Hughes Communications Inc. / HUGH

About Hughes Communications Inc.

11717 Exploration Lane, Germantown, Md. 20876
www.hughes.com | 301-428-5500 | Founded: 1971

Industry: Telecommunications | Category: Top 100 Companies

The dust is still settling at Hughes after a change of ownership, a company-wide restructuring and a quiet move to the public markets.
Once the parent of DirecTV, Hughes was taken over by Rupert Murdoch's News Corp. in 2003. In January 2006, Murdoch sold his stake in Hughes for $100 million to New York private equity firm SkyTerra, a subsidiary of Apollo Management. A month later, Apollo offered 32 percent of the company's stock for sale on the Over the Counter Bulletin Board.
In September, Hughes moved its stock to the Nasdaq market. After posting a loss of $4.4 million in the second quarter of 2006, the company doubled its profit during the third quarter, to $11.4 million, up from $5.6 million in the comparable period a year earlier.
Hughes Network Systems, the subsidiary of Hughes Communications that performs most of the company's operations, posted a $19 million profit for the year, compared with $24 million in 2005. Revenue in 2006 was $858 million, up from $807 million in 2005.
Hughes brings in most of its revenue by managing satellite networks for national chains such as Wal-Mart and Blockbuster. But the company's fastest-growing business has been in providing broadband service for small businesses and consumers in rural and suburban areas. Hughes's mobile-satellite business, which allows cellphones to use satellite signals when terrestrial wireless signals are unavailable, is also growing.
Hughes's satellites remained with Murdoch's company, so Hughes leases satellite services from other operators. The company said it is spending $2 billion to launch its own satellite in August. Hughes said the satellite will generate new revenue and free the company from paying to use other satellites.
In June, Hughes announced it had appointed three executives to its eight-member board of directors: Stephen Clark, a venture partner with Intersouth Partners; Gene Gabbard, a private investor; and Lawrence J. Ruisi, an advisory consultant.

2007 Financial Data

Total employees: 1,880 | Local employees: 1,300