(MENAFN- ProactiveInvestors - N.America) Iridium Communications Inc. (Nasdaq:IRDM) posted strong growth in first quarter earnings as government use of its space-based network increased.
The satellite operator also repeated its guidance for this year and on a longer term horizon.
Total service revenue growth will be between 4% and 6% for the full-year 2016 with underlying profits between [OEBITDA] between US$245-$255mln compared to US$234mln.
In the latest quarter net income rose to $28.5mln or $0.23 per diluted share in the three months to January from US$21mln or $0.17 per diluted a year ago.
Matt Desch chief executive said: 'We delivered solid revenue growth in the first quarter in spite of continued macro-economic headwinds affecting our commercial business.'
Underlying profits [OEBITDA] rose 16% to US $60.7mln on higher government service revenue increased sales of subscriber equipment and lower manufacturing costs.
Revenues rose by 7% to US$104.2 mln made up of $79.8mln of service revenue up 6% and $24.4mln of equipment sales and engineering support.
Subscribers rose by 5% to 788000 and from 782000 at end December on growth in machine-to-machine (M2M) and government customers.
Desch added that satellite replacement and the introduction of new business services was now the focus with the launch of SpaceX this summer.
Work the first Iridium NEXT satellites was also now complete and production is ramping up well.
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