Globalstar Signs Definitive Agreement With Thales Alenia Space for Delivery of Six Additional Satellites
COVINGTON, La., Sept. 13, 2012 (GLOBE NEWSWIRE) -- Globalstar, Inc. (Nasdaq: GSAT), and satellite manufacturer Thales Alenia Space (TAS) today announced the signing of a contract for the manufacture and delivery of six additional satellites for the Globalstar second-generation constellation. The joint announcement was made during the Euroconsult World Satellite Business Week in Paris. The satellites, which are expected to be delivered and launched in 2015 will ensure long-term industry-leading mobile satellite voice and data services to Globalstar customers around the world through 2030.
Earlier this year, Globalstar and TAS signed a commercial proposal containing the basic terms for the purchase for these additional Spacecraft. The satellites have a design life of 15 years and will be technically identical to the twenty-four second generation spacecraft Globalstar ordered from TAS under their 2009 contract. The six new satellites will utilize approximately €12 million in Long Lead Items purchased by Globalstar under the previous agreement.
The new contract also provides Globalstar an option to order as many as twenty-four more satellites in the future should consumer demand require additional capacity be added to the Globalstar System.
"This agreement not only secures our current space segment requirements, but it also ensures that Globalstar is uniquely positioned to provide our customers with high quality MSS voice and data services over the long-term," said Jay Monroe, Chairman and CEO of Globalstar. "Once again we would like to thank TAS and the French bank group for their hard work and look forward to continuing our work with them as we move forward with the manufacture and delivery of the additional satellites."
"We are very satisfied to have finalized this negotiation in order to provide this batch of six additional Globalstar satellites to join the constellation", said Emmanuel Grave Executive Vice President Telecommunications for Thales Alenia Space.
The aggregate purchase price of these six spacecraft is €149.9 million, and TAS has committed to begin deliveries 29 months after the close of the financing. Globalstar expects to close the financing for this purchase by year end.
Globalstar is currently completing the launch and deployment of its second-generation satellite constellation. Once the 24 satellites ordered under the 2009 contract with TAS are deployed, Globalstar is expected to once again provide industry-leading voice quality and highly reliable mobile satellite voice and data services to customers around the world. With three launches completed and 18 satellites already in orbit, the Company is making preparations for the fourth launch of six satellites while already experiencing significantly improved levels of services.
About Globalstar, Inc.
Globalstar is a leading provider of mobile satellite voice and data services. Globalstar offers these services to commercial customers and recreational consumers in more than 120 countries around the world. The Company's products include mobile and fixed satellite telephones, simplex and duplex satellite data modems, the SPOT Satellite GPS Messenger and flexible service packages. Many land based and maritime industries benefit from Globalstar with increased productivity from remote areas beyond cellular and landline service. Global customer segments include: oil and gas, government, mining, forestry, commercial fishing, utilities, military, transportation, heavy construction, emergency preparedness, and business continuity as well as individual recreational users. Globalstar data solutions are ideal for various asset and personal tracking, data monitoring and SCADA applications. All SPOT products described in this press release are the products of Spot LLC, which is not affiliated in any manner with Spot Image of Toulouse, France or Spot Image Corporation of Chantilly, Virginia.
For more information regarding Globalstar, please visit Globalstar's web site at www.globalstar.com
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This press release may contains certain statements such as, "The satellites, which are expected to be delivered and launched in 2015 will ensure long-term industry-leading mobile satellite voice and data services to Globalstar customers around the world through 2030" and "Globalstar expects to close the financing for this purchase by year end" that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Forward-looking statements, such as the statements regarding the Company's ability to develop and expand its business, its anticipated capital spending (including for future satellite procurements and launches), its ability to manage costs, its ability to exploit and respond to technological innovation, the effects of laws and regulations (including tax laws and regulations) and legal and regulatory changes, the opportunities for strategic business combinations and the effects of consolidation in its industry on the Company and its competitors, its anticipated future revenues, its anticipated financial resources, its expectations about the future launches and operational performance of its satellites (including their projected operational lives), the expected strength of and growth prospects for the Company's existing customers and the markets that it serve, commercial acceptance of its new Simplex products, including its SPOT satellite GPS messenger TM products, problems relating to the ground-based facilities operated by the Company or its independent gateway operators, worldwide economic, geopolitical and business conditions and risks associated with doing business on a global basis and other statements contained in this release regarding matters that are not historical facts, involve predictions.
Any forward-looking statements made in this press release speak as of the date made and are not guarantees of future performance. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and Globalstar undertakes no obligation to update any such statements. Additional information on factors that could influence the Company's financial results is included in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.