Hughes Communications 1Q profit falls on higher costs
GERMANTOWN, Md.—Broadband satellite company Hughes Communications Inc. said Wednesday its first-quarter profit fell 77 percent on higher costs.
Profit fell to $656,000 or 3 cents per share from $2.9 million or 15 cents per share.
The company paid $8.5 million into an employee retention plan relating to a 2005 acquisition.
Operating expenses rose to $227.9 million from $211.3 million, including a rise in the cost of services to $94.2 million from $80.2 million. Selling, general and administration costs rose to $49.2 million from $38.3 million.
Sales rose to $237.2 million from $222.9 million.
Germantown, Md.-based Hughes provides broadband communications through its own satellite network.
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