With an average dollar volume of only about $30,000 per day, and a 97% decline over the past 5 months, Orbital Tracking Corp (OTCQB: TRKK) was quick to get moving on the announcement of its profitable first quarter for 2016.
Upon the announcement that 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.
Orbital’s stock traded up 63% on about $75,000 in dollar volume on the announcement with follow up on Tuesday to the tune of 244% gains on just under $2 million in dollar volume.
The company further stated that the results of the quarter reflect improved sales, offset by significant increases in expenses related to the expansion of the business, expenses not expected to materially increase throughout the remainder of 2016. Also positively impacting first quarter 2016 results was the elimination of non-cash stock compensation expenses offset by higher professional fees.