Iridium Holdings this week reported an 11.2 percent decrease in net income for the third quarter; a drop to $15 million from $16.9 million in the same period of 2008.
The results, in part, reflected acquisition-related expenses. Excluding these, net income would have increased $6.8 million or 36 percent, the company said.
The results were reported by Iridium Communications for its operational predecessor, Iridium Holdings for the third quarter. These results do not reflect the financial results of Iridium Communications.
On Sept. 29, GHL Acquisition Corp. completed its acquisition of Iridium and changed its name from GHL Acquisition Corp. to Iridium Communications Inc.
The commercial service revenue increased 23 percent to $43.9 million in the third quarter, compared to $35.7 million during the third quarter of 2008. Government service revenue increased 2.1 percent to $19.4 million in the third quarter period compared to $19 million for the 2008 period.
Subscriber equipment revenue for the third quarter declined 37 percent to $21.1 million compared to $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 dropped 4.3 percent to $84.4 million in the third quarter from $88.2 million in the third quarter of 2008.
"Iridium grew its subscriber base and generated strong recurring revenue in the third quarter, despite a weak global economy," said Matt Desch, CEO of the company, in a statement.
"With the completion of the acquisition, we've achieved a significant milestone towards providing the resources to support the continued growth of the company. Our full focus now is on growing and serving our subscriber base, growing our revenue stream, and finalizing our plans to develop and launch our next generation constellation, Iridium Next," he added.