Hughes Network Systems 10-K 2007 FY Annual report

Exhibit 12

HUGHES NETWORK SYSTEMS, LLC

STATEMENT OF COMPUTATION OF RATIO EARNINGS TO FIXED CHARGES

(In thousands, except ratio of earnings to fixed charges)

	Year Ended December 31,
	2007			2006			2005			2004			2003
Earnings:
Income (loss) before income tax (expense) benefit; minority interests in net (earnings) losses of subsidiaries; equity in earnings (losses) of unconsolidated affiliates; and discontinued operations	$	55,200		$	22,541		$	24,267		$	(1,433,388	)	$	(152,851	)
Fixed charges		59,961			51,604			30,320			18,521			25,001
Capitalized interest		(12,031	)		(1,900	)		(500	)		—			—
Total earnings	$	103,130		$	72,245		$	54,087		$	(1,414,867	)	$	(127,850	)
Fixed charges:
Interest	$	55,803		$	47,941		$	24,875		$	7,466		$	12,197
Portion of rent expense representative of interest		4,158			3,663			5,445			11,055			12,804
Total fixed charges	$	59,961		$	51,604		$	30,320		$	18,521		$	25,001
Ratio of earnings to fixed charges		1.7x			1.4x			1.8x			*			*
Deficiency of earnings to fixed charges										$	(1,433,388	)	$	(152,851	)

* Ratio not provided due to deficiency in the period.

The ratio of earnings to fixed charges is computed by dividing fixed charges into income (loss) before income tax expense (benefit), minority interests in net losses of subsidiaries, equity in (earnings) losses of unconsolidated affiliates and discontinued operations plus fixed charges. Fixed charges include, as applicable interest expense, amortization of debt issuance costs, the estimated interest component of rent expense (calculated as one-third of net rent expense).