Summary
Globalstar, Inc. (GSAT) reported its 2022 annual results, showcasing a significant increase in total revenue to $148.5 million, up 19% from the previous year. This growth was primarily driven by a substantial rise in wholesale capacity service revenue, which more than tripled to $34.9 million, largely due to the "Service Agreements" with a major partner (Apple Inc.). The company also saw growth in Commercial IoT service revenue, up 9%. Despite the revenue growth, Globalstar reported a net loss of $256.9 million for the year, a considerable increase from the $112.6 million loss in 2021. This widened loss was heavily impacted by a significant reduction in the value of long-lived assets ($166.5 million) and inventory ($8.6 million) related to its second-generation Duplex products, a strategic shift following the partner's announcement. The company ended the year with $32.1 million in cash and cash equivalents and is actively pursuing financing to manage its debt obligations, including a significant prepayment related to the satellite procurement agreement.
Financial Highlights
46 data points| Revenue | $148.50M |
| R&D Expenses | $500K |
| SG&A Expenses | $33.35M |
| Operating Expenses | $369.53M |
| Operating Income | -$221.03M |
| Net Income | -$256.92M |
| EPS (Basic) | $-2.15 |
| EPS (Diluted) | $-2.15 |
| Shares Outstanding (Basic) | 120.06M |
| Shares Outstanding (Diluted) | 120.06M |
Key Highlights
- 1Total revenue increased by 19% to $148.5 million in 2022, primarily driven by wholesale capacity services.
- 2Wholesale capacity service revenue more than tripled to $34.9 million, largely due to the new Service Agreements.
- 3Commercial IoT service revenue grew by 9% to $19.5 million, indicating strong demand in this segment.
- 4The company incurred a substantial net loss of $256.9 million in 2022, a significant increase from $112.6 million in 2021.
- 5A major factor in the increased loss was a $166.5 million write-down of long-lived assets related to a strategic shift away from second-generation Duplex products.
- 6As of December 31, 2022, Globalstar had $32.1 million in cash and cash equivalents.
- 7The company executed an amendment to its Service Agreements, securing a $252 million prepayment from its partner, which will be used to fund satellite procurement and related costs.