XM Satellite Radio

XM Satellite Radio agreed to sell its XM-4 satellite to a trust owned by Satellite Leasing LLC and will lease back capacity aboard the spacecraft, XM said in a Feb. 13 filing with the U.S. Securities and Exchange Commission.

XM received net proceeds of $288.5 million from the transaction, which "was the result of months of extensive negotiations and preparation, and follows the receipt of the XM-4 in-orbit test reports in January and the placement last week of additional insurance." XM used $44 million to retire outstanding mortgages, and the remainder will be used for working capital and general corporate purposes.

The sale-leaseback transaction completes the recapitalization plan XM began in April, the company said.

XM will lease the capacity under a nine-year agreement that contains an early buy-out option in year five and a buy-out option at the end of the term. XM will have full operational control over the transponders for the lease term.

XM-4, was placed into orbit in October and is part of the company’s new two-satellite system. The spacecraft, along with XM-3, are expected to provide XM’s services through the next two decades. The second-generation spacecraft replace XM’s two original satellites, which suffered from power problems.

Eutelsat

Eutelsat reported revenues of 415.3 million euros ($545.7 million) for the second half of 2006, the company announced Feb. 15. The revenues represented an increase of 5.2 percent over the same period in 2005.

Eutelsat credited the growth to video applications, which now account for 70 percent of overall revenues. In the second half of 2006, revenues from video applications were 289.8 million euros ($380.8 million), an increase from 255.5 million euros ($335.8 million) in the same period of 2005.

Other segments struggled: In data and value-added services, revenues dropped to 81.6 million euros ($107.2 million) in the last half of 2006, down from 86.6 million euros ($113.8 million) during the same period of 2005.

Gilat

Gilat Satellite Networks Ltd. reported revenues of $248.7 million and a profit of $10.5 million in 2006, the company announced. In 2005, Gilat lost $3.7 million on revenues of $209.4 million.

"We concluded a strong year on both the financial and business fronts," Amiram Levinberg, Gilat’s chairman and CEO, said in a statement. "We see growth opportunities in our existing markets driven mainly by universal service projects in emerging markets and business continuity in developed countries. In 2007, we plan to enter into new government segments and add broadband wireless access solutions to our product portfolio."

Integral Systems

Integral Systems Inc. recorded revenues of $27.4 million in its 2007 first quarter, down $1.8 million from the same period a year ago, the company announced. Net income slipped from $3.1 million in the 2006 first quarter to $2.1 million in the most recent three months.

The declines were attributed to decreased shipments in the Space Communications Systems segment, increased bid and proposal costs, legal costs associated with the previously disclosed informal inquiry by the U.S. Securities and Exchange Commission, and costs associated with the pursuit of strategic alternatives.

"While our first quarter performance was down compared to our first quarter in 2006, bookings were strong and we should see the benefits of these bookings in the latter part of the year" Peter Gaffney, Integral’s CEO, said in a statement. "But I expect our bid and proposal costs to continue at a level that’s higher than normal while we continue to pursue the GPS program and while proposal activity at RT Logic remains at an increased level. These activities do impact our bottom line in the near term, but there is a lot of work we’re pursuing that we are well positioned to win."

TerreStar

TerreStar Networks Inc., a majority-owned subsidiary of Motient Corp., closed on the sale of $500 million in aggregate principal amount of its 15 percent senior secured notes due 2014, TerreStar reported Feb. 15.

TerreStar plans to use $72 million of the proceeds to repay debt held by Motient and the remainder for working capital and general corporate purposes, including the buildout of its integrated satellite and terrestrial network.

Eagle Broadband

Eagle Broadband Inc., a national provider of broadband, Internet protocol (IP) and digital communications technology and services, received notice from the American Stock Exchange (Amex) indicating that the staff of the Amex Listing Qualifications Department chose to reject the company’s plan to regain compliance with the Amex stockholders’ equity requirement for continued listing, Eagle Broadband reported Feb. 14.

The notice indicated that Eagle Broadband’s common stock would have been subject to delisting unless the company requested a hearing before a listing qualifications panel; the company’s subsequent request will now stay the delisting action until the company has opportunity to present its plan to evidence compliance with all applicable listing requirements to the panel.

While there is no assurance that the panel will grant the company’s request for continued listing, Dave Micek, president and CEO of Eagle Broadband, said "we look forward to meeting with the panel and presenting our updated plan."