NEW YORK-Struggling satellite communications provider Globalstar Telecommunications Ltd. said it billed more than twice the number of minutes in the second quarter than in the first, and reported net revenues for the quarter of $708,000.
However, the company reported a net loss of $216.7 million, or 98 cents per share, compared with a net loss of $45.3 million, or 78 cents per share, reported for second-quarter 1999.
The company drew down a $250 million credit facility last month to obtain extra cash for the next six months. As a result, Globalstar said it has $463 million in cash remaining and expects it will end the year with a cash balance of about $100 million.
“The steady month-to-month improvement in system usage combined with the on-schedule start up of gateways around the world validates the confidence we and all of our partners and service providers have in the Globalstar system,” said Bernard L. Schwartz, Globalstar chairman and chief executive officer.
The company last week announced it cut the price of its GSP-1600 model handset from Qualcomm Inc. from $1,500 to $1,200, and customers of its Freedom 20 and Freedom 120 monthly plans for 24 months can buy the phone for $700.
The company also said its per-minute pricing for satellite service would start at just less than $1 per minute for 500 minutes. Prices previously were at $1.39 per minute for 250 minutes. Service subscriptions start at $25 per month.
Analysts view the price cuts as a move to attract more customers and investors.
Handset manufacturers Qualcomm, Ericsson Inc. and Telit continue to meet the company’s requirements, Globalstar said, and through June 30, more than 100,000 mobile and fixed phones and 10,000 car and marine kits have been distributed.
The company has 17 gateways in operation and offers service in 39 countries, including its latest service area addition encompassing virtually all of Alaska, regions of the north Pacific to the International Date Line, portions of Greenland and all of Iceland.
