NEW YORK-Loral Space & Communications Ltd. reiterated in its fourth quarter and year-end 2000 financial results that it is substantially revising its plan for participation in the broadband communications market and it has modified its involvement in Globalstar L.P.
The company reported a net loss of $1.08 billion, or $3.65 per share, for the fourth quarter ended Dec. 31, compared with a loss of $122.8 million, or 42 cents per share, for the same last year. Loral posted a net loss of $1.44 billion, or $4.86 per share, for the year, compared with a loss of $246.6 million, or 85 cents per share, for 1999.
“The company recently took a series of steps designed to improve shareholder value and put Loral on solid footing for 2001 and beyond,” said Bernard L. Schwartz, Loral chairman and chief executive officer. “We have refocused our strategy to leverage the company’s core competencies by concentrating on the further development of satellite technologies and hardware, and by building out our fixed-satellite services business, the Loral Global Alliance.”
Schwartz previously announced Loral will forgo plans to build a two-way broadband delivery system via satellite and fiber involving the construction and launch of two Ka-band satellites, and instead develop and build satellite technologies and hardware for others.
Loral also said it has ceased additional funding to Globalstar, which is not repaying any of its debt, including millions it owes to Loral, in light of its own dismal financial situation. More than $1.01 billion of Loral’s loss for the fourth quarter is attributable to Globalstar. Loral’s fourth quarter loss-per-share would be 25 cents without the Globalstar charges.
