EchoStar 2Q Net Income Drops 80 Percent
Posted on: Wednesday, 9 August 2006, 21:00 CDT
ENGLEWOOD, Colo. - EchoStar Communications Corp., the nation's second-largest satellite television provider, said Thursday its second-quarter net income plunged 80 percent mainly because of a reversal of a valuation allowance for deferred tax assets in 2005.
The Dish Network operator, which faces stiff competition from cable television, also cited an additional $14.2 million expense because of an April jury award to Tivo Inc. in a patent dispute.
EchoStar filed the results with the Securities and Exchange Commission after the market closed. Its stock had closed down $3.60 a share, or 10.3 percent, at $31.48 a share on the Nasdaq Stock Market. It rose 31 cents in after-hours trading.
For the quarter ended June 30, EchoStar reported net income of $168.8 million, or 38 cents a share, compared with net income of $855.5 million, or $1.79 a share, in the second quarter of 2005. Revenue totaled $2.5 billion up from $2.1 billion.
EchoStar said the year-over-year decrease came after a reversal of its recorded valuation allowance for deferred tax assets in the 2005 second quarter. The company said the 2005 quarter included a credit of $673.8 million resulting from the reversal.
Analysts surveyed by Thomson Financial had forecast a profit of 44 cents a share on revenue of $2.4 billion.
Subscriber-related revenue was up 16 percent to $2.4 million, while the number of subscribers rose 8.8 percent to 12.5 million, EchoStar said in the SEC filing. Monthly churn, or the number of customers who drop service, inched up 0.6 percent.
In the first six months, EchoStar reported net income of $316.1 million, or 71 cents a share, compared with $1.2 billion, or $2.46 a share, in the comparable period of 2005. Revenue was $4.75 billion, up from $4.2 billion.
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On the Net: http://www.echostar.com
Source: Associated Press/AP Online
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