Globalstar Returns to Profitability

Mar 13, 2012

 

 Globalstar, Inc. announced yesterday its financial results for the three-month and twelve-month periods ended December 31, 2011. For the first time in four years, the Company reported positive quarterly Adjusted EBITDA.

 

Globalstar revenue increased 5 percent to $17.4 million in the fourth quarter 2011 compared to $16.5 million in the fourth quarter 2010. Revenue for 2011 increased 7 percent to $72.8 million compared to $67.9 million in 2010. During the fourth quarter of 2011, Adjusted EBITDA was $1.6 million compared with negative Adjusted EBITDA of $4.3 million during the same period in 2010.

 

Globalstar launched 12 second-generation satellites during 2011. This year, the Company is expected to become the world's first LEO-based MSS provider with a second-generation constellation. Globalstar's fourth satellite launch is planned to take place in the second half of 2012.

 

Globalstar customers responded to the improved coverage afforded by the launched satellites by increasing usage of the network and purchases of new airtime plans. With data speeds that are 3- 4 times faster than other satellite providers and the purest voice quality possible, Globlastar is poised for continued growth and profitability.

"With the fourth launch expected later this year, 2012 represents an inflection point for Globalstar's business," said Jay Monroe, C.E.O. of Globalstar. "We know it will take some time to regain the growth and momentum we enjoyed historically, but by later in 2012 we expect to be solidly on our way to becoming the world's premier provider of high quality, reliable mobile satellite voice and data services to commercial, government and retail consumers."