Schwartz presentation to DLJ conference (via LOR thread)
Talk : Communications : Loral Space & Communications
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To: JMD (6361 )
From: kitterykid
Sunday, Jun 27 1999 9:32PM ET
Reply # of 6373
I attended the afternoon session at the DLJ conference. Nick Moren, treasurer of LOR
and GSTRF, made an excellent, calm and compelling presentation on GSTRF. There
was no badmouthing or gloating about Iridium. With the final financing out of the way -
we hope! - all is moving ahead very surely and steadily. My sources at Qualcomm say
very good things about the beta testing of the GSTRF phones over the satellite links. I
believe it is all coming together.
Bernard Schwartz made the final presentation of the day. He was three hours back from
the Paris Air Show and in good spirits and humor. He reiterated that the strength of
satellites is the ability to broadcast to multiple users - it compliments rather than
competes with terrestrial systems. It works hand in hand with fiber and cable. LOR's
global network is well underway - 16 birds with 700 transponders in existing, owned
orbital slots by 2002. LOR's 700 transponders will represent an estimated 50% of the
entire market. LOR's ISP customers include UUNet, OZ EMail and PSI Net.
Bernie
flashed up some provocative numbers for Globalstar: Revenues in 2002 at $3.08 Billion,
up from $10 Million in 1999. EBITDA in 2002 at $2.9 Billion, up from zero in 1999.
EBITDA margin in 2002 at 94%, up from zero in 1999. Net income in 2002 at $1.96
Billion, up from a $370 Million loss in 1999. And here comes the best - Earnings per
share in 2002 at $8.44, up from a loss of $1.59 in 1999. Average subs estimated at 3.4
Million, up from 12,000 in 1999. With the help of GSTRF, the estimated EPS for LOR
common was projected at $3.98 in 2002. Attendance at the afternoon session was
pretty lousy. I 'd say 2/3rds of the seats were empty at the Grand Ballroom of the
Waldorf. We've got to be near the bottom with that lack of interest!! |
