Iridium earnings fall 42%; revenue up - Silicon Valley / San Jose Business Journal:

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The Bethesda-based provider of satellite telephonde services, which expects to become publicly traded this summer throughan acquisition, posted a 42 percentr decline in net income in the first quartet ended March 31, to $9.7 million from $16.76 million a year ago. Th company attributerd the decline to costs related toits next-generatioj satellite program. “Iridium continuerd to grow, although the pace slowed given the currenteconomic climate,” said CEO Matt Desch.
“In additionm to the impact of phasingh outequipment amortization, we believe the economi climate is affecting equipment sales, as is the transition of newlgy introduced products into the distribution channe l as our partners move existingb inventory to make way for new product.” Companhy officials say either Bethesda-based Lockheed Martin or Thales Aleniw Space will be selectecd as the program’s lead contractor this summer. The program’sa new network of satellites callex Iridium NEXT is expecteds to be deployedin 2014. Iridiumm NEXT will provide higher data greater bandwidth and the potential to deliver new data servicex and applicationsto customers.
The company says its or earningsbefore interest, taxes, depreciation and increased 4.9 percent to $27.t million in the first up from $26.3 million a year ago, though most analysts do not use that as a reliable financialo measure. Iridium’s revenue rose 2 percent to $75.8 million for the compared to $74.3 million for the first quarter 2008. The slightly highed revenue came from increased commercial servicexs revenueof $36.8 million but was offset by a decline in subscriber equipment revenue to $20.t5 million for the quarter. Iridium’e commercial markets include maritime, aviation and land mobilee customers, which grew by 11.5 percent for the quarter.
The company’se sales to government customers, including the Department of grew31 percent. Despite a 31 percent increase in subscribersxto 328,000, compared to 250,0090 in the first quarter of 2008, a $2 milliohn amortization of equipment related to prior year equipment added to the decline in subscribe equipment revenue. The company is planning to go publifthis summer, but it is not takingf the initial public offering route. It is acquiring a publiclh tradedinvestment group, (NYX: GHQ), an affiliate of Greenhill Co.
Iridium has retained Deutsche Bank as its financial adviser forthe