Xtar Posts Improved Six-month Results
PONTE VEDRA, Fla. — U.S.-Spanish satellite operator Xtar LLC, which sells X-band capacity on two satellites to U.S., Spanish and other allied government users, reported increased revenue and a reduced operating loss for the six months ending June 30, Xtar majority owner Loral Space and Communications said.
In an Aug. 8 filing with the U.S. Securities and Exchange Commission (SEC), New York-based Loral also said it had subjected the long-struggling Xtar business to an impairment test in June and concluded that the Xtar business did not require a write-down by Loral.
Herndon, Va.-based Xtar is 56 percent owned by Loral, with Hisdesat Servicios of Spain owning the remaining 44 percent. Xtar operates the Xtar-Eur satellite at 29 degrees east and is obligated to lease 7.2 72-megahertz transponders on the Xtar-Lant satellite located at 30 degrees west.
Loral and Hisdesat had previously agreed that lease payments owed by Xtar for the Xtar-Lant capacity would be stretched out to permit Xtar to continue building its business.
Loral said it conducted its impairment test in June to determine whether its forecast of future Xtar business should be reduced, and the investment written down. The test concluded that Xtar’s forecasts of its future growth remain valid.
Loral said Xtar reported $16.5 million in revenue for the six months ending June 30, up 12.2 percent over the same period last year. The company’s operating loss was $5 million, compared with $6.7 million a year ago.