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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: Caxton Rhodes who wrote (9809)	5/8/2000 2:12:00 PM
From: Ruffian	Read Replies (1) \| Respond to of 13582

Globalstar 1st-Qtr Loss Widens; Sales Total $609,000 (Correct) By Amy Hellickson New York, May 8 (Bloomberg) -- Globalstar Telecommunications Ltd., a satellite-phone company that could run out of cash in about five months, said its first-quarter loss widened on costs related to expanding its service. The loss widened to $91.9 million, or 98 cents a share, from $10.9 million, or 19 cents, a year earlier. Globalstar had revenue of $609,000, including royalties. A year ago it didn't have any revenue. It was the first time Globalstar reported financial results. It began service in October. Globalstar, which is 40 percent-owned by Loral Space & Communications Ltd., has said the introduction of its service was slowed by delays in making the phones. Globalstar LP, a telecommunications partnership which includes Globalstar Telecommunications, said operating expenses and other costs rose to $93.7 million from $64.4 million. Globalstar was selling its service in 25 countries as of March 31. Shares of Globalstar shares rose 3/8 to 10 7/16 in midafternoon trading. One investor said the stock rose on optimism the company and its partners, which include Qualcomm Inc. and Vodafone AirTouch Plc, are committed to providing service. ``We, and I mean investors, are optimistic that orders will materialize and their partners will perform,'' said Bob Pugliese, senior vice president at J.W. Genesis Securities, which owns Globalstar bonds and Loral stock. ``Hopefully next quarter we'll see more tangible results.'' The company was expected to have a loss of 75 cents a share, the average estimate of five analysts surveyed by First Call/Thomson Financial. Globalstar shares had fallen by about 75 percent this year. Loral, down 65 percent this year, fell 1/16 to 8 1/2. Cash Crunch Globalstar said it had $234.7 million in cash. Chairman and Chief Executive Bernard Schwartz said last week the company is spending about $125 million a quarter and will be about $150 million short by the end of the year assuming the company doesn't renew a $250 million credit facility due in June and doesn't get any revenue, Schwartz said. The company had 550,000 minutes of billable service for its satellite phones in the quarter. Analysts have said the company has struggled to gain satellite-phone customers after rival Iridium LLC folded. Globalstar will report customer numbers later this quarter. ``I'd estimate that the company only had a couple thousand subscribers for the quarter'' based on first-quarter revenue, said C.E. Unterberg, Towbin analyst William Kidd, who has a ``neutral'' rating on the stock. Globalstar, which said it will rely on revenue from its service and funding from partners, isn't selling handsets at a profitable pace, Kidd said. ``We experienced start-up challenges normal for any new service introduction,'' Schwartz said in a statement. ``But these issues have been addressed and solved.''