31 January 2005

Stratos Global earnings down

Stratos Global Corp financial results for the 4Q and FY ended December, 2004 showed net earnings in 2004 of $25.1m, 51c basic earnings/share, compared with $38.1m or 77c basic earnings/share, reported in 2003.

Results in 2003 reflected peak demand related to the conflict in the Middle East, as well as an after-tax gain of $8.7m, or 18c/share, related to the sale of Stratos' interest in Inmarsat Ventures Plc.

FY 2004 revenue was $367.8m , a 7% decline compared with the record level of $397.2m achieved in 2003, primarily reflecting a reduction in government and military expenditures for mobile satellite services following the peak level of demand experienced in 2003, but 13% above 2002 levels.

Revenue in the broadband business grew by 6% during 2004, with VSAT revenue increasing by 25% for the year.

"This past year was challenging for the remote satellite communications industry as a whole, as the record level of demand experienced in 2003 returned to more sustainable levels," said Jim Parm, Stratos' president and CEO.

"In this context, Stratos successfully maintained its industry-leading market position and profitability in our mobile satellite services business, improved cash flow from operations, strengthened our broadband business, and, with the refinancing of our long-term debt in December, further positioned the corporation to execute on our stated strategy."

For the fourth quarter ended December 31, 2004, revenue totaled $89.2m , compared to $94.3m a year ago. Broadband revenue growth of 7% during 4Q
of 2004 was more than offset by a decline in revenue from mobile satellite services.

Stratos International appointment