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Iridium Communications… Financially Speaking…

Iridium logo (3) Iridium Communications Inc. (NASDAQ: IRDM) reported financial results for its operational predecessor, Iridium Holdings LLC (“Iridium”), for the period from July 1, 2009 through September 29, 2009 (the “third quarter period”).These results do not reflect the financial results of Iridium Communications Inc. On September 29, 2009, GHL Acquisition Corp. completed its acquisition of Iridium and changed its name from GHL Acquisition Corp. to Iridium Communications Inc. The Company is now traded on the NASDAQ Global Market. The following financial results for the third quarter period demonstrate Iridium’s operating strength despite the global economic downturn.
  • Operational EBITDA increased 28.4 percent to US$38.4 million in the third quarter period from US$29.9 million in the third quarter of 2008.
  • Net income decreased 11.2 percent to US$15.0 million in the third quarter period from US$16.9 million in the third quarter of 2008 which, in part, reflected acquisition-related expenses of US$10.5 million and US$1.8 million respectively. Excluding these expenses, net income would have increased US$6.8 million or 36 percent.
  • Subscribers were up 16.1 percent to approximately 359,000 at the close of the third quarter period from approximately 309,000 at the close of the third quarter of 2008.
  • Commercial service revenue increased 23.0 percent to US$43.9 million in the third quarter period compared to US$35.7 million during the third quarter of 2008.
  • Government service revenue increased 2.1 percent to US$19.4 million in the third quarter period compared to US$19.0 million in the third quarter of 2008.
  • Subscriber equipment revenue for the third quarter period declined 37.0 percent to US$21.1 million compared to US$33.5 million in the third quarter of 2008. The Company believes that this is due, in large part, to the downturn in the global economy, which disproportionately impacted equipment sales.
  • Overall revenue decreased 4.3 percent to US$84.4 million in the third quarter period from US$88.2 million in the third quarter of 2008.
To read the entire financial report, access this direct link.