Iridium execs defend Q1 losses

NEWS Troubled satellite mobile phone company, Iridium, put on a brave face today after performing well below expectations in its 1999 Q1 results. The company reported a loss of $505m, 14.7 per cent higher than the previous quarter. Executives blamed lower than expected revenues of $1.45m on a transition phase where customers were testing the viability of Iridium's performance. They also blamed delays in the manufacturing of handsets and the lack of enough well trained and equipped salespeople. The firm has only managed to gain 10,924 subscribers since its launch - still a long way below the 52,500 customers it needs to meet the conditions of the extension of its bank debt. Iridium executives admitted they have a lot of work to do, but pre-empted criticism by saying they are initiating aggressive sales activity and will halt expenditure in areas not generating revenue. Paradoxically, Iridium shares rose 2.3 per cent on Nasdaq following the announcement. Reports say the strong performance of Iridium executives in front of press and analysts helped shore up confidence in the company.