WASHINGTON-Iridium L.L.C. reported second-quarter financial results of little surprise to anyone, fulfilling all expectations.
Net loss for the quarter was $244.7 million, or $1.74 per class 1 interest. Its six-month net loss totaled $448.3 million, or $3.19 per class 1 interest.
Costs incurred and capitalized for the communications systems assets came to $128 million. Since inception, that figure has reached $3.3 billion. In the quarter, Iridium completed its remaining launches, including in-orbit spares, and now claims 72 satellites in low earth orbit.
The company reported delays in the development of its satellite software, which will result in a shorter subscriber trial period and could mean a delay in handset deliveries, as vendors Motorola Inc. and Kyocera cannot test devices without the software in place. However, Iridium said it expects enough Motorola handsets to satisfy initial demand.
Deployment of gateway ground stations and business offices remains on schedule, and operational trials for voice services have been tested successfully in 10 gateway territories. Business systems hardware and software has been installed in all 15 planned gateway business offices, nine of which have completed software acceptance testing and are ready for commercial operation, Iridium said, as is the Iridium Clearinghouse center where worldwide call records will be processed. The only gateway not complete is in China.
The company has secured 195 distribution partners in more than 86 countries, 75 percent of its intended market. Finally, Iridium launched a global advertising and marketing campaign to prepare for its Sept. 23 service launch.
Iridium stock price was at $21.25 at press time.
