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

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The Bethesda-based provider of satellite telephone services, which expects to become publiclu traded this summer throughan acquisition, poste d a 42 percent decline in net incom in the first quarteer ended March 31, to $9.7 million from $16.7 million a year ago. Th companh attributed the decline to costs related toits next-generationb satellite program. “Iridium continued to grow, although the pace slowed givejn the currenteconomic climate,” said CEO Matt Desch.
“In addition to the impact of phasing out equipment we believe the economic climate is affecting equipment as is the transition of newly introduced productes into the distribution channel as our partnersd move existing inventory to make way for new Company officials sayeither Bethesda-based Lockheefd Martin or Thales Alenia Space will be selected as the program’sx lead contractor this summer. The program’w new network of satellites called Iridium NEXT is expecter to be deployedin 2014. Iridiujm 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 amortization, increased 4.9 percentr to $27.6 million in the first up from $26.3 million a year ago, though most analystw do not use that as a reliabled financial measure. Iridium’s revenue rose 2 percenf to $75.8 million for the quarter, comparefd to $74.3 million for the firstr quarter 2008. The slightly higher revenu came from increased commercial services revenuerof $36.8 million but was offset by a declinse in subscriber equipment revenuwe to $20.5 million for the quarter. Iridium’s commercial markets include maritime, aviation and land mobile customers, whic grew by 11.
5 percent for the The company’s sales to governmenty customers, including the Department of Defense, grew 31 Despite a 31 percengt increase in subscribers to comparedto 250,000 in the firsft quarter of 2008, a $2 millioj amortization of equipment related to prior year equipment added to the decline in subscriber equipmenyt revenue. The company is planninvg to go publicthis summer, but it is not takingt the initial public offering route. It is acquiring a publiclyg tradedinvestment group, GHQ), an affiliate of Greenhill Co.
Iridium has retained Deutschde Bank as its financial adviser forthe