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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Jack Hartmann who wrote (55574)	5/4/2000 6:55:00 PM
From: StockDung	Respond to of 122087

Globalstar's Cash Will Only Last Through 3rd Quarter New York, May 4 (Bloomberg) -- Globalstar Telecommunications Ltd., the only satellite-telephone company that hasn't filed for bankruptcy protection or folded, said it may run out of cash in five months without additional funding. Globalstar, 45 percent owned by Loral Space & Communications Ltd., had $232 million in cash at the end of March, enough to last through the third quarter, said Chairman and Chief Executive Bernard Schwartz on a conference call. The company is spending about $125 million a quarter. Globalstar will rely on revenue from its satellite-telephone service and funding from partners, he said. Globalstar's phone services weren't avaialable until the first quarter, and the company hasn't yet reported any revenue. Satellite-phone company ICO Global Communications Ltd. is now being reorganized, and Iridium LLC folded March 17. Like those companies, Globalstar has struggled to lure customers. Its shares have dropped 73 percent this year. ``I'm remaining optimistic until I see some (subscriber) numbers...but will the company work? We'll just have to wait and see,'' said Bob Pugliese, senior vice president at J.W. Genesis Securities, which owns Globalstar bonds and Loral stock. Schwartz, also chairman and chief executive of New York-based Loral, said Loral has no plans to pledge assets to fund Globalstar, though revenue is low. ``We continue to believe the performance of Globalstar is encouraging,'' he said. New York-based Globalstar plans to report first-quarter results on Monday, though the company won't report subscriber numbers until later this quarter. Globalstar hasn't received subscriber numbers from its service providers, Schwartz said. ``It's disconcerting that they're having problems getting an accurate count of subscriber numbers,'' Pugliese said. Globalstar shares fell 3/16 to 11 13/16. Loral fell 1/16 to 9 1/16 on the New York Stock Exchange. May/04/2000 17:55 GMT For more stories from Bloomberg News, click here. (C) Copyright 2000 Bloomberg L.P.