Globalstar Q1: 79% Revenue Jump, Balance Sheet Improvements, Reiterated Outlook & More - Globalstar (AMEX:GSAT)

Globalstar Inc GSAT reported first-quarter FY23 sales growth of 78.9% year-on-year to $58.64 million, beating the consensus of $49.43 million.
EPS for the quarter was $0.00 compared to $(0.01) last year, in line with the consensus estimate.
Operating income for the quarter was $7.2 million compared to a loss of ($13.7) million. The operating margin was 12.3%.
Adjusted EBITDA for the quarter more than tripled to $32.6 million.
As of March 31, 2023, it held cash and equivalents of $20.5 million.
Marking as a final step in a series of achievements completed on its balance sheet improvements, GSAT paid off the remaining balances due under the 2019 Facility Agreement and the vendor financing arrangement with MDA, using proceeds from the sale of $200.0 million in non-convertible notes, which were issued net of a 5% OID and financing costs.
Jay Monroe, Globalstar Executive Chairman, said, "It would be hard to ignore the market and speculative implications around the almost daily satellite headlines related to competitive service offerings from new or existing satellite providers. While most alternatives are still in concept and testing mode, Globalstar is today enabling groundbreaking service offerings that are saving lives across our product portfolio. Of course, we do not believe the current market price of our stock reflects our company's value. All we can do is continue to execute."
Outlook: Globalstar reiterated its FY23 revenue of $185 million - $230 million against the consensus of $206 million. It sees FY23 adjusted EBITDA margin of about 55%.
The company expects its financial metrics to improve significantly by 2026, which is expected to be the first full year in which the new satellites are operational, with total revenue expected to increase by approximately 35% compared to the 2023 forecast.
Price Action: GSAT shares are trading higher by 2.86% at $0.9642 on the last check Friday.

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