Globalstar, Inc. (AMEX:GSAT) Q4 2022 Earnings Call Transcript

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Mike Crawford: Okay. And then just to switch topics. So now that you’ve finished the preliminary design review of the constellation, can you share any of the characteristics of what kind of power output, throughput capacity capabilities you’ll be expecting from the replacement constellation?

David Kagan: Yes. And unfortunately, Mike, we won’t get into too many of the specifics there. We have said that the main point of launching the satellite is for the continuation of service and that we were not ever planning on taking any major technical risk. So beyond that, though, the specs and all details of the satellite’s payload and that’s not something that we’re going to be discussing at this time.

Operator: Our next question comes from Jason Bernstein with Cantor.

Jason Bernstein: Just to add one — a couple of questions actually around the new Qualcomm news. Could you sort of simply — is there a revenue opportunity through Qualcomm? Are they going to go out and sell the ecosystem and potential revenues come through there? Or people sort of buy the small cell ecosystem and then come to Globalstar to lease the spectrum? I guess maybe that’s for Kyle.

Kyle Pickens: Yes. So the way that it works, so Qualcomm has been working on a complete solution for private networking for a while now. And they look at this as the ability to have a spectrum resource that goes across borders is very attractive to them, I believe. So the way that it will work, they’re doing all of the engineering to make sure that the chipsets work, they’ll do all of the interoperability work to make sure devices and the radios work together. And then they’re going to go with us, but they have a global — they’re obviously a huge company with global reach, and they’ll go to their system integrator partners and say, here is a full solution with spectrum and all the equipment that you would need for whatever private network you’re wanting to deploy.

And so then those system integrators would work with us on a case-by-case basis to work, to do the licensing agreement and the lease. So the revenue is — will be coming from other parties, not from Qualcomm. Qualcomm will get revenue from selling equipment, and we’ll get lease revenue from the people that they introduce us to.

Jason Bernstein: Got it. Got it. And one more, if I could. In the 10-K there’s a line on the Germany and larger constellation applications being accepted by the ITU. Is that a separate — when you say larger satellite constellation that we have today, is that the 17 satellites MDA is working on? Or is that a future constellation that we really haven’t delved into yet?

David Kagan: We have no comment on that one at this time.

Jason Bernstein: Okay. I look forward to the next call then.

Operator: And this concludes the Q&A session. I’d now like to turn the call back over to Jay Monroe for any closing remarks.

Jay Monroe: Thank you all for joining today. We appreciate the attendance from investors, analysts and others, and look forward to doing this again. As always, we are available for follow-up questions. For those who asked questions today and want to go deeper and always, of course, talking to our investors anytime you want to reach out to us. Thank you very much for joining. We look forward to doing it again soon with more important news. Thank you.

Operator: Thank you. This concludes today’s conference call. Thank you for participating. You may now disconnect.

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