Welcome to the Globalstar, Inc. Second Quarter 2015 Earnings Conference Call. My name is Miesha and I'll be your operator for today's call. [Operator Instructions]. I will now turn the meeting over to Jay Monroe. Jay Monroe you may begin.

Good afternoon everyone and thanks for joining our mid-year conference call. I look forward to providing an update on our sales and marketing, network, product development and regulatory initiatives and Rebecca will provide a review of the quarterly financial results. We'll conclude with Q&A and Tim Taylor will join us then. First, I'd like to note that this call contains forward-looking statements intended to fall within the Safe Harbor provided under the Securities laws. Factors that could cause results to differ materially are described in the forward-looking statement section of today's press release and in Globalstar's SEC filings. We're only a few quarters away from the completion of our second-generation ground upgrades which will conclude a multi-year development effort with our partners at Hughes Network Systems and Ericsson. The upgraded network will allow us to sell a host of new products and services and we expect to accelerate our entry into new markets. Historically, expensive MSS user equipment is being replaced with affordable devices, large legacy data boards are shrinking, while processing power is increasing. One-way communications devices are becoming two-way and download speeds are increasing by up to 25x. We expect these enhancements are being developed to reduce cost and expand functionality to drive our growth. Today we remain on track to complete these infrastructure upgrades on schedule. During the second quarter, Hughes and Ericsson completed a number of critical tests, deliveries, installations as planned. Hughes finished over-the-air data testing, as well as lab-based voice calling. The integration with Ericsson is well underway and will continue over the coming months. The radio access nodes or RANs, have been delivered to all of our North American gateways on schedule and we expect the completion of over-the-air testing at all North American gateways to be done in the next 60 days.…

Thank you Jay and good afternoon everyone. As Jay mentioned, we continue to expand and strengthen our presence internationally as we leverage recent product certifications and additional sales and marketing resources to introduce our products and services to new geographic areas. We also have been successfully selling our existing product portfolio through a competitive sales commission as we reduced inventory levels in preparation for the introduction of second-generation products that we expect to be available next year. Our focus in these areas have resulted in 12% growth in our worldwide subscriber base since June 30, 2014 with significant contribution from markets outside of North America. Gross additions in these markets are multiples of our second quarter 2014 levels. As shown in slide two, total revenue decreased 4% compared to the prior year's quarter which was due to a combination of continued currency effects and a decline in revenue generated from equipment sales. Growth in revenue generated from our SPOT subscribers was the primary contributor to revenue for the quarter, but the change in foreign exchange rate since 2014 remains a predominant factor offsetting revenue growth. Due to our global footprint, a significant portion of our sales is generated internationally. Had there been no change in exchange rates since the second quarter of 2014, total revenue would have been $1.2 million higher. The 4% increase in service revenues during the second quarter of 2015 compared to the prior year's quarter was driven by higher number of Duplex, SPOT and Simplex subscribers. Average Duplex subscribers increased 20% from the second quarter of 2014 and gross Duplex additions in markets outside of North America were almost three times the addition in the second quarter of 2014. The incremental revenue generated from our increased subscriber base was offset by a decrease in Duplex ARPU.…

[Operator Instructions]. Our first question is from Steve Sweeney with Elevation. Please go ahead. You may now proceed.

I was wondering if you could just talk a little about the NPRM process and sort of where it is right now. I just look at the Ex Partes and it looks like they are moving sort of from the bureaus to more of the staff of the Commissioners and I guess is that indicative of where we're in the process wining, is the order now from International Bureau and the Wireless Bureau, is that headed towards the Chairman's office or should we expect some type of a ruling in the next few months. I guess as far as now you got control over the process, but where are we, in your eyes, in the process?

Steve, I think first and foremost, we completed the demonstrations at the FCC and those were very successful and those were extremely important to the Bureaus, because it allowed them to conclude the part of the process that they had been so involved in and have been handling for the last year or so. That process concluded, the test data was put out by us, it was put out by the FCC itself and clearly it demonstrated that there was no interference between Channel 14 and Channel 11 which would impair the use of Channel 11. So that was important and that has been completed. Now, the process is one where it moves from the Bureaus to the eighth floor and it's now up to the Chairman to decide when he wants to move the NPRM to a final order.

Could I just ask - I mean make sure, so it's left the Bureau level, it's gone past the Bureau level and now it's going to the churn or--?

No, we can't say Steve with clarity exactly where it is and shift it to next step in the process once the technical work is completed, is for it to move to the eighth floor. Because there were no technical problems that were identified by the Bureaus, I suspect that the Bureaus have made that known to the eighth floor. So if somebody wants to lobby pro or con, the natural place for them to go is now to the eighth floor and that's why I suspect that some of the filings that have been made, including meetings, have been taking place, whether they are our meetings or parties that are against us or other parties are taking place at the eighth floor level and less so now at the Bureau level. Now as for the time it takes to go from here to there, we know that they are working hard on it and by all of the things that the FCC has been involved in, in the last 12 months, clearly they're doing a lot of things. And this is a quiet period in Washington generally, so it's a little bit quieter in our docket as well, but we do hope that it moves promptly from hereon up.

In the past, say, over the past six months, there's been a few like sort of high-profile FCC initiatives like net neutrality, the Comcast deal, the AWS re-auctions and all the skews that happen with the designated entities. Most of those things have been resolved. I guess my question is, in your mind, is there any like really big high profile type FCC projects or something that's really sucking up all their time and their highest priority right now, so that this kind of gets put in the backburner, because that was the case before, that was the case - to be fair, it seemed like the FCC has had much higher priorities the past six months, but most of those things have been cast off the list. So I guess my question is, is there some big project that the FCC or some initiated - a priority that you think they have right now that is distracting them or causing them to the lag?

Well, I don't know that anything is causing them to delay per se, but the complexities of the incentive auctions are substantial and it does involve things from the Wireless Bureau, as well as the Office of Engineering and Technology, as well as of course, the Commissioners themselves. So they're always things going on, but should they be able to slot us in and reach a conclusion on the TLPS matter, we certainly hope so. We know that they are trying, because we speak to them frequently, but there are things that compete for people's time. And there's no getting around it, that's just the reality. But, I hope that we're closing in on the end of the process. We're certainly doing everything that we possibly can daily to make sure that any information that they need they get and they get promptly and we hope that we're nearing the end.

Our next question is from Kevin Roe with Roe Equity Research. Please go ahead. Your line is open.

A couple of questions on the financing side. The new Terrapin facility, could you give us some more detail there, is it substantially the same basic terms as the old Terrapin draw facility?

Yes Kevin, the basic structure is the same to the original line, the discount has been reduced some. So, the total discount can be as low as 2.75% and as high as 4%. So, slightly better pricing. But obviously more availability. $30 million was the last line. This is up to $75 million. In pricing it's a little bit better, the structure, otherwise is similar.

And until what period can you utilize this facility?

It's 24 months from now. So August of 2017.

And the Thermo $30 million line that you mentioned, in case Terrapin is unavailable, why would Terrapin be unavailable during that 24-month period or you wouldn't consider using Thermo as incremental financing, it's purely in case Terrapin is unavailable?

That's correct. There is no significant provisions for Terrapin to get out of their commitment. But just in case there is some issue, then Thermo is there to backstop $30 million of the $75 million. Kevin, one last point I'd like to make on the $75 million. We obviously want to have cash in the company, so that - and available on the best terms possible and used only when we need it in the company. But there are certainly some things of interest that could come out of this NPRM which would yield additional requirements for the company. I mean we just want to make certain that we have in fact a shelf there to handle those things promptly if opportunities present themselves.

[Operator Instructions]. Our next question is from Lyman Delano with Beck, Mack & Oliver. Please go ahead. Your line is open.

Late last week there was an announcement from the NASA Langley Research Center about a contract between ADS-B Technologies for an ALAS system utilizing the Globalstar System. And I just wondered if there are any significance to this announcement as it relates to Globalstar?

Yes, I think, Lyman, it is important. The whole idea of ADS-B of course is that we're able to deliver one second tracking globally for airliners essentially, but also for corporate and general aviation aircraft. Anytime a government entity takes interest in the product, it is important to us. The folks at ADS-B Technologies have been working with NASA for some time and NASA has their own reasons for wanting to test ADS-B over satellite using this ALAS system that we described and we hope that it is the beginning of many more opportunities like that. Exactly all of the reasons that NASA wants to be using ADS-B, I think can be better directed to our partners in Alaska than to Globalstar because they have been more involved. But we're very, very pleased with what this means on top of what's going on with Lockheed Martin right now.

We have no further questions at this time. I would like to hand it back to Jay for closing remarks.

Thank you everybody for joining us today. I appreciate it. We look forward to talking to you again in another 90 days and expect a lot of activity in the company in Washington DC in connection with additional experimental licenses and so forth with people that we're working with for TLPS, all of which should make the next call very interesting. Thank you very much.