Wave Systems Corp. (fka WAVXQ)

[Fullmoon]

M2M industry reports Q3 results

http://www.telecomengine.com/techzones/wireless/article.asp?HH_ID=AR_6663

Numerex, Gemalto, and others post excellent growth rates

by Chris Snow

Tues. November 9, 2010

Members of the M2M sector are posting third quarter financial results this week, and the news seems overwhelmingly positive across the board.

Numerex (Atlanta, GA, USA) reported consolidated revenue of $15.4 million compared to $11.6 million in the third quarter of 2009, an increase of 32%. During this quarter, the company reported service revenues of $8.9 million and hardware revenues of $6.5 million compared to $7.6 million and $4.0 million respectively during the same period last year. Digital subscriptions also increased to 1,102,000 by the end of this period, compared to 843,000 at the end of Q3 last year, reflecting a 31% growth rate.

Gemalto (Amsterdam, Netherlands) reported a 25% increase in third-quarter revenues to 500 million euro, assisted by its takeover of Cinterion. M2M revenues were 33 million euro, while mobile revenues rose 14% to 251 million euro and secure transaction sales were up 12% to 119 million euro. The company claimed it is on track for sales and profit growth over the full year and its target for 300 million euro in operating profit in 2013.

ORBCOMM (Fort Lee, NJ, USA) is reporting total revenues for the quarter which included the recognition of $5.9 million of deferred Automatic Identification System (AIS) service revenue, were $13.9 million, a whopping 97.9% increase from the third quarter of 2009. Service revenues for the third quarter of 2010 increased 87.0% to $13.0 million from the comparable period of 2009. The company recently received a contract from the U.S. Coast Guard to develop satellite AIS technology in June.

Wabco Holdings Inc. (Brussels, Belgium), manufacturer of commercial vehicle parts, reported a net income of $44 million, compared to Q3 2009's $33.8 million net income. Adjusted earnings amounted to 71 cents per share, beating average analyst expectations (according to Thomson Reuters) of 50 cents per share.

WebTech Wireless Inc. (Vancouver, British Columbia, Canada), provider of vehicle-location services and telematics technology, reported a rise in revenue up to $10.3 million, versus $5 million this time last year. The company's net loss was cut in half: down to $1.3 million from $2.2 million last year.

Canadian mobile modem manufacturer Sierra Wireless (Richmond, British Columbia) reported a third quarter profit. The company had net income of $700,000 on revenue of $172.7 million in the third quarter. These figures slightly exceed average expectations from analysts, according to Thomson Reuters.

Wave Systems Corp. (Lee, MA, USA) reported a jump in net revenues of 38% to $6.7 million, versus $4.8 million in Q3 2009. Total billings increased 19% to $6.2 million this quarter, however R&D expense rose versus Q2 2010 and Q3 2009 as the company developed new products.

Finally, Echelon Corporation (San Jose, CA, USA) announced $27.1 million in Q3 sales (an increase of 14.6% over last year) and a net loss of $7.8 million. Revenues for Echelon's "LonWorks" infrastructure products were $12.5 million in this quarter, up from $11 million in Q3 2009. Revenues for Networked Energy Services products were $13 million for this period, which is down from $13.5 million in the second quarter, but still up from $11.5 million in Q3 2009