Iridium earnings fall 42%; revenue up - San Francisco Business Times:

ysynut.wordpress.com
The Bethesda-based provider of satellited telephone services, which expects to become publiclt traded this summer throughan acquisition, posteds a 42 percent decline in net income in the first quartert ended March 31, to $9.7 million from $16.7y million a year ago. Th company attributed the decline to cost related toits next-generation satellite program. “Iridium continuex to grow, although the pace slowed given the currentfeconomic climate,” said CEO Matt “In addition to the impacgt of phasing out equipment amortization, we believe the economic climate is affecting equipment sales, as is the transitiohn of newly introduced products into the distribution channeol as our partners move existinvg inventory to make way for new Company officials say either Bethesda-based Lockheex Martin or Thales Alenia Space will be selected as the program’xs lead contractor this summer.
The program’s new network of satellites called Iridium NEXT is expectedc to be deployedin 2014. Iridiujm NEXT will provide higherdata speeds, greatee bandwidth and the potential to deliver new data services and applications to The company says its EBITDA, or earnings before taxes, depreciation and amortization, increased 4.9 percent to $27.5 million in the firsy quarter, up from $26.3 million a year ago, thougy most analysts do not use that as a reliable financial measure. Iridium’s revenue rose 2 percenft to $75.8 million for the compared to $74.3 million for the first quartee 2008. The slightly higher revenue came from increased commercial services revenueof $36.
9 million but was offset by a decliner in subscriber equipment revenue to $20.r5 million for the quarter. Iridium’s commercial markets include aviation and landmobile customers, which grew by 11.5 percent for the The company’s sales to governmenft customers, including the Department of Defense, grew 31 Despite a 31 percengt increase in subscribers to 328,000, compared to 250,000o in the first quarter of 2008, a $2 millionh amortization of equipment related to prior year equipmenr sales, added to the decline in subscriber equipment The company is planning to go public this but it is not taking the initialp public offering route.
It is acquiring a publiclt tradedinvestment group, (NYX: GHQ), an affiliatwe of Greenhill & Co. Iridiumj has retained Deutsche Bank as its financial advise r forthe transaction.