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Technology Stocks : Loral Space & Communications -- Ignore unavailable to you. Want to Upgrade?

To: dougjn who wrote (4523)	9/10/1998 11:46:00 AM
From: Geoff	Read Replies (1) \| Respond to of 10852

G* works on 32 satellites, noticable in busy signal and drop call rates. 48 sats would have had ZERO. Amount of 3% degredation in busy signals, and drop call rates, primarily in equatorial regions. Voice quality will remain "excellent". Capacity will be less than original, but more than enough for first few years of service. Launch Plan: Soyuz launch w/ 4 sats in Nov 98, Dec 98, Jan 99 option for March, April and May 99 Delta for May 99 36 satellites total Complete the constellation with 2 Deltas in 4Q 1999. Soyuz is very reliable, and insurance is cheaper than Deltas. Constellation of 64 total built, down to 52 Costs $80-100 million $275 million $190 million in insurance proceeds $80 million needed for additional hardware costs 1 or 2 extra Zenits if they want them Revenue $400 million in revenue, down to $100 million in 1999 Zero impact in Y2000. 8 sats in orbit are doing well, exceeding operation requirements. In place team that can complete this launch schedule. 4 ground stations, installed, are working very well. Calls are working, last one placed yesterday successful...excellent voice quality and 2 minute conversation. Paris to someone at a convention of 400 people. Service providers continue to plan for deployment of ground stations, manufacturers are still setting up manufacturing lines. "No leak in the dyke" Cost impact and 3 month delay. Questions time!

To: dougjn who wrote (4523)	9/10/1998 12:06:00 PM
From: Geoff	Read Replies (1) \| Respond to of 10852

Questions: Joe Campbell - How firm are the 98 soyuzes Nov, Dec and Jan launches are firms March, April and May are having dates worked out in manifest (previously arranged in case of launch mishaps) Delta launch in May is firm 4Q 1999 Deltas are in arrangement process Is Russia causing problems? Had backup plans for currency. 10-15 people there continuously on the site. Support levels satisfactory. Russian stuff is not having any influence on getting satellites up, according to BS. Scott Kramer?: What amt of LOR cash flow? G* had $1.3 billion in revenue in $200 million for Loral in Y2000, "no reason for that to change" revenue forecast should be maintained for Y2000. 1999 will be a little light. Nationsbanc Montgomery: What was up with the launch broadcast? misconnect between the launch personnel and Loral/G. Were not reporting immediately. Low level error on the part of the people at the launch site, from the people reading the telemetry... gave nominal specs but not the actual things... What remaining financial holes are there at G? hardware cost: $80 million+ stretch out cost of about $100 million to cover operation and interest. New requirement of funds has not been addressed yet. Ground facilities? Gaining interests from partners around the world? Is this a problem now that there is added delays? BS thinks there will be no negative reaction. Relief on part of manufacturers who have been going overtime. providers know about this biz, the risks, etc. They knew about the contingency plan, not unusual. They were very happy when they thought. Didn't here the name Options on Delta II rocket? Burn rate will be $100 million a quarter. not clear what was being talked about here. Satellite production is not a problem. New plan will not call for 64 birds, only 52. David Wells Gateways: 39 in operation by end of 1998. 22-28? Not clear Insurance savings going to zenits/deltas going forward: unit savings for soyuz, overall program will cost more, but is factored into the $80 million Rohm? Liquidity? How many months, when will you need additional capital? Covered through 1Q 1999 normally. This delta in cash flow will be the $85 million of hardware cost. What is monthy burn on payments? May 99 would be the worst case. $85 million by May 99, operating expenses in 3Q 1999. Have enough cash for 1Q 1999. $85 million would be the additional needed for 2Q. Economic turmoil, slower than expected subscriber rate? There will probably be some slowdown in Asia, not substantial effect because of target demographic. partner providers know it was an upscale type of a service.. think impact will be negligable.