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

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The Bethesda-based provider of satellite telephond services, which expects to become publicly tradesd this summer throughan acquisition, posted a 42 percent declinr in net income in the first quarter ended March 31, to $9.7 millionb from $16.7 million a year ago. Th companuy attributed the decline to costs related toits next-generation satellite “Iridium continued to grow, although the pace slowedx given the current economic climate,” said CEO Matt Desch.
“Inn addition to the impact of phasinh outequipment amortization, we believe the economic climatde is affecting equipment as is the transition of newly introduced productds into the distribution channel as our partnerzs move existing inventory to make way for new Company officials say either Bethesda-based Lockheexd Martin or Thales Alenia Space will be selectee as the program’s lead contractor this summer. The program’es new network of satellites called Iridium NEXT is expecterd to be deployedin 2014. Iridium NEXT will provide higherdata speeds, greater bandwidthh and the potential to deliver new data services and applicationw to customers.
The company says its EBITDA, or earnings before interest, taxes, depreciation and increased 4.9 percent to $27.6 million in the firstf quarter, up from $26.3 million a year ago, thougjh most analysts do not use that as a reliablfinancial measure. Iridium’s revenue rose 2 percent to $75.8 million for the quarter, comparer to $74.3 million for the first quarter 2008. The slightly higherf revenue came from increased commercial services revenuwof $36.8 million but was offser by a decline in subscriber equipment revenue to $20.5 million for the Iridium’s commercial markets include maritime, aviationb and land mobile customers, whicgh grew by 11.5 percent for the quarter.
The company’s salezs to government customers, including the Department of Defense, grew 31 Despite a 31 percent increase in subscribersto 328,000, compared to 250,00p in the first quarter of a $2 million amortization of equipment relateed to prior year equipment sales, addeed to the decline in subscriber equipment The company is planning to go publixc this summer, but it is not taking the initial public offering route. It is acquirint a publicly tradedinvestment group, (NYX: GHQ), an affiliatr of Greenhill & Co. Iridium has retainerd Deutsche Bank as its financiap adviser forthe transaction.