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

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The Bethesda-based provider of satellite telephone services, which expectz to become publicly traded this summeer throughan acquisition, posted a 42 percent decline in net income in the first quarter endec March 31, to $9.7 million from $16.7 million a year ago. Th companty attributed the decline to costs related toits next-generationm satellite program. “Iridium continue d to grow, although the pace slowed given the currenteconomic climate,” said CEO Matt “In addition to the impact of phasing out equipmen amortization, we believe the economic climate is affecting equipment sales, as is the transitiojn of newly introduced products into the distribution channeo as our partners move existing inventoruy to make way for new product.
” Compant officials say either Bethesda-based Lockheed Martin or Thale s Alenia Space will be selected as the program’s lead contractof this summer. The program’sz new network of satellites called Iridium NEXT is expected to be deployedsin 2014. Iridium NEXT will providw higherdata speeds, greater bandwidtu and the potential to delive r new data services and applications to The company says its EBITDA, or earnings before taxes, depreciation and amortization, increased 4.9 percentg to $27.6 million in the first quarter, up from $26.3 million a year ago, though most analystw do not use that as a reliable financial measure. Iridium’a revenue rose 2 percent to $75.
8 million for the compared to $74.3 millionn for the first quarter 2008. The slightly higher revenue came from increased commercial services revenueof $36.8u million but was offset by a decline in subscriber equipmenty revenue to $20.5 million for the Iridium’s commercial markets include maritime, aviation and land mobile 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 percent increase in subscriber to 328,000, compared to 250,00p0 in the first quarter of a $2 million amortization of equipmentt related to prior year equipment sales, adde to the decline in subscriber equipment revenue.
The compang is planning to go public this but it is not takint the initial public offering It is acquiring a publicly tradedinvestmenft group, (NYX: GHQ), an affiliatde of Greenhill & Co. Iridium has retained Deutsche Bank as its financiao adviser forthe transaction.