Summary
Globalstar, Inc. reported its financial results for the second quarter and first half of 2010. Total revenue saw an increase of 12% year-over-year for the quarter, reaching $17.6 million, driven by a significant 49% surge in subscriber equipment sales, largely attributed to the strong performance of their Simplex products, particularly the SPOT satellite GPS messenger. Despite revenue growth, the company continued to incur substantial net losses, with a reported loss of $19.2 million for the quarter, a 40% increase from the prior year. This was largely due to a significant rise in derivative losses, which more than offset the improvements in operating income. The company is heavily investing in its second-generation satellite constellation, with significant capital expenditures impacting cash flows. Liquidity appears to be managed through its Facility Agreement and existing cash reserves, with management expecting sufficient resources for at least the next 12 months.
Financial Highlights
25 data points| Revenue | $17.62M |
| Cost of Revenue | $3.54M |
| Gross Profit | $14.09M |
| SG&A Expenses | $10.12M |
| Operating Expenses | $26.61M |
| Operating Income | -$8.98M |
| Interest Expense | $1.18M |
| Net Income | -$19.25M |
| EPS (Basic) | $-1.05 |
| EPS (Diluted) | $-1.05 |
| Shares Outstanding (Basic) | 18.81M |
| Shares Outstanding (Diluted) | 18.81M |
Key Highlights
- 1Total revenue increased by 12% to $17.6 million for the three months ended June 30, 2010, compared to $15.7 million in the prior year period.
- 2Subscriber equipment sales saw a substantial 49% increase to $4.7 million, driven by Simplex product sales.
- 3Service revenue showed a modest 3% increase to $12.9 million, primarily due to growth in Simplex subscriber base and ARPU, but was offset by declines in the duplex business.
- 4The company reported a net loss of $19.2 million for the quarter, widening from $13.8 million in the prior year, primarily due to a significant increase in derivative losses.
- 5Operating expenses decreased by 6% to $26.6 million, driven by lower cost of services and marketing, general, and administrative expenses.
- 6Cash used in investing activities increased significantly to $130.8 million, mainly due to increased payments for the second-generation satellite constellation.
- 7As of June 30, 2010, the company had $87.2 million in cash and cash equivalents and total indebtedness of $620.8 million.