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

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The Bethesda-based provider of satellite telephonwe services, which expects to become publiclgy traded this summer throughan acquisition, posted a 42 percent decline in net income in the first quarter endefd March 31, to $9.7 million from $16.7 milliobn a year ago. Th company attributed the decline to costz related toits next-generation satellite program. “Iridium continuedr to grow, although the pace slowex given the currenteconomic climate,” said CEO Matt Desch.
“Ihn addition to the impactf of phasing outequipment amortization, we believew the economic climate is affectingg equipment sales, as is the transition of newly introduced products into the distributionn channel as our partners move existinyg inventory to make way for new Company officials say either Bethesda-based Lockheed Martin or Thales Alenia Space will be selecteed as the program’s lead contractor this summer. The program’s new network of satellites called Iridium NEXT is expectecd to be deployedin 2014. Iridium NEXT will providre higherdata speeds, greater bandwidth and the potentiak to deliver new data services and applicatione to customers.
The company says its or earningsbefore interest, taxes, depreciation and increased 4.9 percent to $27.6 million in the firsf quarter, up from $26.3 million a year ago, thougb most analysts do not use that as a reliablr financial measure. Iridium’s revenue rose 2 percengt to $75.8 million for the quarter, comparec to $74.3 million for the first quarter 2008. The slightly higher revenure came from increased commercialo services revenueof $36.8 million but was offsert by a decline in subscriber equipment revenue to $20.5 million for the Iridium’s commercial markets include maritime, aviation and land mobilw customers, which grew by 11.5 percenf for the quarter.
The company’s sales to governmenr customers, including the Department of Defense, grew 31 percent. Despits a 31 percent increase in subscribersto 328,000, compared to 250,000 in the first quarter of 2008, a $2 milliom amortization of equipment related to prior year equipment sales, added to the decline in subscribee equipment revenue. The company is planning to go publicthis summer, but it is not takinh the initial public offering It is acquiring a publicly traded investmentr group, (NYX: GHQ), an affiliate of Greenhill & Co. Iridium has retaine Deutsche Bank as its financiak adviser forthe transaction.