Worldwide, government organizations, military and intelligence agencies, natural disaster aid associations, event-driven response agencies and corporate security teams depend on mobile and fixed voice and data communications services on a regular basis. Businesses with global operating scope require reliable communications services when operating in remote locations around the world. Mobile satellite services users span the forestry, maritime, government, oil and gas, mining, leisure, emergency services, construction and transportation sectors, among others. Many existing customers increasingly view satellite communications services as critical to their daily operations.

Over the past two decades, the global mobile satellite services market has experienced significant growth. According to a Gartner report published in November 2005, satellite phones are increasingly the technology of choice for first responders, military, businesses, governments and non-governmental agencies. Furthermore, Gartner has predicted that wireline and wireless carriers will increasingly consider augmenting their communication portfolios by aligning themselves with mobile satellite service providers.

Increasingly, better-tailored, improved-technology products and services are creating new channels of demand for mobile satellite services. Growth in demand for mobile satellite voice services is driven by the declining cost of these services, the diminishing size and lower costs of the handsets, as well as heightened demand by governments, businesses and individuals for ubiquitous global voice coverage. Growth in mobile satellite data services is driven by the rollout of new applications requiring higher bandwidth, as well as low cost data collection and asset tracking devices.

The Company offers its mobile voice and data services to customers via numerous monthly plans at price levels that vary depending upon expected usage.

The Company provides fixed voice and data services in rural villages, at remote industrial, commercial and residential sites and on ships at sea, among other places.

The Company also offers data-only services. The Company’s system is well-suited to handle duplex data transmission.

The Company’s asset tracking and remote monitoring service is designed to address the market need for a small and cost-effective solution for sending data (such as location) from assets in remote locations to a central monitoring station.

The Company’s services are available for use only with equipment designed to work on its network, which is typically sold to users in conjunction with an initial service plan. Currently, QUALCOMM manufactures all of the Company’s mobile phones and most of the accessories. The Company’s fixed phones are manufactured by QUALCOMM and Ericsson.

In addition to traditional satellite handsets, the Company sells multiple specialized products designed to address the specific needs of certain attractive end-user markets including the emergency response, maritime and aviation markets.

Total operating expenses increased $19.1 million, or approximately 43.6%, to $63.0 million for the six months ended June 30, 2006, from $43.9 million for the six months ended June 30, 2005.

Operating income decreased $0.7 million, or approximately 11.3%, to $5.7 million for the six months ended June 30, 2006, from $6.4 million for the six months ended June 30, 2005.

Interest income increased to $0.4 million for the six months ended June 30, 2006 from $0.1 million in the first six months of 2005.

Net income increased $18.8 million to $21.7 million for the six months ended June 30, 2006, from $2.9 million for the six months ended June 30, 2005.