Globalstar, the Covington satellite telephone services provider, reported a first-quarter loss of $29.9 million, or 3 cents per diluted share, compared with a $129.7 million loss, or 13 cents per share, the year before.
The company said the decrease in losses was primarily caused by lower noncash, nonoperating losses, which dropped from $107.9 million in the first quarter of 2015 to $1.3 million. That was due to a change in the value of derivative liabilities brought on by a higher price for Globalstar stock.
The company’s adjusted earnings before interest, taxes, depreciation and amortization were $4.9 million for the quarter, compared with $3.1 million in the first quarter of 2015. Increasing revenue and a decrease in expenses, driven by lower costs for subscriber equipment sales, led to the change in EBITDA.
Company officials have said EBITDA is the measuring stick satellite phone companies use because they are severely affected by depreciation of their equipment.
The company said revenue for the first quarter rose to $21.8 million, compared with $21 million in the first quarter of 2015.
Globalstar’s results met Wall Street expectations. Analysts surveyed by MarketBeat forecast a loss of 3 cents per share for the quarter, based on revenue of $23.1 million.
Globalstar stock was down 16 cents a share Thursday to close at $1.84.