Iridium Communications Inc. reported consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported total revenue of $89,189,000 against $93,474,000 for the same period last year. Operating profit was $25,338,000 against $14,088,000 for the same period last year. Earnings before income taxes were $22,483,000 against $11,469,000 for the same period last year. Net income attributable to common stockholders was $13,184,000 against $12,418,000 for the same period last year. Operational EBITDA was $46,847,000 against $43,865,000 for the same period last year. Capital expenditures were $19,244,000 against $34,791,000 for the same period last year. Net debt was $412,139,000 against $253,502,000 a year ago. Operational EBITDA benefited from growth in commercial service revenue and lower operating costs. Total revenue declined largely due to 20% lower equipment revenue resulting from fewer overall unit sales. The company affirmed its full-year 2013 earnings outlook. The company continues to expect total service revenue growth between 8% and 10%, OEBITDA to be between $215 million and $225 million.

Iridium Communications Inc. announced it has signed an agreement with Harris Corporation to enable the use of expanded hosted payload space on the Iridium NEXT platform, Iridium's second-generation satellite constellation that is scheduled for launch beginning in early 2015. This deal marks yet another example of the innovation and leadership Iridium has demonstrated in hosted payloads through Iridium NEXT. The agreement provides for "hosting fees" for Iridium NEXT resources that will be utilized when launched into orbit on Iridium's new satellites, further extending the ongoing partnership between the two companies. The amount of hosting fees could be up to $45 million depending on Harris securing contracts with customers, and on the final configuration and resources utilized. The total amount won't be finalized until all payloads are launched on Iridium NEXT, scheduled to be complete in 2017.

Iridium Communications Inc., Q1 2013 Earnings Call, May 02, 2013