OT OT Reuters Dispatch: LOR posts narrower than expected loss; see graphs 6-8 re G*
Loral posts wider loss, satellite revenues rise
NEW YORK, May 5 (Reuters) - Loral Space & Communications Ltd. (LOR - news) on Wednesday said its first quarter loss nearly doubled, but the satellite company still beat Wall Street expectations as satellite service revenues jumped 34 percent.
Loral, which builds satellites and provides a range of satellite-based telecommunications services, said its loss climbed to $50 million, or 17 cents per share, from a loss of $27 million, or 11 cents per share, last year.
Analysts polled by the research firm First Call Corp. had expected a loss of 26 cents per share.
''We're off to a very good start this year, with significant growth in revenue and income, particularly in our fixed satellite services unit,'' Loral Chief Executive Officer Bernard Schwartz said in a statement.
Total revenues rose to $415 million in the first quarter, up 15 percent from a year ago. The fixed satellite services group generated $72 million in revenues, up from the $54 million in the first quarter of 1998.
Loral attributed the wider loss largely to costs associated with developing the Globalstar Telecommunications Ltd. (GSTRF - news) satellite communications network. Loral is the largest investor in Globalstar, which is building a $2.6 billion network of low-earth-orbit satellites to provide global communications services.
Globalstar's network development has been beset by delays and mishaps, including the loss of a dozen satellites in a rocket crash in September 1998. But Loral said the network is approaching completion.
''There have been five successful launches thus far,'' Schwartz said. ''With another three launches -- of the eight remaining on our schedule -- we'll have 32 satellites in orbit and will begin the roll-out of service in September in major regions of the world.''
The first quarter loss also included a doubling of depreciation and amortization costs from the $479 million acquisition of Orion Network Systems in March 1998, Loral said.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, and before development costs jumped 38 percent to $68 million from $49 million a year ago. Including development costs, EBITDA was $37 million versus $18 million.
At the end of the first quarter, Loral had $614 million in cash on hand including $49 million that is restricted to pay interest payments on Orion's debt. Loral's total debt stands at $2.0 billion including Orion's share.
Loral shares were down $1 to $18.125 in afternoon trading Wednesday on the New York Stock Exchange. well off a 52-week high of $32.44 but up from a year low of $10.75.Eastern Time
Loral posts wider loss, satellite revenues rise
NEW YORK, May 5 (Reuters) - Loral Space & Communications Ltd. (LOR - news) on Wednesday said its first quarter loss nearly doubled, but the satellite company still beat Wall Street expectations as satellite service revenues jumped 34 percent.
Loral, which builds satellites and provides a range of satellite-based telecommunications services, said its loss climbed to $50 million, or 17 cents per share, from a loss of $27 million, or 11 cents per share, last year.
Analysts polled by the research firm First Call Corp. had expected a loss of 26 cents per share.
''We're off to a very good start this year, with significant growth in revenue and income, particularly in our fixed satellite services unit,'' Loral Chief Executive Officer Bernard Schwartz said in a statement.
Total revenues rose to $415 million in the first quarter, up 15 percent from a year ago. The fixed satellite services group generated $72 million in revenues, up from the $54 million in the first quarter of 1998.
Loral attributed the wider loss largely to costs associated with developing the Globalstar Telecommunications Ltd. (GSTRF - news) satellite communications network. Loral is the largest investor in Globalstar, which is building a $2.6 billion network of low-earth-orbit satellites to provide global communications services.
Globalstar's network development has been beset by delays and mishaps, including the loss of a dozen satellites in a rocket crash in September 1998. But Loral said the network is approaching completion.
''There have been five successful launches thus far,'' Schwartz said. ''With another three launches -- of the eight remaining on our schedule -- we'll have 32 satellites in orbit and will begin the roll-out of service in September in major regions of the world.''
The first quarter loss also included a doubling of depreciation and amortization costs from the $479 million acquisition of Orion Network Systems in March 1998, Loral said.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, and before development costs jumped 38 percent to $68 million from $49 million a year ago. Including development costs, EBITDA was $37 million versus $18 million.
At the end of the first quarter, Loral had $614 million in cash on hand including $49 million that is restricted to pay interest payments on Orion's debt. Loral's total debt stands at $2.0 billion including Orion's share.
Loral shares were down $1 to $18.125 in afternoon trading Wednesday on the New York Stock Exchange. well off a 52-week high of $32.44 but up from a year low of $10.75.Eastern Time
Loral posts wider loss, satellite revenues rise
NEW YORK, May 5 (Reuters) - Loral Space & Communications Ltd. (LOR - news) on Wednesday said its first quarter loss nearly doubled, but the satellite company still beat Wall Street expectations as satellite service revenues jumped 34 percent.
Loral, which builds satellites and provides a range of satellite-based telecommunications services, said its loss climbed to $50 million, or 17 cents per share, from a loss of $27 million, or 11 cents per share, last year.
Analysts polled by the research firm First Call Corp. had expected a loss of 26 cents per share.
''We're off to a very good start this year, with significant growth in revenue and income, particularly in our fixed satellite services unit,'' Loral Chief Executive Officer Bernard Schwartz said in a statement.
Total revenues rose to $415 million in the first quarter, up 15 percent from a year ago. The fixed satellite services group generated $72 million in revenues, up from the $54 million in the first quarter of 1998.
Loral attributed the wider loss largely to costs associated with developing the Globalstar Telecommunications Ltd. (GSTRF - news) satellite communications network. Loral is the largest investor in Globalstar, which is building a $2.6 billion network of low-earth-orbit satellites to provide global communications services.
Globalstar's network development has been beset by delays and mishaps, including the loss of a dozen satellites in a rocket crash in September 1998. But Loral said the network is approaching completion.
''There have been five successful launches thus far,'' Schwartz said. ''With another three launches -- of the eight remaining on our schedule -- we'll have 32 satellites in orbit and will begin the roll-out of service in September in major regions of the world.''
The first quarter loss also included a doubling of depreciation and amortization costs from the $479 million acquisition of Orion Network Systems in March 1998, Loral said.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, and before development costs jumped 38 percent to $68 million from $49 million a year ago. Including development costs, EBITDA was $37 million versus $18 million.
At the end of the first quarter, Loral had $614 million in cash on hand including $49 million that is restricted to pay interest payments on Orion's debt. Loral's total debt stands at $2.0 billion including Orion's share.
Loral shares were down $1 to $18.125 in afternoon trading Wednesday on the New York Stock Exchange. well off a 52-week high of $32.44 but up from a year low of $10.75.
Regards. Liacos_samui |
