Iridium Communications today reported a decline in net income, but an increase in revenue for the third quarter.
Net income was $10.7 million for the quarter that ended Sept. 30, compared with $15 million for the comparable period in 2009. Third-quarter net income included $12.3 million of non-cash expenses for purchase accounting adjustments, net of tax, related to GHL Acquisition Corp.'s acquisition of the predecessor. The comparable period in 2009 had no purchase accounting adjustments.
Iridium reported third-quarter revenue of $94.5 million. The company had $62.7 million in service revenue and $31.8 million in equipment and engineering and support revenue. Total revenue grew 12 percent from the comparable period in 2009. Service revenue grew 10 percent from the year-earlier period.
Service revenue, which represents recurring revenue from Iridium's growing subscriber base, was 66 percent of total revenue for the third quarter this year.
The company ended the quarter with 413,000 billable subscribers, which compares with 339,000 for the year-earlier period and 383,000 for the quarter that ended June 30, 2010.