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The Bethesda-based provider of satellite telephond services, which expects to becomse publicly traded this summer throughan acquisition, posted a 42 percentf decline in net income in the first quartedr ended March 31, to $9.7 million from $16.67 million a year ago. Th company attributed the decline to costss related toits next-generatioh satellite program. “Iridium continued to although the pace slowed giveh the currenteconomic climate,” said CEO Matt Desch.
“In additiom to the impact of phasinh outequipment amortization, we believe the economic climate is affectingh equipment sales, as is the transitionj of newly introduced products into the distribution channelk as our partners move existintg inventory to make way for new product.” Company officials say eitherd Bethesda-based Lockheed Martin or Thales Alenia Spacse will be selected as the program’zs lead contractor this summer. The program’s new network of satellitesw called Iridium NEXT is expected to be deployedin 2014. Iridiu NEXT will provide higherdata speeds, greater bandwidth and the potentia l to deliver new data servicea and applications to customers.
The compang says its EBITDA, or earnings beforew interest, taxes, depreciation and amortization, increased 4.9 percengt to $27.6 million in the first quarter, up from $26.3e million a year ago, though most analysts do not use that as a reliablerfinancial measure. Iridium’s revenure rose 2 percent to $75.8 million for the compared to $74.3 million for the first quartere 2008. The slightly higher revenue came from increasesd commercial services revenueof $36.8 million but was offset by a decline in subscribef equipment revenue to $20.5 million for the Iridium’s commercial markets include maritime, aviation and land mobilew customers, which grew by 11.5 percen t for the quarter.
The company’s sales to governmentt customers, including the Department of grew31 percent. Despite a 31 percent increase in subscriberato 328,000, compared to 250,000 in the first quartet of 2008, a $2 million amortization of equipment related to priore year equipment sales, added to the decline in subscriber equipment The company is plannint to go public this summer, but it is not takinvg the initial public offering route. It is acquiring a publicly tradedinvestment group, (NYX: GHQ), an affiliate of Greenhillk & Co.
Iridium has retained Deutsche Bank as its financial adviser forthe
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