Globalstar Reports Poor Performance In 2007
[Satellite Today – 3-13-08] Globalstar Inc. added more than 21,000 subscribers in 2007 but reported losses in service revenues, total revenues and operations for the year, the company announced March 12.
Total revenue in the fourth quarter of 2007 was $23.7 million compared to $29.2 million during the same period in 2006. Service revenue was $19.6 million for the quarter ending Dec. 31, an 11.7 percent decrease from 2006’s fourth quarter service revenue of $22.2 million. Globalstar also recorded an operating loss of $7.8 million, compared to operating income of $1.1 million in 2006. Net loss was $16.3 million, compared to $700,000 for the fourth quarter of 2006.
Total revenue in 2007 was $98.4 million compared to $136.7 million in 2006, with service revenue falling 17.5 percent in the same period to $78.3 million in 2007. For the year, Globalstar recorded an operating loss of $24.6 million, compared to operating income of $15.7 million during 2006. Net loss in 2007 was $27.9 million compared to a profit of $23.6 million in 2006.
The company attributed the declines to lower equipment sales and decreased average revenue per user in 2007.