Iridium Communications reported a decline in net income for the fourth quarter of 2011, but an increase in total revenue for the period.
The satellite communications provider reported net income of $8.4 million, or 11 cents a diluted share, for the quarter, a 17 percent decline from $10.1 million, or 14 cents a diluted share, for the same quarter in 2010.
Iridium reported fourth-quarter total revenue of $95 million, which consisted of $66.6 million of service revenue and $28.4 million of equipment, engineering and support revenue. Total revenue grew 8 percent from the comparable period in 2010 and service revenue increased 11 percent.
The company ended the quarter with 523,000 total billable subscribers, compared with 427,000 for the year-earlier period and 508,000 for the quarter that ended Sept. 30, 2011. Total billable subscribers grew 22 percent year-over-year, driven by strength across all primary product lines.
“[This year] was a record year for Iridium, as we reached important milestones for subscriber, service revenue and cash-flow growth,” CEO Matt Desch said in a statement. “Our ongoing success is rooted in having a superior network, unmatched capabilities in the highest growth segments of our market and a sustainable set of product-related competitive advantages anchored by a motivated partner channel. 2012 is shaping up to be another year of growth, as we expect to cross the $200 million operational EBITDA threshold on our way to launching Iridium Next.”
For the full year, Iridium reported net income of $39.7 million, or 54 cents a diluted share, compared with $22.7 million, or 31 cents a share, in 2010. The company reported total 2011 revenue of $384.3 million, which included $262.3 million of service revenue and $122.0 million of equipment, engineering and support revenue.
In 2012, the company expects total billable subscriber growth of 20 to 25 percent and total service revenue growth of 8 to 11 percent.