LOS ANGELES-Hughes Electronics Corp. said its first-quarter revenues increased 26.1 percent to $1.3 billion from $1.02 billion during the first quarter of 1997. Earnings more than doubled to $53.7 million, or 13 cents per share, from $23.9 million, or 6 cents per share, during the corresponding period last year.
“This is an impressive report card for Hughes’ first full quarter of operations as a satellite and wireless communications company,” said Michael T. Smith, chairman and chief executive officer of Hughes.
Hughes Network Systems Inc. recorded revenues of $184.7 million, compared with revenues of $182.5 million during the same period last year. Increased sales of private business networks and satellite-based mobile telephony equipment were mostly offset by lower sales of international wireless local loop telephone systems, said the company.
The division reported an operating loss for the quarter of $11.9 million, compared with an operating loss of $15.3 million during the first quarter of 1997. The lower operating loss, said Hughes, was primarily due to higher revenues and profits on satellite-based mobile telephony equipment.
The company’s satellite services business had revenues of $193 million, up 51.3 percent from revenues of $127.6 million the prior year. The company attributed revenue growth in part to the May 1997 PanAmSat Corp. merger.
Revenues in the company’s satellite manufacturing business increased 11.6 percent to $624.3 million from revenues of $559.3 million during the first quarter last year. The increase was principally due to higher commercial satellite sales to customers such as ICO Global Communications, Thuraya Satellite Telecommunications Co. and PanAmSat.
