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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (24533)	11/30/2001 11:32:19 PM
From: pcstel	Read Replies (1) \| Respond to of 29987

Maurice <I. Whatever the contracted prices, provision was made in the contracts for mutual price reductions if necessary. But the service providers never asked for those discounts. But Globalstar gave some anyway [which were ignored]. Remember the $15 million or thereabouts which were available in early Y2K. From the latest 10-Q.. "Globalstar has offered promotional programs to its service providers, including a 25% discount on mobile usage fees and free minutes for the advance purchase of airtime. A number of Globalstar service providers have committed to pre-purchase discounted minutes of use, amounting to approximately $11.7 million in pre-committed gross revenue ($8.8 million net of 25% discount), all of which had been received as of September 30, 2001. Of the prepaid committed revenue, $4.0 million and $0.5 million has been recognized for the nine months ended September 30, 2001 and 2000, respectively." They used this originall 25 million (19 million net of discount) in Pre-Sold minutes to help jack up the share price so the Bernie could off the Secondary @ 35 a few weeks later.. In the CC announcing the Pre-Sold minutes.. Bernie was asked if the revenue would be booked in the current quarter.. CY/Q4/99.. Bernie said no. It would be booked next quarter.. Then the Pre-Sold minutes became Pre-Committed Minutes several Quarters later. On Jan. 10, 2000. GLP/Bear Sterns, announced the Secondary offering for 7,000,000 shares with an over-alotment of 1,050,000 shares. I remember at this time.. Dave Wiggins running around and yelling at the top of his lungs about the fact that word had it the 'Globalstar handsets were Sold Out in China!! I guess it was proabably closer to the truth, than he really thought... China was probably sold out.. Because the had NO inventory of Globalstar phones.. Then as the years have gone on.. The amounts of the Pre-Sold minutes have gotten smaller and smaller. From the 2001 10-K "Globalstar has offered promotional programs to its service providers, including a 25% discount on mobile usage fees and free minutes for the advance purchase of airtime. A number of Globalstar service providers have committed to pre-purchase discount minutes of use, amounting to approximately $15.3 million in pre- committed gross revenue ($11.5 million net of 25% discount), of which $8.8 million had been received as of December 31, 2000. " The current 10-Q goes on to give you handset delivery numbers via Royalty Payments. "Royalty income relating to Globalstar user terminals sold by user terminal manufacturers declined to $18,000 for the three months ended September 30, 2001 from $427,000 for the three months ended September 30, 2000 and declined to $161,000 for the nine months ended September 30, 2001 from $1.2 million for the nine months ended September 30, 2000. The decline is primarily the result of reduced shipments of Globalstar user terminals from manufacturers as user terminal distribution channel inventories have increased from early service levels and user terminal sales to subscribers have not achieved initial projections." So divide that $18,000 by a $10 royalty.. And you have 1,800 handsets.. I doubt that Ericsson is paying royalty's. So it must be those phones for the Italian Navy.... Speaking of the Italian Navy.. Did you here this one.. Q. Why does the NEW Italian Navy use Glass Bottom Boats? A. To avoid running into the OLD Italian Navy... Get It.. To avoid running into the old.... Never Mind!! PCSTEL