EchoStar (NASDAQ:SATS) swung to a loss in the third quarter amid sharply higher expenses from its acquisition of Hughes Communications, which weighed on its already weak profit margins.
The Englewood, Colo.-based maker of digital set-top boxes for direct-to-home satellite and cable providers said it lost $19 million, or 22 cents a share, compared with a year-earlier profit of $5.1 million, or 6 cents a share.
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The results were below average analyst estimates polled by Thomson Reuters of 38 cents.
Earnings were impacted by the company’s $1.3 billion purchase of Hughes Communications on June 8. To finance the deal, EchoStar had to borrow $2 billion, which has added to its debt load and interest costs.
Revenue for the three months ended Sept. 30 was $863 million, up 42% from $607 million a year ago, beating the Street’s view of $755 million. The company, which was spun off from Dish Network (NASDAQ:DISH) early in 2008, continues to provide satellite services to Dish.
Separately on Monday, Dish reported weaker-than-expected earnings and said it lost 111,000 subscribers in the third quarter.