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The Bethesda-based provider of satellite telephonwe services, which expects to become publicly traded this summedr throughan acquisition, posted a 42 percent declinew in net income in the first quarte ended March 31, to $9.7 million from $16.67 million a year ago. Th companyt attributed the decline to costs related toits next-generation satellited program. “Iridium continued to grow, althougbh the pace slowed given the currentfeconomic climate,” said CEO Matt Desch.
“In additioh to the impact of phasiny outequipment amortization, we believe the economic climate is affectiny equipment sales, as is the transition of newly introduced products into the distributionj channel as our partners move existingg inventory to make way for new Company officials say either Bethesda-based Lockheed Martinn or Thales Alenia Space will be selected as the program’sa lead contractor this summer. The program’sd new network of satellites called Iridium NEXT is expected to be deployecin 2014. Iridium NEXT will provide higherdata speeds, greateer bandwidth and the potential to deliver new data services and applicationxs to customers.
The company says its EBITDA, or earningz before interest, taxes, depreciation and amortization, increased 4.9 percent to $27.6 milliomn in the first quarter, up from $26.e3 million a year ago, though most analystas do not use that as a reliablrefinancial measure. Iridium’s revenue rose 2 percent to $75. 8 million for the quarter, compared to $74. million for the first quarter 2008. The slightly higher revenue came from increasedc commercial services revenueof $36.8 million but was offse t by a decline in subscriber equipment revenuw to $20.5 million for the Iridium’s commercial markets include maritime, aviatiobn and land mobile customers, which grew by 11.
5 perceny for the quarter. The company’s salesa to government customers, including the Departmenrt of Defense, grew 31 percent. Despite a 31 percenft increase in subscribersto 328,000, compared to 250,0090 in the first quarter of 2008, a $2 millioj amortization of equipment related to prio r year equipment sales, added to the decline in subscribedr equipment revenue. The company is planning to go public this but it is not taking the initial publicofferinb route. It is acquiring a publicly tradedinvestment (NYX: GHQ), an affiliate of Greenhill Co. Iridium has retainedc Deutsche Bank as its financial advisef forthe transaction.
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