Company: IRDM
Filing Date: 2025-04-22
Form Type: 10-Q
Source: 0001628280-25-018712
Chunk: 30

Company: Iridium Communications Inc.
Filing Date: 2025-04-22
Form: 10-Q
Item: Part I, Item 8
Chunk 30
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 engineering and support services$1.6 $1.1 $0.5 Government engineering and support services35.8 29.3 6.5 Total engineering and support services$37.4 $30.4 $7.0 

Engineering and support service revenue increased by $7.0 million, or 23%, for the three months ended March 31, 2025, compared to the prior year period, primarily due to increased work under certain government contracts.

Operating Expenses

Cost of Services (exclusive of depreciation and amortization)

Cost of services (exclusive of depreciation and amortization) includes the cost of network engineering and operations staff, including contractors, software maintenance, product support services and cost of services for government and commercial engineering and support service revenue.

Cost of services (exclusive of depreciation and amortization) increased by $2.3 million, or 5%, for the three months ended March 31, 2025 from the prior year period, primarily as a result of the increase in work under certain government projects, as noted above. 

Cost of Subscriber Equipment

Cost of subscriber equipment includes the direct costs of equipment sold, which consist of manufacturing costs, allocation of overhead, and warranty costs.

Cost of subscriber equipment decreased by $1.0 million, or 7%, for the three months ended March 31, 2025, compared to the prior year period primarily due to the decrease in volume of Short Burst Data device sales, as described above. 

Research and Development

Research and development expenses decreased by $1.8 million, or 25%, for the three months ended March 31, 2025, compared to the prior year period based on lower spending on device-related features for our network, including our multi-year project to develop standards-based Narrowband-Internet of Things (NB-IoT) and Non-Terrestrial Network (NB-NTN) messaging and SOS capabilities for smartphones, tablets, cars and related consumer applications. 

Selling, General and Administrative 

Selling, general and administrative expenses that are not directly attributable to the sale of services or products include sales and marketing costs, as well as employee-related expenses (such as salaries, wages, and benefits), legal, finance, information technology, facilities, billing and customer care expenses.

Selling, general and administrative expenses decreased by $1.1 million, or 3%, for the three months ended March 31, 2025, compared to the prior year period, primarily due to