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Technology Stocks : IRID - Iridium World Communications IPO Announced! -- Ignore unavailable to you. Want to Upgrade?

To: Michael T Currie who wrote (1920)	6/14/1999 11:36:00 AM
From: Marty Rubin	Respond to of 2693

"Iridium fired 15 pct of staff -- WSJ [B8]" Monday June 14, 5:01 am Eastern Time Iridium fired 15 pct of staff -- WSJ NEW YORK, June 14 (Reuters) - Satellite communications company Iridium World Communications Ltd recently fired fifteen percent of its staff of about 550 people, including most executives involved in marketing the service, the Wall Street Journal said on Monday. In May, the Washington-bsaed company, under pressure from lenders to increase revenues and subscribers, said it was aiming for a restructuring rather than bankruptcy. Iridium has struggled to meet its financial and subscriber targets required as part of its $800 million credit facility. Iridium's lenders have given the company until June 30 to grow its subscriber base to 27,000. In its electronic edition, the paper, citing people familiar with the matter said the company had only about 15,000 users. Under its credit pact, the company must also have $4 million in cash reserves and $30 million in cummulative accrued revenues. It had $1.45 million in revenues in the first quarter. Copyright © 1999 Reuters Limited. All rights reserved. (http://biz.yahoo.com/rf/990614/fr.html)

To: Michael T Currie who wrote (1920)	6/14/1999 2:15:00 PM
From: marginmike	Read Replies (1) \| Respond to of 2693

Hey many people on this and other threads expressed the problem with Iridium Business modell. When GSTRF goes online it will be over for Irid. If there were two stores next to each other, and one sold goods costing three times the price, sold old technology(tdma), and didnt even work right they would be putt out of business. Though I was tempted to buy puts when the stock was at 25(I didnt), the outcome was obvious. Irid will survive, but not until the equity is worthless.