A noncash derivative gain swung third-quarter results for Globalstar, a Covington-based satellite phone services provider, to a profit of $52.4 million, or 4 cents per share, compared to a loss of $2.6 million, a year ago.

A derivative is a security with a price based on upon or derived from one or more underlying assets. Changes in Globalstar's stock price helped boost its derivative gain from $11 million to $78.8 million.

The company's results were also aided by an increase in subscribers and "a significant improvement" in average revenue per user contributed to a 19 percent increase in revenue. Globalstar generated $26.1 million in revenue for the quarter, compared to $22 million a year ago.

However, higher operating expenses, primarily the result of added costs to support its second-generation ground network partially offset the increase in revenue.

Globalstar issues $121 million worth of stock