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The Satellite News Financial Ticker

By | August 23, 2004

      Week of August 13-19, 2004
      Percentage Change
      Symbol
      Aug. 19 Price
      One Week
      One Month
      Three Month
      Year to Date
      Operators
      APT SATELLITE HLDGS ATS
      1.37
      (8.7)
      (15.4)
      (20.8)
      (42.4)
      ASIASAT TELECOM SAT
      17.75
      0.9
      7.0
      15.3
      (6.5)
      BRITISH SKY BROADCASTING BSY
      34.55
      (1.2)
      (25.4)
      (21.3)
      (32.2)
      ECHOSTAR COMM -CL A DISH
      31.35
      4.8
      9.1
      3.2
      (7.8)
      THE DIRECTV GROUP DTV
      16.85
      5.9
      0.5
      1.8
      LORAL SPACE & COMM LOR
      0.03
      (61.4)
      (84.1)
      (91.3)
      (91.4)
      NEWS CORP NWS
      31.60
      (1.3)
      (11.2)
      (11.8)
      (12.5)
      NEW SKIES SATELLITES NSK
      7.73
      0.5
      12.0
      8.0
      PANAMSAT SPOT
      23.45
      0.7
      1.1
      2.0
      8.8
      PASIFIK SATELIT NUSANTARA PSNRY
      0.22
      57.1
      340.0
      PEGASUS COMMUNICATIONS PGTV
      21.79
      (6.7)
      (9.1)
      65.7
      (22.4)
      SES GLOBAL SESF.LU
      6.97
      1.0
      (2.4)
      7.1
      (12.9)
      SIRIUS SATELLITE RADIO SIRI
      2.20
      1.9
      (10.9)
      (28.8)
      (30.4)
      XM SATELLITE RADIO XMSR
      27.27
      9.1
      8.3
      17.5
      3.7
      Operators’ Average
      100.00
      (3.9)
      (5.4)
      (3.7)
      7.4
      Manufacturers
      ANDREW ANDW
      11.00
      12.9
      (27.9)
      (36.3)
      (5.1)
      BALL BLL
      73.85
      1.4
      0.6
      13.5
      24.0
      BOEING BA
      50.25
      1.1
      2.3
      16.8
      19.2
      COM DEV INTL *CDV
      2.86
      (12.0)
      27.1
      (0.7)
      EMS TECHNOLOGIES ELMG
      15.63
      8.2
      3.7
      (16.9)
      (23.9)
      GARMIN GRMN
      37.49
      0.4
      9.8
      26.6
      (31.2)
      GILAT SAT NETWORKS GILTF
      4.04
      (2.4)
      (9.2)
      (22.3)
      (17.4)
      GLOBECOM GCOM
      5.49
      (0.4)
      5.6
      6.0
      15.6
      HARRIS HRS
      45.95
      2.1
      (2.8)
      7.6
      21.1
      HONEYWELL HON
      34.95
      (1.9)
      (4.0)
      5.1
      4.5
      KVH KVHI
      7.29
      (1.8)
      (15.8)
      (43.0)
      (73.6)
      LOCKHEED MARTIN LMT
      54.05
      2.0
      (1.2)
      14.8
      5.2
      LUCENT TECHNOLOGIES LU
      3.08
      7.7
      (7.8)
      (2.5)
      8.5
      MOTOROLA MOT
      15.62
      9.0
      (1.1)
      (17.8)
      11.6
      ORBITAL SCIENCES ORB
      10.72
      2.8
      (17.7)
      (11.0)
      (10.8)
      QUALCOMM QCOM
      35.51
      3.6
      4.0
      10.9
      31.7
      RAYTHEON RTN
      33.80
      (2.0)
      2.4
      3.1
      12.5
      ROCKWELL COLLINS COL
      33.85
      0.9
      (1.0)
      15.3
      12.7
      SCIENTIFIC-ATLANTA SFA
      28.25
      7.5
      (3.8)
      (12.4)
      3.5
      SKY FRAMES SKYU
      0.10
      100.0
      TITAN TTN
      12.74
      7.8
      0.5
      (33.6)
      (41.6)
      TRIMBLE NAVIGATION TRMB
      27.40
      3.4
      17.8
      12.1
      10.4
      VIASAT VSAT
      20.02
      1.5
      5.3
      (10.4)
      4.6
      Manufacturers’ Average
      100.00
      2.8
      2.1
      (2.1)
      (0.8)
      Nasdaq Composite Index
      Nasdaq comp
      1,819.89
      2.1
      (3.4)
      (4.1)
      (9.2)
      SP 500 sp50
      1,091.23
      1.4
      (0.9)
      (0.0)
      (1.9)
      SN Stock Price Average
      100.00
      0.3
      (0.8)
      (2.7)
      2.3

      Wall Street Analysis

      New Skies Satellites N.V. [NSK], a satellite operator in The Hague, The Netherlands, reported its second quarter 2004 financial results last Thursday and showed that transponder pricing pressure is continuing to curb profits within the sector. Since New Skies operates worldwide, its performance indicates that transponder overcapacity in certain regions is exerting a drag on results.

      The company reported that its net income, excluding one-time items, slipped to $800,000 during second quarter 2004, compared to the same period last year when net income hit $3.1 million. However, one-time items lifted second quarter 2004 net income for New Skies to $19.5 million. That boost came from a one-time cash payment of $32 million by Intelsat Ltd. to New Skies as part of an orbital slot coordination agreement that more than offset $2.8 million in one-time costs during the period related to the purchase of New Skies by affiliates of The Blackstone Group, a private equity firm. The Intelsat payment allowed New Skies to boost its revenues for second quarter 2004 to $83.3 million, up from $54.7 million for the same period last year.

      Investors seemed largely unsurprised by the results. With New Skies awaiting final approvals to complete its sale to The Blackstone Group, the company’s stock price inched up just 0.5 percent for the week of Aug. 13-19 tracked by our Satellite News stock index. Overall, the stock prices of satellite operators listed in the index fell 3.9 percent for the week, compared to a 2.8 percent rise in the prices of the manufacturers. Those trends are a reversal of the full-year stock price movements among operators and manufacturers tracked in the index. For the past year through Aug. 19, the stock prices of public satellite operators collectively rose 7.4 percent, compared to a 0.8 percent dip in the prices of the manufacturers.

      With the closing of PanAmSat’s sale expected shortly after press time and New Skies’ purchase anticipated by year-end, fewer publicly traded operators will remain to give industry observers insights into industry trends. For now, it seems clear that transponder price-cutting is hurting the results for virtually all fixed satellite services operators worldwide.

      Paul Dykewicz is senior editor and senior analyst of Satellite News. He can be reached at 301/354-1769 or at pdykewicz@accessintel.com.

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