Iridium and Boeing Restructure Relationship to Help Ensure Smooth Transition into the Iridium NEXT Era
November 30 2016 - 7:30AM
Iridium Communications Inc. (NASDAQ:IRDM) announced today the
restructuring of its longstanding operations and maintenance
relationship with Boeing. Under the agreement, Iridium is
expected to hire the majority of the Boeing team that currently
supports Iridium by performing operations and maintenance on
Iridium’s satellites, beginning January 3, 2017. In addition,
Iridium will enter into a separate development services contract
with Boeing. This change comes as Iridium NEXT, the
Company’s next-generation satellite constellation, nears its first
launch and the start of the transition to a new Iridium® satellite
constellation. Iridium will more directly manage its network and
optimize operational expenses going forward, while the new
development contract will dedicate key Boeing personnel to continue
the design and growth required for bringing new services and
capabilities into the Iridium NEXT era.
“The Boeing operations team has been an
incredibly vital group to Iridium since the year 2000, and we are
excited to welcome them into the Iridium employee family,” said
Matt Desch, chief executive officer at Iridium. “Many of them have
been supporting Iridium since the launch of Iridium’s original
network, and it is only fitting that they join Iridium as employees
to ensure the successful operation, maintenance and development of
our next-generation global network.”
This group of individuals helped launch the
world’s largest and only truly global commercial low-earth orbit
(LEO) satellite constellation, and played an integral role in
maintaining its performance for nearly two decades, helping Iridium
grow to nearly 840,000 subscribers. This team also has the most
real-world experience in operating a commercial LEO constellation.
Additionally, they helped develop innovative ways to expand
network capabilities over the years such as advancing functionality
from voice to broadband and machine-to-machine (M2M) data services,
ultimately creating new capabilities and services for partners.
“This transition will help ensure a seamless
continuation of ground and operational support, by both companies,
for Iridium’s current and next-generation constellation,” said Mark
Spiwak, president for Boeing Satellite Systems International.
“Boeing is proud to have been central to Iridium’s operational
success over the years and is pleased that we will continue to be a
part of its future.”
Affected Boeing employees currently working on
operations and maintenance of the Iridium satellite constellation
will be offered positions within Iridium and are expected to join
Iridium as employees in January, timed to help usher the Company
into this new chapter in its history with Iridium NEXT. For
more information about Iridium NEXT, please visit
www.iridium.com.
About Iridium Communications
Inc.
Iridium is the only mobile voice and data
satellite communications network that spans the entire globe.
Iridium enables connections between people, organizations and
assets to and from anywhere, in real time. Together with its
ecosystem of partner companies, Iridium delivers an innovative and
rich portfolio of reliable solutions for markets that require truly
global communications. The company has a major development program
underway for its next-generation network — Iridium NEXT. Iridium
Communications Inc. is headquartered in McLean, Va., U.S.A., and
its common stock trades on the NASDAQ Global Select Market under
the ticker symbol IRDM. For more information about Iridium
products, services and partner solutions,
visit www.iridium.com.
Forward Looking Statements
Statements in this press release that are not
purely historical facts may constitute forward-looking statements
as defined in the Private Securities Litigation Reform Act of 1995.
The Company has based these statements on its current expectations
and the information currently available to us. Forward-looking
statements in this presentation include statements regarding the
hiring of Boeing employees, and the timing for deployment,
development and capabilities of the Iridium NEXT constellation.
Forward-looking statements can be identified by the words
“anticipates,” “may,” “can,” “believes,” “expects,” “projects,”
“intends,” “likely,” “will,” “to be” and other expressions that are
predictions or indicate future events, trends or prospects. These
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of Iridium to differ materially from
any future results, performance or achievements expressed or
implied by such forward-looking statements. These risks and
uncertainties include, but are not limited to, uncertainties
regarding the hiring and on-boarding of former Boeing employees,
potential delays in the Iridium NEXT deployment, and the company’s
ability to maintain the health, capacity and content of its
satellite constellation, as well as general industry and economic
conditions, and competitive, legal, governmental and technological
factors. Other factors that could cause actual results to differ
materially from those indicated by the forward-looking statements
include those factors listed under the caption “Risk Factors” in
the Company’s Form 10-K for the year ended December 31, 2015, filed
with the Securities and Exchange Commission (the “SEC”) on February
25, 2016, as well as other filings Iridium makes with the SEC from
time to time. There is no assurance that Iridium’s expectations
will be realized. If one or more of these risks or uncertainties
materialize, or if Iridium's underlying assumptions prove
incorrect, actual results may vary materially from those expected,
estimated or projected. Iridium's forward-looking statements speak
only as of the date of this press release, and Iridium undertakes
no obligation to update forward-looking statements.
Press Contact:
Diane Hockenberry
Iridium Communications Inc.
+1 (703) 287-7421
Diane.hockenberry@iridium.com
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