Globalstar, Inc. (Nasdaq:GSAT) 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.”
Since 2007, Globalstar has developed a successful line of consumer products targeting outdoor enthusiasts under the SPOT brand name. The award-winning Spot device has been responsible for the initiation of more than 1,700 rescues around the world.
About Globalstar, Inc.
Globalstar is a leading provider of mobile satellite voice and data services. Globalstar offers these services to commercial customers and recreational consumers in more than 120 countries around the world. The Company’s products include mobile and fixed satellite telephones, simplex and duplex satellite data modems, the SPOT Satellite GPS Messenger and flexible service packages. Many land based and maritime industries benefit from Globalstar with increased productivity from remote areas beyond cellular and landline service. Global customer segments include: oil and gas, government, mining, forestry, commercial fishing, utilities, military, transportation, heavy construction, emergency preparedness, and business continuity as well as individual recreational users. Globalstar data solutions are ideal for various asset and personal tracking, data monitoring and SCADA applications. Note that all SPOT products described in this press release are the products of Spot LLC, which is not affiliated in any manner with Spot Image of Toulouse, France or Spot Image Corporation of Chantilly, Virginia.