Orbcomm Inc. (ORBC), a leading provider of wireless (satellite) messaging services, declared third quarter 2008 financial results, in-line with our estimates. While we view the satellite business to be extremely competitive, not to mention low margin and expensive to operate, we also believe the barriers to entry for such services are substantial. Should higher demand applications emerge, such barriers may lead Orbcomm to higher valuations. However, though original equipment manufacturer (OEM) customers and an increased subscriber base contributed to improved service revenues, the company's depleting cash position, coupled with weaker-than-expected cash from operations, may not be sufficient to fund capital spending objectives associated with emerging applications. We maintain our Hold rating with a reduced valuation target in view of near-term concerns and general equity market conditions. We continue to assess Orbcomm's business expansion initiative across Asia and the Americas.Nalak Das contributed to ...