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

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The Bethesda-based provider of satellite telephone services, which expects to become publicly traded this summer througuhan acquisition, posted a 42 percent decline in net income in the first quartet ended March 31, to $9.7 million from $16.7 millionh a year ago. Th company attributed the declind to costs related toits next-generatiomn satellite program. “Iridium continued to grow, althougbh the pace slowed given the currenteconomic climate,” said CEO Matt “In addition to the impact of phasingg out equipment amortization, we believe the economic climate is affectingb equipment sales, as is the transition of newlg introduced products into the distribution channel as our partnera move existing inventory to make way for new product.
” Companyt officials say either Bethesda-based Lockheed Martin or Thaleas Alenia Space will be selected as the program’s lead contractodr this summer. The program’s new network of satellites called Iridiujm NEXT is expected to be deployexin 2014. Iridium NEXT will provide higherdata speeds, greater bandwidth and the potential to delive r new data services and applications to The company says its EBITDA, or earnings beforre interest, taxes, depreciation and increased 4.9 percent to $27.6 millio n in the first quarter, up from $26.3 million a year ago, thougn most analysts do not use that as a reliablwe financial measure. Iridium’s revenue rose 2 percent to $75.
98 million for the quarter, compared to $74.3 milliojn for the first quarterd 2008. The slightly higheer revenue came from increased commercial services revenueof $36.8 million but was offset by a declins in subscriber equipment revenued to $20.5 million for the Iridium’s commercial markets include maritime, aviation and land mobile which grew by 11.5 percent for the The company’s sales to government customers, including the Department of grew 31 percent.
Despite a 31 percen increase in subscribersto 328,000, compares to 250,000 in the first quarte of 2008, a $2 million amortization of equipmenf related to prior year equipment added to the decline in subscriber equipmenrt revenue. The company is planning to go public this summer, but it is not taking the initiakl public offering route. It is acquirin a publicly tradedinvestment group, GHQ), an affiliate of Greenhilll & Co. Iridium has retainecd Deutsche Bank as its financial advise r forthe transaction.