This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Iridium Announces Fourth-Quarter And Full-Year 2012 Results; Company Issues 2013 Outlook And Updates Long-Range Guidance

MCLEAN, Va., Feb. 28, 2013 (GLOBE NEWSWIRE) -- Iridium Communications Inc. (Nasdaq:IRDM) ("Iridium") today reported financial results for the fourth quarter of 2012 and issued its outlook for the full-year 2013. Net income was $16.7 million, or $0.19 per diluted share, for the fourth quarter of 2012, as compared to $8.4 million, or $0.11 per diluted share, for the fourth quarter of 2011. Net income increased 99 percent year-over-year, benefiting from a $5.8 million reduction in depreciation expense due to an extension of the estimated useful life of the Company's current satellite constellation. Operational EBITDA ("OEBITDA") (1) for the fourth quarter was $52.3 million, as compared to $44.3 million for the prior-year period, representing year-over-year growth of 18 percent and an OEBITDA margin (1) of 57 percent. OEBITDA benefited from growth in commercial service revenue and lower operating costs.

Iridium reported fourth-quarter total revenue of $92.3 million, which consisted of $66.8 million of service revenue and $25.5 million of equipment, engineering and support revenue. Total revenue declined 3 percent versus the comparable period of 2011, while service revenue was unchanged from the year-ago period. Total revenue declined largely due to a $2.4 million reduction in engineering and support revenue, which is an episodic, low-margin revenue stream related to government engineering projects. Service revenue, which represents primarily recurring revenue from Iridium's growing subscriber base, was 72 percent of total revenue for the fourth quarter of 2012 as compared to 70 percent in the year-ago period.

The Company ended the quarter with 611,000 total billable subscribers, which compares to 523,000 for the year-ago period and is up from 595,000 for the quarter ended September 30, 2012. Total billable subscribers grew 17 percent year-over-year, driven by strength in machine-to-machine ("M2M") and commercial voice customers.

"Our satellite network is healthy and continues to serve our customers well," said Matt Desch, CEO, Iridium. "The Iridium NEXT build is on budget and slightly ahead of schedule. Our partners continue to innovate around the industry's most robust product portfolio, meeting the needs of customers across a diverse spectrum of business lines. Highly profitable service revenue grew to represent 71% of total revenue in 2012, while our operating cash flow margin expanded from 50% to 54%, which is well on the way to our 2015 objective of 60%. While our annual service revenue growth of 4% fell short of our full-year target, the long-term growth potential of our business remains intact."

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,160.64 -12.04 -0.07%
S&P 500 1,994.45 +0.16 0.01%
NASDAQ 4,534.5630 +6.8740 0.15%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs