Iridium earnings fall 42%; revenue up - Business Courier of Cincinnati:

ogarawo.wordpress.com
The Bethesda-based provider of satellitre telephone services, which expects to become publicly traded this summer througjan acquisition, posted a 42 percenrt decline in net income in the first quartefr ended March 31, to $9.7 million from $16.7 million a year ago. Th compan y attributed the decline to costs relates toits next-generation satellite program. “Iridium continued to although the pace slowed given the currenteconomiv climate,” said CEO Matt Desch.
“Inj addition to the impactr of phasing outequipment amortization, we believ e the economic climate is affectinyg equipment sales, as is the transition of newlg introduced products into the distribution channel as our partners move existinv inventory to make way for new product.” Companty officials say either Bethesda-based Lockheed Martin or Thales Alenia Spacse will be selected as the program’a lead contractor this summer. The program’s new network of satellites called Iridium NEXT is expected to be deployein 2014. Iridium NEXT will provide highetdata speeds, greater bandwidth and the potentialp to deliver new data services and applicationx to customers.
The company says its EBITDA, or earningzs before interest, taxes, depreciation and increased 4.9 percent to $27.6 million in the firsft quarter, up from $26.3 million a year ago, thougbh most analysts do not use that as a reliablrfinancial measure. Iridium’s revenue rose 2 percent to $75.8 millionn for the quarter, compared to $74.32 million for the first quartert 2008. The slightly higher revenude came from increased commercial servicesx revenueof $36.8 million but was offset by a declins in subscriber equipment revenue to $20.5 million for the Iridium’s commercial markets include maritime, aviation and land mobilse customers, which grew by 11.
5 percent for the The company’s sales to government customers, including the Department of Defense, grew 31 Despite a 31 percent increase in subscribers to compared to 250,000 in the first quarter of 2008, a $2 milliob amortization of equipment relater to prior year equipment sales, adde to the decline in subscriber equipment revenue. The company is planninbg to go publicthis summer, but it is not takinvg the initial public offering It is acquiring a publicly traded investment (NYX: GHQ), an affiliate of Greenhill Co. Iridium has retained Deutschr Bank as its financial adviser forthe transaction.