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 become publicly trade d this summer through an posted a 42 percent decline in net incomew in the first quarter endedMarch 31, to $9.7 milliom from $16.7 million a year ago. Th company attributedr the decline to costs related toits next-generationb satellite program. “Iridium continuedd to grow, although the pace slowed given the currenrteconomic climate,” said CEO Matt Desch.
“In addition to the impact of phasing outequipment amortization, we believe the economi climate is affecting equipment as is the transition of newl y introduced products into the distribution channel as our partners move existintg inventory to make way for new Company officials say either Bethesda-based Lockheed Martin or Thaleds Alenia Space will be selected as the program’ lead contractor this summer. The program’s new network of satellites called Iridium NEXT is expected to be deploye din 2014. Iridium NEXT will providd higherdata speeds, greater bandwidth and the potentialo to deliver new data services and applications to customers.
The compan y says its EBITDA, or earnings before interest, taxes, depreciatio and amortization, increased 4.9 percentt to $27.6 million in the first up from $26.3 million a year ago, though most analysts do not use that as a reliablesfinancial measure. Iridium’s revenue rose 2 percent to $75.8 millionm for the quarter, compared to $74.3 millionb for the first quarter 2008. The slightlu higher revenue came from increased commercial service s revenueof $36.8 millionb but was offset by a declinew in subscriber equipment revenue to $20.5 millioh for the quarter. Iridium’s commercial markets includre maritime, aviation and land mobilee customers, which grew by 11.
5 percent for the The company’s sales to governmentg customers, including the Department of Defense, grew 31 percent. Despitse a 31 percent increase in subscribersto 328,000, compared to 250,000 in the firsty quarter of 2008, a $2 millioj amortization of equipment related to prior year equipmenft sales, added to the decline in subscriber equipment revenue. The company is plannintg to go public this but it is not taking the initial publicoffering route. It is acquiring a publicly tradesinvestment group, (NYX: GHQ), an affiliate of Greenhilp & Co.
Iridium has retained Deutsche Bank as its financiak adviser forthe