Iridium Communications reported strong financial results for the first quarter of 2011 and updated its outlook for the full-year 2011.
Net income was $8.3 million for the first quarter of 2011, as compared to a net loss of $1.3 million for the first quarter of 2010. Operational EBITDA for the first quarter was $43.1 million, as compared to $33.5 million for the prior-year period, representing year-over-year growth of 29 % and an OEBITDA margin of 47%. OEBITDA benefited from solid growth in commercial service, government service and equipment revenue.
Iridium reported first-quarter total revenue of $91.3 million, which consisted of $61.2 million of service revenue and $30.1 million of equipment and engineering and support revenue. Total revenue grew 12% versus the comparable period of 2010, while service revenue increased 12 % from the year-ago period. Service revenue, which represents primarily recurring revenue from Iridium’s growing subscriber base, was 67% of total revenue for the first quarter of 2011.
The company ended the quarter with 447,000 total billable subscribers, which compares to 359,000 for the year-ago period and 427,000 for the quarter ended December 31, 2010. Total billable subscribers grew 25% year-over-year, driven by ongoing strength in machine-to-machine (“M2M”) data, handheld voice, Netted Iridium and Iridium OpenPort customers.
Capital expenditures were $56.2 million for the first quarter and primarily related to spending for the company’s next-generation satellite constellation, Iridium NEXT, and upgraded ground network infrastructure at its commercial gateway.
The company ended the first quarter with cash equivalents balance of $103.9 million and gross debt of $183.4 million. Net debt was $79.5 million.