Newsroom
Stratos Announces 2007 Year-End Results
BETHESDA, MD (February 14, 2008) - Stratos Global Corporation, the world's trusted leader in delivering vital voice, data and IP communication services today announced financial results for the year ended December 31, 2007. On December 11, 2007 CIP Investments Inc. (CIP Canada) acquired beneficial ownership of 100 percent of the Corporation's common shares.
Financial Highlights
(in millions of U.S. dollars, except per share amounts)
Year ended December 31 |
|
2007 |
2006 |
Revenue |
$ 594.3 |
$ 537.8 |
Segment earnings* |
$ 101.0 |
$ 74.7 |
Net earnings (loss) |
$ 2.0 |
$ (26.8) |
Basic and diluted
earnings (loss) per share |
$ 0.05 |
$ (0.64) |
 |
* Segment earnings is defined by the Corporation as earnings before interest expense, depreciation and amortization, other costs (income), non-controlling interest, equity in earnings of investee and income taxes.
The audited consolidated financial statements and management’s discussion and analysis of financial condition and results of operation are available on SEDAR, www.sedar.com and the Corporation’s website, www.stratosglobal.com
For the year ended December 31, 2007, the Corporation achieved revenue of US$594.3 million, an 11 percent increase compared with US$537.8 million in 2006. This improvement primarily reflects the growth in newer generation Inmarsat products and the acquisition of Xantic, which was completed on February 14, 2006. Segment earnings for 2007 increased by 35 percent to US$101.0 million compared with $74.7 million for 2006. The significant improvement in segment earnings was driven by the increased revenue, higher volume discounts earned from Inmarsat and cost reductions resulting from the integration of Xantic and other initiatives to improve operating efficiencies.
Net earnings for 2007 were US$2.0 million, or US$0.05 per share, compared with a net loss of US$26.8 million, or US$0.64 per share in 2006. The results for 2007 were negatively impacted by US$16.7 million, or US$0.40 per share, of after-tax financial advisory, legal, and other costs related to the transaction with CIP Canada, which were partially offset by an after-tax gain of US$3.8 million, or US$0.09 per share, related to the previously described insurance settlement during the second quarter and an after-tax gain on sale of certain aeronautical assets of US$1.0 million, or US$0.02 per share. Results for 2006 were adversely influenced by after-tax write-offs of US$22.4 million, US$0.53 per share, related primarily to the acquisition of Xantic.
Cash flow from operations (including working capital changes) in 2007 totaled US$57.3 million, compared with US$26.9 million generated in 2006. The improvement primarily reflects higher segment earnings, decreased investment in working capital, increased interest costs related to the Xantic acquisition financing and costs related to the transaction with CIP Canada.
About Stratos
Stratos is the world's trusted leader for vital communications. Stratos offers the most powerful and extensive portfolio of remote communications solutions including mobile and fixed satellite and microwave services. More than 20,000 customers use Stratos products and industry-leading value-added services to optimize communications performance. Stratos serves U.S. and international government, military, first responder, NGO, oil and gas, industrial, maritime, aeronautical, enterprise, and media users on seven continents and across the world's oceans. Stratos is a wholly-owned subsidiary of Inmarsat plc. For more information, visit www.stratosglobal.com.
Caution Concerning Forward-Looking Statements
Documents related to this release contain statements and information about potential future circumstances and developments. Such statements and information are qualified by the inherent risks and uncertainties surrounding future expectations generally and may differ materially from Stratos Global Corporation's actual future results. For additional information with respect to these risks and uncertainties, reference should be made to the Corporation's continuous disclosure materials filed with the Canadian Securities Administrators. Stratos Global Corporation disclaims any intention or obligation to update or revise any forward-looking statements or information, whether as a result of new information, future events, or otherwise.
For additional information :
Paula McDonald, FCA
Executive Vice President and Chief Financial Officer
709.724.5227
paula.mcdonald@stratosglobal.com