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Iridium Communications Inc (IRDM)

  • Thu, Oct. 29, 12:53 PM
    | Thu, Oct. 29, 12:53 PM | Comment!
  • Thu, Oct. 29, 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.
    • Press Release
    | Thu, Oct. 29, 9:22 AM | Comment!
  • Thu, Jul. 30, 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.
    • Press Release
    | Thu, Jul. 30, 10:36 AM | 1 Comment
  • Thu, Apr. 30, 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.
    • Press release
    | Thu, Apr. 30, 10:43 AM | Comment!
  • Thu, Feb. 26, 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.
    • Press release
    | Thu, Feb. 26, 8:33 AM | Comment!
  • Wed, Feb. 11, 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.
    | Wed, Feb. 11, 9:59 AM | 1 Comment
  • May 20, 2014, 10:13 AM
    • Raymond James has upgraded Iridium (IRDM +5.1%) to Strong Buy from Outperform. Its PT is at $10.
    • Macquarie upgraded the satellite network owner last week. Both moves come after Iridium raised $170M in gross proceeds through common/preferred stock offerings.
    | May 20, 2014, 10:13 AM | Comment!
  • 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 12, 2014, 9:24 AM | Comment!
  • 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 9, 2014, 9:25 AM | Comment!
  • May 5, 2014, 9:11 AM
    | May 5, 2014, 9:11 AM | 1 Comment
  • 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.
    | May 5, 2014, 8:27 AM | 1 Comment
  • May 1, 2014, 9:03 AM
    • Iridium's (IRDM) commercial sub base grew by 8K Q/Q and 51K Y/Y to 621K, and its government sub base grew by 2K Q/Q and Y/Y to 53K.
    • Commercial voice/data ARPU was $43, down $4 Q/Q but unchanged Y/Y. Commercial M2M ARPU was $16, unchanged Q/Q and Y/Y.
    • Commercial service revenue rose 7% Y/Y to $57.4M, government revenue 6% to $16M, equipment revenue 16% to $20.2M, and engineering/support revenue 45% to $4.4M.
    • Operational EBITDA rose 10% Y/Y (in-line with revenue growth) to $51.6M; OEBITDA margin was 53%. Iridium is reiterating its 2014 and long-term service revenue and OEBITDA forecasts (provided on Feb. 27).
    • Q1 results, PR
    | May 1, 2014, 9:03 AM | 1 Comment
  • Feb. 27, 2014, 2:41 PM
    • Investors are pleased with Iridium's (IRDM +9.9%) guidance for an 8%-12% service revenue CAGR from 2014-2018, and its 60% 2018 OEBITDA margin target (2013 OEBITDA margin was 53%).
    • Iridium is also guiding for 2%-4% service revenue growth in 2014; the consensus for total revenue growth, which also accounts for equipment and engineering/support revenue, is at 4.9%. OEBITDA is expected to grow to $205M-$215M from 2013's $201.1M.
    • Q4 commercial service revenue (62% of total revenue) rose 18% Y/Y in Q4 with the help of a 15% increase in voice/data ARPU to $47. M2M ARPU was unchanged at $16.
    • Billable commercial subs totaled 613K at the end of Q4, up 9K Q/Q and 53K Y/Y. Voice/data subs totaled 340K, and M2M subs 273K.
    • Government service revenue +3% Y/Y, billable subs unchanged at 51K. Equipment revenue -28% (lower phone sales), engineering/support revenue +66%.
    • The satellite network owner expects to pay "negligible" cash taxes until approximately 2020.
    • Q4 results, PR, CC transcript
    | Feb. 27, 2014, 2:41 PM | Comment!
  • Dec. 23, 2013, 2:51 PM
    • SA Pro author Buy the Dip, Sell the Rip notes Iridium (IRDM +3.5%) trades at a mere 60% of book value, something deemed unjustified given the company has been "solidly profitable" the last three years, and has major growth opportunities in the form of its Aireon traffic surveillance venture  and NEXT satellite constellation (launching in 2015).
    • Among other things, the author notes Iridium has landed a series of major contracts this year, stands to benefit from growing DoD reliance on commercial satellites, and thinks NEXT's technology benefits, limited competition, and (debt-based) financing structure will help Iridium deliver long-term growth and margin expansion.
    • Shares rallied on Friday in response to news that Aireon, which has agreed to pay large hosting and data service fees to Iridium, is receiving $120M in fresh funding.
    | Dec. 23, 2013, 2:51 PM | 2 Comments
  • Dec. 20, 2013, 2:29 PM
    • Iridium's (IRDM +6.4%) Aireon venture, provider of (according to Iridium) the world's first air traffic surveillance system to rely on satellites, is receiving $120M in investments from three air navigation service providers: Denmark's Navair, Italy's ENAV, and the Irish Aviation Authority. (PR)
    • The investments have strings attached: They'll give the investors preferred interests, will be provided in tranches from 2014-2017, and require Aireon to redeem part of Iridium's stake in the company, likely in 2018. Following the redemption, Iridium will have only a 24.5% stake in Aireon. NAV Canada will own 51%.
    • But Iridium may be less interested in its equity stake than its ability to profit from sales to Aireon. In tandem with the investments, Aireon has promised to pay Iridium in hosting fees for placing receiver payloads on Iridium NEXT satellites, and nearly $300M in data service fees through 2030.
    • Aireon declares its solution, which allows air traffic surveillance to be extended to oceans and remote areas, will deliver "increased efficiencies and fuel savings" for airlines.
    | Dec. 20, 2013, 2:29 PM | 2 Comments
  • Nov. 27, 2013, 5:39 PM
    After-hours Top Gainers, as of 5:15 p.m.: DSS +10.1%. EGY +2.8%. VALE +2.3%. PRMW +1.6%. SM +1.5%.
    After-hours Top Losers, as of 5:15 p.m: FTNT -4.5%. UYM -4.3%. VPFG -4%. IRDM -3.8%. DLNG -3.2%.
    | Nov. 27, 2013, 5:39 PM | Comment!
Company Description
Iridium Communications Inc offers voice and data communications services and products to businesses, U.S. and international government agencies and other customer. It provides mobile voice & data communications services via satellites.