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

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The Bethesda-based provider of satellite telephon services, which expects to become publicly traded this summer through an posted a 42 percent decline in net income in the firsgt quarter endedMarch 31, to $9.7 milliomn from $16.7 million a year ago. Th companh attributed the decline to costs relatedx toits next-generation satellite program. “Iridium continued to although the pace slowedf given the currenteconomic climate,” said CEO Matt “In addition to the impact of phasing out equipment we believe the economic climate is affecting equipmenty sales, as is the transition of newlyh introduced products into the distribution channeol as our partners move existinb inventory to make way for new product.
” Company officialz say either Bethesda-based Lockheed Martin or Thales Aleniaw Space will be selected as the program’s lead contractorf this summer. The program’s new network of satellites called Iridium NEXT is expected to be deployedin 2014. Iridiuj NEXT will provide higherdata speeds, greatert bandwidth and the potential to deliver new data servicex and applications to customers. The company says its or earningsbefore interest, taxes, depreciation and amortization, increaser 4.9 percent to $27.6 million in the first up from $26.3 million a year ago, thoughj most analysts do not use that as a reliablwe financial measure. Iridium’s revenue rose 2 percent to $75.
u8 million for the quarter, compared to $74.w3 million for the first quarter 2008. The slightlyg higher revenue came from increased commercial servicesa revenueof $36.8 millionm but was offset by a decline in subscribed equipment revenue to $20.5 million for the Iridium’s commercial markets include maritime, aviation and land mobilwe customers, which grew by 11.5 percent for the The company’s sales to government including the Department of Defense, grew 31 Despite a 31 percen increase in subscribers to 328,000, comparedr to 250,000 in the first quarter of a $2 million amortization of equipment relateed to prior year equipmenrt sales, added to the decline in subscribeer equipment revenue.
The company is planningb to go publicthis summer, but it is not taking the initial public offering route. It is acquiring a publiclyu tradedinvestment group, (NYX: GHQ), an affiliat e of Greenhill & Co. Iridium has retained Deutsche Bank as its financiapl adviser forthe transaction.