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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT
GSAT 61.88-4.2%12:48 PM EST

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To: bryston who wrote (14176)7/5/2000 8:31:45 AM
From: bryston  Read Replies (1) of 29987
 
Today's SkyREPORT.COM contains a sadly erroneous blurb on last week's LA Times article regarding Qualcomm layoffs:

skyreport.com

<Qualcomm, which sells Globalstar service in the United States and elsewhere, cut 400 to 500 employees that were selling the service, The Los Angeles Times reported. According to an anonymous employee interviewed by the paper, the layoffs will reduce the unit's payroll by 30 percent.>

I responded to them, as follows:

With all due respect, your brief story, "Globalstar Partner Cuts Staff" has a misleading (and negative) slant, plus significant errors. First of all, you failed to mention the most significant fact that the LA Times article clearly states: "... the firm's Globalstar unit, ... had completed a long-running contract to build ground stations ..." Is it any surprise that a company lays off workers following the SUCCESSFUL completion of a large, specialized gateway contract? Remember, Qualcomm sold its infrastructure division to Ericsson, but retained the Globalstar unit, so they don't have other projects available for possible reassignment.

Error #1. The LA Times story reads, "Qualcomm Inc. laid off nearly 200 people." Your copy reads, "Qualcomm ... cut 400 to 500 employees that were selling [Globalstar]." The LA Times article reads, "the company has 400 to 500 Globalstar employees," preceded by, "The largest share of the layoffs were in the firm's Globalstar unit...." Translation, we don't know how many Globalstar employees were laid off, but if you assume 400 to 500 total and a 30% payroll reduction, then an educated guess might be 120 to 150. That's a long way from the 400 to 500 you stated.

Error #2: Your piece states, "Qualcomm ... sells Globalstar service in the United States and elsewhere." This is flat out wrong. Qualcomm manufactured gateways, continues to manufacture user terminals, continues to provide engineering support, continues to provide product design services, and is a founding partner of Globalstar, but they do NOT sell the service, and never have.

Here's the LA Times article if you wish to verify:
latimes.com

I'm not trying to be an apologist for Qualcomm or Globalstar, but too much misinformation circulates about both companies, and accurate reporting is your responsibility.
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