Globalstar Losses Grow As Revenues Decline
[Satellite Today – 5-8-08] Globalstar Inc. saw revenues slip 5 percent in the first quarter of 2008 as operating losses surpassed $11 million, the company announced May 7.
Revenue for the quarter ending March 31 was $22.1 million, compared to $23.2 million in 2007, and the company posted an operating loss of $11.6 million. Operating loss in 2007 was $586,000.
Globalstar did add 21,700 subscribers, bringing its total subscriber base to 293,000, 8 percent higher than the 271,600 subscribers at the same period a year ago.
The loss in the first quarter included about $4.3 million in marketing and advertising expenses as well as other costs related to the launch of Spot Satellite Messenger, non-cash stock compensation of $3.7 million, and higher depreciation costs associated with the placement of recently launched satellites into service.