Iridium Communications: Stock Reaching Critical Mass
Darspal S Mann
Darspal S Mann
Short Iridium Communications: Set To Unravel As Current Constellation Nears End Of Life
AC Capital Management • 18 Comments
AC Capital Management • 18 Comments
Thu, Jul. 28, 1:57 PM
- After floating around its 52-week high over the past couple of weeks, Iridium Communications (NASDAQ:IRDM) is 4.4% lower today after Q2 profits missed after growing just 3.5% Y/Y.
- Operational EBITDA was $62.5M, up 3%. OEBITDA margin was 57%. Service revenue made up 76% of total revenue.
- Revenue breakout: Commercial service, $61.5M (up 2.4%); Government service, $22M (up 22%); Subscriber equipment, $20.4M (up 8.5%); Engineering and support service, $5.3M (up 4.1%).
- Iridium ended the quarter with 823,000 billable subscribers, vs. a year-ago 766,000 and last quarter's 788,000, with growth driven by government customers and machine-to-machine.
- The company affirmed its full-year outlook for service revenue growth of 4-6% and OEBITDA of $245M-$255M (vs. 2015's $234M). In the long view, it sees service revenue of $420M-$465M for full 2018, with OEBITDA margin of about 60%.
- Press Release
Thu, Feb. 25, 11:30 AM
- Iridium Communications (NASDAQ:IRDM) is trading 9% lower after Q4 earnings fell short despite EBITDA growth on higher government revenues and lower manufacturing costs.
- The company recorded a $69.4M GAAP net loss, along with a noncash goodwill impairment of $87M. Operational EBITDA of $56.8M, up 10% Y/Y, was in line.
- Revenue breakout: Service revenue, $82.4M (up 5%); Equipment sales and engineering/support projects, $24M.
- Billable subscribers at quarter's end were 782,000, up from a year-ago 739,000 (due to machine-to-machine and government customer growth) and up from Q3's 781,000.
- It's guiding to 2016 total service revenue growth of 4-6%, and OEBITDA of $245M-$255M. Looking out further (past completion of Iridium NEXT in 2017), it still sees total service revenue of $420M-$465M for 2018 -- up $317M from 2015.
- Conference call link
Thu, Feb. 18, 7:04 PM
- Iridium Communications (NASDAQ:IRDM) gained another 2.9% today, bringing it to an 11% five-day gain during a week of news where it started work on a next-generation satellite handset and signed up new partners for a push-to-talk platform.
- Today, the company won an $8.57M task order from the Defense Information Systems Agency to modernize a dedicated Iridium gateway.
- Aside from general improvements, the work will increase preparation for the Iridium NEXT configuration, its new-generation satellite constellation. That's scheduled to begin launches this year and finish up in late 2017.
Wed, Feb. 17, 11:40 AM
- Iridium Communications (IRDM +6.4%) has named several new partners to spread its satellite push-to-talk service to all global regions and add new applications for the service.
- The walkie-talkie modeled service is growing with the addition of MVS Group, S4Si International, Latin America leader Tesacom, and Trace Systems as service provider partners.
- New development partners for the service include Atlantic Radio Telephone, Beam Communications, Borsight, Flightcell, Lars Thrane, Latitude Technologies, NAL Research, Qinetiq, Skytrac, Rockwell Collins and Thales. Development partners will provide for an open ecosystem, the company suggest, rather than a push-to-talk service limited to satellite handsets.
- New interoperability solutions allow Iridium's PTT service to be integrated with terrestrial PTT systems, including land mobile radio.
Dec. 22, 2015, 5:46 PM
- Count Iridium Communications (NASDAQ:IRDM) among the winners from the success of the SpaceX Falcon9 launch/return.
- Shares climbed steadily throughout the day on above-average volume to finish 7.4% higher. Orbcomm, whose satellites went into orbit on SpaceX's rocket, closed up 10.4%.
- A SpaceX launch failure in June had raised concerns that delays could creep into the launch of Iridium's own next-generation satellite network, originally set for late this year and to run through 2017.
- The NEXT constellation has 66 satellites that Iridium had been building in Arizona, along with spares.
Oct. 29, 2015, 12:53 PM
Oct. 29, 2015, 9:22 AM
- Iridium (NASDAQ:IRDM) is up 7.7% premarket after posting Q3 results that beat on top and bottom lines as government service revenue increased and the company cut costs on some products.
- Operational EBITDA was $63.8M, up 9% Y/Y, with a margin of 60%.
- Revenue by segment: Service revenues, $81.2M (down fractionally); Equipment, engineering and support, $24.8M (down 4%).
- Total billable subscribers were 781,000, up 7.6% Y/Y and up 2% sequentially.
- Iridium affirmed full-year outlook for total service revenue growth of 1-3% and operational EBITDA of about $230M. Looking further out, it reiterated expectations of total service revenue between $420M-$465M for 2018 (up $309.4M from 2014) and operational EBITDA margin of about 60% by then.
Jul. 30, 2015, 10:36 AM
- Iridium Communications (NASDAQ:IRDM) is up 1.2% after posting a Q2 where it beat top-line expectations but cut guidance for 2015 and long-range in a "more challenging year than we expected," says CEO Matt Desch.
- Profits rose 73% Y/Y, and EPS of $0.21 beat an expected $0.19. Operational EBITDA of $61M beat an expected $55.6M. Revenues dropped and missed expectations slightly, though.
- Revenue by segment: Service revenue, $78M (up 2%); equipment, engineering and support, $23.9M.
- Total billable subscribers rose to 766K, from Q1's 748K and a year-ago 705K, with growth in machine-to-machine customers.
- For 2015, the company cut its expected service revenue growth to 1-3% from a previous 3-6%, and EBITDA of $230M (down from $230M-$240M) due to "ongoing macroeconomic headwinds. Our voice market continues to be pressured by a strong dollar and weakness in the energy sector, and we're also seeing reduced oil and gas activity now impact our M2M results."
- It lowered its long-term outlook as well, seeing service revenue for full-year 2018 of $420M-$465M (down from $420M-$485M), but affirmed its guidance on EBITDA margin of about 60%, negligible cash taxes and net leverage for 2018 of about 4x EBITDA.
Apr. 30, 2015, 10:43 AM
- Iridium Communications (NASDAQ:IRDM) has slipped 4.1% after missing on top and bottom lines for Q1, as a drop in equipment sales ate up gains in service revenues.
- EBITDA grew 2% to $52.5M, mainly due to higher government service revenue and lower warranty costs, but missed an expected $54.3M.
- Revenues by segment: Commercial service, $57.4M (flat); government service, $18M (up 12.5%); subscriber equipment, $16.5M (down 18%); engineering and support service, $5M (up 13%).
- Q1 ended with 748K total billable subscribers, up 11% from a year-ago 674K primarily on strength in machine-to-machine customers.
- The company affirmed full-year guidance of total service revenue growth of 3%-6%, and operational EBITDA to be between $230M-$240M.
Feb. 26, 2015, 8:33 AM
- Iridium Communications (NASDAQ:IRDM) is up 2.9% in premarket trading after beating on top and bottom lines in Q4 and guiding to steady service revenue growth in the coming year.
- Operational EBITDA of $51.8M grew 4% and beat an expected $49.5M.
- Breaking out $100.5M in revenue: Service revenue, $78.2M (up 2%); equipment, engineering and support revenue, $22.3M.
- Total billable subscribers grew 11% Y/Y and 1.8% sequentially to 739K, driven mainly by machine-to-machine and commercial voice customers.
- Commercial voice/data subscribers grew 4% to 354K, with an ARPU of $43 (down 9% mainly on one-time Q4 benefit); commercial machine-to-machine data ARPU of $16 (flat).
- Government business ended quarter with 60K subs, up 17%.
- The company guided for 2015 service revenue growth between 3% and 6%, and to full-year operational EBITDA of $230M-$240M, in line. It expects equipment revenue ($17.1M in Q4, up 8%) won't grow in 2015 as a strong dollar dampens commercial handset sales.
- Conference call at 8:30 a.m. ET.
Feb. 11, 2015, 9:59 AM
- Iridium (IRDM +4.9%) will be replacing Digital River in the S&P MidCap 400 after Friday's close.
- Teledyne (TDY +2.8%) will be replacing Covance in the S&P 400 after the Feb. 18 close, and Popeyes (PLKI +4.5%) will concurrently take Teledyne's spot in the S&P SmallCap 600.
- Digital River and Covance are both set to be acquired.
May 20, 2014, 10:13 AM
May 12, 2014, 9:24 AM
- Macquarie has upgraded Iridium (IRDM) to Outperform, and lifted its PT by $1.50 to $8.50. The firm is pleased with the satellite network owner's recent stock offerings.
- Iridium rallied on Friday after pricing a $55M common stock offering, and a $125M convertible preferred stock offering. The offerings followed the sale of $50M in shares to mutual fund manager Baron.
May 9, 2014, 9:25 AM
- Iridium (IRDM) is selling 7.38M shares of common stock at $6.10 (slightly below yesterday's $6.13 close), and 500K shares of 6.75% convertible preferred stock at $250. Underwriters have an overallotment option covering up to 1.1M shares of common stock.
- Iridium expects gross proceeds of $170M. Shares fell on Monday after Iridium announced the offerings, along with a $50M stock sale to fund manager Baron at a price of $6.50/share.
May 5, 2014, 9:11 AM
May 5, 2014, 8:27 AM
- Iridium (IRDM) is offering $45M worth of common stock and $125M worth of convertible preferred stock, and is directly selling $50M worth of common stock to mutual fund manager Baron at a price of $6.50.
- The convertible stock has an offering price of $250/share, and a liquidation preference at the same level.
- Iridium suggests it might use some of the proceeds to help finance its NEXT satellite constellation (expected to launch in 2015). The company had $255.2M in cash/investments at the end of March, and $1.1B in debt.
- Shares jumped last week following a strong Q1 report.
Iridium Communications, Inc. provides mobile voice and data communications services to businesses, the U.S. and foreign governments, non-governmental organizations and consumers using a constellation of low-earth orbiting satellites. Its satellite network provides communications services to... More
Industry: Communication Equipment
Country: United States