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Stratos Announces 2009 Fourth Quarter and Year-End Results

BETHESDA, MD (March 8, 2010) - Stratos Global Corporation, the world's trusted leader in delivering vital voice, data and IP communication services today announced financial results for the fourth quarter and the year ended December 31, 2009.

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

  Fourth Quarter
Ended December 31
Year ended
December 31

 

2009 2008 2009

2008

Revenue

$ 166.9 160.6 $ 644.4

$ 639.0

EBITDA*

$ 25.4 $ 27.0 $ 101.6

$ 102.9

Net earnings

$ 13.2 $ 6.3 $ 31.5

$ 20.9

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

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 quarter and year ended December 31, 2009, the Corporation achieved revenue of US$166.9 million and US$644.4 million, respectively, increases of 4 percent and 1 percent compared with US$160.6 and US$639.0 million, respectively, in the same periods in 2008. The increased revenues in both periods resulted primarily from an increase in revenue in the Mobile Satellite Services ("MSS") segment, partially offset by a decrease in revenue in the Broadband segment. EBITDA for the quarter and year ended December 31, 2009 decreased by 6 percent and 1 percent, respectively, to US$25.4 million and US$101.6 million compared with US$27.0 million and US$102.9 million, respectively, for the same periods in 2008. The decrease in EBITDA for both periods was driven by a decrease in gross margin in the MSS segment as a result of increased cost of airtime upon the implementation of the new distribution agreements with Inmarsat effective May 2009 and changes in product mix, partially offset by a decrease in operating expenses.

Net earnings for the year ended December 31, 2009 were US$31.5 million, compared with net earnings of US$20.9 million in 2008. The increase in net earnings for the year ended December 31, 2009 resulted primarily from lower interest expense due to lower LIBOR rates and a decreased margin rate, lower depreciation and amortization and the inclusion in 2009 of gains from a hurricane insurance settlement and sale of assets in Germany.

Net earnings for the fourth quarter of 2009 were US$13.2 million, compared to US$6.3 million for the fourth quarter of 2008. The increase in net earnings is due primarily to lower income tax expense as a result of changes in tax estimates during the quarter.

Cash flow from operations (including working capital changes) in 2009 totaled US$41.7 million compared with US$76.8 million generated in 2008. The decrease in 2009 resulted primarily from an increased investment in working capital due to the change in payment terms to Inmarsat under the new distribution agreements.

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 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



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2009 Year End Results (PDF)