The Satellite News Financial Ticker

By | August 4, 2003 | Feature

Week of July 25-31, 2003
Percentage Change

Symbol
July 31 Price
One Week
One Month
Three Month
Year to Date
Operators
APT SATELLITE HLDGS ATS
3.14
6.4
30.3
155.3
82.6
ASIASAT TELECOM SAT
16.70
(0.6)
3.3
15.6
46.6
BRITISH SKY BROADCASTING BSY
46.05
0.7
2.1
9.4
15.0
ECHOSTAR COMM -CL A DISH
36.27
1.2
4.8
21.1
62.9
HUGHES ELEC (GM -CL H) GMH
13.73
2.7
7.2
16.4
28.3
LORAL SPACE & COMM LOR
0.22
(92.9)
(91.9)
(94.9)
NEWS CORP NWS
30.41
0.2
0.5
7.5
15.8
NEW SKIES SATELLITES NSK
5.66
4.2
2.7
16.7
36.4
PANAMSAT SPOT
17.41
(0.6)
(5.5)
0.6
18.9
PASIFIK SATELIT NUSANTARA PSNRY
0.16
121.4
10.7
181.8
3.3
PEGASUS COMMUNICATIONS PGTV
35.79
6.0
22.7
32.8
173.2
rSTAR CORP RSTRC
0.56
9.8
1.8
2.2
133.3
SES GLOBAL SES.LU
6.03
4.1
6.7
14.9
(5.8)
SIRIUS SATELLITE RADIO SIRI
1.78
9.2
5.3
140.5
178.1
XM SATELLITE RADIO XMSR
13.77
8.8
25.3
42.0
411.9
Operators’ Average
100.00
11.6
1.7
37.6
73.7
Manufacturers
ANDREW ANDW
10.90
8.0
16.7
42.1
6.0
BALL BLL
49.70
2.3
9.2
(11.5)
(2.9)
BOEING BA
33.12
1.3
(3.5)
21.4
0.4
COM DEV INTL CDV
0.53
12.8
1.9
55.9
(11.7)
EMS TECHNOLOGIES ELMG
17.20
9.6
27.5
41.9
10.5
GARMEN LTD. GRMN
38.29
(8.8)
(4.0)
(9.7)
30.7
GILAT SAT NETWORKS GILTF
4.85
(4.5)
(4.7)
41.4
(37.8)
GLOBECOM GCOM
3.90
(6.0)
20.0
26.2
4.0
HARRIS HRS
32.37
4.7
7.7
13.3
23.1
HONEYWELL HON
28.28
(0.5)
5.3
19.8
17.8
KVH KVHI
20.09
0.1
(18.4)
33.0
133.6
LOCKHEED MARTIN LMT
52.34
(1.9)
10.0
4.6
(9.4)
LUCENT TECHNOLOGIES LU
1.75
(2.8)
(13.8)
(2.8)
38.9
MOTOROLA MOT
9.04
(1.1)
(4.1)
14.3
4.5
NERA NERAY
1.99
26.3
42.0
66.1
83.5
ORBITAL SCIENCES ORB
8.23
1.6
12.7
47.5
95.0
QUALCOMM QCOM
37.48
3.4
4.3
17.6
3.0
RAYTHEON RTN
30.70
(8.5)
(6.5)
2.6
(0.2)
ROCKWELL COLLINS COL
26.03
2.1
5.7
21.7
11.9
SCIENTIFIC-ATLANTA SFA
30.29
0.5
27.1
86.4
155.4
SKY FRAMES SKYU
1.10
(15.4)
(18.5)
(12.0)
(86.3)
STM WIRELESS STMI
0.01
(60.0)
900.0
(97.5)
TITAN TTN
15.34
36.2
49.1
91.0
47.5
TRIMBLE NAVIGATION TRMB
27.35
11.2
18.5
8.6
119.0
VIASAT VSAT
14.22
(0.4)
(1.0)
33.7
23.2
Manufacturers’ Average
100.00
0.4
7.3
62.1
22.5
Nasdaq Composite Index
S & P 500 COMP
1,735.02
0.9
6.9
18.5
29.9
SN Stock Price Average SP50
990.31
0.2
1.6
8.0
12.6
100.00
4.6
5.2
53.0
41.7

Wall Street Analysis

By Tom Watts, SG Cowen Securities

After years of being the “Rodney Dangerfield” of the satellite industry, the fixed satellite services (FSS) sector may be finally getting some respect. The second quarter results released by Intelsat show two positive signs for the industry. One is a revenue upturn and the other is consolidation. Moreover, Intelsat indicated it is still on track for its long-awaited IPO, possibly as soon as the second quarter of 2004.

Intelsat reported a 2.3 percent sequential revenue growth. This followed PanAmSat [Nasdaq: SPOT] reporting a 1.9 percent sequential growth during the second quarter. The revenue upturn for these leaders marked a reversal from a period of decline. For Intelsat, the revenue growth came from data – a segment that has been eyed for high growth but only now is beginning to over-shadow video. Intelsat announced new contracts for private data networks from Telenor, the World Bank and SovIntel. The company also pointed to the growing video neighborhoods on its Intelsat 906 satellite over Africa, as well as expanding revenue from government – a sector that all operators now view as a source of new revenue.

On the consolidation side, Intelsat highlighted its recent acquisition of the North American satellite assets it plans to buy from Loral Space and Communications [PNK: LRLSQ]. The acquisition gives Intelsat a key beachhead in the important U.S. video market. We expect Intelsat to bring extensive revenue and cost synergies to the Loral fleet. Importantly to the industry, it also eliminates a financially weak operator, concentrating capacity in the hands of an owner that can stabilize prices and contribute to healthier industry dynamics.

On the IPO front, Intelsat stated its continued commitment to an IPO ahead of its June 30, 2004, deadline, as prescribed by the ORBIT Act. Intelsat CEO Conny Kullman implied that Intelsat shares would come to market immediately upon closing of the Loral acquisition. With closing slated for the first quarter of 2004, an IPO the following quarter looks likely.

We expect these developments to bring renewed focus on the FSS sector and its attractive cash flow generation.

Tom Watts is a managing director and satellite analyst at SG Cowen Securities. He can be reached by phone at 212/278-4260 or by e-mail at tom.watts@sgcowen.com. Readers should assume that SG Cowen Securities Corp. and/or its affiliates intend to offer services in investment banking to the above referenced companies within the next three months, and to seek compensation for such services.

Live chat by BoldChat