Iridium Communications, a satellite-communications provider, posted a 42% rise in second-quarter profit despite a 1% dip in revenue amid “challenging” market conditions.
The publicly traded (Nasdaq:IRDM) company, based in McLean, Va., reported quarterly net income of $26 million, or 21 cents per diluted share. That compared with $15 million, or 14 cents per diluted share, in the year-earlier period.
“2015 has shaped up to be a more challenging year than we expected,” CEO Matt Desch said. “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 (machine to machine) results. Despite these hurdles, we believe the foundation of our long-range growth trajectory remains intact.”
Desch said the company continues to believe SpaceX can meet Iridium’s launch requirements for the deployment of its next-generation communications satellites in 2017. The sats will form the Iridium NEXT constellation.
“We’re driving solid progress in our Iridium NEXT program, as we approach the launch of our first two new satellites,” Desch said. “The satellite platform software testing is 100% complete (and) our team is making good progress on payload testing.”
Hawthorne, Calif.-based SpaceX also has said it remains confident of its launch schedule, despite short-term delays caused by the company’s June 28 rocket explosion.
Iridium shares rose modestly following release of the financial results June 30. The stock has been trading toward the far lower end of a 52-week range of $7.24-$11.36.