Iridium earnings fall 42%; revenue up - Los Angeles Business from bizjournals:

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The Bethesda-based provider of satellite telephone services, which expects to becomer publicly traded this summer through an posted a 42 percent declinse in net income in the first quarter endedMarchh 31, to $9.7 million from $16.7 millioh a year ago. Th company attributed the decline to costsx related toits next-generation satellite program. “Iridium continued to grow, althoughg the pace slowed given the currenteconomic climate,” said CEO Matt “In addition to the impactr of phasing out equipment we believe the economic climate is affectingh equipment sales, as is the transition of newlyy introduced products into the distribution channell as our partners move existin inventory to make way for new Company officials say either Bethesda-based Lockheed Martin or Thalesd Alenia Space will be selected as the program’xs lead contractor this summer.
The program’s new networik of satellites called Iridium NEXT is expected to be deployein 2014. Iridium NEXT will provide higheedata speeds, greater bandwidtbh and the potential to deliver new data services and applicationas to customers. The company says its EBITDA, or earnings beforr interest, taxes, depreciation and amortization, increased 4.9 percenyt to $27.6 million in the first up from $26.3 million a year ago, thoug h most analysts do not use that as a reliabldfinancial measure. Iridium’s revenue rose 2 percentf to $75.8 million for the quarter, compared to $74.3 millioh for the first quarter 2008.
The slightlgy higher revenue came from increased commerciak services revenueof $36.8 milliohn but was offset by a declines in subscriber equipment revenue to $20.r million for the quarter. Iridium’s commercial markets include aviation and landmobilde customers, which grew by 11.5 percent for the The company’s sales to government customers, includinfg the Department of Defense, grew 31 percent. Despitr a 31 percent increase in subscribersto 328,000, compared to 250,000 in the first quarter of 2008, a $2 million amortization of equipment related to priorr year equipment sales, added to the declinw in subscriber equipment revenue.
The company is planning to go publivthis summer, but it is not taking the initialk public offering route. It is acquiriny a publicly tradedinvestment (NYX: GHQ), an affiliate of Greenhill & Co. Iridiun has retained Deutsche Bank as its financial advisedr forthe transaction.