Stratos Announces 2008 Year-End Results



    BETHESDA, MD, Feb. 24 /CNW/ - 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, 2008.

    
                             Financial Highlights
           (in millions of U.S. dollars, except per share amounts)
    -------------------------------------------------------------------------
                                                      Year ended December 31
                                                              2008      2007
    -------------------------------------------------------------------------
    Revenue                                                $ 639.0   $ 594.3
    EBITDA(*)                                              $ 116.5   $ 104.5
    Net earnings                                           $  20.9   $   2.0
    Basic and diluted earnings per share                   $  0.50   $  0.05
    -------------------------------------------------------------------------
    (*) 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 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, 2008, the Corporation achieved revenue of
US$639.0 million, an 8 percent increase compared with US$594.3 million in
2007. The increased revenue resulted primarily from increased Inmarsat leasing
and aeronautical revenue, increased sales of mobile terminals and equipment
and increased Iridium handheld revenues in the Mobile Satellite Services
("MSS") segment, partially offset by a decrease in revenues in the Broadband
segment. EBITDA for year ended December 31, 2008 increased by 11 percent to
US$116.5 million compared with US$104.5 million for 2007. The significant
improvement in EBITDA for the year ended December 31, 2008 was driven by the
increased MSS revenue and cost reductions resulting from the network
integration and other initiatives to reduce costs and improve operating
efficiencies.
    Net earnings for the year ended December 31 2008 were US$20.9 million, or
US$0.50 per share, compared with net earnings of US$2.0 million, or US$0.05
per share in 2007. 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 an hurricane insurance settlement.
    Cash flow from operations (including working capital changes) in 2008
totaled US$78.0 million compared with US$57.3 million generated in 2007. The
improvement primarily reflects the higher net earnings.

    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. 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.

    %SEDAR: 00003648E




For further information:

For further information: Investor Contact: Paula Sturge, FCA, Executive
Vice President & CFO, (709) 724-5227, paula.sturge@stratosglobal.com

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STRATOS GLOBAL CORPORATION

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