[Satellite TODAY Insider 03-09-11] Iridium Communications reported a 16 percent increase in its 2010 fourth-quarter revenues to $87.9 million compared with the same period in 2009, driven by strong gains in service and equipment revenues of $60.1 million and $27.8 million, respectively, the company announced in its latest financial results, issued March 7.
    Iridium CEO Matt Desch said the company’s 13 percent service revenue increase in the fourth quarter primarily was driven from recurring revenue generated by the mobile operator’s growing subscriber base – representing 68 percent of the company’s total revenue intake during the quarter. The company ended 2010 with 427,000 billable subscribers, compared with 342,000 at the end of 2009.
    "With strong contributions from our commercial M2M business, which grew subscribers 60 percent year-over-year, and one of our best years ever in the government sector, we’re entering 2011 on a strong competitive footing in each of our vertical markets," Desch said in a statement.
    Iridium generated $10.1 million in net income during the 2010 fourth quarter, compared with a net loss of $5 million for the comparable period of 2009. The company’s net income would have been higher if not for $11.9 in purchase accounting related to its acquisition by GHL Corp. Iridium, however, reduced this expense from the same period in 2009, when it spent $17.4 million on GHL purchase accounting. The company also reported $103.2 million in fourth quarter capital expenditures on upgrading the ground network infrastructure at its commercial gateway for its Iridium Next satellite constellation.
    Operational EBITDA for the 2010 fourth quarter was $42.3 million, compared with $30.2 million for the same quarter last year. Desch attributed this growth to gains in commercial service, government service and equipment revenues. "Government service revenue increased by 15 percent during the quarter, primarily driven by growth in satellite handset and Netted Iridium subscribers. We have grown in the last several years from a niche supplier to an integral element in the U.S. government communications infrastructure. Our 13 percent growth in commercial service revenue was primarily supported by a strong gain in Iridium OpenPort and M2M customers. In summary, Iridium is healthy and strong, and we’ll continue to make the right decisions to support recurring service revenue growth and operating cash flow expansion."
    At the end of the fourth quarter, Iridium’s total debt stands at $37.4 million. Desch affirmed Iridium’s previously issued full-year 2011 outlook at 20 percent growth in billable subscribers, 10 percent to 13 percent growth in service revenues and an equipment revenue decline of between 15 percent and 30 percent.

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