The continued unresponsiveness of Intelsat’s Galaxy 15 satellite, which is sending...

The continued unresponsiveness of Intelsat’s Galaxy 15 satellite, which is sending transponder signals though Intelsat has been unable to control the path of the satellite since April, resulted in a $104 million impairment charge from the satellite’s fair value in Q2, Intelsat said. The satellite isn’t being considered a total loss since recovery is still a possibility, CEO David McGlade said during a Q2 conference call. While it’s still unclear when the company may decide whether the satellite needs to be replaced, “it’s premature to make the decision today,” he said. The satellite will pass by two more Intelsat satellites this month and is expected to lose its earth lock soon after, he said. Intelsat had an 81 percent fill rate at the end of Q2, it said. The company’s revenue for Q2 fell 1 percent to $635.3 million, it said. The decline was largely due to a launch vehicle resale that occurred in Q2 2009, with no similar sale in Q2 this year, it said. Intelsat said it had a net loss of $181 million, compared to a net loss of $33 million in the same quarter last year. Strong transponder contract renewals in Africa, the Middle East, Latin America and Caribbean regions and business from new satellite capacity drove a 1.1 percent increase to $452 million in transponder service revenue, Intelsat said. Intelsat said it signed a multi-year contract with Sony Pictures for capacity on the IS-17 satellite at 66 degrees east. IS-17 is scheduled to launch this year to provide C- and Ku-band capacity across Europe, the Middle East, Africa, Russia and Asia.