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Q2 2015 results reported by Iridium

Iridium Communications has issued its financial results for the second quarter of 2015, reporting net income of $26 million on total revenue of $101.9 million.

{mprestriction ids="1,2"}This total revenue figure consisted of $78 million of service revenue and $23.9 million of equipment, engineering and support revenue. Total revenue declined 1 per cent versus the comparable period in 2014, however service revenue was up 2 per cent from the same period last year.

Service revenue was 77 per cent of total revenue for the second quarter of 2015, from 766,000 total billable subscribers. Total billable subscribers grew 9 per cent year-over-year, driven by growth in machine-to-machine (M2M) customers, the company said.

Commercial service revenue, which includes the maritime segment, was $60 million, largely unchanged from last year's comparable period.

Commercial voice and data subscribers increased 2 per cent from Q2 2014, to 359,000 customers, while commercial voice and data average revenue per user (ARPU) was $41, down 7 per cent from last year's comparable period, primarily due to foreign currency impacts and lower airtime usage.

Commercial M2M data subscribers grew 15 per cent from the year-ago period to 342,000 customers, with the M2M data ARPU of $15 representing a decrease from the $17 in last year's results.

Iridium's commercial business ended the quarter with 701,000 billable subscribers, compared to 650,000 for the prior-year quarter. M2M data subscribers represented 49 per cent of billable commercial subscribers.

Looking ahead, Iridium CEO said that the company was also making solid progress on its next generation constellation, Iridium NEXT, with a first launch still expected by the end of the year.

“The satellite platform software testing is 100 per cent complete, our team is making good progress on payload testing and they've validated the performance of voice and data calls on the new network architecture,” he said.

“We continue to move the initial space vehicles through low-rate production and have successfully integrated the first Aireon payload with the satellite platform. However, a subsystem supplier is reworking an important hardware component related to the Ka-band satellite links, which is pushing our initial launch on the Dnepr rocket out two months to December.”

“We also have full faith and confidence that SpaceX will be able to meet our launch requirements, and we still expect Iridium NEXT will be fully deployed in 2017.”{/mprestriction}

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