Globalstar Telecommunication (Nasdaq: GSTRF) fell short of analyst estimates Monday and saw its shares pummeled in early trading.
Shares fell over 51 percent, down 3.10 to 2.90.
In the third quarter, the mobile satellite telephone service posted a net loss, before depreciation and amortization, of $44.5 million, or $1 per share, compared with an EBITDA loss of $41.3 million, or 20 cents per share, for the same period a year earlier. Results were a dime wider than First Call's consensus estimate for a loss of 90 cents a share.
Net revenue was $1.19 million, up sequentially from $0.71 million in the previous quarter.
In a statement, the company said the results were caused by a steady, but “unacceptably slow” rate of growth, in terms of both service subscribers and usage.
During the quarter, the company introduced service in Saudi Arabia and the Iceland/North Atlantic region and, in October, service began in Russia. Revenue from these services will ramp up and will be seen in the fourth quarter.
As well, the company recorded a total of 2.3 million minutes of mobile and fixed billable service, double the usage recorded in the second quarter. However, the statement indicated that these measures should be seen as measuring growth rather that fixed usage.
Globalstar say it will expand its ad campaign to improve name recognition, focusing on regional target areas.
The company is also expanding its products and services line to include data applications.