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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 62.88

-0.5%

Nov 14 9:30 AM EST

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To: Geoff Goodfellow who wrote (3774)	4/7/1999 1:31:00 AM
From: Geoff Goodfellow	Read Replies (2) of 29987

Iridium does not expect break-even cash flow by Q4 NEW YORK, April 6 (Reuters) - Satellite telecommunications company Iridium World Communications Ltd. (Nasdaq:IRID - news) said Tuesday it does not expect to be break-even on a cash flow basis by year-end as previously expected. Iridium said it needs 500,000 subscribers to reach the break-even level. Break-even cash flow means generating enough revenues to cover expenses. The company had expected to reach the break-even level by year-end, but that target ''will probably slip out,'' Iridium's Chief Executive Edward Staiano said at the SkyForum '99 satellite conference in New York. ''We are below where we hoped to be at this point and time,'' he said. Staiano declined to comment on Iridium's current subscriber levels. The company had 3,000 subscribers at the end of 1998. Iridium's stock has fallen sharply in recent weeks as the company said its first quarter financial results and subscriber levels would fall short of expectations. Last month, Iridium also said its chief financial officer resigned and it said it was in talks to change certain revenue and subscriber growth requirements in its loan agreements. Analysts have speculated Iridium may need additional financial support from Motorola Inc. (NYSE:MOT - news), which owns 20 percent of Iridium. When asked what level of financial commitment Iridium may need from Motorola, Staiano said ''I wouldn't necessarily make the assumption that we would need a great quantity of money from Motorola.'' Shares of Iridium gained 7/8 to 18 on Nasdaq.

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