Iridium Communications Inc. (NASDAQ:IRDM) Q3 2016 Earnings Conference Call - Final Transcript

Oct 27, 2016 • 08:30 am ET


Iridium Communications Inc. (NASDAQ:IRDM) Q3 2016 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Iridium Third Quarter 2016 Earnings Conference Call. [Operator Instructions]. Later we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions].

I would now like to introduce your host for today's conference, Vice President of Investor Relations, Ken Levy. Please begin.

Ken Levy

Thanks, David. Good morning and welcome to Iridium's third quarter 2016 earnings call. Joining me on today's call are our CEO, Matt Desch; and our CFO, Tom Fitzpatrick. Today's call will begin with a discussion of our third quarter results followed by Q&A. I trust you've had an opportunity to review this morning's earnings release, which is available on the Investor Relations section of Iridium's website.

Before I turn things over to Matt, I'd like to caution all participants that our call this morning may contain forward-looking statements with the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical fact but include statements about future expectations, plans, and prospects. Such forward-looking statements are based upon our current beliefs and expectations and are subject to risks, which could cause actual results to differ from forward-looking statements.

Such risks are more fully disclosed in our filings with the SEC. Our remarks today should be considered in light of such risks. Any forward-looking statements represent our views only as of today and while we may elect to update our forward-looking statements at some point in the future, we specifically disclaim any obligation to do so even if our views or our expectations change.

During the call, we'll also be referring to certain non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with Generally Accepted Accounting Principles. Please refer to today's earnings release and the Investor Relations section of our website for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures.

With that, let me turn things over to Matt.

Matt Desch

Thank you, Ken, and good morning, everyone. As I'm sure you read in our press release, Iridium enjoyed another quarter of strong subscriber growth and we raised the bottom-end of our full-year guidance to reflect the underlying strength of our core business.

I want to begin today with the topic on everyone's mind. The first launch of our Iridium NEXT satellites. We've been on hold since SpaceX's launch pad incident at Cape Canaveral eight weeks ago and have been following the investigation closely to determine when SpaceX will be able to return to flight. From our participation on the accident investigation team, we believe that SpaceX is conducting a very thorough process, tracking down all possible leads, evaluating every piece of data, and exhausting every option. I will leave it to SpaceX to provide the official updates on the investigation.

Gwynne Shotwell has said a number of times recently that SpaceX still expects to have a couple of launches in 2016 which presumably includes ours. Until they formally clear the rocket for launch and