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Iridium Announces Q3 2017 Govt Services Revenue, Subscribers; Matt Desch Comments

Matt Desch

Iridium Communications (Nasdaq: IRDM) recorded $22 million in government service revenue with 95,000 government subscribers during the third quarter of 2017.

Iridium said Thursday government data and voice subscribers rose 14 percent to 40,000 during the third quarter ended Sept. 30, compared with the same period last year.

The McLean, Virginia-based satellite communications provider has a five-year, $400 million fixed-price contract with the Defense Information Systems Agency for satcom services and a $38 million gateway maintenance and support contract with the Defense Department.

The company also saw a year-over-year increase of 18 percent in machine-to-machine data subscribers that accounted for 48 percent of Iridium’s government subscribers.

Iridium CEO Matt Desch said the company recorded a 4 percent rise in commercial service revenue in the third quarter of 2017 driven by equipment sales increase and demand for internet of things-based satellite services.

“Large storms in Florida, Texas and Puerto Rico demonstrated the criticality of Iridium’s communications network as thousands of Iridium devices were deployed by first responders and relief organizations to provide aid in impacted areas,” added Desch, an inductee into Executive Mosaic’s Wash100 for 2017.

He also noted that the company’s fourth batch of 10 Iridium NEXT satellites is set to take off on Dec. 22 aboard a SpaceX rocket from Vandenberg Air Force Base in California.

The third set of Iridium NEXT satellites that launched in early October will all enter service in preparation for the deployment of Iridium Certus broadband service offering in 2018, Desch said.

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