Summary
Globalstar, Inc. reported a significant net loss for the six months ended June 30, 2014, primarily driven by a substantial increase in derivative losses. While total revenue showed a modest increase of 14% year-over-year, reaching $44.5 million, the company's operational performance was overshadowed by a net loss of $684.3 million, compared to $151.3 million in the prior year period. This widening loss is largely attributable to derivative losses, which surged from $29.4 million to $585.7 million, signaling volatility in financial instruments linked to the company's debt. Despite these financial challenges, the company saw growth in its Duplex and Simplex service revenues, reflecting increased subscriber activations and improved service levels following the completion of its second-generation satellite constellation. However, the substantial derivative losses and an overall increase in operating expenses, including a significant inventory write-down, indicate ongoing financial pressures.
Financial Highlights
45 data points| Revenue | $23.99M |
| Cost of Revenue | $4.33M |
| Gross Profit | $19.66M |
| SG&A Expenses | $8.25M |
| Operating Expenses | $49.03M |
| Operating Income | -$25.04M |
| Net Income | -$433.73M |
| EPS (Basic) | $-7.20 |
| EPS (Diluted) | $-7.20 |
| Shares Outstanding (Basic) | 60.33M |
| Shares Outstanding (Diluted) | 60.33M |
Key Highlights
- 1Total revenue increased by 14% to $44.5 million for the six months ended June 30, 2014, driven by growth in service revenue (up 11%) and subscriber equipment sales (up 24%).
- 2A substantial increase in derivative losses, from $29.4 million to $585.7 million, significantly impacted the net loss, which widened from $151.3 million to $684.3 million for the six-month period.
- 3Operating expenses rose by 17% to $90.1 million, largely due to a $7.3 million reduction in the value of inventory related to a former Qualcomm contract and increased depreciation.
- 4Duplex service revenue grew by 26% for the six months ended June 30, 2014, supported by increased subscriber activations and improved service quality after the second-generation satellite constellation was fully deployed.
- 5The company's cash position improved, with cash and cash equivalents increasing to $23.8 million at June 30, 2014, up from $17.4 million at December 31, 2013.
- 6Long-term debt decreased to $624.8 million (net) from $665.2 million, reflecting debt conversions and payments.