Summary
Globalstar, Inc. (GSAT) reported total revenues of $124.3 million for the year ended December 31, 2021, a slight decrease from $128.5 million in 2020. The company experienced a net loss of $112.6 million for 2021, an increase from a net loss of $109.6 million in the prior year. While service revenue remained the dominant portion of total revenue (85% in 2021), it saw a decline across most segments, notably in Duplex services. The company is strategically shifting focus towards its Commercial IoT business, which showed growth in service revenue and equipment sales. A significant development for the company is the February 2022 agreement to procure 17 new satellites for $327 million, ensuring long-term service continuity and supporting a major customer under a "Terms Agreement" which will reimburse 95% of capital expenditures for these satellites. This, along with ongoing gateway expansion and technological upgrades, positions Globalstar for future growth, albeit amidst challenges like global chip shortages and the ongoing impact of COVID-19 on supply chains and demand.
Financial Highlights
46 data points| Revenue | $124.30M |
| R&D Expenses | $1.00M |
| SG&A Expenses | $34.63M |
| Operating Expenses | $189.80M |
| Operating Income | -$65.50M |
| Net Income | -$112.63M |
| EPS (Basic) | $-0.90 |
| EPS (Diluted) | $-0.90 |
| Shares Outstanding (Basic) | 117.68M |
| Shares Outstanding (Diluted) | 117.68M |
Key Highlights
- 1Total revenue for 2021 was $124.3 million, a decrease of 3.3% from $128.5 million in 2020.
- 2The company reported a net loss of $112.6 million for 2021, compared to a net loss of $109.6 million in 2020.
- 3Service revenue constituted 85% of total revenue in 2021, while equipment sales made up 15%.
- 4The company has a strategic focus on growing its Commercial IoT business, which saw an increase in service revenue (5%) and equipment sales (39%) in 2021.
- 5Globalstar entered into a significant agreement in February 2022 to procure 17 new satellites for $327 million to ensure long-term service continuity, with 95% of the costs reimbursed by a customer under a 'Terms Agreement'.
- 6The company has been working to strengthen its financial position, fully repaying its 2009 Facility Agreement in November 2021.
- 7Despite a recovery from COVID-19 impacts in 2020, the company still faces challenges such as global chip shortages affecting manufacturing and supply chains.