Summary
Globalstar, Inc.'s third-quarter 2016 report shows a notable increase in total revenue, driven primarily by strong performance in service revenues, particularly from Duplex and SPOT services. While overall revenue grew, subscriber equipment sales experienced a decline. The company continues to invest in its network infrastructure, with significant amounts in construction in progress for next-generation upgrades. Despite revenue growth, the company reported a net loss for the quarter and the nine-month period. Significant derivative gains contributed positively to the income statement in the prior year, with reduced impact in the current period. The company is managing its debt obligations, including a substantial Facility Agreement and a subordinated Thermo Loan Agreement, and anticipates utilizing its remaining common stock purchase agreement with Terrapin to maintain covenant compliance and fund operations.
Financial Highlights
45 data points| Revenue | $25.54M |
| Cost of Revenue | $2.41M |
| Gross Profit | $23.13M |
| SG&A Expenses | $10.08M |
| Operating Expenses | $40.31M |
| Operating Income | -$14.76M |
| Net Income | -$2.58M |
| Shares Outstanding (Basic) | 72.02M |
| Shares Outstanding (Diluted) | 72.02M |
Key Highlights
- 1Total revenue increased by 8% for the three months ended September 30, 2016, reaching $25.6 million, primarily driven by a $2.3 million increase in service revenue.
- 2Service revenue across Duplex and SPOT services showed significant year-over-year growth, with Duplex service revenue up 26% and SPOT service revenue up 10% for the three-month period.
- 3Subscriber equipment sales decreased by 11% to $3.6 million for the three months ended September 30, 2016, largely due to lower sales volumes in Simplex and Duplex equipment.
- 4The company reported a net loss of $2.6 million for the three months ended September 30, 2016, compared to a net income of $24.1 million in the prior year period.
- 5Depreciation, amortization, and accretion remained stable at approximately $19.4 million for the three-month periods.
- 6As of September 30, 2016, the company had $12.9 million in cash and cash equivalents, with $31.5 million remaining available under its common stock purchase agreement with Terrapin.
- 7The company's long-term debt, net of current portion, stood at $547.3 million as of September 30, 2016.