COVINGTON, La., Oct. 20, 2014 (GLOBE NEWSWIRE) -- Globalstar, Inc. (NYSE:GSAT) today issued the following statement in response to Kerrisdale Capital's latest misguided attempt to manipulate the Company's stock price:
Terrestrial Low Power Service ("TLPS") represents a differentiated, premium, and immediate solution to global broadband and Wi-Fi congestion, and we are confident in our ability to capitalize on this opportunity for our stakeholders and the public at large. Indeed, Globalstar has completed real-world testing designed to measure the relative speed and distance from an access point through TLPS. This testing was completed utilizing more than 3,000 discrete data points to show the relative difference in coverage from a TLPS access point versus an access point utilizing conventional Wi-Fi channels. While Globalstar conducted real-world testing, Kerrisdale attempted to support its claims via a simulation and materially mischaracterized the intent of Globalstar's testing.
Kerrisdale's most recent claims further demonstrate its lack of understanding of our business and industry, as well as its willingness to manipulate information to advance its self-serving agenda. It is clear that this is yet another attempt by a short-seller to drive Globalstar's stock price down for its own short term financial gain – at the expense of all Globalstar stockholders.
Kerrisdale continues to mislead by:
- Presenting pseudo-technical arguments and unnamed sources to support its claims related to Globalstar's testing programs. In fact, on today's conference call, Kerrisdale did not produce a single expert to speak in support of its technical assumptions.
- Relying on faulty and contrived simulations, in contrast to the real-world tests conducted by Globalstar.
- Mischaracterizing or failing to technically understand that the single access point in Globalstar's tests was used to demonstrate the field test environment and not an intended deployment scheme.
- Setting its devices to antiquated modes, highlighting its unfamiliarity with Wi-Fi. Industry professionals agree that the performance of Wi-Fi devices using 802.11n is severely degraded by nearby devices using 802.11b, a mode which is meant to support legacy devices using a much older standard. Yet in its tests, Kerrisdale chose to set channel 14 devices to operate in 802.11b mode while setting channel 11 devices in 802.11n mode.
We remain confident in the value of the Company's spectrum assets. We look forward to the Federal Communications Commission adopting its proposed rules in the near future and thereby making TLPS a reality.
Globalstar has launched a new page on its website (www.globalstar.com/thefacts) that sets the record straight about the Company and its future opportunities.
About Globalstar, Inc.
Globalstar is a leading provider of mobile satellite voice and data services. Globalstar offers these services to government, commercial and recreational users in more than 120 countries around the world. The Company's products include mobile and fixed satellite telephones, Simplex and Duplex satellite data modems and flexible service packages. Many land based and maritime industries benefit from Globalstar with increased productivity from remote areas beyond cellular and landline service. Globalstar customer segments include: oil and gas, government, mining, forestry, commercial fishing, utilities, military, transportation, heavy construction, emergency preparedness and business continuity as well as individual recreational users. Globalstar data solutions are ideal for various asset and personal tracking, data monitoring and SCADA applications.
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