Summary
Globalstar, Inc. reported mixed financial results for the nine months ended September 30, 2014. While total revenue saw a 10% increase to $68.0 million driven by a $4.8 million rise in service revenue, largely from Duplex service, the company continued to incur significant net losses. The net loss for the nine months widened to $554.9 million from $356.3 million in the prior year, heavily influenced by a substantial derivative loss of $418.7 million. Despite the operating losses, the company's liquidity improved with cash and cash equivalents increasing to $27.2 million from $17.4 million. This improvement was supported by positive cash flow from operations, which rose to $6.9 million from $2.3 million year-over-year, and a reduction in cash used for investing activities due to the completion of its second-generation satellite constellation deployment. The company also managed its debt, with total debt decreasing and active efforts to convert convertible notes. However, the significant derivative liabilities and potential future obligations remain key areas of concern for investors.
Financial Highlights
45 data points| Revenue | $23.44M |
| Cost of Revenue | $3.84M |
| Gross Profit | $19.61M |
| SG&A Expenses | $8.78M |
| Operating Expenses | $41.53M |
| Operating Income | -$18.09M |
| Net Income | $129.39M |
| EPS (Basic) | $1.95 |
| EPS (Diluted) | $1.65 |
| Shares Outstanding (Basic) | 65.84M |
| Shares Outstanding (Diluted) | 79.28M |
Key Highlights
- 1Total revenue increased by 10% to $68.0 million for the nine months ended September 30, 2014, compared to $61.7 million in the prior year.
- 2Service revenue showed strong growth, up 10% year-over-year, primarily driven by an increase in Duplex service revenue.
- 3The company reported a significant net loss of $554.9 million for the nine months ended September 30, 2014, compared to $356.3 million in the prior year.
- 4A substantial derivative loss of $418.7 million was recognized for the nine months ended September 30, 2014, contributing significantly to the overall net loss.
- 5Cash and cash equivalents increased to $27.2 million as of September 30, 2014, from $17.4 million as of December 31, 2013.
- 6Cash flows from operating activities improved, turning positive at $6.9 million for the nine months ended September 30, 2014, compared to $2.3 million in the prior year.
- 7Total long-term debt decreased to $623.8 million from $665.2 million, reflecting ongoing debt management efforts.