Iridium confirms new satellite launch date By: Alan Burkitt-Gray Published on: Tuesday, May 02, 2017
http://bit.ly/2p3sLfO
In this short article, here are the stand-outs, with my comments below………….
“As first new satellites in two decades go into service, Iridium says SpaceX will launch another 10 at end of June Iridium has put the first 10 of its new satellites into service and has announced the date for launching the second 10 of the complete fleet of 75. SpaceX launched the first 10 Iridium Next satellites on 14 January, at the beginning of a programme (1) to replace all of the company’s 20-year-old fleet with modern equipment. All of those have been tested and have moved into service, replacing 10 of the old satellites. Scott Smith, chief operating officer at Iridium, said: “Conducting multiple slot swaps to replace a network of this magnitude is an incredible task … We have been preparing for this process for years, and since first launch (2) the team has worked non-stop to manage each manoeuvre to successfully integrate the new satellites into the active network.” SpaceX plans to launch satellites 11-20 on 29 June. The private company, run by electric car entrepreneur Elon Musk, is running behind schedule because of a launch-pad explosion last September. (3)Iridium expects to complete its replacement programme by the middle of 2018. Iridium said last week that it (4) expects total service revenue to be growing at 3-5% a year this year and that it will reach $440 million to $465 million for the full year 2019. “
(1) Iridium is currently servicing its clients on technology that is 20 years old. They are lucky to still be in business IMO given the quantum leaps forward in technology over that time!
(2) Obviously the satellites are not autonomous like our diamonds and need to be fully controlled from ground station(s).
(3) By mid 2018 they will be reeling from the impact of SAS in the marketplace. They won’t know what hit them!
(4) Great expectations, but if nothing else provide an indication of their estimated growth in a market where they are yet to feel the impact of an SAS tsunami.
Some interesting Iridium facts……… From Iridium website FAQ
"As of December 31, 2015, we had 244 full-time employees."
Correct me if I am wrong but my understanding is that SAS will need only employ 20-30 full-time personnel once the company is fully operational with its 200+ Nano satellite ‘Diamond Necklace’
"Iridium share price on the NASDAQ as of yesterday 2nd May was $10.70 usd".
Even though NASDAQ share prices in general are inflated to buggery thanks to the Fed Reserves massive input of fake dollars, it’s still not bad considering its earnings. They’ll be getting cents in the dollar in a few years from now when SAS is in full swing.
"No, we have never declared or paid a cash dividend for our common stock, nor do we expect to pay any cash dividends for our common stock in the foreseeable future."
Sanity prevails! IMO there is nothing that retards a company’s growth more than the stupidity of providing stockholders with a dividend. If you are holding SAS with expectations that you will be getting any ‘dividend’ down the road….. forget it! If you want some benefit ($$$) from the company, go to the market and sell some shares.
Iridium Announces First-Quarter 2017 Results; Company Affirms 2017 and Long-Range Outlook
27th April - http://bit.ly/2pD5kvS
"Net income was $37.9 million, or $0.30 per diluted share, for the first quarter of 2017, as compared to $28.5 million, or $0.23 per diluted share, for the first quarter of 2016.
Iridium reported first-quarter total revenue of $104.4 million, which consisted of $81.8 million of service revenue and $22.7 million of revenue related to equipment sales and engineering and support projects.
The Company ended the quarter with 869,000 total billable subscribers, which compares to 788,000 for the year-ago period and is up from 850,000 for the quarter ended December 31, 2016. Total billable subscribers grew 10% year-over-year, driven by growth in M2M and government customers. –
Here is a company in the same satellite telecommunications market as us that has 869,000 subscribers clinging to 20year old technology and paying through the nose for their outdated service! They generated “$81.8 million of service revenue” in last 4 x months ($327+mill PA) –
NOTE - SAS won’t be involved in selling equipment which would create a whole new set of added expenses & headaches. SAS business MO is smart, lean and highly profitable, focusing on what they do best!
“Capital expenditures were $48.9 million for the first quarter and primarily related to spending for the Company's next-generation satellite constellation, Iridium NEXT. “ Boeing and a cast of 1,000’s should do very nice, milking Iridium over the next 3 years to the tune of billions of dollars!
“…….approximately $3 billion construction cost of Iridium NEXT”
I must admit I am not really one for reading financial reports, but reading this one and having SAS in the back of my mind, got me pretty excited!
These guys at Iridium are up for one hell of a rude awakening once our equatorial ‘diamond necklace’ starts glistening!
