Emergency M2M Pole to Pole Tracking Tracking Government Maritime Constellation Adventure Tracking SMSHandsetsMaritimeGovernmentAdventureConnectedEmailTransportationText Messaging GovernmentText MessagingAdventureText MessagingAviationPoleLand to PoleAviationEmergency Maritime Voice Services EmailM2MVoiceEmergencyLandTracking ServicesApplications Emergencyeverywhere AdventureEmergencyTransportationSMS TrackingMaritimeHeavyLocator Beacons IndustryPush toGovernment TalkTrackingOilHeavy &Emergency GasGPS IndustryEmergency MaritimeHandsetsText MessagingLocatorLocator BeaconsConstellation BeaconsApplicationsHandsets Government TransportationTransportationEmail Oil & Gas Partner EcosystemHandsets Text MessagingLocator Beacons M2MTransportation Handsets Aviation 2010 Annual Report Dear Fellow Shareholders: What a difference a year makes in the rapidly evolving industry landscape As I reflect back on my 2009 letter to shareholders, I’m pleased by how much has changed for Iridium and the satellite industry. Our focus last year was centered on continued growth as a newly public company, securing the necessary financing to support our business plan and making key decisions regarding the design, development and future launch of our next-generation satellite constellation, Iridium NEXT. We closed our long-term $1.8 billion COFACE-backed financing facility in October at very attractive rates and terms, and have posted consistent, robust growth since being listed on the NASDAQ. We also announced our comprehensive plan for Iridium NEXT, selecting Thales Alenia Space France as our prime contractor and SpaceX as our primary launch provider. The initial design phase is well underway for this important project, and we’ve created an exciting new source of potential revenue through the signing of our first agreement related to hosted payloads with Orbital Sciences. These critical steps are now behind us, and our industry again evolved at an unbelievable pace last year. Barriers to entry remain high, and the established lines of competition are blurring as we enter new markets. When you get right down to it, I’ve come to believe that our organization’s greatest strength is our ability to learn and improve faster than our competitors and execute against our growth opportunities. We understand our industry, adapt quickly, and do the little things right. In 2010, the numbers again told the story as we grew total service revenue 11% from 2009 to over $236 million, and added 85,000 customers to end the year with 427,000 subscribers. We stuck with the fundamentals of a proven strategy and delivered on the financial objectives we set for ourselves. We’re sticking to the fundamentals of a proven strategy to grow recurring service revenue and cash flow We win by competing in attractive and growing markets with favorable competitive dynamics and high barriers to entry. We benefit from sustainable competitive advantages, thanks to our network leadership and fully funded plan for Iridium NEXT. We’ve built a large, low-cost and growing ecosystem of partners, a robust and expanding product portfolio, and a highly profitable recurring service revenue base. In fact, service revenue rose to 68% of our total revenue in 2010. As our recurring service revenue base increases, our operating margins expand due to the leverage created by our largely fixed-cost business model. These are the central pillars of our strategy, and how we expect to grow cash flow and deliver shareholder returns. Put plainly, we believe we have sustainable competitive advantages in high-growth markets that drive long-term revenue growth and predictable cash flow. In our Commercial business, we’ve rapidly diversified our revenue profile in the last few years beyond voice to data services, with approximately 10% of our total service revenue now coming from machine-to-machine (M2M) data services alone. We’re also working with our value-added partners to explore new revenue streams in the aviation and maritime markets, while continuing to lead the mobile handset market with feature-rich, reliable voice communications. Our revenue quality and diversity comes from having a #1 or fast-growing #2 position in multiple core markets, in an industry that’s expected to grow 10% through 2015 according to a 2010 study by Northern Sky Research. When taken together, these guideposts give us confidence that we’ll continue to succeed. More importantly, the direct feedback from our customers and partners suggests the same. Iridium remains their first choice because of a superior and reliable network with 100% global coverage, and because they see better value for their customers when selling our products and services. Our partners and their subscribers recognize the innovations we’ve made with the Iridium 9555 phone, the introduction of the Iridium 9602 transceiver in the M2M space last May, and the value of Iridium OpenPort® in the maritime and aviation segments. It’s important for me to emphasize that we’re primarily focused on being a service revenue company, where there is significant room for margin expansion as we harness the operating leverage of our business model. Equipment and devices are a bridge in achieving this objective, and nowhere is this perhaps more true than in the M2M market. I’m always amazed by the size and scope of this market, as organizations really want to track or connect just about everything they can in a cost-effective way. It doesn’t matter if you’re tracking shipping containers or ocean buoys, it seems that one of our partners has already deployed or is developing an application that serves these needs. While early applications have been in the industrial, enterprise and government sectors, a number of our partners are taking our global connections into the consumer space as well. Specifically, we’re out of the gates for personal location services with the recent announcement of our partnerships with ACR Electronics and DeLorme. This market has been largely untapped by us in the past, but with the addition of partners that have scale and marketing reach, we see the potential for hundreds of thousands of new subscribers and a meaningful expansion of our M2M business. Whether customers are choosing us as the “gold standard” for voice communications with the Iridium 9555 phone, partnering with us on innovative M2M applications, or selecting Iridium OpenPort for ships’ business and crew communications needs, it’s clear that we’re capturing market share across our core commercial markets. This success has also been shared by our U.S. Government customer, where we’ve grown from being a niche supplier of products to an integral element in their mission-critical communications infrastructure. We had one of our best years ever in 2010, growing government service revenue by 10% over 2009 and adding 9,000 high-value subscribers. Just like in our commercial business, we benefit from a robust partner channel and significant investment by the U.S. Government in devices and a dedicated gateway. Our most recent innovation, “Netted Iridium,” which is a push-to-talk tactical radio service, is quickly becoming a critical element of the military’s communications toolkit. We’re also seeing the same positive traction in the government M2M business, which grew subscribers 75% in 2010. We continue to expect great progress when you consider the addressable market that includes a huge universe of aircraft, vehicles, vessels, unattended sensors and other critical assets. Our voice and M2M data solutions improve situational awareness for military personnel and track critical assets in tough environments around the globe. In short, we believe we provide a unique value proposition to this customer that is not easily duplicated. We continue to deliver on the unique promise that is Iridium As I write to you, change at Iridium and in our industry continues at a rapid pace. We’re making significant progress in bringing a ground-breaking new phone with location-based and data services to the mobile handset market, and have begun development of new products in the M2M space. We’re also learning from our success with “Netted Iridium” and are working hard on how we can leverage this into a commercial product. I feel re-energized about the prospects for our company and industry, but understand we have many more critical decisions to make in the months and years ahead to ensure our success. One thing that hasn’t changed is our path to create a strong return for our shareholders. We expect to successfully compete by operating a superior network and expanding an already strong partner ecosystem to seize opportunities in our core markets. We believe this strategy will generate predictable and consistent service revenue and cash flow. This is where we stand, and we must continue to execute. To accomplish this, I believe we’ve assembled the industry’s finest team. I thank them for their loyalty, hard work and dedication in providing outstanding service to our customers around the world. I’m honored to lead this great company and sincerely appreciate the continued confidence of our shareholders and partners during a year of strong growth and new challenges. Iridium is on the move, and we’re excited about 2011 and beyond. Matthew J. Desch Chief Executive Officer April 2011 [THIS PAGE INTENTIONALLY LEFT BLANK] UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) È ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31,