EchoStar Swings to Profit in Quarter

EchoStar Communications Corp. said subscriber growth and a one-time gain from an insurance settlement helped it swing to a profit for the first quarter.

A partnership with SBC Communications Inc. boosted new subscriptions, but EchoStar warned that phone companies’ plans to start offering their own video services could hurt subscriber growth in the future.

The Englewood, Colo.-based company reported net income of $318 million, or 70 cents a share, contrasted with a loss of $43 million, or 9 cents, a year earlier. The results include a gain of $134 million related to the settlement of a claim over a malfunctioning satellite, while the year-earlier results reflect a charge of $78 million from debt redemption.

Sales rose 28% to $2.02 billion.