Orbsat Corp Reports 2020 Annual Results

Rhea-AI Summary

Orbsat Corp (OTCQB:OSAT) reported its fiscal year 2020 results, noting approximately $5.69 million in revenues, a decline of 3.1% from 2019. The Company observed a 9.9% sales increase in its Orbital Satcom division, while Global Telesat faced a 9.1% drop due to COVID-19 restrictions. Gross profit margins improved to 21.5%. However, net loss rose to approximately $2.76 million due to increased operating expenses and stock-based compensation. Despite challenges, Orbsat aims for growth in 2021, focusing on new product launches and market expansion.

Positive

• Sales growth of 9.9% at Orbital Satcom division.
• Gross profit margins improved to 21.5%.

Negative

• Overall revenues declined by 3.1% year-over-year.
• Net loss increased to approximately $2.76 million.

Global E-Commerce Sales Growth Continues as Customers Move to Online Channels Due to COVID-19

AVENTURA, FL / ACCESSWIRE / March 23, 2021 / Orbsat Corp (OTCQB:OSAT) ("Orbsat" or the "Company"), a global provider of communication solutions for connectivity to the world through next-generation satellite technology, today reported financial results for the fiscal year ended December 31, 2020.

• Full Year 2020 revenues were approximately $5,689,796, representing a slight decline of approximately 3.1% versus full year 2019 revenue. Sales growth at the Company's Orbital Satcom Corp. division in the United States which posted an increase of 9.9% or $183,531, was offset by a decrease of 9.1% or $363,292, recorded at its Global Telesat unit in the U.K. where strict COVID-19 lockdowns and travel restrictions across Europe continue to negatively impact rental and direct website sales.
• COVID-19-related manufacturing disruptions and logistical supply chain delays limited the Company's ability to fully meet consumer demand in some parts of the business during much of 2020.
• Gross profit margins for the year ended December 31, 2020 increased to 21.5% from 20.8% reported for the year ended December 2019, primarily attributable to improved pricing efficiency and increased revenue from the sale of higher profit recurring airtime plans.
• The Company continued to experience strength in its e-commerce channels with 5.9% gains in sales conducted through its Amazon's global storefronts, particularly in the US which experienced a 23% increase in sales, as consumers increasingly turned to online retailers in response to COVID-19.
• Net loss for the full year ended December 31, 2020 increased to approximately $2,763,375 as compared with a net loss of $1,375,736 reported for the year ended December 31, 2019. The foregoing increase is a result of higher Operating Expenses, increased non-cash Stock-based Compensation expenses and increased Professional Fees related to the Company's capital raising activities and preparations for its proposed Nasdaq listing.

"Looking back at 2020, we see a year dominated by the unprecedented impact of COVID-19 on the global economy. Against this backdrop, our team continued to successfully execute on our growth plans by deepening our partnerships with many of the premier technology providers in the industry, increasing the breath of products and services we offer and expanding into new markets in Europe and the Middle East," said David Phipps, Chief Executive Officer of Orbsat, "The achievements of 2020 come despite the fact that were met with a series of challenges, especially as it relates to inventory disruptions as our suppliers struggled to manufacture and distribute their products which limited our ability to fully meet customer demand. Looking towards the remainder of 2021, we see a number of reasons to be cautiously optimistic including accelerating public health initiatives and the stabilization of our supply chains. We believe that these developments, combined with new strategic initiatives including the launch of Orbsat Government and the introduction of innovative products such as our SolarTrack solar-powered satellite tracker will allow us to further strengthen, grow and diversify our business in the years ahead."

About Orbsat Corp

Orbsat provides services and solutions to fulfill the rapidly growing global demand for satellite-based voice, high-speed data, tracking and IoT connectivity services. Building upon its long-term experience providing government, commercial, military and individual consumers with Mobile Satellite Services, Orbsat is positioned to capitalize on the significant opportunities being created by global investments in new and upgraded satellite networks. Orbsat's US and European based subsidiaries, Orbital Satcom and Global Telesat Communications, have provided global satellite connectivity solutions to more than 50,000 customers located in over 165 countries across the world.

Forward-Looking Statements

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, including the Company's ability to launch additional storefronts in various geographic locations, its ability to grow and expand as intended, the Company's expectations of worldwide growth and public infrastructure spending, ability to raise additional capital to finance the Company's operations, 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, the Company's ability to capitalize on its partnerships as well as other similar arrangements, 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 Securities and Exchange Commission (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.

Media and Investor Contact for Orbsat Corp:

Michael Glickman
MWGCO, Inc.
917-397-2272
mike@mwgco.net

SOURCE: Orbsat Corp

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https://www.accesswire.com/636955/Orbsat-Corp-Reports-2020-Annual-Results

FAQ

What were Orbsat's revenue figures for 2020?

Orbsat reported approximately $5.69 million in revenues for the fiscal year 2020.

How much did Orbsat's net loss increase in 2020?

The net loss for Orbsat increased to approximately $2.76 million in 2020, up from $1.37 million in 2019.

What is the stock symbol for Orbsat?

The stock symbol for Orbsat is OSAT.

What factors contributed to Orbsat's revenue decline in 2020?

Revenue decline was primarily due to a 9.1% decrease at Global Telesat caused by COVID-19 restrictions.

How did COVID-19 affect Orbsat's operations in 2020?

COVID-19 caused manufacturing disruptions and logistical delays that limited Orbsat's ability to meet consumer demand.