Satellite TV and Internet access provider Hughes Electronics reported fourth-quarter revenue of $2.28 billion on an operating loss of $179 million before interest, taxes, depreciation and amortization. In the year-ago quarter, the operator of DirecTV generated revenue of $2.06 billion on a loss of $121 million. The company expects revenue of between $2.0 billion and $1.95 billion in the first quarter, compared with $1.89 billion the company posted in last year's first quarter. On the bright side, Hughes' DirecTV satellite unit grabbed 405,000 more customers in the fourth quarter to bring its total subscribers to 10.7 million from the 9.5 million customers attained at the end of last year's quarter. The company is also seeking to merge with rival satellite TV provider EchoStar Communications, a union that faces considerable antitrust scrutiny from government regulators.
Verizon Wireless announced Tuesday that it will likely change the terms of a $1.5 billion deal it struck in November to buy Price Communications, a wireless provider operating in four states. Verizon originally planned to buy the provider for $2.06 billion, with three-quarters of the sum to be paid by Verizon Wireless common stock. The deal hinged on whether Verizon would have an initial public offering by Sept. 30. If not, both sides agreed that the deal would be restructured. Verizon postponed the IPO in October. In a statement released Tuesday, Verizon said it is unlikely the public offering will occur before Sept. 30.
Seagate Technology reported revenue and net income of $2.06 billion and $129 million, or $1.06 per share respectively, for its quarter ending September 27. This compares with revenue of $2.14 billion and net income of $121 million, or $1.05 per share respectively for the same quarter last year. The results for the quarter included a charge of $2.8 million for research and development in connection with the acquisition of Sytron.