Globalstar, Inc. (NYSE American: GSAT) an American satellite communications company that provides mobile voice and data communications services via satellite announced its operating and financial results for the quarter completed on March 31, 2021. GSAT stock plummeted substantially adjacent to the news.
At last check-in after-market trading, shares of Globalstar Inc. (GSAT) were down -8.94% at $1.12. GSAT’s stock closed the last session at $1.23, increasing 2.50% or $0.03. Shares of the company fluctuated between $1.16 and $1.24 throughout the day. For the last six months, the stock has gained a total of 309.73%, and over the last three months, the stock has increased by 11.82%
- Read More
- 3 Best Marijuana Stocks to Watch for in 2021
- These are the Best Esport Stocks To Buy For 2021
GSAT Financial Result
Total revenue for the first quarter of 2021 declined 16% from the same quarter of the previous year. Lower service revenue was offset partly due to an increment in revenue produced from sales of subscriber equipment.
Service revenue declined over the previous year’s quarter resulting mainly from engineering service revenue recognized during the first quarter of 2020linked to a network feasibility study, which accumulated $4.0 million. This agreement continues with changing impact on the financial statements established on the timing and number of contract milestones.ServicesfinishedbetweenQ1 2021 produced revenue of $0.5 million.
Subscriber equipment sales had an increment of $0.6 million in the first quarter of 2021 in comparison to the same quarter of the previous year. The majority of the surge in revenue was due to the increased number of SPOT X® and Trace device sales. Commercial IoT equipment sales also had an increment between the first quarter of 2021 due to a larger volume of SmartOne asset tracking devices and the commercial IoT product, the ST100 satellite transmitter.
Loss from operations was $19.3 million during Q1 2021 vs $14.1 million during the same quarter the prior year. The surge in operating loss was attributed to lower revenue of $5.3 million, offset partly by reduced operating expenses of $0.1 million.
The decline in operating expenses was a result of diminished marketing, general and administrative expenses, stimulated partly by small increases in the cost of subscriber equipment sales and services.
Net loss declined $1.9 million from Q1 2020 to the first quarter of 2021. This change was attributed to reduced interest expense and foreign currency losses.
GSAT’s financial result did not produce an expected outlook with an increase in loss from operations and a decrease in total revenue compared with the same quarter for the previous year. This reduced investor, with GSAT stock price falling immensely at last check.