1361983--3/17/2008--ORBCOMM

related topics

{operation, international, foreign}

{system, service, information}

{capital, credit, financial}

{stock, price, operating}

{product, market, service}

{product, candidate, development}

{customer, product, revenue}

{acquisition, growth, future}

{investment, property, distribution}

{competitive, industry, competition}

{personnel, key, retain}

{control, financial, internal}

{financial, litigation, operation}

{provision, law, control}

{stock, price, share}

If end-users do not accept our services and the applications developed by VARs or we cannot obtain 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, which makes it difficult to evaluate your investment in us. 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 significant customer for a substantial portion of our revenues, the loss or decline or slowdown in growth in business of this 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 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 would be negatively impacted if the FCC revokes or fails to renew or amend our 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 insurance for our satellites. 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. We may be in default under our contract with the U.S. Coast Guard with respect to the Coast Guard demonstration satellite if we do not launch the satellite within the cure period or any extension thereof, which could have a material adverse effect on our business, financial condition and results of 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 quick-launch and 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. 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--3/17/2008--ORBCOMM_Inc.