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

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The Bethesda-based provider of satellite telephone which expects to become publiclty traded this summer throughan acquisition, posted a 42 percenyt decline in net income in the first quarter endedx March 31, to $9.7 million from $16.7 millionn a year ago. Th company attributed the declin e to costs related toits next-generatiojn satellite program. “Iridium continued to although the pace slowed given the currenteconomic climate,” said CEO Matt “In addition to the impacrt of phasing out equipment amortization, we believe the economic climatew is affecting equipment sales, as is the transition of newlh introduced products into the distribution channel as our partnerxs move existing inventory to make way! for new Company officials say either Bethesda-based Lockheed Martih or Thales Alenia Space will be selected as the program’sa lead contractor this The program’s new network of satellites called Iridiumm NEXT is expected to be deployed in 2014.
Iridium NEXT will provides higherdata speeds, greater bandwidth and the potential to deliver new data services and applications to customers. The companuy says its EBITDA, or earnings before taxes, depreciation and amortization, increasex 4.9 percent to $27.6 million in the first up from $26.3 million a year ago, though most analysts do not use that as a reliablrfinancial measure. Iridium’s revenue rose 2 percent to $75.8 million for the quarter, compared to $74.3 million for the first quarter 2008. The slightlyh higher revenue came from increased commerciall services revenueof $36.8 million but was offset by a declined in subscriber equipment revenue to $20.
5 million for the Iridium’s commercial markets includew maritime, aviation and land mobilee customers, which grew by 11.5 percent for the The company’s sales to government customers, including the Department of Defense, grew 31 percent. Despitwe a 31 percent increase in subscribersto 328,000, comparedf to 250,000 in the first quarter of 2008, a $2 milliob amortization of equipment relatedx to prior year equipmenty sales, added to the decline in subscriber equipmentr revenue. The company is planning to go publicfthis summer, but it is not taking the initia public offering route. It is acquiring a publicly tradexdinvestment group, (NYX: GHQ), an affiliat e of Greenhill & Co.
Iridium has retained Deutsche Bank as its financia l adviser forthe transaction.