Welcome to the Q2, 2013 Globalstar Incorporated Earnings Conference Call. My name is Adrianne and I will be your operator for today's call. At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session. Please note that this conference is being recorded. I will now turn the call over to Carolyn Capaccio, LHA. Carolyn you may begin.

Thank you, operator. Good afternoon, everyone. Thank you for joining us for today’s conference call to discuss Globalstar’s three months results for the period ended June 30, 2013. Before we begin please note the following. This call may contain forward-looking statements within the meaning of federal securities laws. Factors that could cause results to differ materially are described in the Safe Harbor section of recent press releases and in Globalstar’s SEC filings, including its annual report on Form 10-K and quarterly reports on Form 10-Q. The press release, this conference call and the associated slide presentation, which is available on the Investor Relations page of Globalstar’s 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, Tuesday, August 13, 2013. The second quarter 2013 press release that was issued on this afternoon, which contains 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's website. Today’s call is being presented by Mr. Jay Monroe, Chairman and CEO; and Rebecca Clary, Chief Accounting Officer and Corporate Controller. Joining Jay and Rebecca for the question-and-answer session will be Tony Navarra, President of Global Operations, and Tim Taylor, Vice President of Finance. Now it's my pleasure to turn the call over to Jay Monroe. Jay? James (Jay) Monroe III: Good afternoon, everyone and thank you for joining us. In Q2 and in the weeks following the close of the quarter Globalstar made solid operational and balance sheet related progress. We continue to reestablish our second generation network and successfully restructured our senior and subordinated debt. In addition, to facilitate these critical transactions we also announced an $85 million multi-year terminal equity commitment that demonstrates our most continued belief in the success of Globalstar its underlying investment thesis and its near term opportunities. The progress made during and after the quarter provides Globalstar the runway to capitalize on these opportunities. To-date our service level is restored resulting in a doubling of new duplex voice and data subscribers in the quarter, 41% increase in minutes of use and a significant ARPU pick-up. The company has materially improved its debt structure which entering the quarter created a significant overhand on its liquidity. And we are now well-positioned in the ongoing process with the FCC as we seek terrestrial authority for our spectrum. Before I provide a complete update I will turn the call to Rebecca Clary to summarize the Q2 financial performance. Rebecca?

Thank you, Jay and good afternoon, everyone. As shown on slide three Globalstar reported adjusted EBITDA of $2.9 million for the three-months ended June 30, 2013, which is consistent with the second quarter of 2012. A less than 1% decrease in total revenues was offset by a 1% decrease in total operating expenses, excluding EBITDA adjustment. Net loss in the second quarter of 2013 increased from $27.5 million to $126.3 million. This increase was driven by non-cash items, including a $47 million loss on the extinguishment of debt in connection with the refinancing of the 5.75 note announced in May as well as the $50 million fluctuation and derivative valuation adjustments from a gain in the second quarter of 2012 to a loss in the second quarter of 2013. These items were largely driven by the value of the conversion option in 8% notes issued in May as well as similar derivative features in our other existing subordinated debt insurance. These values are impacted by various assumptions including the company’s stock price volatility and estimates of the price of future equity issuances. Total revenue was $19.8 million in the second quarter of 2013 compared to $20 million in the second quarter of 2012. Service revenue increased $1.2 million to $15.4 million during the second quarter of 2013, while equipment revenue decreased $1.4 million to $4.4 million over the same period. Total revenue from our duplex business improved significantly during the quarter driven by increase phone sales and activations as well as continued conversion of our subscriber base to higher rate plans. While service revenue from all of our core lines of business improved quarter-over-quarter from 2012, almost 70% of the increase was driven by our Duplex business. The increase in Duplex service revenue resulted from a 27% increase in ARPU…

(Operator Instructions). And we have Marco Rodriguez on line with a question. Please go ahead.

Good afternoon. Thank you for taking my questions. In your press release you talked a little bit about having a bigger push on the marketing side. Can you provide a little more color on what specific initiatives you will be rolling out here and kind of compare and contrast second half versus first half and any sort of time lines associated with those initiatives? James (Jay) Monroe III: Sure, Marco as we have put out the SPOT Global Phone and we’ve put out SPOT Gen3. In the fall we’ll put out the consumer tracking product as well each of which has its own marketing initiative. We intend to increase the marketing spend to bring those products to the marketplace and push them through the retail channels that we’ve described, but to do so in a responsible way consistent with growing our EBITDA as well. So you can expect that we would spend more on marketing than we had in prior periods but at a controlled pace that does not damage the EBITDA growth that we expect going forward.

Can you kind of help quantify that, I mean obviously directionally you are going to be going up but I mean how much more are we’re talking about here in terms of your marketing spend? James (Jay) Monroe III: Yeah I don’t have specific numbers and it sort of gets close to guidance on our end. But again we will continue to spend more and we have staff up already so the cost of the additional personnel was to roll through the P&L. But the controlled marketing spend that I was describing is third-party spend that you would do with outside agencies for advertising and so forth. Again it will be controlled. It will be increased but will be increased in moderation with and in proportion to growth in EBITDA.

Okay. And then kind of moving over to the Duplex gross adds or subs without providing any sort of specific guidance I was wondering if you could kind of help us understand, I know directionally you are anticipating those numbers to go up but where do you think you can may be end the year with gross adds there on a quarterly run rate basis given the new marketing push? James (Jay) Monroe III: Well we expect them to increase over the gross adds that you saw in this quarter. And that will be predominantly because more and more will go through the retail channel with the SPOT Global Phone. I spoke in my remarks a moment ago when I suggested that 30% of the new activations came from the SPOT Global Phone to the retail channel that was 30% of sales and not activations. But we expect the activations to now begin to show regularly out of that channel because you’ve got 10,000 points of retail distribution that we will end up in over time. Again that’s about as precise as I can be. It’s a new product. It’s a new placement in a retail channel more extremely bullish about it but I don’t know that I can do us both a favor by trying to be more precise with the numbers.

Okay. And speaking of the retail push here for the satellite phone, can you kind of give us a sense as far as what do you think the addressable market side would be for that? James (Jay) Monroe III: Well we certainly think it expands the addressable market, period. If you think historically where products have been sold that have gone to the satellite industry pre-SPOT it was through vertical market channels oriented at remote industries and enterprise predominantly. So whether it was oil and gas or maritime or what have you that is how you did it. And the way you reached them was through dealers agent and resellers. So I think as soon as we go to markets like the outdoor enthusiast and markets like that, you deal with companies like REI, Best Buy and so on you are touching new consumers who don’t know much about satellite at all. So it’s a first impression game off-course but we have aggressive pricing for the product. We have aggressive retailers who have carrier SPOT before and have been successful with it, so are interested in expanding the number of SKUs that Globalstar provides to them. And the results to date have been pretty bullish. Exactly trying to size the market I don't know that I am capable of making a judgment of that.

Okay. And are you expecting that the duplex adds in that you are thinking for 2013 and beyond is going to be driven mostly by the retail market or the enterprise side? James (Jay) Monroe III: We hope that we will go back to growing the enterprise side as we did before and so the retail market will be added to it. But it remains to be seen at our peak we distributed about 40,000 voice units through the enterprise side and we’d like to get back to that level on the enterprise side. If we are able to do so then the retail consumer market channel should be additive.

Okay fair enough. And then kind of switching gears here, gross margins for equipment sales fell pretty dramatically sequentially and year-over-year. Can you talk a little bit what drove those results?

Sure Marco the margin tightening is directly correlated with the number of phones that we sold at very small margins, relative to our other products.

So this is all duplex phones?

That’s right.

Okay. Got it and so given the fact that you are going to be pushing that a little bit harder here, is this 19% level a better level if you will going forward for modeling purposes?

Yeah, probably so and just something to keep in mind is that from a cash flow perspective that's a 100 cash flow. So it’s while in the income statement the margin looks tight. And we like to look at it from a cash flow perspective as positive.

Got it, okay. And last question I’ll jump back in queue, interest expense kind of doubled here sequentially, were there some extra items in there?

I am sorry, can you repeat the question Marco.

The interest expense doubled.

Oh sorry, I am sorry. That was due to a lot of the notes, our outstanding convertible notes converted during the quarter which when you write off them into debt discount and [GSC] it just close for interest expense. So just an accounting entry that’s made upon conversion.

Okay and I am assuming that you’ll have more detailed break out in the filing in regard with that.

Yes.

Okay, got it thanks a lot guys.

Welcome

(Operator Instructions). And we have no further questions at this time. I’d like to turn the call to Mr. Monroe. James (Jay) Monroe III: We thank everybody for joining the call. We see that there are about 70 people that joined today and we thank you for that. We look forward to speaking to you again in roughly 90 days. Thank you very much.

Thank you, ladies and gentlemen. This concludes today’s conference. Thank you for participating. You may now disconnect.