"It was a very good year," company spokesman John McCarthy told SpaceDaily.com, "but not our best."

Loral's first-quarter revenues produced a net loss of $16 million, down $10 from its net loss for the first quarter of 2005. McCarthy said Loral's backlog of satellite orders at the end of the first quarter totaled $830 million, compared with $815 million at the end of the fourth quarter 2005.

The backlog does not include the company's newly completed contract to build AsiaSat 5, a next-generation satellite designed to offer improved power and coverage to AsiaSat's customers across the Asia-Pacific region. The backlog does include Telstar 11N, being built for Loral's satellite services division, Loral Skynet.

In the first quarter, the SS/L-built Spainsat was successfully launched for Loral's X-band joint venture partner Hisdesat. In addition to Hisdesat's X- and Ka-band capacity aboard the satellite, Spainsat carries an eight-transponder payload to be leased by XTAR and called XTAR-LANT. Four more SS/L-built satellites are scheduled for launch in 2006, beginning with Satmex 6 later this month.

As of March 31, Loral said in a statement, the company had $361 million in cash and cash equivalents. All undisputed pre-petition claims and chapter 11 expenses have been satisfied with the exception of $31 million to be paid later in 2006. Loral's principal amount of long-term debt remained unchanged from year-end 2005 at $126 million.

SS/L reported first-quarter 2006 revenues before eliminations of $139 million, compared to $100 million in the same quarter in 2005.

Loral Skynet's first-quarter 2006 revenues before eliminations totaled $36 million, the same as in first-quarter 2005. Increased revenues from transponder leasing and network services were offset by a reduction in revenue from the sale of Loral Skynet's business television service and reduced revenues from professional services.

The company's satellite-services backlog as of March 31 totaled $433 million, including an intercompany backlog of $19 million. At year-end 2005, the backlog totaled $453 million, including an intercompany backlog of $20 million.

During the quarter, Loral Skynet resumed marketing its fixed satellite services to customers in North America, and the company can now provide complete bandwidth services in every major geographic region of the world.

In addition to its current North American coverage on the Telstar 12 and Telstar 14/Estrela do Sul 1 satellites, Loral Skynet plans to offer FSS service on four transponders it will operate aboard Satmex 6 - a high-power C- and Ku-band satellite covering all of the Americas and scheduled to launch May 26 aboard an Arianespace heavy-lift rocket from Kourou, French Guyana.

When Telstar 11N is completed in 2008, Loral Skynet will provide expanded and enhanced Ku-band service across much of the Americas, including the U.S., Europe, Africa and the maritime Atlantic Ocean Region.

"The forward momentum sustained since our emergence from bankruptcy last year has resulted in a very solid performance for Loral in the first quarter," said Michael B. Targoff, Loral's chief executive officer. "Space Systems/Loral's robust order backlog coupled with Loral Skynet's steady fleet utilization rate attest to Loral's health and to its positive prospects."

Loral emerged from bankruptcy last Nov. 21. Its financial statements reflect fresh-start accounting effective October 1, 2005.

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