Summary
Globalstar, Inc. reported a net loss of $24.9 million for the third quarter of 2020, compared to a net income of $21.1 million in the same period last year. Total revenue for the quarter decreased by 15% to $32.8 million, primarily driven by a decline in service revenue. This decline was influenced by a reduction in average subscribers for Duplex and SPOT services, and lower ARPU for Duplex and SPOT services. The company's financial performance was impacted by the ongoing COVID-19 pandemic, which affected customer demand, particularly in the oil and gas sector, and led to increased receivables. Despite the net loss, the company maintained adequate liquidity for the next twelve months, supported by cash on hand and potential warrant exercises, though it continues to monitor financial covenant compliance. Despite the revenue and net income downturn, the company highlighted an increase in engineering and other service revenue due to higher contract volumes. Subscriber equipment sales saw a modest increase driven by new product launches in the SPOT family. Operating expenses decreased overall, attributed to lower cost of services, subscriber equipment sales, and marketing, general, and administrative expenses. However, the company faces ongoing risks related to the pandemic's impact on its operations, supply chain, and customer payment capabilities, with particular concern around maintaining compliance with debt covenants.
Financial Highlights
39 data points| Revenue | $32.76M |
| SG&A Expenses | $10.06M |
| Operating Expenses | $47.39M |
| Operating Income | -$14.63M |
| Net Income | -$24.95M |
| EPS (Basic) | $-0.15 |
| EPS (Diluted) | $-0.15 |
| Shares Outstanding (Basic) | 111.35M |
| Shares Outstanding (Diluted) | 111.35M |
Key Highlights
- 1Q3 2020 net loss of $24.9 million, a significant decrease from a net income of $21.1 million in Q3 2019.
- 2Total revenue declined 15% year-over-year to $32.8 million, primarily due to a decrease in service revenue.
- 3Duplex service revenue decreased 22% and SPOT service revenue decreased 9% year-over-year, influenced by lower subscriber counts and ARPU.
- 4Engineering and other service revenue increased significantly, driven by higher volumes of service contracts.
- 5Operating expenses decreased by 6% year-over-year, largely due to reductions in cost of services and marketing, general, and administrative expenses.
- 6The company reported $19.5 million in cash and cash equivalents and $54.9 million in restricted cash as of September 30, 2020.
- 7Globalstar continues to monitor its ability to comply with financial covenants on its debt facilities, noting potential impacts from COVID-19.