UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

___________

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 6, 2012

 

GLOBALSTAR, INC.
(Exact name of registrant as specified in its charter)

Delaware (State or Other Jurisdiction of Incorporation)

001-33117 (Commission File Number)

41-2116508 (IRS Employer Identification No.)

 

 

300 Holiday Square Blvd. Covington, LA	70433
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (985) 335-1500

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

£ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

£ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

£ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

£ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Item 1.01 Entry into a Material Definitive Agreement

 

Amendment to Facility Agreement

 

On March 6, 2012, Globalstar, Inc. entered into Amendment Letter No. 9 to its Facility Agreement which extends to December 31, 2012 the availability period to utilize the funds remaining under the Facility; delays the last date for final in-orbit acceptance of 24 second-generation satellites to April 30, 2013; delays the first repayment date for principal payments to the earlier of eight months after the fourth launch of second-generation satellites or June 30, 2013; and amends certain covenants including (a) adjusted consolidated EBITDA, (b) debt service coverage ratio and (c) net debt to adjusted consolidated EBITDA.

 

Item 2.02 Results of Operations and Financial Condition.

 

On March 12, 2012, Globalstar issued a press release to report 2011 fourth quarter and full year financial results. The text of the press release is furnished as Exhibit 99.1 to this Form 8-K.

 

Item 7.01 Regulation FD Disclosure.

 

During Globalstar’s previously announced conference call at 10 a.m. Eastern Time on March 12, 2012, written presentation materials will be used and will be available on the company’s website. The text of the presentation materials is furnished as Exhibit 99.2 to this Form 8-K.

 

The information in this Current Report on Form 8-K and the Exhibits attached hereto is furnished pursuant to the rules and regulations of the Securities and Exchange Commission and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

 

99.1 Press release dated March 12, 2012

99.2 Presentation materials dated March 12, 2012

 

 

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. 

 

	GLOBALSTAR, INC.
	/s/ James Monroe III
	James Monroe III Chairman and Chief Executive Officer

 

 

Date: March 12, 2012

 

 

 

NEWS

For Immediate Release

 

 

GLOBALSTAR ANNOUNCES FOURTH QUARTER AND ANNUAL RESULTS
FOR 2011 – REPORTS POSITIVE QUARTERLY ADJUSTED EBITDA

 

Key Highlights:

·

Globalstar reports positive quarterly Adjusted EBITDA for the first time in four years

·

Globalstar launched 12 second-generation satellites during 2011 and is on track to become the world’s first LEO-based MSS provider to launch a second-generation constellation

 

Covington, LA. -- (March 12, 2012) – Globalstar, Inc. (NASDAQ:GSAT), today announced its financial results for the three-month and twelve-month periods ended December 31, 2011.

  

FINANCIAL RESULTS

 

Globalstar increased revenue and significantly improved Adjusted EBITDA in the fourth quarter and full year of 2011, as shown in the table below (dollars in thousands):

 

 

Revenue and Adjusted EBITDA

 

Revenue increased 5 percent to $17.4 million in the fourth quarter 2011 compared to $16.5 million in the fourth quarter 2010. We attribute this increase primarily to higher service revenue as a result of growth in our average SPOT and Simplex subscriber base of 35 percent and 8 percent, respectively. Revenue for 2011 increased 7 percent to $72.8 million compared to $67.9 million in 2010.

 

During the fourth quarter of 2011, Adjusted EBITDA was $1.6 million compared with negative Adjusted EBITDA of $4.3 million during the same period in 2010. This improvement in Adjusted EBITDA of $5.9 million was primarily due to a reorganization of the Company’s activities, which resulted in a $5.0 million reduction in the Company’s operating expenses, excluding EBITDA adjustments. This decrease of approximately 24 percent was due to the implementation of the consolidated focus strategy, as well as the continuation of the operational improvement and streamlining initiatives introduced at the end of the third quarter of 2011. Net loss for the fourth quarter was $33.7 compared to $18.1 million for the same period in 2010.

 

Adjusted EBITDA was negative $3.6 million in 2011, compared to negative $8.5 million in 2010. This improvement of $4.9 million was due to an increase in total revenues and reduced operating costs. Net loss was $54.9 million in 2011, compared to $97.5 million in 2010. Total revenues increased $4.9 million to $72.8 million during 2011 from $67.9 million in 2010.

 

 

“We are pleased with the dramatic improvement in our fourth quarter Adjusted EBITDA results thanks to a narrower strategic focus resulting in more streamlined management together with operational improvements which we first announced last October,” said Jay Monroe, Chairman and CEO of Globalstar, Inc. “With many of our second-generation satellites already operational and providing improved service to our customers and with the fourth satellite launch scheduled for later this year, Globalstar has a renewed focus on growing revenue and improving profitability.”

 

Financing Update – Post Quarter Highlight

 

As previously announced, Globalstar obtained an amendment to its COFACE Facility Agreement which, among other things, deferred the beginning of the repayment period by approximately one year to the first or second quarter of 2013, depending on the date of our fourth satellite launch. This amendment significantly improves the Company's liquidity position in 2012. Additional changes were made to financial and operating covenants that are in line with the Company’s launch schedule.

 

"We believe the amendment which was supported by our French bank group and COFACE, along with the other deferred payment arrangements put in place with our major contractors, demonstrates that our stakeholders understand the challenges arising from the delayed delivery of our satellites and continue working together with us to build out our second-generation network and return to market leadership,” added Mr. Monroe.

 

OPERATIONS AND OTHER MATTERS

 

In addition to the improvement in the Company’s financial performance, there was considerable progress made throughout 2011 in other important areas of the business.

 

·

Globalstar continued the deployment of its second-generation constellation. The Company successfully conducted its second launch in July and its third launch in December of 2011 from the Baikonur Cosmodrome in Kazakhstan. With three launches now complete, Globalstar distributors have already verified significant improvements in network coverage and reliability, and the Company is seeing increases in voice and data traffic on the network. Subscribers can expect further improvements in network coverage and reliability throughout 2012 as additional satellites are placed into service. The fourth launch of the last six satellites is expected during the second half of 2012.

 

·

Globalstar is on track to become the first LEO-based MSS provider to launch, deploy and utilize a second-generation constellation to service new and existing customers around the world. The launch of the second-generation constellation paves the way for the Company’s return to offering high quality, high revenue-generating mobile satellite voice and duplex data services.

 

·

Due to the continued success of Globalstar’s SPOT Satellite GPS Messenger™ and related consumer products, since their introduction in November 2007, Globalstar has received orders to ship over 360,000 SPOT retail devices to over 10,000 SPOT points of distribution in North America, Europe, Latin America, Australia and Southeast Asia. The award-winning device has also been responsible for the initiation of more than 1,700 rescues around the world. During 2011 alone, rescue officials responded to 552 SPOT-initiated rescue requests.

 

 

·

On August 29th Globalstar announced that the French Minister in charge of Space Operations had issued Globalstar its final authorization to operate its second-generation constellation. Consequently, in early September, the Company announced that it had started processing commercial mobile satellite telephone calls for customers throughout the United States, Canada, Northern Mexico, Puerto Rico and the surrounding regions using its new second-generation satellites. Globalstar voice and duplex data customers in these regions began experiencing improved coverage availability and call performance due to the activation of the Company's six ground stations located throughout North America.

 

·

Throughout 2011, Globalstar supported the FCC’s continued recognition that mobile satellite services (MSS) spectrum may be suitable for helping meet the FCC´s significant spectrum objectives outlined in the National Broadband Plan. With the most recent FCC spectrum initiatives and the anticipated deployment of its second-generation constellation, Globalstar looks forward to participating in future proceedings with the FCC that could lead to increased investment and utilization of the Company’s spectrum allocation.

 

Mr. Monroe added, “Since 2007, Globalstar has developed a successful line of consumer products under the SPOT brand name that has pioneered a new market for affordable low-cost satellite devices targeting the maintstream retail customer. Simultaneously, we have been committed to the design, manufacture and launch of a new satellite constellation to provide industry-leading voice and duplex data services to our customers. With the fourth launch expected later this year, 2012 represents an inflection point for Globalstar’s business. We know it will take some time to regain the growth and momentum we enjoyed historically, but by later in 2012 we expect to be solidly on our way to becoming the world’s premier provider of high quality, reliable mobile satellite voice and data services to commercial, government and retail consumers.”

 

Conference Call Note

The earnings conference call scheduled for today, March 12, 2012 at 10:00 a.m. Eastern Time, will discuss the fourth quarter and full year results for 2011.

 

Details are as follows:
Earnings Call:	Dial: 866.730.5770 (US and Canada), 857.350.1594 (International) and participant pass code #50552551
Audio Replay:	A replay of the earnings call will be available for a limited time and can be heard after 11:00 a.m. ET on March 12, 2012. Dial: 888.286.8010 (US and Canada), 617.801.6888 (International) and pass code #11566200

  

About Globalstar, Inc. Globalstar is a leading provider of mobile satellite voice and data services. Globalstar offers these services to commercial customers and recreational consumers in more than 120 countries around the world. The Company's products include mobile and fixed satellite telephones, simplex and duplex satellite data modems, the SPOT Satellite GPS Messenger and flexible service packages. Many land based and maritime industries benefit from Globalstar with increased productivity from remote areas beyond cellular and landline service. Global customer segments include: oil and gas, government, mining, forestry, commercial fishing, utilities, military, transportation, heavy construction, emergency preparedness, and business continuity as well as individual recreational users. Globalstar data solutions are ideal for various asset and personal tracking, data monitoring and SCADA applications. Note that all SPOT products described in this press release are the products of Spot LLC, which is not affiliated in any manner with Spot Image of Toulouse, France or Spot Image Corporation of Chantilly, Virginia.

  

 

For more information regarding Globalstar, please visit Globalstar's web site at www.globalstar.com

 

###

 

For further media information:

Globalstar, Inc.

Dean Hirasawa

(985) 335-1505

Dean.hirasawa@globalstar.com

 

 

Safe Harbor Language for Globalstar Releases

This press release contains certain statements such as, “With the fourth launch expected later this year, 2012 represents a major inflection point for Globalstar’s business. We know it will take some time to regain the growth and momentum we enjoyed historically, but by later in 2012 we expect to be solidly on our way to becoming the world’s premier provider of high quality, reliable mobile satellite voice and data services to commercial, government and retail consumer,” that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Forward-looking statements, such as the statements regarding our ability to develop and expand our business, our anticipated capital spending (including for future satellite procurements and launches), our ability to manage costs, our ability to exploit and respond to technological innovation, the effects of laws and regulations (including tax laws and regulations) and legal and regulatory changes, the opportunities for strategic business combinations and the effects of consolidation in our industry on us and our competitors, our anticipated future revenues, our anticipated financial resources, our expectations about the future operational performance of our satellites (including their projected operational lives), the expected strength of and growth prospects for our existing customers and the markets that we serve, commercial acceptance of our new Simplex products, including our SPOT satellite GPS messenger ^TM products, problems relating to the ground-based facilities operated by us or by independent gateway operators, worldwide economic, geopolitical and business conditions and risks associated with doing business on a global basis and other statements contained in this release regarding matters that are not historical facts, involve predictions.

 

Any forward-looking statements made in this press release speak as of the date made and are not guarantees of future performance. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and we undertake no obligation to update any such statements. Additional information on factors that could influence our financial results is included in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

 

  

GLOBALSTAR, INC.

RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA

(Dollars in thousands)

(unaudited)

 

		Three Months Ended December 31								Twelve Months Ended December 31
		2011				2010				2011				2010
Net loss		$	(33,709	)		$	(18,083	)		$	(54,924	)		$	(97,467	)
Interest and derivative (gain) loss			11,461				(11,005	)			(19,030	)			34,572
Income tax (benefit) expense			(276	)			289				(109	)			396
Depreciation, amortization, and accretion			14,537				8,254				50,049				27,418
EBITDA (1)			(7,987	)			(20,545	)			(24,014	)			(35,081	)
Reduction in the value of long-lived assets and inventory			7,519				14,049				12,404				16,014
Non-cash compensation			219				882				2,199				1,046
Research and development			247				1,450				1,867				3,681
Severance			310				(96	)			1,266				2,148
Other one-time non-recurring charges			306				(12	)			1,630				3,717
Thales arbitration expenses			1,035				-				1,035				-
Adjusted EBITDA (2)		$	1,649			$	(4,272	)		$	(3,613	)		$	(8,475	)

 

(1)

EBITDA represents earnings before interest, income taxes, depreciation, amortization, accretion and derivative (gains)/losses. EBITDA does not represent and should not be considered as an alternative to GAAP measurements, such as net income. This term, as defined by us, may not be comparable to a similarly titled measure used by other companies.

 

The Company uses EBITDA as a supplemental measurement of its operating performance because, by eliminating interest, taxes and the non-cash items of depreciation and amortization, the Company believes it best reflects changes across time in the Company’s performance, including the effects of pricing, cost control and other operational decisions.  The Company’s management uses EBITDA for planning purposes, including the preparation of its annual operating budget.  The Company believes that EBITDA also is useful to investors because it is frequently used by securities analysts, investors and other interested parties in their evaluation of companies in similar industries. As indicated, EBITDA does not include interest expense on borrowed money or depreciation expense on our capital assets or the payment of income taxes, which are necessary elements of the Company’s operations.  Because EBITDA does not account for these expenses, its utility as a measure of the Company’s operating performance has material limitations.  Because of these limitations, the Company’s management does not view EBITDA in isolation and also uses other measurements, such as net income, revenues and operating profit, to measure operating performance.

 

(2)

Adjusted EBITDA is further adjusted to exclude non-cash compensation expense, reduction in the value of assets, foreign exchange (gains)/losses, R&D costs associated with the development of new consumer products, and certain other significant charges. Management uses Adjusted EBITDA in order to manage the Company’s business and to compare its results more closely to the results of its peers.

  

 

GLOBALSTAR, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share data)

(unaudited)

 

		Three Months Ended December 31								Twelve Months Ended December 31
		2011				2010				2011				2010
Revenues:
Service revenues		$	13,623			$	12,186			$	55,397			$	50,937
Subscriber equipment sales			3,764				4,339				17,430				17,004
Total revenue			17,387				16,525				72,827				67,941
Operating expenses:
Cost of services (exclusive of depreciation, amortization,
and accretion shown separately below)			6,562				8,585				29,246				31,172
Cost of subscriber equipment sales			2,606				3,866				11,927				13,182
Cost of subscriber equipment sales - reduction
in the value of inventory			7,425				10,800				8,826				10,862
Reduction in the value of long-lived assets			94				3,249				3,578				3,249
Marketing, general, and administrative			8,432				10,582				42,436				41,827
Depreciation, amortization, and accretion			14,537				8,254				50,049				27,418
Total operating expenses			39,656				45,336				146,062				127,710
Loss from operations			(22,269	)			(28,811	)			(73,235	)			(59,769	)
Other income (expense):
Interest income			1				22				15				424
Interest expense, net of amounts capitalized			(1,211	)			(1,227	)			(4,824	)			(5,021	)
Derivative gain (loss)			(10,251	)			12,210				23,839				(29,975	)
Other			(255	)			12				(828	)			(2,730	)
Total other income (expense)			(11,716	)			11,017				18,202				(37,302	)
Loss before income taxes			(33,985	)			(17,794	)			(55,033	)			(97,071	)
Income tax expense (benefit)			(276	)			289				(109	)			396
Net loss		$	(33,709	)		$	(18,083	)		$	(54,924	)		$	(97,467	)
Loss per common share:
Basic		$	(0.11	)		$	(0.05	)		$	(0.18	)		$	(0.34	)
Diluted			(0.11	)			(0.05	)			(0.18	)			(0.34	)
Weighted-average shares outstanding
Basic			312,867				291,818				299,144				285,316
Diluted			312,867				291,818				299,144				285,316

 

GLOBALSTAR, INC.

SCHEDULE OF SELECTED OPERATING METRICS

(Dollars in thousands, except subscriber and ARPU data)

(unaudited)

 

		Three Months Ended December 31																Twelve Months Ended December 31
		2011								2010								2011								2010
		Service				Equipment				Service				Equipment				Service				Equipment				Service				Equipment
Revenue
Duplex		$	4,164			$	361			$	5,314			$	500			$	19,778			$	1,826			$	23,294			$	2,148
SPOT			5,743				1,757				3,699				1,826				19,753				7,932				14,756				8,548
Simplex			1,516				1,461				1,226				1,679				5,495				6,431				4,583				5,337
IGO			238				230				316				154				1,533				1,128				1,140				659
Other			1,962				(45	)			1,631				180				8,838				113				7,164				312
		$	13,623			$	3,764			$	12,186			$	4,339			$	55,397			$	17,430			$	50,937			$	17,004
Average Subscribers
Duplex			92,567								96,634								93,963								97,453
SPOT			197,890								146,466								177,247								127,633
Simplex			138,275								128,360								136,037								123,348
IGO			45,590								58,190								47,920								58,603
ARPU (1)
Duplex		$	14.99							$	18.33							$	17.54							$	19.92
SPOT			9.67								8.42								9.29								9.64
Simplex			3.65								3.18								3.37								3.10
IGO			1.74								1.87								2.67								1.62

 

(1)

Average monthly revenue per unit (ARPU) measures service revenues per month divided by the average number of retail subscribers during that month. Average monthly revenue per unit as so defined may not be similar to average monthly revenue per unit as defined by other companies in the Company’s industry, is not a measurement under GAAP and should be considered in addition to, but not as a substitute for, the information contained in the Company’s statement of income. The Company believes that average monthly revenue per unit provides useful information concerning the appeal of its rate plans and service offerings and its performance in attracting and retaining high value customers.

 

 

2011 Earnings Call Presentation March 12, 2012

Globalstar Introduction Safe Harbor Language This presentation contains certain statements that are “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 . These forward - looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward - looking statements . Forward - looking statements, such as the statements regarding our ability to develop and expand our business, our anticipated capital spending (including for future satellite procurements and launches), our ability to manage costs, our ability to exploit and respond to technological innovation, the effects of laws and regulations (including tax laws and regulations) and legal and regulatory changes, the opportunities for strategic business combinations and the effects of consolidation in our industry on us and our competitors, our anticipated future revenues, our anticipated financial resources, our expectations about the future launches and operational performance of our satellites (including their projected operational lives), the expected strength of and growth prospects for our existing customers and the markets that we serve, commercial acceptance of our new Simplex products, including our SPOT family of products, problems relating to the ground - based facilities operated by us or by independent gateway operators, worldwide economic, geopolitical and business conditions and risks associated with doing business on a global basis and other statements contained in this presentation regarding matters that are not historical facts, involve predictions . Any forward - looking statements made in this presentation speak as of the date made and are not guarantees of future performance . Actual results or developments may differ materially from the expectations expressed or implied in the forward - looking statements, and we undertake no obligation to update any such statements . Additional information on factors that could influence our financial results is included in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10 - K, Quarterly Reports on Form 10 - Q and Current Reports on Form 8 - K .

Fourth Quarter Highlights Key Financial Metric – Positive Adjusted EBITDA for Q4 11 ▪ Globalstar reported positive quarterly Adjusted EBITDA for the first time since the fourth quarter of 2007. ▪ Adjusted EBITDA was $1.6 million compared with negative Adjusted EBITDA of $4.3 million during the same period in 2010. ▪ This improvement was due to a combination of revenue growth and the reorganization of the Company’s activities which resulted in the reduction of the Company’s marketing, general and administrative (MG&A) expenses, among other cost savings. ▪ Operations have been significantly improved and the Company is now well positioned to realize the benefits of improved cash flow concurrent with the return to quality duplex service. ($4.3) ($2.5) ($1.2) ($1.6) $1.6 ($5.0) ($4.0) ($3.0) ($2.0) ($1.0) $0.0 $1.0 $2.0 Q4 10 – Q4 11 Adjusted EBITDA ($ mil) Q4 10 Q1 11 Q2 11 Q3 11 Q4 11

Post - 2011 Highlight Globalstar Announces Amendment to COFACE Loan Facility ▪ Earlier this month, Globalstar was pleased to announce an amendment to its $586.3 million senior secured COFACE facility agreement, which significantly extends the initial repayment date and makes further adjustments to the facility financial and operating covenants. ▪ According to the amendment, the first repayment date will now be as late as June 2013 instead of the previous date of June 2012. Additional adjustments to the financial covenants were made to align levels with Globalstar’s satellite launch schedule. ▪ Amendment provides Globalstar with the added flexibility to complete the four launches of our new satellite constellation, restore network coverage and begin revenue recovery prior to making principle facility payments.

2011 Highlight – Improved Coverage 12 Satellites Launched During the Year ▪ Globalstar successfully conducted its third launch of six new second - generation satellites from the Baikonur Cosmodrome on December 28, 2011 ▪ The Company has now launched 18 new satellites into orbit and expects to conduct a fourth launch of six satellites in the second half of 2012 ▪ Most importantly, many Globalstar satellites are already operational and customers and dealers have started to experience significant improvements in coverage ▪ With high quality service soon to be restored, customers will begin to transfer to higher ARPU plans and our competitive offering will begin to attract high value new subscribers ▪ Call connection rate doubled in 2011 and is expected to range between 80 - 90 percent prior to launch of additional satellites

Spectrum Opportunity – FCC Projected Spectrum Requirement 547 120 20 60 10 90 847 Available Today Broadcast TV WCS AWS D Block MSS Spectrum Projected 2015 “The FCC should accelerate terrestrial deployment in 90 megahertz of Mobile Satellite Spectrum (MSS )….The FCC should grant licensees flexibility under the ATC regime in the 2.4 GHz Big LEO band (Globalstar), already being used for terrestrial broadband deployments, to make this spectrum permanently suitable for terrestrial broadband service, subject to appropriate safeguards to promote the public interest.” (2) – FCC National Broadband Plan, March 2010 Source: National Broadband Plan. (1) Subject to meeting certain gating requirements. (MHz) Globalstar Opportunity: 19.275 MHz of spectrum is already allotted for terrestrial use (ATC) (1)

2011 Year in Review Company is at Inflection Point ▪ Completed two more successful launches of second - generation satellites ▪ Completed licensing and registration of new constellation ▪ Substantially improved satellite coverage and witnessed significant increased duplex call usage ▪ Streamlined operations and reduced costs ▪ Reported positive Adjusted EBITDA during the fourth quarter for the first time in four years ▪ Continued to grow SPOT and M2M subscriber bases that provide high margin, recurring cash flow ▪ Consolidated third party manufacturing for increased efficiencies ▪ Continued successful penetration of consumer market with the SPOT family of products – remain the only MSS provider to successfully penetrate the mass market with high quality, inexpensive devices ▪ Began the development of innovative new products to provide enhanced growth in the near - term

Globalstar Innovation MSS consumer product success drives development of enterprise and duplex solutions • Developing low cost, innovative solutions in the MSS market is part of Globalstar’s corporate DNA • This capability drove the development of the Company’s unique consumer market product SPOT and the subsequent development of high quality affordable enterprise solutions such as SPOT IS and SmartOne • Now the Company expects to drive innovation in the MSS voice and duplex data markets as well as Globalstar is already developing products and technologies that are expected to be nothing short of revolutionary • Globalstar has already signed an agreement with ADS - B Technologies LLC who is working to develop a worldwide leading edge satellite based air traffic control management system using the Globalstar satellite network

2012 Key Initiatives Complete Launch Campaign and Return to Sustained Profitability Complete Restoration of Duplex and Voice Services via Deployment of Second Generation Satellites ▪ Complete Launch Program – Fourth launch is expected in second half of 2012. ▪ Restore Quality Duplex Service – Concurrent with the orbit raising of the remaining satellites, Globalstar’s duplex service will continue to improve and is expected to drive cash flow generation in 2012 and beyond. Re - Engage Subscriber Base and Return to Duplex Market Leadership ▪ Existing Subscribers – Increase usage and access pricing is expected to drive ARPU throughout 2012 – Management is also focused on “win - back” strategy for existing subscribers with low current usage. ▪ New Subscribers – Leverage comparable call quality advantages and pricing superiority vs. competition to drive new gross subscriber additions. Continue to Market SPOT Consumer and Simplex Products and Services ▪ SPOT Family of Products – Further penetration of existing markets with significant distribution channel and expansion into new markets and applications. ▪ Simplex – Globalstar continues to expand into new vertical markets for its industrial Simplex products. Macro trends including the increased desire for satellite tracking connectivity and innovative VAR applications are expected to provide further growth. Leverage Spectrum Position ▪ Globalstar supports the FCC’s recent decisions to encourage the use of additional spectrum, including MSS spectrum, to delive r wireless terrestrial broadband services and looks forward to MSS providers being granted additional flexibility to utilize th eir spectrum terrestrially and help solve the nation’s spectrum crunch.

Globalstar Building a Foundation for Growth and Improved Profitability