Tuesday, May 13, 2008 11:48:46 PM
Tuesday May 13, 9:08 pm ET
Satellite TV equipment company swings to profit in 1st-qtr on 24 percent increase in revenue
ENGLEWOOD, Colo. (AP) -- EchoStar Corp., a satellite service and TV equipment company, said Tuesday it swung to a profit in the first quarter on higher revenue but warned its substantial unused satellite capacity could affect margins.
The company, a spinoff from Dish Network Corp., also said it has suspended construction of a satellite pending a review of performance criteria and may record an impairment charge of up to $100 million.
EchoStar Chief Executive Officer Charlie Ergen declined to be more specific about issues with the satellite but said the company hopes to put it to use eventually.
During a conference call with analysts, Ergen said EchoStar has a lot of available satellite capacity at a time when the market is soft. The company plans to expand its sales force to help increase business, he said.
"There continue to be customers that potentially need capacity but there's also competitors out there that have capacity," he said. "We're all fighting for the same mouth to feed."
EchoStar said in a Securities and Exchange Commission filing that costs associated with the available satellite capacity could result in future impairment charges that could aggregate up to $250 million.
For the quarter that ended March 31, EchoStar reported a $5.7 million profit, or 6 cents a share, which compared with a net loss of $18.5 million, or 21 cents a share, in the year-ago quarter.
Revenue totaled $555 million in the first quarter, up from $448 million in the first quarter of 2007.
Analysts surveyed by Thomson Financial estimated, on average, that EchoStar would post a profit of 1 cent a share on revenue of $494.6 million.
The company sells equipment to Dish Network satellite television subscribers and operates fixed satellite services. It was separated from Dish Network in January.
EchoStar shares slipped 7 cents to $31.47 Tuesday.
On the Net: http://www.echostar.com
Recent SATS News
- U.S. Futures Slightly Dip Amid Corporate Earnings and Quiet Economic Calendar, Oil Prices Fall • IH Market News • 05/08/2024 12:29:17 PM
- EchoStar Announces Financial Results for the Three Months Ended March 31, 2024 • PR Newswire (US) • 05/08/2024 11:30:00 AM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/08/2024 10:02:02 AM
- EchoStar Corporation Announces Conference Call for First Quarter 2024 Financial Results • PR Newswire (US) • 05/02/2024 08:05:00 PM
- Cox Media Group and DISH Reach A Multi-Year Deal and Restore Stations • GlobeNewswire Inc. • 04/28/2024 12:35:36 AM
- Hughes Opens State-of-the-art Manufacturing Facility and Private 5G Incubation Center in Maryland • PR Newswire (US) • 04/26/2024 11:00:00 AM
- Boost Mobile and Deion "Coach Prime" Sanders Team Up on New Partnership Featuring a Limited-Edition Boost-Exclusive Coach Prime Device • PR Newswire (US) • 04/10/2024 12:00:00 PM
- Hughes Awarded Production Contract by GA-ASI to Connect Gray Eagle UAS with Next Gen Satellite Communications • PR Newswire (US) • 04/08/2024 11:00:00 AM
- Rewards Opens to All Sling Freestream Users and Subscribers • PR Newswire (US) • 04/02/2024 01:00:00 PM
- Hughes Enables Worldwide LEO Connectivity with Eutelsat OneWeb Approval of New ESA • PR Newswire (US) • 04/02/2024 11:00:00 AM
- Gogo Testing for Global Broadband Antenna Achieves Major Milestone • PR Newswire (US) • 03/28/2024 11:01:00 AM
- DoD Extends Contract for ORAN-based Private 5G Networks through 2025 • PR Newswire (US) • 03/18/2024 11:00:00 AM
- Nilesat Selects Hughes JUPITER System to Deliver Satellite Broadband Connectivity in Egypt • PR Newswire (US) • 03/15/2024 11:00:00 AM
- EchoStar Completes Nationwide Drive Test for Boost Wireless Network, Completing All 2023 FCC Commitments • PR Newswire (US) • 03/14/2024 03:41:00 PM
- SLING TV Unveils New Auto Record Feature Ahead of March Madness • PR Newswire (US) • 03/14/2024 01:00:00 PM
- Hughes JUPITER 3 Satellite Delivering a New Era of Connectivity • PR Newswire (US) • 03/14/2024 12:00:00 PM
- RCSC Selects Hughes JUPITER System to Help Bridge the Digital Divide in Kazakhstan • PR Newswire (US) • 03/13/2024 12:00:00 PM
- Buxton Helmsley Issues Letter to U.S. Senators Warren and Whitehouse Related to Apparent EchoStar Accounting and Securities Fraud, Including Failure to Correct $15B Equity Value Overstatement • Business Wire • 03/11/2024 03:34:00 PM
- SLING TV Delivers a Watch and Play Experience with Classic Arcade Games • PR Newswire (US) • 03/06/2024 02:00:00 PM
- DISH Media Expands Addressable TV Advertising Footprint Through Exclusive Collaboration with Philo • PR Newswire (US) • 03/06/2024 02:00:00 PM
- SLING TV Expands its Rewards • PR Newswire (US) • 03/05/2024 02:00:00 PM
- Form SC TO-I - Tender offer statement by Issuer • Edgar (US Regulatory) • 03/04/2024 10:28:33 PM
- EchoStar Announces Financial Results for the Three and Twelve Months Ended December 31, 2023 • PR Newswire (US) • 03/01/2024 02:32:00 AM
- EchoStar Corporation Announces Conference Call for Fourth Quarter and Full Year 2023 Financial Results • PR Newswire (US) • 02/27/2024 12:00:00 PM
- VMware Telco Cloud Service Assurance Provides DISH Wireless with Detailed Network Insights and Automation • GlobeNewswire Inc. • 02/27/2024 07:01:00 AM
VAYK Discloses Strategic Conversation on Potential Acquisition of $4 Million Home Service Business • VAYK • May 9, 2024 9:00 AM
Bantec's Howco Awarded $4.19 Million Dollar U.S. Department of Defense Contract • BANT • May 8, 2024 10:00 AM
Element79 Gold Corp Successfully Closes Maverick Springs Option Agreement • ELEM • May 8, 2024 9:05 AM
Kona Gold Beverages, Inc. Achieves April Revenues Exceeding $586,000 • KGKG • May 8, 2024 8:30 AM
Epazz plans to spin off Galaxy Batteries Inc. • EPAZ • May 8, 2024 7:05 AM
Moon Equity Holdings, Corp. Announces Acquisition of Wikolo, Inc. • MONI • May 7, 2024 9:48 AM