Stratos Announces Second Quarter 2009 Results



    BETHESDA, MD, Aug. 5 /CNW/ - 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       Six months ended
                                       June 30                  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.

    %SEDAR: 00003648E




For further information:

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

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STRATOS GLOBAL CORPORATION

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