Globalstar (GSAT) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $2.58 million in the quarter, against a net profit of $24.10 million in the last year period.    

Revenue during the quarter grew 7.88 percent to $25.54 million from $23.68 million in the previous year period. Gross margin for the quarter expanded 287 basis points over the previous year period to 57.78 percent. Operating margin for the quarter stood at negative 57.79 percent as compared to a negative 67.95 percent for the previous year period.

Operating loss for the quarter was $14.76 million, compared with an operating loss of $16.09 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $5.92 million compared with $3.99 million in the prior year period. At the same time, adjusted EBITDA margin improved 634 basis points in the quarter to 23.20 percent from 16.85 percent in the last year period.  

Jay Monroe, chairman and chief executive officer of Globalstar, commented, "Total revenue increased 8% during the third quarter as we continue to grow our subscriber base and improve ARPU. Service revenue, up 12% from the third quarter of 2015, contributed meaningfully to the improvement in our operating margin. Net income decreased from the third quarter of 2015 due to lower non-cash derivative valuation gains, but Adjusted EBITDA improved significantly due to increased service revenue as our costs were down slightly. On the business development front, we were pleased to announce the execution of a strategic partnership with Carmanah Technologies Corporation, whereby Carmanah will design and manufacture a new solar powered M2M satellite product and use our satellite constellation for remote connectivity of Carmanah products. We are pursuing additional opportunities for this type of innovation and believe Globalstar is well positioned to provide reliable connectivity as IoT and satellite technology converge. Finally, we continue to work on our FCC proceeding every day to seek a favorable outcome. As we have previously stated, given the current status of our proceeding and in deference to the Commission’s deliberative process, we will not provide additional comment on that subject at this time."