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Globalstar GLOBALSTAR ANNOUNCES FIRST QUARTER 2021 RESULTS Covington , LA , May 6 , 2021 -- Globalstar , Inc. ( NYSE American : GSAT ) today announced its operating and financial results for the quarter ended March 31 , 2021 . Dave Kagan , Chief Executive Officer of Globalstar , commented , " We are pleased to see recent signs of recovery in our Commercial IoT sales channel with both service and equipment revenue higher than pre - pandemic levels in the first quarter of 2020. We expected to return to pre - COVID sales levels by the second half of this year and that expectation proved to be conservative . Our sales pipeline remains robust and diverse and we're excited to see this recent momentum . Over the last several months we have made numerous strategic decisions to align our overall business model with our expectations for growth in the Commercial IoT space , from organizational changes to network infrastructure upgrades and product development efforts , and we believe these refinements have positioned us for success . " Our Commercial IoT pipeline has grown meaningfully over the last several weeks , including a large opportunity , potentially north of 100,000 units , that we are actively pursuing for remote monitoring in the alternative energy segment . If we secure it , this deployment would drive significant efficiencies in the customer's operations and could serve as a catalyst for similar use cases in the future . Additionally , last month , we shipped the first 10,000 Commercial IoT units for the animal tracking deployment with our Australian partner , Ceres Tag . We believe animal tracking is a significant opportunity for Globalstar given not only its market size and the industry's need to improve food supply chain integrity , but also because our network is uniquely designed to fulfill this need at a device size and price point unmatched in the satellite industry . " We are also making significant progress with our initiative to upgrade certain gateway equipment known as appliques . The impetus for this initiative is to support large opportunities like animal tracking to ensure that our network performance continues to excel as capacity needs grow . Our partner has delivered test results that have exceeded our specifications in terms of system efficiency and latency , with one applique delivering an overall capacity increase of 8X and another applique proving capable of sending equivalent data while utilizing 75 % less capacity than our current system . Round - trip end- to - end latency using the new system will also dramatically decrease to about 4 seconds , which will help the system meet expanding needs for latency sensitive applications . The system's ability to allow different power levels gives us flexibility to provide IoT service in customized scenarios , including in markets with high numbers of densely clustered devices . We look forward to providing updates over the coming months as this project advances . " Entering the pandemic , we had reported year - over - year service revenue growth from Commercial IoT subscribers of 26 % . Subscribers and ARPU were both increasing at a significant pace . This momentum was in line with our strategic initiatives , which were anchored in the belief that the untapped potential of our satellite network should be focused towards Commercial IoT opportunities . Our pursuit of these opportunities has not wavered , but we are at an inflection point and we have worked to expand the list of targeted industries to develop a more diversified revenue base . While the quarter - over - quarter and sequential improvement in Commercial IoT is not material , it is a meaningful step in the right direction given the COVID headwinds in 2020. " Kagan continued , " We also continue to explore revenue - generating opportunities outside of our traditional satellite device and service offerings in order to monetize our assets in various ways . For instance , we have recently executed teleport leases that allow our partners to host their equipment at our existing ground stations around the world . These arrangements leverage the real estate , equipment and regulatory advantages of our owned gateway sites . There is no question that the ground infrastructure needs of the satellite industry is accelerating and many new constellations need access to ground based infrastructure which we can provide and allow accelerated time to market . We are exploring many more opportunities in this space and expect to grow this area as an incremental source of revenue and cash flow . " Finally , since our last earnings release , we announced the completion of the second lien warrant exercises . The proceeds from this exercise satisfied loan agreement requirements to raise $ 45 million of equity prior to the end of the first quarter 2021. Down from the initial first lien principal balance of almost $ 600 million , we now only have a net principal balance of $ 84 million remaining , most of which is not due until the final maturity date in December 2022. " 1