Globalstar(US:GSAT)2019-03-01 04:24Financial Data and Key Metrics Changes - In 2018, the company recorded a 15% increase in revenue, with adjusted EBITDA rising by 26% to $40.6 million, the highest level ever achieved [11][18] - The net loss for the year was $6.5 million, significantly improved from a loss of $89.1 million in 2017 [11] - Adjusted EBITDA increased by 11% in Q4 2018 compared to Q4 2017, driven by revenue growth [18] Business Line Data and Key Metrics Changes - The satellite business generated higher average revenue per user (ARPU) across all core areas, contributing to a 9% revenue growth in Q4 2018 compared to Q4 2017 [13] - New product launches, including SmartOne Solar, SPOT X, and Sat-Fi2, were highlighted as significant contributors to revenue growth [11][12] - SPOT X product revenue nearly doubled compared to Q4 2017, driven by its two-way functionality [15] Market Data and Key Metrics Changes - The company is well-positioned to capitalize on the growing demand for low-cost, high-mobility data services, particularly in the IoT market [4][5] - The introduction of the SmartOne Solar IoT device has rejuvenated the IoT market for the company, with over 25,000 units sold in the first nine months since its launch [12] Company Strategy and Development Direction - The company aims to maximize the value of its satellite and spectrum assets while focusing on expanding its satellite business and addressing capital needs [8][21] - A newly formed strategic review committee is tasked with assessing balance sheet solutions and exploring monetization opportunities for satellite capacity [7][34] - The company is actively pursuing private LTE deployments in partnership with NOKIA, which is expected to enhance its service offerings [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering 2019 on firm footing, with a strong set of satellite and spectrum assets and an augmented leadership team [8] - The company anticipates continued momentum in 2019, driven by new product launches and expanding market opportunities [12][21] - Management acknowledged the challenges related to liquidity and compliance with financial covenants but is focused on addressing these issues [20][41] Other Important Information - The company successfully raised $60 million in an equity offering to fund principal and interest payments and maintain compliance with financial covenants [19] - The spectrum technical team achieved 3GPP standardization of the 2.4 GHz spectrum, creating a path for broader integration into the ecosystem [6] Q&A Session Summary Question: Potential deployments on LTE with NOKIA - Management confirmed ongoing collaboration with NOKIA on private LTE implementations, with expectations for meaningful equipment delivery in 2019 [24] Question: Corporate governance structure and strategic review committee - The strategic review committee is focused on addressing capital needs and monetizing satellite capacity, with no fundamental change to the spectrum strategy anticipated [34] Question: Compliance with covenants and potential dilution - Management indicated that compliance could be achieved through increased EBITDA or equity share contributions, with various avenues available to avoid dilution [41] Question: Spectrum monetization timeline - Management does not expect a material spectrum monetization within a couple of months but is positioning the company for future opportunities [50] Question: C-band holdings and terrestrial use - The company is monitoring the C-band process and is not aggressively pursuing C-band at this moment, focusing instead on other initiatives [62]