[Satellite Today 06-04-09] Iridium Satellite reported a 41.9 percent decline in net income to $9.7 million in its 2009 first quarter financial report, released June 3.
    The company’s equipment revenues declined to $20.5 million during the first quarter, a 34.3 percent drop from the previous year. However, total revenue for the quarter was up 2 percent to $75.8 million from $74.3 million in 2008.
    Iridium CEO Matt Desch said the drop in net income is primarily due to increased expenses related to Iridium Next, the company’s next-generation satellite constellation. According to Iridium, net income dropped 83 percent in the fourth quarter of 2008, driven by Iridium Next development expenses.
    The report also revealed strengths in the company’s performance. Iridium’s subscriber base grew 31.2 percent from prior year quarter to 328,000. Desch said he expects Iridium’s operational EBITDA to grow in the range of 11 percent to 20 percent to produce between $120 million and $130 million on low single-digit revenue growth during 2009.