income for the quarter ended March 31, 2016 was approximately $59,946 as compared to a net loss of approximately $421,982 in the comparable quarter of 2015. Comprehensive income was $61,985 for the quarter, as the Company recorded a gain for foreign currency translation adjustments for the three months ended March 31, 2016 of $2,039, as compared to a comprehensive loss of $422,466, for the three months ended March 31, 2015.
TRKK continues to execute it's growth plan by Launching First Online Marketplace in China
TRKK announced the launch of its Global Telesat Communications (GTC) subsidiary in China on Alibaba.com's wholesale marketplace at https://uk109421263.trustpass.alibaba.com/. The Company will leverage the Alibaba platform, which serves as one of the world's largest e-commerce marketplaces, as it continues its expansion throughout Asia.
"Alibaba is the largest online marketplace by volume of products sold in the world, and that is why it is the perfect launch platform for Orbital Tracking's expansion into the vast Chinese marketplace," said Mr. David Phipps, Chief Executive Officer of Orbital Tracking Corp. "With its growing reputation as the world's largest single source of products for commercial wholesale buyers from China, Asia and from around the globe, we expect this marketplace to play an important role in supporting our continued growth."
TRKK is extremely undervalued and oversold at this juncture based on share structure, strong financials,and continued growth the company is a prime candidate to up list to a higher exchange.
http://finance.yahoo.com/news/orbital-trackin...00985.html
http://finance.yahoo.com/news/orbital-trackin...00306.html
http://www.otcmarkets.com/edgar/GetFilingHtml...D=11388455
Outstanding Shares as of July - 35,174,004
TRKK is a mobile satellite services company with headquarters in both the U.S. and the U.K. To get an idea of what it does, it's important to understand the industry in which it operates. There's a common misconception that cell phones - devices such as Apple Inc.'s (AAPL) iPhone - use orbital satellites to make and receive calls. This isn't the case. The vast majority of consumer cell phones use radio transmission via a network of cell towers that receive, route and transmit the data associated with whatever form of communication is required. This is relatively cheap, efficient and - most importantly - doesn't require a signal to leave what is essentially ground level. With this sort of network transmission, however, there are areas or regions from which it's not possible to communicate with cell towers. Think remote regions such as deserts, mountains or forests. In order to communicate with devices from these regions, satellites are required.
There are four primary networks of these satellites: Globalstar, Inmarsat, Iridium and Thuraya. Just as with the retail cell network, companies build and retail devices that are compatible with the satellite networks, and retail air time for use on them. Orbital Tracking is one such retailer. Through a range of online storefronts, including its U.S. store Orbital Satcom and its European store Global Telesat, as well as a host of Amazon Inc. (AMZN) storefronts, it retails a range of satellite communication devices and the airtime required for network use.
There are also applications outside standard communication, things like satellite facilitated asset tracking, on which Orbital Tracking is focusing to bolster its handheld device business.
Highlights from First Quarter 2016
Late in the first quarter, the Company announced that it developed its first global tracking product, a dual-mode asset tracker, which will be available in the marketplace later this year following final testing and receipt of necessary regulatory and compatibility certifications. The first product designed and developed by the Company, the dual-mode tracker utilizes both cellular and satellite technology to provide truly global tracking, automatically switching between the cellular and satellite links making it an ideal solution for use in a wide array of commercial applications including in transportation, shipping, logistics, fleet management and construction.
In February, in partnership with Globalstar Europe Satellite Services Ltd., a wholly owned subsidiary of Globalstar Inc., the Company's Global Telesat Communications ("GTC"
subsidiary signed its latest government contract, a sales and support agreement with the UK Forestry Commission in connection with its purchase of up to 550 SPOT Gen3™ messengers for its remote field staff. During the first quarter, the Company continued its global expansion with the launch of its first Asian marketplace on Amazon Japan. The launch of GTC Japan is the second international marketplace launched by the Company in the last two quarters and serves as the gateway for further expansion throughout Asia and into the Chinese market.
"The first quarter of 2016 continues the robust year-over-year and sequential growth trends established in our business late last year and reflects the large potential we see in global markets for mobile satellite services," said David Phipps, Chief Executive Officer of Orbital Tracking Corp. "As now being demonstrated in our financial results, our continued growth in product sales is producing a meaning shift in our business, one towards higher-margin, recurring revenue based on airtime usage from our growing customer base. Looking ahead to the remainder of 2016, we have reason to be optimistic that demand for our products remain strong and that top line revenue will to grow while margins continue to improve."
First Quarter 2016 Financial Results Analysis
For the first quarter ended March 31, 2016, consolidated revenues increased by 62% to approximately $1,295,264 as compared to $799,698 reported for the quarter ended March 31, 2015.
Comparable revenue increased 35.8% and 204.9% for the Company's wholly owned subsidiaries, GTC and Orbital Satcom Corp., for the three months ended March 30, 2016. Total sales for GTC were $922,223 for the three months ended March 31, 2016 as compared to $679,112 for the three months ended March 31, 2015, an increase of $243,111 or 35.8%. Total sales for Orbital Satcom Corp. were $367,771 for the three months ended March 31, 2016 as compared to $120,586 for the three months ended March 31, 2015, an increase of $247,185 or 205%.
Results in the quarter were driven by the addition of new international marketplaces, continued growth across all geographies and the addition of increasing recurring revenue derived from a 33.1% increase in monthly contract customers versus the year ago period. Sales in the quarter at the Company's third-party e-commerce sites increased by 63.5% in the UK, by 21.4% in the EU and by 5.0% in the US.
Net income for the quarter ended March 31, 2016 was approximately $59,946 as compared to a net loss of approximately $421,982 in the comparable quarter of 2015. Comprehensive income was $61,985 for the quarter, as the Company recorded a gain for foreign currency translation adjustments for the three months ended March 31, 2016 of $2,039, as compared to a comprehensive loss of $422,466, for the three months ended March 31, 2015.
TRKK continues to execute it's growth plan by Launching First Online Marketplace in China
TRKK announced the launch of its Global Telesat Communications (GTC) subsidiary in China on Alibaba.com's wholesale marketplace at https://uk109421263.trustpass.alibaba.com/. The Company will leverage the Alibaba platform, which serves as one of the world's largest e-commerce marketplaces, as it continues its expansion throughout Asia.
"Alibaba is the largest online marketplace by volume of products sold in the world, and that is why it is the perfect launch platform for Orbital Tracking's expansion into the vast Chinese marketplace," said Mr. David Phipps, Chief Executive Officer of Orbital Tracking Corp. "With its growing reputation as the world's largest single source of products for commercial wholesale buyers from China, Asia and from around the globe, we expect this marketplace to play an important role in supporting our continued growth."
TRKK is extremely undervalued and oversold at this juncture based on share structure, strong financials,and continued growth the company is a prime candidate to up list to a higher exchange.
http://finance.yahoo.com/news/orbital-trackin...00985.html
http://finance.yahoo.com/news/orbital-trackin...00306.html
http://www.otcmarkets.com/edgar/GetFilingHtml...D=11388455
