NEW YORK—Globalstar L.P. recorded the smallest loss since it began operations two years ago for the first quarter ended March 31, during which time the company also filed for Chapter 11 bankruptcy protection after months of speculation.
The company said it had a net loss of $129 million, or 25 cents per share, compared with a loss of $145 million, or 31 cents per share, reported for first-quarter 2001. Revenues totaled $3.9 million. Globalstar ended the quarter with approximately 69,000 subscribers, compared with 40,700 subscribers at the end of March 2001.
The subscriber growth rate slowed from previous quarters, which Globalstar attributed to ongoing restructuring activities related to the bankruptcy filing.
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“The current restructuring process has temporarily diverted some of our resources from more productive sales and marketing activities,” said Olof Lundberg, chairman and chief executive officer of Globalstar. “In the weeks ahead we hope to complete a number of important steps, including acquisition of full ownership of Globalstar USA by Globalstar L.P., and the introduction of new sales programs.”
Acquiring full ownership of Globalstar USA is part of the company’s overall strategy to consolidate operations and cut costs. Globalstar recently acquired a majority interest in Globalstar Canada, which helped to increase service revenues by 75 percent from the previous quarter to $2.8 million. The company also plans to acquire Globalstar Caribbean.