Globalstar Inc. (GSAT, Financial) filed Quarterly Report for the period ended 2012-09-30.
Globalstar, Inc. has a market cap of $108.9 million; its shares were traded at around $0.35 with and P/S ratio of 1.5.
Total revenue increased by $1.8 million, or approximately 3%, to $57.2 million for the nine months ended September 30, 2012 from $55.4 million for the nine months ended September 30, 2011. Upon termination of our Open Range contract in the first quarter of 2011, we recognized a nonrecurring increase to revenue of approximately $2.0 million, which represented the December 31, 2010 balance of deferred revenue related to the contract. Excluding the revenue recorded from Open Range, revenue increased $3.8 million, or approximately 7%, which is due primarily to higher sales of Simplex equipment and increased service revenue as a result of growth in our SPOT and Simplex subscriber base. These increases were offset by decreases in service revenue in our Duplex business, which continues to be affected by our two-way communication issues, resulting in a decrease in the number of subscribers using our network.
SPOT revenue increased approximately 33% for the three months ended September 30, 2012 compared to the third quarter of 2011. We generated increased service revenue from SPOT and added additional service revenue from the release of other SPOT consumer retail products. Our SPOT subscriber base increased by approximately 22% from September 30, 2011 to September 30, 2012. Our subscriber count includes suspended subscribers, who are subscribers who have activated their devices, have access, but no service revenue is being recognized for their fees while we are in the process of collecting payment. These suspended accounts represented 29% and 23% of our total SPOT subscribers as of September 30, 2012 and 2011, respectively.
Our inventory and advances for inventory balances were $43.0 million and $9.2 million, respectively, as of September 30, 2012, compared with total subscriber equipment sales of $5.2 million for the three months ended September 30, 2012. A significant portion of our inventory consists of Duplex products which are able to operate with both our first-generation constellation and our second-generation constellation. Our advances for inventory relate to our commitment with Qualcomm to purchase additional Duplex products. We have not entered into any other purchase commitments to produce or purchase the next generation of Duplex products.
Cost of subscriber equipment sales increased $1.1 million, or approximately 41%, to $4.0 million for the three months ended September 30, 2012 from $2.9 million during the third quarter of 2011 and increased $1.1 million, or approximately 12%, to $10.4 million for the nine months ended September 30, 2012 from $9.3 million during the first nine months of 2011.
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Globalstar, Inc. has a market cap of $108.9 million; its shares were traded at around $0.35 with and P/S ratio of 1.5.
Highlight of Business Operations:
Total revenue increased by $2.3 million, or approximately 13%, to $20.5 million for the three months ended September 30, 2012 from total revenue of $18.2 million for the three months ended September 30, 2011. We experienced an increase in subscriber equipment sales driven primarily by sales of Simplex equipment and slight growth in sales of our Duplex equipment. These increases were offset by decreases in our SPOT subscriber equipment sales due to higher demand during the three months ended September 30, 2011 as compared to the same period in 2012. We also experienced increased service revenue from our SPOT and Simplex lines of business as a result of growth in these subscriber bases.Total revenue increased by $1.8 million, or approximately 3%, to $57.2 million for the nine months ended September 30, 2012 from $55.4 million for the nine months ended September 30, 2011. Upon termination of our Open Range contract in the first quarter of 2011, we recognized a nonrecurring increase to revenue of approximately $2.0 million, which represented the December 31, 2010 balance of deferred revenue related to the contract. Excluding the revenue recorded from Open Range, revenue increased $3.8 million, or approximately 7%, which is due primarily to higher sales of Simplex equipment and increased service revenue as a result of growth in our SPOT and Simplex subscriber base. These increases were offset by decreases in service revenue in our Duplex business, which continues to be affected by our two-way communication issues, resulting in a decrease in the number of subscribers using our network.
SPOT revenue increased approximately 33% for the three months ended September 30, 2012 compared to the third quarter of 2011. We generated increased service revenue from SPOT and added additional service revenue from the release of other SPOT consumer retail products. Our SPOT subscriber base increased by approximately 22% from September 30, 2011 to September 30, 2012. Our subscriber count includes suspended subscribers, who are subscribers who have activated their devices, have access, but no service revenue is being recognized for their fees while we are in the process of collecting payment. These suspended accounts represented 29% and 23% of our total SPOT subscribers as of September 30, 2012 and 2011, respectively.
Our inventory and advances for inventory balances were $43.0 million and $9.2 million, respectively, as of September 30, 2012, compared with total subscriber equipment sales of $5.2 million for the three months ended September 30, 2012. A significant portion of our inventory consists of Duplex products which are able to operate with both our first-generation constellation and our second-generation constellation. Our advances for inventory relate to our commitment with Qualcomm to purchase additional Duplex products. We have not entered into any other purchase commitments to produce or purchase the next generation of Duplex products.
Cost of subscriber equipment sales increased $1.1 million, or approximately 41%, to $4.0 million for the three months ended September 30, 2012 from $2.9 million during the third quarter of 2011 and increased $1.1 million, or approximately 12%, to $10.4 million for the nine months ended September 30, 2012 from $9.3 million during the first nine months of 2011.
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