1361983--3/16/2009--ORBCOMM

related topics

{operation, international, foreign}

{system, service, information}

{capital, credit, financial}

{competitive, industry, competition}

{stock, price, operating}

{product, market, service}

{product, candidate, development}

{customer, product, revenue}

{acquisition, growth, future}

{regulation, change, law}

{property, intellectual, protect}

{control, financial, internal}

{personnel, key, retain}

{provision, law, control}

{financial, litigation, operation}

{stock, price, share}

We may need additional capital, which may not be available to us when we need it on favorable terms, or at all. We incur significant costs as a result of operating as a public company, and our management devotes substantial time to new compliance initiatives. If end-users do not accept our services and the applications developed by VARs or we cannot obtain or maintain the necessary regulatory approvals or licenses for particular countries or territories, we will fail to attract new customers and our business will be harmed. We face competition from existing and potential competitors in the telecommunications industry, including numerous terrestrial and satellite-based network systems with greater resources, which could reduce our market share and revenues. We have a limited operating history and recently commenced the commercialization of our new satellite-based AIS service, which makes it difficult to evaluate your investment in us. One quick-launch satellite recently experienced a power system anomaly that subsequently resulted in a loss of contact with the satellite, which could also occur with the Coast Guard demonstration satellite and the other quick-launch satellites of the same or similar design. Any additional losses of these satellites would have a major impact on our plans to replenish and extend the operating life of our satellite constellation. Our success in generating sufficient cash from operations to fund a portion of the cost of constructing and launching our next-generation satellites will depend in part on the market acceptance and success of our new AIS data service, which may not occur. We rely on third parties to market and distribute our services to end-users. If these parties are unwilling or unable to provide applications and services to end-users, our business will be harmed. Defects or errors in applications could result in end-users not being able to use our services, which would damage our reputation and harm our financial condition. Because we depend on a few significant customers for a substantial portion of our revenues, the loss or decline or slowdown in growth in business of any customer could seriously harm our business. If our international licensees and country representatives are not successful in establishing their businesses outside of the United States, the prospects for our business will be limited. Some of our international licensees and country representatives are experiencing significant operational and financial difficulties and have in the past defaulted on their obligations to us. We currently are unable to offer near-real-time service in important regions of the world due to the absence of gateway earth stations in those areas, which is limiting our growth and our ability to compete. A natural disaster could diminish our ability to provide communications service. We rely on a limited number of manufacturers for our subscriber communicators. If we are unable to, or cannot find third parties to, manufacture a sufficient quantity of subscriber communicators at a reasonable price, the prospects for our business will be negatively impacted. We depend on recruiting and retaining qualified personnel and our inability to do so would seriously harm our business. Our management team is subject to a variety of demands for its attention and rapid growth and litigation could further strain our management and other resources and have a material adverse effect on our business, financial condition and results of operations. We may be subject to litigation proceedings that could adversely affect our business. Our business is characterized by rapid technological change and we may not be able to compete with new and emerging technologies. Because we operate in a highly regulated industry, we may be subjected to increased regulatory restrictions which could disrupt our service or increase our operating costs. Our business relies on our ability to maintain our FCC licenses. Our business would be harmed if our international licensees and country representatives fail to acquire and retain all necessary regulatory approvals. There are numerous risks inherent to our international operations that are beyond our control. We do not currently maintain in-orbit or other insurance for our satellites other than with respect to the Coast Guard demonstration satellite and five quick-launch satellites, which expires on June 19, 2009. Our business relies on intellectual property, some of which third parties own, and we may inadvertently infringe upon their patents and proprietary rights. If we become subject to unanticipated foreign tax liabilities, it could materially increase our costs. Risks Related to our Technology We do not currently have back-up facilities for our network control center. In the event of a general failure at our network control center, our system will be disrupted and our operations will be harmed. New satellites are subject to launch failures, delays and cost overruns, the occurrence of which can materially and adversely affect our operations. Our satellites have a limited operating life. If we are unable to deploy replacement satellites, our services will be harmed. We are dependent on a limited number of suppliers to provide the payload, bus and launch vehicle for our next-generation satellites and any delay or disruption in the supply of these components and related services will adversely affect our ability to replenish our satellite constellation and adversely impact our business, financial condition and results of operations. Once launched and properly deployed, our satellites are subject to significant operating risks due to various types of potential anomalies. All operational satellites are subject to the possibility to be impacted by space debris or another spacecraft. Technical or other difficulties with our gateway earth stations could harm our business. Our system could fail to perform or perform at reduced levels of service because of technological malfunctions or deficiencies or events outside of our control which would seriously harm our business and reputation. Risks Related to an Investment in our Common Stock The price of our common stock has been, and may continue to be, volatile and your investment may decline in value. If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our stock price and trading volume could decline. We are subject to anti-takeover provisions which could affect the price of our common stock.

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1361983--3/16/2009--ORBCOMM_Inc.