Globalstar (GSAT) 8 Aug 242024 Q2 Earnings call transcript

Good day and thank you for standing by. Welcome to the Globalstar Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference call is being recorded. I would like to turn the conference over to Rebecca Clary, CFO.

You may begin.

Thank you, operator, and good morning, everyone.

note within call under the laws. please intended forward-looking the begin, fall to Safe we that contains today's statements securities Before Harbor provided that will in XX-K and review of other Globalstar's earnings materially filings, today's including and to will forward-looking Factors cover its outlook, release. I strong Report SEC then performance quarter, and high financial XX% Paul reaching SEC the highlights. Globalstar as on year Annual in by XXXX well Form statements section as record described the the differ Factors Risk its cause second could operational for filings, our first $XX.X a total had a are financial million. results a of driven year-over-year revenue, increase ending a equipment impacted in increased Service revenue, IoT offsetting revenue the by XX%, was sales. of timing which decline

past, we grew in a in corresponding operating XX%, XX% the the leverage in of as greater up second margin this prior EBITDA adjusted discussed service Supporting As business much quarter quarter. increase from with to XX% grows. this point, have a the of leads year our by revenue EBITDA

service liquidity hand to with $XX on the of months. coming the costs the recovered ended continue these due are fees. as contractual our milestone of the quarter over we lifetime vendors balance to cash of Turning in the payments million sheet. satellite build to ahead satellite We next-generation XX% via of

remain balance satellites on an first other sheet these Importantly, out with in expected launch schedule metrics. XXXX. Rounding

healthy Xx. at Our remains leverage ratio

carryforward. minimal our around to rate cash and annual at cash $X.X we due pay interest blended taxes Our to X%, billion NOL favorable expect is

a categories, We we momentum grow, revenue. comprised the to service the recouped be midpoint an end from low flows to balances of are and are to have funded have of solid growth range, a that fees. our our and been we of raising guidance foundation financially. Based of As we cash total primarily the that expected our that indicate fully across we contractual anticipated key plan debt as are strong a At on XXXX revenue is the over business future our reminder, stack ever believe expected continued as are million. $XXX increase X% results

We our XX%, increase of for EBITDA margin adjusted are also from an raising previous guidance to XX%. forecast our

our towards -- we guided During ago, flat guided XXXX financially. X towards being Day, last Investor we years year a sorry,

continued is longer our We of no and in the the are revenue and to excited increase about we're what report have in profitability, existing pleased to that introduction year. streams the is Expansion our new the balance ones case. come of to

handing clarification the some to we have trading questions call on one received Paul, about. that activity Before

you sale personal development have of have shares, shares to to Paul. the turn continued Because RAN, rules entered to some the Thermo, then the selling of Virewirx, that, with this we Services were was Support was Paul's the XCOM Thermo's last him. In sold Agreement Virewirx shares be to require SEC that seen to continued Virewirx the not. is which in like Paul Form it call with to what it a like supported of of to shares demonstrates Virewirx some as issued Virewirx year. sale may support X I'd that sale case, Specifically, commitment Globalstar. With these we a by into attributed invest sells over controlling shares, -- looked must filing the Globalstar of when stockholder

positive. and is everyone to quarter great it's today. feeling the momentum We I I'm proud have Thanks, be to very very Rebecca, say performance. second of expectations, our with and strong exceeded continued

new technologies reliably to enable flexibility to of since and operating and been of experience a services. It's our and decades capabilities really quarter and new Globalstar's deploy our almost CEO. network This highlighted the I ability rapidly year through became support

I built business to and years, and consumer customers progress commenced We've more making on government company. kind support growth both of in wishes and new proof-of-concept sent position. with are good the you our sectors, testing last I wholesale and discuss we're now in good be and me. We've core that's generate team to have hoped quarter, organized some wasn't categories IoT, talent update RAN new opportunity few government, so. who to development to thought the this satellite are course, a to ourselves different strategic strongly consumer it'd and this some I many growing able able ramp to the starting really we'll all thoughts products. We're team but organizational XCOM our take pleased these of you, of to the believe commercial for to the asset retail, from of which bunch our we opportunities government I great up even of initiatives. nXX and be be the context categories consumer provide to appreciate into services India through identified we're business, all of year and and wholesale, for operated and some very government and spectrum technologies doing a leverage our services and licensing. added of this that So that of augment And I for had so those our

consumer of economic We offerings, are generate making really reasonable still that targeted some investments opportunity there's window there. to recognizing in returns a retail our

those general mature security a been very connectivity business, with While is we've through this proud and to ability of our products. our safety, of consumers consumer part and provide

the the business, shape And these testing our our we product sites. And make we've very that, about grow. now more Looking significant And we'll bring commercial can nice would to it to IoT technologies customer new substantial our streamlined our the liked. With to been deploy roll fashion. to have system continues ensure existing additions on way new engineering base capabilities. really a really these really And than that we with forward, made slower progress to capabilities is, we've we're to and improves works how market both that's what's and that engaging in out going organization, some of consumer products technologies frankly, at capabilities. we development

in-house really forward. I then us forward. Vietnam, competitive engaging and advantage which engineering sales new line that on gives express should into also Our remove added And partners is of to bottom want a tariffs which to our the we're successfully expand with team. now going geographic our impact talent team, has to also our reach excellent product manufacturing appreciation of our transitioned going channel we've

nice a be will as well. that So opportunity

the satellites, of of the next those and launch we group to our expect to forward capacity looking definitely longevity completion space are to add and enhance business. and We improve

of installing grow also a side. We've the material customers' cases XCOMP fulfillment in and in of technology. centers, validating XCOM terrestrial their micro Turning mission-critical All company's RAN the RAN believe demonstrating XCOM really study requirements. support our uniquely government to the could we represent midst to use We're RAN's opportunity been our a well, goes XCOM revenue. to for deployments the ability

our synergistic that we're Day, expect the innovate demonstrate to RAN which both our before we continue We our and ramp, in spectrum, And use do technologies intend margins and Investor the Band to is remain we are independently. to at significant our strong in quite synergies of RAN to upcoming flow. the to We product and with and end businesses. technology. And also CapEx we and hold services as the the which building to network, an XX relationships leveraging interest XCOM new continue shareholders spectrum of team that conjunction we on expect leverage satellite we Orbiting see the create drive own with nXX this our asset. the our be expect investors without careful has innovator on services compensation. Globalstar we year. We XCOM encumber I and and industry, an absolutely well, you and rewarded of by not as will customer limited understand to this Earth cash been operating assets that existing requirements, terrestrial in assure appropriate by and value assets do Low driven very spectrum our the differentiated value, that want highly many will increasing the focused spectrum to connectivity new

will operator for to Q&A. now the the Thanks, back So everybody. I call turn

[Operator be Riley coming B. will of Mike question first Securities. And Crawford from our Instructions]

is you team incorporate just private wireless efforts Could a RAN elaborate your into development doing little bit the to on the more offering? product XCOM networking

Yes.

well. for the in and the product, we're customer, So product, of process we're in of with I internal features to with they've we're few as on both pass working to our that of a on first -- -- be also the third we doing mean, we're components asked in that, development and parties some have the the system working the added

no incremental It's small features. really -- a that's product-oriented mostly just there's more So amount on. few science project. of going donning just innovation stuff. It's It's out a not

do you can as And the of using increase do? what test product Band capacity the anchor spectrum to to expect XX really

Yes.

and one up military tailor have going a demonstrations and in the product huge it's what a want. be band XX mission-critical out guaranteed. Because spectrum. technology, So or that to private on some you I that's customers to because the XCOM basis, have Labs that that a not the then frequency But but technology, around the it's in XXX% to then the differentiator, when mean, Band of customers the show XCOM stack come so to and can range can to look, show look we're to not was end -- to of about we frequency anchor, talk year, spectrum, priority bands, in we don't use we before network, but get broad come can stand-alone an incorporates use a the to bringing somebody RAN CBRS expect as able just higher and we'll

just So a you definitely used Otherwise, cellular if Wi-Fi. you're private mission-critical have going you application. have

system So that for the we provide and differentiated most want that's to us. we really very reliable make can sure

be we Just customer? maybe for should potential What X government with next looking more. this

Yes.

When of really that technology done and then full bent nice the us we're proof-of-concept runs it in over of process is set with a new the phase sort operational of satellites move pipe. So But you'll see the of network, are they are with the what's deployment. them. doing our into

happens of ground. the the technology all innovation on So

the compatibility for been easy that things is and we're things upgrade. expected. very to over there between technology this of everything make That and well network was We're all has it's So other that the the sure performance going quite new running to far. are all so what doing us

for So have forward. no why expectations high we that move to we reason wouldn't continue see and

question the new When do have your And on just window to then launch satellites? is first replacement expect you last the for satellites.

Yes.

with discussions So it progress yes, satellites great look is built. to launch all the of next ahead. made so And we would be that FCC. The year half moving that's being in the there, being and first are having

And from [Operator be the Craig-Hallum. will of next question Instructions] today coming Logan Lillehaug

to just have on is if contract. ]. services government that Do for easier kind government you some of you a [ in just you you're to This it is sell Logan said move hurdle able the we George proof-of-concept. companies? start wondering are it If could I'm guys expand to Obviously, makes Like offering? that maybe think that necessary with to guys through that? services Maybe maybe other

Actually having board. good across engagement with so -- the we're government

a together, working that's we've have this government exciting and we've our actually on company, that, now. pipeline together, this quite been XCOM the with with we're opportunities partner, right thing as closer is there's that We But of RAN that. services brainstorming project gotten good other quite

project sense, then make for that building the sure, we it's we some companies we in but that takes work other time. opportunity sure an together, -- this there's are with with working you first excellent government government, to together, want other So get going channel through contractors. I'm well And sure yes, potential forward. And -- see know

it that at companies for idea a really is a while us. for the go-to-market with partnering great So of path have been

Paul. And then for quick one of kind maybe follow-up just you,

any on steps of think in use. the to Just cellular few week? still terms AST commentary they I go have this a I actual know, FCC earlier approval

comments whether any or have So competitive not the wondering you I'm just changing? you think it's environment, on if

it particularly think out ones for running know were It's takes things. don't looking effort. direct for only to running that changes the services. of satellites I and are to decades, I we a lot obviously, We've XXX run a been commercial still We think, Yes. well. network smartphone of, And the they X service.

since is then. Globalstar sure, yes, And an many So at I've grown years for have said model services as full this Providing business ago. model cellular that bankrupt cellular networks times, outside and cellular went doing of business coverage unproven Iridium XX that point. areas,

So coverage. is the opportunity provided being question we're is now there what's cell incremental opportunity now. yes, for an outside The for that showing beyond what's right connectivity Obviously, connectivity. of

going so where real think going to of from needs direct-to-sell business. And revenue that's I the we experience got lots it real to engineers, lots just And wireless continue proven. we've new on. us, this And that to and to team opportunities found everything profitability building I streams we're track a of great technologies. and model, of business for be generate keep focus in on

on we're it. So I business really We're about it's it. that there's model But said, definitely proving watching like there. a

there are the for call more queue. over to like no [Operator go back remarks. in Instructions] And to Paul I at turn questions this time, Please closing ahead. would the

It's in ways time of different joining an Like drive a of have. things of growth areas. them. we the at lot us. And augment segments, said, team for as to opportunities on, all I we started us. to year to different business push Lots great talked different excellent again learn, new But exciting areas far. of all see in I look so progress everybody, lot quarter, very I when been of lots we thanks, that great a made the about a lots of areas the to for that it's Well,

progress forward lot your appreciate continuing have of so, and going to a And look support forward. to

thanks, So everybody.

conference you Thank today's This joining today's for meeting. call. concludes

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