Letter To The Editor
While I was pleased to see coverage of our first quarter results in Satellite News on May 14th, 2007, I was somewhat surprised to read the following in your publication: "Iridium Satellite LLC reported 2007 first quarter revenue of $52.7 million and earnings before interest, taxes, depreciation and amortization (EBITDA) of $13.6 million, the company announced May 9. Iridium did not reveal whether it posted a profit or a loss."
I recognize that EBITDA was widely abused by so-called "bubble companies" in the 1990s to distract investors from net losses. However, since the Sarbanes-Oxley reforms of 2002, EBITDA is generally recognized as a measure of profit, not loss.
Certainly, in Iridium’s case, EBITDA of $13.6 million in the first quarter signals that we are profitable. Indeed, if we were incurring a net loss (due to interest, taxes and non-cash charges), we would have made this clear in our press release.
I hope you will print this letter to let Satellite News readers know that Iridium is profitable — for more than two years now — and also that we believe strongly in clear communications and full disclosure.
Matthew J. Desch Chairman and Chief Executive Officer
Iridium Satellite LLC