Welcome!

News Feed Item

EchoStar Announces 4th Quarter and Fiscal Year 2013 Earnings and Strategic Business Transaction

ENGLEWOOD, Colo., Feb. 21, 2014 /PRNewswire/ -- EchoStar Corporation (NASDAQ: SATS) today reported total revenue of $808 million for the quarter ended December 31, 2013 compared to $786 million for the corresponding period in 2012. Total revenue for the fiscal year ending December 31, 2013 was $3,282 million compared to $3,122 million for the corresponding period in 2012.

EchoStar reported net income attributable to EchoStar shareholders of $4.5 million and diluted earnings per share of $0.05 for the quarter ended December 31, 2013, compared with net income attributable to EchoStar shareholders of $26.2 million and diluted earnings per share of $0.28 during the corresponding period in 2012. For the fiscal year ending December 31, 2013, net income attributable to EchoStar shareholders was $2.5 million and diluted earnings per share was $0.03 compared to net income attributable to EchoStar shareholders of $211 million and diluted earnings per share of $2.40 for the corresponding period in 2012.

EchoStar also announced today that it has reached agreement with DISH Network Corporation (NASDAQ: DISH) for a strategic transaction, effective March 1, 2014. EchoStar and its subsidiaries will receive five satellites along with related liabilities for in-orbit incentive payments to the manufacturers of certain of those satellites, and approximately $11 million in cash from DISH in exchange for two issues of preferred tracking stock (the "Preferred Tracking Stock"). The Preferred Tracking Stock will track the residential retail satellite business of Hughes Network Systems, LLC, ("Hughes"), a wholly owned subsidiary of EchoStar, including certain operations, assets, and liabilities related to such business (collectively, the "Hughes Retail Group" or "HRG"). As of December 31, 2013 the HRG had approximately 635,000 U.S. retail satellite broadband subscribers. EchoStar and DISH have entered into a long-term operating lease agreement for transponder services to DISH on the satellites to be received by EchoStar and its subsidiaries

Key highlights of the strategic transaction include:

  • The DISH owned satellites being transferred to EchoStar are EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV. The satellites together have an estimated weighted average remaining useful life of approximately nine years. As a result, EchoStar's owned and leased fleet will expand to a total of 17 satellites.
  • EchoStar is expecting to generate approximately $145 million of incremental revenue from the new satellites in 2014.
  • DISH will receive Preferred Tracking Stock that represents 80% of the economic value of HRG, while EchoStar will retain the remaining 20% of the aggregate economics of HRG.
  • EchoStar will continue to own all assets associated with the delivery of its satellite broadband service including Spaceway 3 and EchoStar XVII, its high capacity, next-generation broadband satellite and will retain all of the economics associated with the provisioning and management of the satellite broadband service offering, including wholesale services.
  • Hughes will continue to manage and conduct the day-to-day business of the HRG.
  • The exchange of the satellites from DISH for the Preferred Tracking Stock is expected to be a tax free transaction for EchoStar.

Deutsche Bank acted as the sole financial advisor to EchoStar in the strategic business transaction, and White & Case LLP acted as EchoStar's legal advisor.

Detailed financial data and other information are available in EchoStar's Form 10-K for the year ended December 31, 2013 filed today with the Securities and Exchange Commission.

EchoStar will host its fourth quarter 2013 financial results conference call today at 11:00 a.m. ET. The dial-in numbers are 1-877-815-1625 (US) and 716-247-5178 (International), Conference ID # 59461644.

This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. When used in this release, the words "believe," "anticipate," "estimate," "expect," "intend," "project," "plans," and similar expressions and the use of future dates are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made. These statements are subject to certain risks, uncertainties, and assumptions. See "Risk Factors" in EchoStar's Annual Report on Form 10-K for the year ended December 31, 2013, filed today with the Securities and Exchange Commission and in the other documents EchoStar files with the Securities and Exchange Commission from time to time.

About EchoStar
EchoStar Corporation (NASDAQ: SATS) is a premier global provider of satellite operations and video delivery solutions. EchoStar's wholly-owned subsidiary, Hughes, is the world's leading provider of satellite broadband services, delivering network technologies and managed services for enterprise and government customers in more than 100 countries.

Headquartered in Englewood, CO, with additional business units world-wide, EchoStar is a multiple Emmy award-winning company that has pioneered advancements in the set-top box and satellite industries for nearly 30 years, consistently delivering value for customers, partners and investors through innovation and outstanding quality. EchoStar's contribution to video technology continues to have a major influence on the way consumers view, receive and manage TV programming. EchoStar's consumer solutions include HughesNet®, North America's #1 high-speed satellite Internet service, Sling Media's Slingbox® products, and EchoStar's line of set-top box products for the free-to-air satellite and terrestrial markets.

For more information, visit www.echostar.com

SOURCE EchoStar Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...
Internet of @ThingsExpo, taking place June 6-8, 2017 at the Javits Center in New York City, New York, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo New York Call for Papers is now open.
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
SYS-CON Events announced today that Catchpoint, a leading digital experience intelligence company, has been named “Silver Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Catchpoint Systems is a leading Digital Performance Analytics company that provides unparalleled insight into your customer-critical services to help you consistently deliver an amazing customer experience. Designed for digital business, C...
“DevOps is really about the business. The business is under pressure today, competitively in the marketplace to respond to the expectations of the customer. The business is driving IT and the problem is that IT isn't responding fast enough," explained Mark Levy, Senior Product Marketing Manager at Serena Software, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed ...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smart...
WebRTC sits at the intersection between VoIP and the Web. As such, it poses some interesting challenges for those developing services on top of it, but also for those who need to test and monitor these services. In his session at WebRTC Summit, Tsahi Levent-Levi, co-founder of testRTC, reviewed the various challenges posed by WebRTC when it comes to testing and monitoring and on ways to overcome them.