[11-08-11] EchoStar Corp<\/b>. generated a 42 percent, year-over-year increase in its 2011 fiscal third quarter revenues at $863 million, but the company\u2019s profit margin dipped into a net loss of $19 million after reporting a $5.2 million profit during the corresponding period in 2010, according to its latest financial results issued Nov. 7.
\n EchoStar\u2019s sister company Dish Network<\/b> also increased its 2011 third quarter revenues to $3.6 billion \u2014 a 12.3 percent increased compared with $3.21 billion in the same period last year. Unlike EchoStar, Dish Network\u2019s profits fared extremely well during the period, jumping 30.3 percent from the 2010 third quarter to $319 million.
\n Dish Network President and CEO Joe Clayton said the U.S.-based pay-TV operator narrowed its net subscriber loss from the previous quarter, but continued to be, \u201caffected by increased competitive pressures, including aggressive competitive promotional offers, discounting and a weak housing market. Going forward, we plan to build on the momentum of our introduction of the Blockbuster-branded programming service which allows Dish customers to stream movies and TV shows as well as receive DVDs by mail,\u201d Clayton said in a statement, referring to EchoStar\u2019s acquisition of Blockbuster earlier this year.
\n EchoStar said that Dish Network purchased fewer digital set-top boxes and related components from the company as a result of Dish Network\u2019s higher-than-normal inventory levels during the third quarter. EchoStar also warned that that Dish Network\u2019s revenue could be lower in the future than it has been in the past. \u201cThis decrease could have a material adverse effect on our results of operations. In addition, to the extent that Dish Network\u2019s gross subscriber additions continue to decrease or Dish Network continues to experience a net loss of subscribers, sales of our digital set-top boxes and related components to Dish Network may further decline, which in turn could have a further material adverse effect on our financial position and results of operations,\u201d EchoStar management said in a Nov. 7 filing with the U.S. Securities and Exchange Commission (SEC).
\n EchoStar depends on Dish Network hardware orders for a majority of its revenues. While EchoStar said that any decreases in Dish Network subscriber growth would impact its future performance, \u201c[those losses] may be offset in the near-term by an increase in sales to Dish Network resulting from the upgrade of Dish Network subscribers to advanced products such as high-definition (HD) receivers and HD DVRs, as well as by the upgrade of Dish Network digital set-top boxes to new technologies, such as MPEG-4 digital compression technology.\u201d
\n While EchoStar said it expects to continue to providing satellite services to Dish Network for the foreseeable future, its satellite capacity requirements may, \u201cchange for a variety of reasons, including the launch of its own additional satellites,\u201d according to the filing.
\n EchoStar CEO Michael Dugan said he believes the international markets provide the best opportunities for developing potential new customers for its EchoStar Technologies business in the near-term. \u201cWe expect our performance in international markets to be a significant factor in determining whether we will be able to generate revenue and income growth in future periods,\u201d Dugan said in a statement. \u201cIn particular, we have noticed an increase in new market entrants, primarily located in Asia, that offer low cost set-top boxes, including set-top boxes that are modeled after our products or products of our principal competitors. The entry of these new competitors may result in pricing pressure in international markets that we hope to enter. If market prices in international markets are substantially reduced by such new entrants, it may be difficult for us to make profitable sales in international markets.\u201d
\n Dugan added that in order for the company to expand revenues in its EchoStar Satellite Services business, it must displace incumbent suppliers that often benefit from long-term contracts. The company could achieve this through a service acquisition. \u201cAs a result, to grow our EchoStar Satellite Services business we may need to develop or otherwise acquire access to new satellite-delivered services so that we may offer differentiated services to prospective customers,\u201d Dugan said. \u201cIn addition, as our satellite fleet ages, we will be required to evaluate replacement alternatives such as acquiring, leasing or constructing additional satellites, with or without customer commitments for capacity.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
[11-08-11] EchoStar Corp. generated a 42 percent, year-over-year increase in its 2011 fiscal third quarter revenues at $863 million, but the company\u2019s profit margin dipped into a net loss of $19 million after reporting a $5.2 million profit during the corresponding period in 2010, according to its latest financial results issued Nov. 7. EchoStar\u2019s […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[2],"tags":[],"class_list":["post-83989","post","type-post","status-publish","format-standard","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/83989"}],"collection":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/comments?post=83989"}],"version-history":[{"count":0,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/83989\/revisions"}],"wp:attachment":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media?parent=83989"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/categories?post=83989"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/tags?post=83989"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}