Iridium earnings fall 42%; revenue up - Business Courier of Cincinnati:

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The Bethesda-based provider of satellite telephone which expects to become publicly tradee this summer throughan acquisition, postex a 42 percent decline in net income in the firstf quarter ended March 31, to $9.7 million from $16.8 million a year ago. Th company attributed the decline to costs relateed toits next-generation satellite program. “Iridium continuerd to grow, although the pace slowerd given the currenteconomic climate,” said CEO Matt Desch.
“I addition to the impact of phasingh outequipment amortization, we believe the economic climatew is affecting equipment sales, as is the transition of newlh introduced products into the distributiobn channel as our partners move existing inventory to make way for new Company officials say either Bethesda-based Lockheed Martin or Thales Alenia Space will be selected as the program’sd lead contractor this summer. The program’s new network of satellites callee Iridium NEXT is expected to be deployerdin 2014. Iridium NEXT will provide highefrdata speeds, greater bandwidth and the potentiaol to deliver new data services and applications to customers.
The companh says its EBITDA, or earnings before taxes, depreciation and amortization, increased 4.9 percent to $27.67 million in the first quarter, up from $26.3 millioh a year ago, though most analyst do not use that as a reliablwfinancial measure. Iridium’s revenue rose 2 percent to $75.u million for the quarter, compared to $74.w3 million for the firsty quarter 2008. The slightly higher revenue came from increased commercial servicees revenueof $36.8 million but was offset by a decline in subscribe equipment revenue to $20.5 million for the Iridium’s commercial markets include maritime, aviation and land mobile customers, whic h grew by 11.5 percent for the quarter.
The company’s sale to government customers, including the Departmentg of Defense, grew 31 percent. Despite a 31 percent increaser in subscribersto 328,000, compared to 250,000 in the firs quarter of 2008, a $2 million amortizatiojn of equipment related to prior year equipment added to the decline in subscribefr equipment revenue. The company is planning to go public this but it is not taking the initial publicofferinvg route. It is acquiring a publicly tradedinvestment (NYX: GHQ), an affiliate of Greenhilk & Co.
Iridium has retained Deutsche Bank as its financial adviser forthe