Stratos Announces Third Quarter 2008 Results



    BETHESDA, MD, Oct. 29 /CNW/ - Stratos Global Corporation, the world's
trusted leader in delivering vital voice, data and IP communication services
today announced financial results for the third quarter ended September 30,
2008.

    
                             Financial Highlights
           (in millions of U.S. dollars, except per share amounts)
    -------------------------------------------------------------------------
                                     Third quarter ended   Nine months ended
                                         September 30          September 30
                                       2008       2007       2008       2007
    -------------------------------------------------------------------------
    Revenue                         $ 168.2    $ 154.3    $ 478.4    $ 448.9
    EBITDA(*)                       $  32.7    $  33.3    $  85.8    $  77.8
    Net earnings                    $   8.4    $   9.5    $  14.6    $  11.9
    Basic and diluted earnings
     per share                      $  0.20    $  0.23    $  0.35    $  0.28
    -------------------------------------------------------------------------
    (*) 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 third quarter and nine months ended September 30, 2008, the
Corporation achieved revenue of US$168.2 million and US$478.4 million,
respectively, 9 percent and 7 percent increases compared with US$154.3 million
and US$448.9 million, respectively, in the same periods in 2007. EBITDA for
the third quarter ended September 30, 2008 decreased by 2 percent to
US$32.7 million compared with US$33.3 million for the same period in 2007.
EBITDA for the nine months ended September 30, 2008 increased by 10 percent to
US$85.8 million compared with US$77.8 million for the same period in 2007. The
slight reduction in EBITDA for the three months ended September 30, 2008
resulted from a decrease in the Broadband segment, partially offset by growth
in the Mobile Satellite Services ("MSS") segment. The significant improvement
in EBITDA for the nine months ended September 30, 2008 was driven by the
increased MSS revenue and cost reductions resulting from the integration of
Xantic and other initiatives to improve operating efficiencies.
    Net earnings for the third quarter and nine months ended September 30,
2008 were US$8.4 million, or US$0.20 per share, and US$14.6 million, or
US$0.35 per share, respectively, compared with net earnings of US$9.5 million,
or US$0.23 per share and US$11.9 million, or US$0.28 per share, respectively,
during the same periods in 2007. The net earnings for the nine months ended
September 30, 2007 included an after-tax gain from insurance settlements
related to Hurricanes Katrina and Rita of $3.8 million.
    Cash flow from operations (including working capital changes) in the
third quarter and nine months ended September 30, 2008 totaled US$12.4 million
and US$34.8 million, respectively, compared with US$2.6 million and
US$25.2 million, respectively, generated during the same periods in 2007.

    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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