Globalstar Announces Quarterly Results
Friday, November 02, 2018 | Comments

Globalstar announced its financial results for the quarter ended Sept. 30.

Total revenue for the third quarter of 2018 increased by $5.2 million, or 17 percent, from the third quarter of 2017. This increase resulted from higher service revenue and subscriber equipment sales.

Service revenue increased $3.8 million, or 15 percent in the third quarter of 2018, due to higher average revenue per user (ARPU) in all core revenue streams. Increases in Duplex and SPOT ARPU, which were up 27 percent and 14 percent, respectively, drove a combined $4.2 million increase in service revenue. Rate plan changes that were rolled out across the subscriber base during the past several quarters continue to be the main component of this growth contributing about $2.9 million to the total ARPU increase.

Subscriber equipment sales revenue increased $1.4 million, or 32 percent, due primarily to sales of the recently launched SPOT X device, the latest generation in the SPOT line of products. Earlier this month the company recorded its 6,000th SPOT rescue, proving how essential the technology is to saving lives, a statement said.

Operating loss increased $7.2 million during the third quarter of 2018. This increase was because of higher operating expenses of $12.4 million, offset partially by a $5.2 million increase in total revenue. Contributing to the increase in operating expenses was a $5.5 million increase in marketing, general and administrative (MG&A) expenses resulting primarily from higher costs associated with the proposed merger with Thermo Acquisitions that was announced in April and terminated in July.

Net income decreased $43.4 million during the third quarter of 2018 due primarily to a lower non-cash derivative gain of $39.7 million. Changes in the company's stock price and volatility assumptions were the primary factors of the derivative adjustments recorded during the respective quarters.

“This quarter continued our recent trajectory, with significantly improved financial and operating results from our satellite business, led by a 17 percent increase in total revenue,” said Dave Kagan, CEO. “This increase was driven by rapid growth in ARPU across all core revenue streams. Together with the launch of SPOT X in the CALA (Caribbean and Latin America) region last month, we look forward to continuing this sales momentum and delivering innovative products into the marketplace to meet the demand from our dealer network and end users. While increased service revenue and SPOT device sales contributed to the net income recorded during the third quarter, non-cash items were the largest drivers.”

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