PanAmSat Posts Sharp Rise in Profit

PanAmSat(SPOT Quote), a maker of satellite communications equipment, reported a sharp rise in fourth-quarter earnings Tuesday but said revenue fell from year-ago levels because of slack demand for its video services.

The Wilton, Conn.-based company posted a net profit of $23.5 million, or 16 cents a share, up from $3.2 million, or 2 cents a share last year. Wall Street analysts, on average, were expecting the company to earn 13 cents a share, according to Thomson Financial/First Call. For the full year, PanAmSat said it earned $85 million, or 57 cents a share, nearly tripling the $30.6 million or 20 cents a share it earned last year. The results include an extraordinary loss on the early extinguishment of debt.

Like a number of its peers, PanAmSat has been hurt by a massive capacity buildup in the satellite market in recent months. Total revenue for the quarter fell to $196.8 million from $203.7 million. Analysts were expecting revenue of $200.8 million. Overall video services revenues decreased by 3.2% to $127.6 million in the fourth quarter, compared with $131.8 million a year earlier. ...