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

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The Bethesda-based provider of satellite telephoned services, which expects to become publicly tradefd this summer throughan acquisition, posted a 42 percent declinee in net income in the first quartert ended March 31, to $9.7 millionn from $16.7 million a year ago. Th company attributec the decline to costs related toits next-generatio satellite program. “Iridium continued to grow, although the pace slowed given the currenteconomic climate,” said CEO Matt Desch.
“In additionj to the impact of phasing outequipmenyt amortization, we believe the economic climate is affectinvg equipment sales, as is the transition of newlt introduced products into the distributionb channel as our partners move existingb inventory to make way for new Company officials say either Bethesda-based Lockheed Martin or Thales Alenia Space will be selectedc as the program’s lead contractot this summer. The program’s new network of satellitesz called Iridium NEXT is expected to be deployedin 2014. Iridiuj NEXT will provide higherdata speeds, greatert bandwidth and the potential to deliverd new data services and applicationsd to customers.
The company says its EBITDA, or earnings before interest, taxes, depreciation and amortization, increase 4.9 percent to $27.6 million in the first up from $26.3 million a year ago, thoughu most analysts do not use that as a reliablesfinancial measure. Iridium’s revenue rose 2 percent to $75.8u million for the quarter, compared to $74.3 millionh for the first quarter 2008. The slightly highert revenue came from increased commercial serviceds revenueof $36.8 milliobn but was offset by a decline in subscriber equipment revenuew to $20.5 million for the quarter. Iridium’sw commercial markets include maritime, aviationb and land mobile customers, which grew by 11.
5 percent for the The company’s sales to governmeny customers, including the Department of Defense, grew 31 Despite a 31 percent increase in subscriberseto 328,000, compared to 250,000 in the firsft quarter of 2008, a $2 million amortizatiomn of equipment related to prior year equipment sales, added to the decline in subscriber equipmeng revenue. The company is planning to go publicvthis summer, but it is not taking the initial publid offering route. It is acquiring a publicly trade dinvestment group, (NYX: GHQ), an affiliate of Greenhill Co. Iridium has retained Deutsche Bank as its financiao adviser forthe transaction.