In the last trading session, the stock price of Globalstar, Inc. (NYSEMKT:GSAT) gained over 28% to close the day at $1.35. This is the highest shares price of firm since September, after the company confirmed that FCC has put its revised Wi-Fi offer on circulation.
The FCC enlisted a new Proposed Order in retort to December 7, 2016 revision of the firm’s proposal, which Globalstar stated provides considerable protections to adjacent businesses as it intends to expand the broadband spectrum supply.
The financial performance
IN 3Q2016, Globalstar revenue jumped by 8% over the same quarter of FY2015. This increase was led mainly by higher service revenue coming from growth in company’s average subscriber base and better ARPU from a quarter ago. This jump in service revenue was negated partially by a decline in revenue posted from equipment sales segment primarily due to lower core Simplex sales in the reported period.
Jay Monroe, the CEO and Chairman of Globalstar, said that total revenue surged 8% in the third quarter of 2016 as they continue to improve ARPU and expand their subscriber base. Service revenue surged 12% from 3Q2015, and contributed considerably to the improvement in overall operating margin.
Net income dropped from 3Q2015 due to reduced non-cash derivative valuation profits, however Adjusted EBITDA enhanced considerably due to improved service revenue as the costs dropped slightly. The company executed a strategic association with Carmanah Technologies Corporation, whereby the latter will manufacture and design a solar supported M2M satellite product and utilize Globalstar satellite constellation for offering remote connectivity to Carmanah products.
It is also pursuing more opportunities for this kind of innovation and consider company is well positioned to offer reliable connectivity as satellite technology and IoT converge. During the announcement of 3Q2016 results, the firm had stated that they were working on FCC proceeding to get a favorable outcome, and it is the outcome of their dedicated efforts that their revised plan has received approval for circulation.