Newsroom

Stratos Announces Second Quarter 2009 Results

BETHESDA, MD (August 5, 2009) - Stratos Global Corporation, the world's trusted leader in delivering vital voice, data and IP communication services today announced financial results for the second quarter ended June 30, 2009.

Financial Highlights
(in millions of U.S. dollars)

Second quarter ended June 30

Six months ended June 30

2009
2008
2009
2008
Revenue
$ 160.8
$ 162.7
$ 317.4
$ 310.2
EBITDA*
$ 30.4
$ 28.6
$ 58.5
$ 53.1
Net earnings
$ 5.8
$ 5.5
$ 10.3
$ 6.2


* EBITDA (a non-GAAP measure) is defined by the Corporation as earnings before interest expense, income taxes, other (income) costs, management long-term incentive expense, depreciation and amortization, non-controlling interest and equity in earnings of investee.

The unaudited interim 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 second quarter and six months ended June 30, 2009, the Corporation achieved revenue of US$160.8 million and US$317.4 million, respectively, a 1 percent decrease and a 2 percent increase compared with US$162.7 million and US$310.2 million, respectively, in the same periods in 2008. EBITDA for the second quarter and six months ended June 30, 2009 increased by 6 percent and 10 percent, respectively, to US$30.4 million and US$58.5 million compared with US$28.6 million and US$53.1 million for the same periods in 2008. The decrease in revenue for the three months ended June 30, 2009 when compared to the three months ended June 30, 2008 was due to a decrease in revenue in the Broadband segment. The improvement in EBITDA for both periods was driven primarily by a decrease in operating expenses.

Net earnings for the second quarter and six months ended June 30, 2009 were US$5.8 million and US$10.3 million, respectively, compared with net earnings of US$5.5 million and US$6.2 million, respectively, during the same periods in 2008. The improvement in net earnings resulted from the increased EBITDA and lower interest expense.

Cash flow from operations (including working capital changes) in the second quarter and six months ended June 30, 2009 totaled US$10.9 million and US$32.4 million, respectively, compared with US$17.4 million and US$22.4 million, respectively, generated during the same periods in 2008. The decrease for the three months ended June 30, 2009 when compared to the three months ended June 30, 2008 resulted primarily from an increased investment in working capital related to increased accounts receivable and prepaids. The increase for the six months ended June 30, 2009 resulted from higher net earnings and a lower investment in working capital than experienced for the six months ended June 30, 2008.

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 communication 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 indirect 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.

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.

For additional information :
Paula McDonald, FCA
Executive Vice President and Chief Financial Officer
709.724.5227
paula.mcdonald@stratosglobal.com