Globalstar, Inc. (NYSEMKT:GSAT) reported its operating and financial results for 3Q2015.Jay Monroe, the CEO and Chairman, said that during the quarter, the company continued to focus on ground infrastructure upgrades and establishing distribution networks and sales infrastructure in new geographies. The company advanced new products includingSimplex, Duplex and SPOT.
The management speaks
The CEO of Globalstar said that he is delighted to report that the first test calls related to its second-gen ground network are completed. The calls devised at network operations facility in California, moved to the satellite network, landed at newly installed RAN equipment and then moved via the Ericsson core network before finally entering the public switch.
Monroe further added that the transition to the next-gen ground network is moving as per the schedule and is expected to complete next year. Although foreign revenue growth has been adversely affected by the strong dollar, Globalstar continue to add a noteworthy number of subscribers to its network.
Gross Duplex and SPOT subscriber additions jumped 18% and 14%, respectively, over the comparable period last year. SPOT has been fetching strong traction as a brand in Central and South America. Globalstar reported that the rulemaking proposal to the FCC approving TLPS is advancing at a slower pace than anticipated. However, they concluded a material ex parte filing in September, which highlighted additional confirmatory report pertaining to a real-world deployment and the capacity advantages of TLPS to users in a network.
Total revenue for 3Q2015 came at $23.7 million compared to $23.4 million recorded in the same period a year earlier. The increase in service revenue was offset by a drop in revenue of equipment sales. Also, the material strength of the U.S. dollar continues to negatively affect revenue as Globalstar international subsidiaries’revenue was converted at lower exchange rates over the third quarter of 2014.