Globalstar Announces First Quarter 2020 Results

About this update from Globalstar, Inc.

[{"type":"text","content":" COVINGTON, La.--(BUSINESS WIRE)--\nGlobalstar, Inc. (NYSE American: GSAT) today announced its operating and financial results for the quarter ended March 31, 2020.\n\n\nJay Monroe, Executive Chairman of Globalstar, commented, \"Considering the truly unprecedented challenges brought on by the coronavirus pandemic, I am encouraged by the adaptability of the Globalstar organization and proud that productivity has been largely sustained. During the quarter we added 5G status to Band 53 at 3GPP. This variant is known as n53. The process for operationalizing spectrum can be summarized as follows: regulatory approval, 3GPP standardizations, infrastructure ecosystem development, early customer indications of interest, commitment to chipset development, mass Band n53 device availability, and customer adoption. With recent vendor commitments for chipset development, which will enable Band 53 in next year’s chipsets and dramatically increase device availability, our focus has shifted to the last two steps.”\n\n\nMr. Monroe continued, “The pipeline of potential users of our terrestrial spectrum continues to grow and includes a wide range of industries as well as companies of all sizes in the U.S. and abroad. To provide a little more context, we currently have four potential deployments in what I would describe as the transportation sector alone, and we are far from only transportation focused. Considering the large number of potential projects actively considering Band 53, I expect the initiation of lease revenue from terrestrial spectrum in 2020 with upside in the coming years.\"\n\n\nDave Kagan, Chief Executive Officer of Globalstar, added, \"Our world has changed significantly since we last reported earnings. The success of our business depends on our global operations, supply chain and consumer demand. As a result of COVID-19, we have experienced a reduction in the volume of sales of our subscriber equipment, received requests for service pricing concessions from certain customers, and expect an impact on the ability of certain customers to pay outstanding balances. These unfavorable consequences have mostly related to our customers who operate in the oil and gas and retail industries. The results of our operations for the three months ended March 31, 2020 partially reflect this impact; however, we expect that this trend will continue ...

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