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Acquisitions (Tables)
12 Months Ended
Dec. 31, 2013
Summary of Estimated Fair Values of Purchase Price

The following table summarizes the fair values of the purchase price:

 

Cash

   $ 3,231   

Issuance of 329,344 shares of common stock (valued at $4.96 per share, which reflects the Company’s common stock closing price on April 1, 2013)

     1,634   

Fair value of contingent earn-out amounts

     1,539   
  

 

 

 

Total

   $ 6,404   
  

 

 

 
Summary of Supplemental Pro Forma Results of GlobalTrak and LMS

The amount of GlobalTrak’s revenues and net loss included in the Company’s consolidated statements of operations from the acquisition date to December 31, 2013, GlobalTrak and LMS results of operations of the combined entity had the acquisition dates been January 1, 2012, and LMS and StarTrak results of operations of the combined entity had the acquisition dates been January 1, 2011, are as follows:

 

     Revenues      Net Income (loss)
Attributable to
ORBCOMM Inc.
    Net Income (loss)
Attributable to
Common

Stockholders
 

Actual from April 4, 2013 to December 31, 2013

   $ 4,982       $ (229   $ (229
  

 

 

    

 

 

   

 

 

 

Supplemental proforma for the year ended December 31, 2013 (GlobalTrak)

   $ 74,876       $ 4,134      $ 4,075   
  

 

 

    

 

 

   

 

 

 

Supplemental proforma for the year ended December 31, 2012 (GlobalTrak and LMS)

   $ 65,876       $ 6,611      $ 6,542   
  

 

 

    

 

 

   

 

 

 

Supplemental proforma for the year ended December 31, 2011 (LMS and StarTrak)

   $ 58,337       $ (2,375   $ (2,447
  

 

 

    

 

 

   

 

 

 
SENS [Member]
 
Purchase Price Allocation for Acquisition

The preliminary estimated purchase price allocation for the acquisition is as follows:

 

Inventory

     485   

Intangible assets

     1,270   
  

 

 

 

Total identifiable assets acquired

     1,755   

Accounts payable and accrued expenses

     (8
  

 

 

 

Net identifiable assets acquired

     1,747   
  

 

 

 

Goodwill

     231   
  

 

 

 

Total preliminary purchase price

   $ 1,978   
  

 

 

 
Summary of Useful Lives of Customer Relationships Based on Customer Attrition

The remaining useful lives of customer lists were based on the customer attrition and the projected economic benefit of these customers.

 

     Estimated
Useful life
(years)
     Amount  

Customer lists

     7       $ 980   

Technology

     10         260   

Trademarks

     3         30   
     

 

 

 
      $ 1,270   
     

 

 

 
GlobalTrak [Member]
 
Purchase Price Allocation for Acquisition

The purchase price allocation for the acquisition is as follows:

 

Cash and cash equivalents

   $ 1,037   

Accounts receivable

     343   

Inventory

     1,023   

Other current assets

     405   

Equipment

     13   

Intangible assets

     500   
  

 

 

 

Total identifiable assets acquired

     3,321   
  

 

 

 

Accounts payable and accrued expenses

     (879

Deferred revenues

     (1,707

Warranty

     (295
  

 

 

 

Total liabilities assumed

     (2,881

Net identifiable assets acquired

     440   
  

 

 

 

Goodwill

     2,464   
  

 

 

 

Total purchase price

   $ 2,904   
  

 

 

 
Summary of Useful Lives of Customer Relationships Based on Customer Attrition

The remaining useful lives of the technology and trade names and trademarks were based on historical product development cycles, the projected rate of technology migration and a market participant’s use of these intangible assets and the pattern of projected economic benefit of these intangible assets.

 

     Estimated
useful life
(in  years)
     Amount  

Technology

     10       $ 380   

Trade names and trademarks

     5         70   

Customer lists

     5         50   
     

 

 

 
      $ 500   
     

 

 

 
MobileNet [Member]
 
Purchase Price Allocation for Acquisition

The purchase price allocation for the acquisition is as follows:

 

Accounts receivable

   $ 363   

Inventory

     255   

Other current assets

     10   

Intangible assets

     3,460   
  

 

 

 

Total identifiable assets acquired

     4,088   
  

 

 

 

Accrued expenses

     (238

Deferred revenues

     (346
  

 

 

 

Total liabilities assumed

     (584
  

 

 

 

Net identifiable assets acquired

     3,504   

Goodwill

     2,900   
  

 

 

 

Total preliminary purchase price

   $ 6,404   
  

 

 

 
Summary of Useful Lives of Customer Relationships Based on Customer Attrition

The remaining useful lives of customer lists were based on the customer attrition and the projected economic benefit of these customers.

 

     Estimated
useful life
(in years)
     Amount  

Customer lists

     10       $ 2,600   

Technology

     10         730   

Trademarks

     5         130   
     

 

 

 
      $ 3,460