Orbital Tracking Corp. Publishes 2016 Year-End Update
AVENTURA, FL -- (Marketwired) -- 12/15/16 -- Orbital Tracking Corp. (OTCQB: TRKK) ("Orbital Tracking" or the "Company"), today published the following 2016 Year-End Update from David Phipps, Chief Executive Officer.
To Our Shareholders:
As we reach the end of 2016, I thought it appropriate to provide an update on the various developments that occurred during the year and where we see opportunities for continued growth in 2017.
Over the course of the year, thanks to the dedication of the entire Orbital Tracking team, we have made significant progress on building our corporate brands, Orbital Satcom ("OSC") in the United States and Global Telesat Communications ("GTC") in the United Kingdom, and advancing our strategic growth plans. Because of these successful efforts, Orbital Tracking has grown, not only as evidenced by our continued year-over-year revenue growth, but in our geographic reach and in our capabilities to service our growing global customer base. There are many factors driving this growth, from increasing long-term global demand for Mobile Satellite Solutions (MSS) including satellite trackers, satellite phones and mobile broadband Wi-Fi hotspots and terminals, to our strong global network of major partners such as DeLorme, Globalstar, Thuraya, Inmarsat and Iridium, and the Company's increasingly global footprint, where we now operate in more than 10 countries, shipping products to more than 15,000 customers located in almost 60 countries across every continent. This progress hasn't been without challenges principally due to extreme volatility in global currency and equity markets, both of which have impacted our business results and stock price. Despite these challenges, with continued support of our principal investors, we have made significant progress during 2016, and remain committed to moving the business forward in 2017 built on four areas of focus:
- Government and Corporate Sales: During 2016, Orbital Tracking has seen significant successes in expanding its government and corporate sales activities, as well as our global 24x7x365 retail e-commerce marketplaces and websites. Foremost amongst these successes was the selection of Orbital Tracking by several international government and commercial organizations who chose us as a partner to solve their unique communications and employee tracking needs. Notable developments in this area includes the sale of more than 500 SPOT Gen3 satellite trackers to the U.K. Forestry Commission, the sale of tracking products to the U.K.'s Department for Environment, Food & Rural Affairs ("DEFRA"), the sale of more than 200 satellite phones and related equipment to support the Electoral Commission of Zambia, and many hundreds of smaller contracts with other corporations, governments and military departments in North and South America and across Europe. These contracts, as well as additional significant opportunities we are working on for early 2017, demonstrate that Orbital Tracking is increasingly being recognized as one of the premier global providers of MSS solutions and services, a reputation we are looking to build further and hope will contribute to our continued growth this coming year.
- International Market Growth: One of the fundamental differentiators of Orbital Tracking is our focus on developing and launching international marketplaces tailored to the country-specific needs of customers. Building on our market-leading position as one of the top resellers of SPOT and Delorme personal tracking products, Globalstar asset tracking devices, and a dominant supplier of a wide range of MSS products in Europe, during the year, the Company greatly expanded its reach throughout Asia with marketplaces in Japan and a new wholesale marketplace on Alibaba, both of which are introducing us to new customers and sales opportunities from around the world on a regular basis. Furthermore, through OSC in the U.S., the Company has expanded its presence in the North American market through relationships with Sears.com and more recently, Walmart's online marketplace. As part of our efforts to build the OSC brand, we recently introduced a new mobile friendly website featuring an expanded product catalog which we expect to contribute significantly to increased sales in 2017. Our optimism for the impact of mobile-enabled commerce at OSC is in part due to our previous experience at GTC which witnessed large increases in purchases from mobile devices when its mobile optimized site was launched in early 2016.
- Expanded, Leading-Edge Product Portfolio: The technology needed to maintain contact with remote field workers, outdoor adventurists and mariners continues to rapidly evolve, creating many new opportunities for us to expand our product portfolio. In 2016, we expanded our product catalog, highlighted by the addition of a range of Personal Locator Beacons (PLBs) and Emergency Position Indicating Radio Beacons (EPIRBs), which have quickly become some of our best-selling products. In 2017, we plan to increase our product range significantly further, starting with the introduction of Thuraya's new XP Pro Dual, a novel dual-SIM phone featuring seamless terrestrial (GSM/cellular) and satellite connectivity. Designed for use in Thuraya's coverage areas across Europe, Middle East, Africa, Asia and Australia, we believe our customers in the U.S. and abroad will find this solution a very compelling product, and one that ideally complements our current offerings.
As you may know, Orbital Tracking is a big believer in dual-mode technology, having been pursuing the launch of its own brand dual-mode tracker, which has been developed to provide a truly global tracking solution, automatically switching between the cellular and satellite links, making it an ideal product for use in both populated and remote areas across the globe. While initial development has been completed on schedule, and we are pleased with the results of our extensive testing, the product launch has been delayed due to changes in availability of key enabling technology components that has necessitated additional design and development work. The Company is working diligently with its partners to address these issues and we are excited about the prospect of commercializing the product later in 2017.
- Reseller Network Development: Further building on its position as one of the top global resellers of MSS products and services sourced directly from leading global manufacturers, in 2017, Orbital Tracking intends to leverage its lean business model, scale and product volume to grow its own reseller network. Through the creation and development of an expanded reseller network, and the introduction of a US sales office, the Company will seek to support the large number of smaller, independent MSS retailers located throughout Europe, Africa, Asia and the U.S. by offering competitively-priced products and services, including high-margin, recurring revenue-generating satellite airtime packages.
In closing, when I was appointed CEO of Orbital Tracking less than two years ago, I saw the opportunity to build a global business that served the large and growing MSS and Asset Management Systems markets, projected to be worth a combined US$24 billion by 2020 (source: MarketsandMarkets), built on a robust network of industry-leading partners. Since then, working with our dedicated team and with the support of our founding shareholders, we have developed a vibrant global business with a unique, low overhead cost structure, able to compete in highly competitive marketplaces. Despite continued volatility in the currency and equity markets, we are still confident in our plan and expect that our growth in 2017 will confirm that our plan remains on track and that we are building a business with long-term value.
We want to thank all our stakeholders for their continued support and interest in Orbital Tracking Corp. and look forward to reporting on our future successes. If you have any questions, please contact us at email@example.com.
Chief Executive Officer
About Orbital Tracking Corp.
Orbital Tracking Corp. provides satellite based tracking services as well as mobile voice and data communications services globally via satellite to the commercial and government users. Orbital specializes in services related to the Globalstar satellite constellation, including ground station construction, simplex tracking services and satellite telecommunications voice airtime. Orbital operates various e-commerce retail and tracking portals where users around the world can purchase satellite hardware and track assets in real-time on mobile devices or PCs. For more information regarding Orbital, please visit www.OrbitalTracking.com.
Certain statements in this release constitute forward-looking statements. These statements include the capabilities and success of the Company's business and any of its products, services or solutions. The words "believe," "forecast," "project," "intend," "expect," "plan," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, any of which could cause the Company to not achieve some or all of its goals or the Company's previously reported actual results, performance (finance or operating) to change or differ from future results, performance (financing and operating) or achievements, including those expressed or implied by such forward-looking statements. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, copies of which may be obtained from the SEC's website at www.sec.gov. The Company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release.
Source: Orbital Tracking Corp.
Released December 15, 2016