Summary
Globalstar, Inc. reported a mixed financial performance for the six months ended June 30, 2017. While total revenue saw a modest increase of 13% year-over-year to $52.8 million, driven by a significant 23% rise in Duplex ARPU and a 12% increase in SPOT ARPU, the company continued to incur substantial net losses. The net loss for the six months widened to $118.9 million compared to a loss of $12.8 million in the prior year, heavily influenced by a substantial derivative loss of $73.9 million. The company's balance sheet reflects a challenging liquidity position, with cash and cash equivalents at $8.8 million and significant current liabilities, including a substantial portion of long-term debt maturing in the near term. A critical development during the quarter was the amendment and restatement of the Facility Agreement, which included requirements to raise approximately $159.0 million in equity by October 30, 2017. Failure to meet this fundraising target would constitute an event of default. Despite operational improvements in service revenue, the company's overall financial health remains under pressure due to debt obligations and derivative accounting impacts.
Financial Highlights
44 data points| Revenue | $28.12M |
| Cost of Revenue | $2.78M |
| Gross Profit | $25.34M |
| SG&A Expenses | $9.47M |
| Operating Expenses | $40.56M |
| Operating Income | -$12.44M |
| Net Income | -$98.73M |
| EPS (Basic) | $-1.35 |
| EPS (Diluted) | $-1.35 |
| Shares Outstanding (Basic) | 75.27M |
| Shares Outstanding (Diluted) | 75.27M |
Key Highlights
- 1Total revenue increased by 13% to $52.8 million for the first six months of 2017 compared to the same period in 2016, driven by higher service revenues.
- 2Service revenue, a key driver, saw an 16% increase for the six months ended June 30, 2017, attributed to a 23% increase in Duplex ARPU and a 12% increase in SPOT ARPU.
- 3The company reported a significant net loss of $118.9 million for the first six months of 2017, a substantial increase from the $12.8 million loss in the prior year, largely due to a $73.9 million derivative loss.
- 4Total operating expenses increased by 2% to $80.5 million for the first six months of 2017, primarily due to higher cost of services and R&D expenses.
- 5As of June 30, 2017, cash and cash equivalents stood at $8.8 million, with a notable $37.9 million in restricted cash designated for debt service.
- 6The company amended its Facility Agreement in June 2017, which requires raising approximately $159.0 million in equity by October 30, 2017, with failure to do so constituting an event of default.
- 7The company's long-term debt, net of current portion, was $459.9 million as of June 30, 2017, with a significant portion classified as current liabilities.