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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 59.91

+4.0%

3:59 PM EST

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To: djane who wrote (4087)	4/23/1999 2:25:00 AM
From: djane	Read Replies (1) of 29987

CNNfn. Iridium CEO opts to leave. Wall Street registers limited reaction to Edward Staiano's departure April 22, 1999: 5:25 p.m. ET NEW YORK (CNNfn) - Iridium LLC, operator of the world's first global wireless satellite telephone network, said Thursday its vice chairman and chief executive officer Edward Staiano resigned. The Washington-based wireless communications company named John Richardson interim chief executive, effective immediately. Richardson had served as chief executive of the company's African operations. A committee has been formed to find a permanent successor to Staiano. Staiano's resignation comes less than a month after the company's chief financial officer stepped down and at a time when the company faces significant financial challenges -- the most serious being an $800 million line of credit that its banks are clamoring over. Backed by a group led by Motorola Inc. (MOT), Iridium (IRID) went public in June 1997 at $20 a share. Its stock price almost tripled within a year, rising as high as $72 a share as investors clamored for a piece of the world's first wireless communications network linked by satellites -- to give users clear communications anywhere in the world. The party hasn't lasted. In the past three months alone Iridium's stock has tumbled to less than $24 a share -- partly a reflection of investors' wariness of the firm's outstanding debt. The company's banks have given it 60 days to meet sales goals or risk defaulting on the credit line. What's more, Iridium has been plagued by a shortage of its special phones and has persistently lacked a trained sales force to properly dispense its product, further damping sentiment about the company. Even so, some analysts are still optimistic about the company's future prospects. "I would say this will ultimately be viewed as a positive by the market," said John Bensche, an equity analyst at Lehman Brothers in New York. "The stock has suffered so much in the past three months, I don't think there's much more worse that can happen." Bensche said he's maintaining his "buy" rating on the stock. Shares of Washington-based Iridium fell 1-9/16 to 17-1/16 in New York. Motorola shares rose 1-7/16 to 81-5/8. home \| digitaljam \| contents \| search \| stock quotes \| help Copyright © 1999 CNN America, Inc. ALL RIGHTS RESERVED.

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