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ORBCOMM Inc. (ORBC) Has a Galaxy of Business Clients

The United States Coast Guard, General Electric, Volvo and Hitachi are samples of the renowned names that figure in the client list of this company. This factor makes the stock one of the most attractive in the Communication Services Industry.

Wireless communications through narrowband networks are invaluable resources for corporations with multiple sites and moving assets. The company has 30 satellites in low orbits. These assets in outer space come with comprehensive infrastructure on the ground. The company is therefore able to track, control, and communicate with units anywhere in the world. The management maintains close business links with industry leaders and government agencies. This ensures the relevance and utility of the company’s products and services for end users.

The company services its fixed costs by selling network time to resellers. Satellite data transfers can be fed through terrestrial gateways to independent operators. Such flexibility enables the company to service smaller customers, and to enter additional market segments. Similarly, the company has subsidiaries that fetch revenues through sales of subscriber communicators.

The company has just reported a fourth quarter net profit of over $1 million, beating market estimates by a wide margin. The company had a $4 million loss during the same quarter a year ago. The management expects strong demand for its services throughout the rest of 2008. The company has recently entered into a commercial arrangement to offer wireless CPU devices. This will strengthen its terrestrial services and will add to long-term business prospects.

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