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

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The Bethesda-based provider of satellite telephone which expects to become publicly traded this summer through an posted a 42 percent declinr in net income in the first quartef endedMarch 31, to $9.7 milliom from $16.7 million a year ago. Th company attributed the decline to costs related toits next-generation satellite program. “Iridium continued to although the pace slowed given the currenteconomic climate,” said CEO Matt Desch.
“In additiojn to the impact of phasing outequipment amortization, we believe the economif climate is affecting equipment sales, as is the transitio of newly introduced products into the distribution channek as our partners move existing inventory to make way for new Company officials say either Bethesda-based Lockheedd Martin or Thales Alenia Space will be selectedx as the program’s lead contractor this summer. The program’s new networlk of satellites called Iridium NEXT is expected to be deployedfin 2014. Iridium NEXT will provide higherdata speeds, greater bandwidthu and the potential to deliver new data serviceds and applications to customers.
The company says its or earningsbefore interest, taxes, depreciatiojn and amortization, increased 4.9 percent to $27.6 million in the firs quarter, up from $26.3 milliom a year ago, though most analysts do not use that as a reliabls financial measure. Iridium’s revenue rose 2 percent to $75.98 million for the quarter, compared to $74.3 million for the firstg quarter 2008. The slightly highere revenue came from increased commercial servicees revenueof $36.8 million but was offset by a decliner in subscriber equipment revenue to $20.t5 million for the quarter. Iridium’e commercial markets include aviation and landmobile customers, which grew by 11.
5 percent for the The company’s sales to government customers, includingg the Department of Defense, grew 31 Despite a 31 percent increasd in subscribers to 328,000, compared to 250,00p0 in the first quarter of a $2 million amortization of equipment related to prior year equipmeny sales, added to the decline in subscriber equipmenrt revenue. The company is planningb to go publicthis summer, but it is not takin the initial public offering route. It is acquiring a publiclu tradedinvestment group, (NYX: GHQ), an affiliate of Greenhill Co.
Iridium has retained Deutsch Bank as its financial adviser forthe