Commercial service and equipment revenue boost Iridium profit


 Iridium Communications reported a net income of $11.7
million for the second quarter of 2011, as compared to $3.2 million for the
second quarter of 2010.


Iridium reported second-quarter total revenue of $95.9
million, which consisted of $65.1 million of service revenue and $30.8 million
of equipment, engineering and support revenue. Total revenue grew 14 percent
versus the comparable period of 2010, while service revenue increased 10
percent from the year-ago period.


Service revenue represents primarily recurring revenue
from Iridium’s growing subscriber base, was 68 percent of total revenue for the
second quarter of 2011.


The company ended the quarter with 478,000 total billable
subscribers, which compares to 383,000 for the year-ago period and 447,000 for
the quarter ended March 31, 2011. Total billable subscribers grew 25 percent
year-over-year, driven by strength in machine-to-machine data, handheld voice,
Netted Iridium and Iridium OpenPort customers.


Capital expenditures were $114.6 million for the second
quarter and primarily related to spending for the company’s next-generation
satellite constellation, Iridium NEXT, and upgraded ground network
infrastructure at its commercial gateway.


also continue to strengthen its revenue profile in key areas, as approximately
40 percent of total service revenue now comes from data products and services.


Showcasing strength in the data market, Iridium grew
commercial M2M data revenue over 18 percent in the second quarter.


Commercial service remained the largest part of Iridium’s
business, representing 51 percent of the company’s total revenue during the
second quarter.


The company’s commercial revenue was $49.0 million, a 9
percent increase from last year’s comparable period. Customer base is diverse
and includes markets such as emergency services, maritime, utilities, oil and
gas, mining, leisure, forestry, construction and transportation.


Government service revenue was $16.1 million, increased
by 13 percent during the quarter, reflecting the Company’s growth in the last
several years from a niche supplier to an integral element in the U.S.
Government communications infrastructure.


Iridium’s voice and data solutions improve situational
awareness for military personnel and track critical assets in tough
environments around the globe, providing a unique value proposition that is not
easily duplicated.



Equipment revenue was $21.9 million during the second
quarter, an 8 percent year-over-year increase. Equipment revenue for the first
half of 2011 was $46.3 million, a 10 percent increase from the prior-year
six-month period.


Engineering and support revenue was $8.8 million during
the second  quarter,
a gain of 91 percent from the prior-year period,
primarily  resulting from an increase in lower margin contract revenue related
the ongoing government gateway upgrade project.



By Team

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