Good day, ladies and gentlemen, and welcome to the First Quarter 2012 Globalstar Inc. Earnings Conference Call. My name is Dominique, and I will be your operator for today. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes. I would now like to turn the conference over to Mr. Dean Hirasawa. Please proceed, sir.

Good afternoon, everyone. Thank you for joining us for today's conference call to discuss Globalstar's 3 months results for the period ended March 31, 2012. Before we begin, please note the following. This call may contain forward-looking statements within the meaning of federal securities law. Factors that could cause results to differ materially are described in the Safe Harbor section of today's press release and in Globalstar's SEC filings, including the quarterly report on Form 10-Q for the period ended March 31, 2012, which will be filed shortly. The press release of this conference call and the associated slide presentation, which is available on the Investor Relations page of our company website, include discussions of certain non-GAAP financial measures as defined under SEC rules. The press release provides a reconciliation of each of those non-GAAP measures to the most comparable GAAP measure. Please note that the information in this call is accurate only as of today, Thursday, May 10, 2012. A press release containing certain financial information is available on the company website at www.globalstar.com. Later today, an audio recording of this conference call will also be available via telephone dial-in, and a webcast recording, along with a copy of the slide presentation, will also be made available on the company website. Today's call is being hosted by Mr. Jay Monroe, Chairman and CEO of Globalstar, Inc. Joining Mr. Monroe are our Corporate Controller, Rebecca Clary; and President of Global Operations, Mr. Tony Navarra. Each will be available for questions following the prepared remarks. At this time, I would like to turn the call over to Mr. Monroe.

Thanks, Dean, and good afternoon, everyone. Globalstar concluded the first quarter of 2012 by continuing the positive momentum in growth and profitability that began late last year. We also continued to improve our satellite voice coverage as we deployed additional satellites, and we've continued initiatives with companies such as ADS-B Technologies, who's developing our space-based next-gen air traffic management solution. I will discuss these events in detail shortly, but first, Globalstar's Corporate Controller, Rebecca Clary, will lead off with our financial review. I will then provide a short operational update for the company and a summary and overview of the potential we see from our spectrum and network initiatives. We'll conclude the call with a Q&A session, in which Rebecca, Tony and I will be available to respond to questions. I'll now turn the call over to Rebecca to provide a review of our financial results for the past quarter.

Thank you, Jay, and good afternoon, everyone. I am pleased to report that, in the first quarter of 2012, the company had positive adjusted EBITDA for the second consecutive quarter. The company's adjusted EBITDA for the first quarter was $1.4 million, an improvement of $3.9 million from the first quarter of 2011. This improvement was due to a combination of increased revenue and a reduction in operating expenses. Our revenue was $16.7 million in the first quarter of 2012 compared to $16.3 million in 2011, after adjusting for nonrecurring revenue of $2 million recognized in the first quarter 2011. A nonrecurring revenue was the result of the termination of the company's Open Range lease agreement. Service revenue accounted for most of the increase in total revenue, and the equipment sales were flat year-over-year. The growth in service revenue resulted primarily from a $1.1 million or 27% increase in SPOT service revenue. The continued growth in our average subscriber base, which increased 31% to over 200,000 subscribers, was the main driver of this increase. The growth in SPOT service revenue was offset by a decrease of $900,000 in duplex service revenue compared to the first quarter of 2011. This decrease, which was in line with our expectations, was due to a [ph] 14% decline in ARPU and a slight decrease in average subscribers. Lower-rate plans, in effect in the first quarter of 2012, were the primary reasons for the ARPU decrease. With increasing coverage and improving call completion rates, we expect to see higher ARPU amounts that are more reflective of our call quality and dependability in the future. As discussed in our last call, the cost-saving initiatives implemented in late 2011 continued to benefit the company's operations and liquidity position. In the first quarter 2012, operating expenses decreased by $3.4…

Thanks, Rebecca. As you just heard, we're pleased with the continued positive financial momentum we began in the fourth quarter of last year, and we are encouraged with our financial progress. These past 2 quarters demonstrated turnaround for our business and are a result of restructuring the operations which we began last year. As explained in March, with increased discipline in sales, marketing, product development plus the new constellation offering improved coverage and the return of the MSS industry in this highest-quality voice service, we're laying a strong foundation for future growth in the business. Globalstar continues to make the necessary investments in the operational improvements to best realize the significant opportunities that lie ahead. And we continue our focus on increasing revenue and profitability in 2012. We also continue to expect these trends will be manifest more in the second half of the year. Today, we're just one launch away from restoring full coverage. Throughout the quarter, we continued to deploy new satellites, further improving our call success rate. The company anticipates returning to sustained duplex revenue growth later this year as additional second-generation satellites are placed into service. Currently, our customers in key markets are experiencing increased connection rates. These rates are expected to improve further in the near term as 4 new second-generation satellites are scheduled to be placed into service over the next couple of months. With these additional satellites in operation, call connection rates are expected to increase to between 80% and 90% in our key markets by August. Further increases are projected as additional satellites are placed in service throughout the remainder of the year. The increase in the service levels are expected to drive both usage and new subscriber additions. We remain on track for our fourth launch in the second half of…

Thank you, Jay. That concludes the prepared portion of the presentation. We will now move on to the Q&A portion the call. Operator, can you please proceed with the first question?

[Operator Instructions] Your first question comes from the line of David Yongo [ph] of Globalstar.

What's going -- since the converts are now current on the books, what do you plan to do with them?

Are you talking about the 575 converts?

Correct, 71 million left.

Right. Well, we're definitely very aware of it, and we'll make our decision on how we intend to deal with those, David, over the upcoming months.

Do you have enough money for your line to take care of these converts for next year?

Not at this moment.

[Operator Instructions]

Operator, it looks like we have no additional questions at this time, so we will sign off for today. And thank you all for joining the call.

Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect, and have a wonderful day.