Stratos Global Corporation announced its financial results for the fourth quarter and full year ended December 31, 2001. The Corporation is reporting revenue for the fourth quarter of US $80 million, representing growth of $46 million over $34 million for the fourth quarter last year. For the year, revenues were $289 million, up $171 million over 2000. Gross margins as a percentage of revenues improved from 32 percent last year to 37 percent in 2001.
Operating income before interest expense, income taxes, depreciation and amortization and transition and other costs ("EBITDA")1 was $19.2 million for the quarter and $62.9 for the year. This represents an increase of $14.2 million over the same quarter last year and an increase of $54.3 million over last year. EBITDA as a percentage of revenues for the quarter improved from 14.4 percent in 2000 to 23.8 percent in 2001 while the percentage for the year was 21 percent compared to 7 percent in 2000. The EBITDA improvements demonstrate
The operating expenses for the year were $45.9 million up from $29.5 million for 2000. The increase in operating expenses was driven primarily by the four acquisitions completed in 2000.
In December, Stratos was awarded a competitive contract with the United States Navy's Space and Naval Warfare Systems Command (SPAWAR) to provide global, full duplex, leased satellite bandwidth for use with the Inmarsat B systems aboard U.S. Navy ships. This contract includes a maximum quantity of 63 months of service and the estimated value over the five-year period is US $137 million. The contract illustrates the essential role Stratos services play in mission-critical applications.
Given the current economic environment, management expects revenue growth in the range of 8% to 10% and EBITDA growth of between 10% and 15% for 2002. In 2002, capital expenditures are expected to remain at a level consistent with 2001 at approximately 7% of revenue. For 2002, Stratos intends to focus on improving efficiencies in the Corporation's business and operations, including achieving further efficiencies from the four acquisitions completed in 2000, as well as managing costs, improving technologies and streamlining operations.