iridium results

This was posted on iridium website last night.
FUL still own about 7%
FUL is a little unloved at the moment but that may change.

Iridium® Satellite Announces Second Quarter 2007 Results
Data Services Driving Significant Subscriber Gains; Next-Generation Constellation "Iridium NEXT" Now in RFI Stage

BETHESDA, Md., July 27 /PRNewswire/ -- Iridium® Satellite LLC announces that it had 203,000 subscribers worldwide as of June 30, 2007, a 27.7 percent increase over the second quarter 2006 total of 159,000. Revenue in the quarter was $66.7 million versus $53.6 million in the same quarter last year, a 24.4 percent increase. Second quarter EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of $20.2 million was 53 percent greater than the second quarter 2006 total of $13.2 million.

Matt Desch, Iridium chairman and CEO, said, "The second quarter was exceptionally strong for Iridium with solid double-digit gains in subscribers, revenue and EBITDA. Driving these results, among other factors, was across- the-board demand for our data services, with notable recent up-ticks in the machine-to-machine (M2M) and aeronautical markets. We have also benefited from spikes in handset sales -- which were 56 percent above handset sales in the second quarter 2006 -- as we pick up many customers switching to Iridium from competitors with serious network quality issues."

Iridium attributes much of its success to its growing "ecosystem" of partners that develop, build and sell Iridium products and services. The company signed eight new partners in the quarter, including Astrium Services (a subsidiary of EADS Astrium), Blue Ocean, LogicaCMG, Microdesign, NRG Telecom, Qinetiq, Solara and Upwards Innovation.

Desch added, "This also has been a significant quarter because we are making excellent progress on the development of our next-generation constellation, 'Iridium NEXT.' We have taken the first official step towards the procurement of NEXT with the release of a Request for Information (RFI), which is attracting a lot of interesting potential partners for the design, development, and deployment of our future system."

The company noted the following highlights from the second quarter of 2007:

Strong M2M Growth

Iridium saw continued strong growth for its global satellite communications services in the M2M market, a sector the company estimates is worth $1.5 billion globally. Iridium experienced an increase of 216 percent in Short Burst Data (SBD) service revenues over the same period last year. This figure compares with a 98 percent increase in the same period from 2005 to 2006. Subscriber activations for SBD have increased 403 percent in 2007 versus 2006. These significant increases in service revenues and unit activations have occurred since Iridium launched its lower-cost 9601 SBD transceiver in December 2005. Iridium has more than 20,000 asset tracking devices deployed around the world. Average Revenue Per User (ARPU) remains strong at four times ARPU dollar amounts of Iridium's closest competitors.

Telstra Corporation awarded an eight-year contract, valued at $3.0-$3.5 million, to Beam Communications Pty Ltd to supply Iridium-based satellite equipment as part of a new interstate communication infrastructure for the Australian Rail Track Corporation Ltd (ARTC). The new rail communication system for ARTC will provide a single integrated network covering more than 10,000 kilometers of rail track nationwide through Telstra's Next G™ technology with satellite backup. Iridium also is providing worldwide satellite data links for a new asset tracking, monitoring and remote management system, the Fleet Management Solutions (FMS) MLT-300i. FMS is a manufacturer of GPS/All-Satellite mobile resource management systems in use in more than 50 countries. The FMS MLT-300i provides near real-time tracking and management for fleets of all shapes and sizes. GEOTrac International began working with the Royal Canadian Mounted Police (RCMP) to apply advanced GPS, mapping and satellite communications technology to facilitate recovery of stolen vehicles and equipment. GEOTrac's solution uses Iridium satellites to transmit location data from small GPS modules attached to the vehicles. The RCMP uses the GEOTrac system to find and recover stolen vehicles and heavy equipment.

Aeronautical Market

Iridium's subscribers in the aeronautical sector increased 59 percent over the last year. The compound annual growth rate in aeronautical subscribers over the last four years was 134 percent. Iridium recently announced that the International Civil Aviation Organization (ICAO) Council has approved draft Standard and Recommended Practices (SARPs) covering the use of Iridium for Aeronautical Mobile Satellite (Route) Service, or AMS®S. The ICAO Aeronautical Communications Council recently approved Iridium's Technical and Implementation Manuals and validated the draft SARP document. Full ICAO approval is expected in November, paving the way for rapid deployment of Iridium-based AMS®S platforms early next year to meet the anticipated demand for reliable, low-cost alternatives in safety communications for aircraft on high-latitude routes.

During the second quarter, Avionica began installation of Iridium communications systems on Continental Airlines. The company is outfitting nine B737-800 passenger aircraft for global, low-cost voice and data communications. SkyTrac Systems won a number of contracts to supply its Iridium-based automatic flight following (AFF) and satellite communication systems for major helicopter fleets around the world. SkyTrac's rapidly growing customer list includes Yellowhead Helicopters, Skyline Helicopters and Pacific Western Helicopters, Calgary City Police Air Services, Los Angeles County Fire Department and Brunei Shell Petroleum Company. Prism Helicopters, which operates a fleet of helicopters used extensively in the forestry and mineral exploration industries, selected Sky Connect's TRACKER™ and Mission Management Units (MMU) to equip its fleet with tracking, voice and text messaging via the Iridium satellite network. The Sky Connect systems are fully compliant with new Canadian Government regulations which require that aircraft used in forestry contracts be outfitted with AFF equipment.

Maritime Market

Iridium's maritime sector continues to show steady growth with the number of subscribers up 18 percent over the same time last year. Maritime traffic through the satellite network is growing at an annual rate of 12 percent. The number of ships using Iridium's prepaid Crew Calling service increased by 17 percent year over year, buoyed by the increasing number of shipowners and management companies that switched to Iridium last year.

Active Web Solutions (AWS) was honored for an innovative new search-and- rescue system which uses the Iridium satellite network to provide automated data links between vessels in distress and shore rescue centers. AWS developed the award-winning "MOB Guardian" system infrastructure on behalf of the Royal National Lifeboat Institution (RNLI). United Arab Shipping Company (UASC) said

in June that it will install Iridium satellite terminals on 29 ships, as well as at its home office in Dubai in a move to reduce monthly satellite communication costs. Exmar Shipmanagement selected the SeaWave Integrator for operational and crew communications, citing total cost of ownership and reliability as determining factors in selecting an Iridium-based satellite solution. Integrator will be used on Exmar's fleet of 25 vessels, which serve the international oil and gas industry.

Defense Market

Cumulative U.S. Department of Defense (DoD) subscribers have increased 8.7 percent over 2006. DoD integration of Iridium's SBD services has helped accelerate 2007 subscriber growth. In addition, the DoD is analyzing potential use of the Iridium satellite network as an enhancement to the Global Positioning System (GPS), which has become a vital tool for U.S. military operations. Use of Iridium's constellation would give the system more satellites, greater signal strength and added precision.

Marketing Innovation

Iridium launched multiple innovative marketing programs in the second quarter to continue to raise awareness about its offerings, in addition to competing aggressively on market pricing. Iridium launched "Test Your Satellite Phone Week" in May to coincide with the U.S. National Weather Service's National Hurricane Preparedness Week. Iridium's goal was to raise more awareness of what first responders and commanders can do to be better prepared prior to disasters and to increase satellite phone user knowledge. Iridium partners, such as Telenor, also embraced this effort by co-branding and distributing Test Your Satellite Phone Week materials, issuing press releases, and featuring the week in trade show booths and during conference panels.

Iridium announced a new North American Pricing Plan, providing prepaid packages that offered rates as low as $0.15 per minute for satellite phone calls with unrestricted roaming in North America. Through this offer, Iridium has been rewarding high-volume and mission critical users who are unhappy with other services and who demand the quality associated with Iridium.

Matt Desch added, "Our success in the second quarter and our increased relationships with valued commercial and government customers and partners are further testimony to our network availability, which measurements have found to be 99 percent."

Iridium launched a "Network Quality Guarantee" earlier in the year and has not had one customer report a claim against the guarantee.

"Iridium's ability to deliver on its guarantee makes us hands-down the number one choice when customers come to us looking for a change. We've been welcoming thousands of new customers to our service, and we look forward to serving many more," Desch concluded.

About Iridium Satellite

Iridium Satellite LLC (http://www.iridium.com/) is the only provider of truly global satellite voice and data solutions with complete coverage of the earth (including oceans, airways and Polar Regions). Iridium delivers essential communications services to and from remote areas where no other form of communication is available. The Iridium constellation consists of 66 low-earth orbiting (LEO), cross-linked satellites and has multiple in-orbit spares. The constellation operates as a fully meshed network and is the largest commercial satellite constellation in the world. The Iridium service is ideally suited for industries such as maritime, aviation, government/military, emergency/humanitarian services, mining, forestry, oil and gas, heavy equipment, transportation and utilities. Iridium provides service to the U.S. DoD. The company also designs, builds and sells its services, products and solutions through a worldwide network of more than 150 partners.

SOURCE: Iridium Satellite LLC

CONTACT: Liz DeCastro of Iridium Satellite LLC, +1-301-571-6257,
[email protected]

Web site: http://www.iridium.com/