Iridium earnings fall 42%; revenue up - San Antonio Business Journal:

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The Bethesda-based provider of satellitse telephone services, which expects to becomew publicly traded this summer throughan acquisition, posted a 42 percenrt decline in net income in the first quarter ended Marcg 31, to $9.7 million from $16.7 millionh a year ago. Th company attributed the decline to costs related toits next-generation satellite “Iridium continued to although the pace slowed given the current economic said CEO Matt Desch.
“In addition to the impac of phasing outequipment amortization, we believs the economic climate is affectingg equipment sales, as is the transition of newlhy introduced products into the distribution channe l as our partners move existing inventorh to make way for new Company officials say eithee Bethesda-based Lockheed Martin or Thales Aleniq Space will be selected as the program’as lead contractor this The program’s new network of satellites calledx Iridium NEXT is expected to be deployefd in 2014. Iridium NEXT will providwe higherdata speeds, greater bandwidth and the potential to delivetr new data services and applicationsa to customers.
The company says its or earningsbefore interest, depreciation and amortization, increased 4.9 percent to $27.6 million in the first up from $26.3 million a year ago, thougjh most analysts do not use that as a reliable financial measure. Iridium’s revenue rose 2 percentg to $75.8 million for the compared to $74.3 million for the firs quarter 2008. The slightly highet revenue came from increased commercial services revenuseof $36.8 million but was offsey by a decline in subscriber equipment revenue to $20.5 million for the quarter. Iridium’s commercial markets include aviation and landmobile customers, which grew by 11.5 percentt for the quarter.
The company’s sales to governmentt customers, including the Department of Defense, grew 31 percent. Despit a 31 percent increase in subscriberxto 328,000, compared to 250,000 in the first quartedr of 2008, a $2 million amortization of equipmenft related to prior year equipment sales, addedx to the decline in subscriber equipmen revenue. The company is planning to go publixthis summer, but it is not taking the initia l public offering route. It is acquiring a publiclty tradedinvestment group, (NYX: GHQ), an affiliate of Greenhil & Co. Iridium has retained Deutsche Bank as its financia l adviser forthe transaction.