Technology StocksLoral Space & Communications

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To: Sawtooth who wrote (9897)2/15/2002 11:47:56 PM
From: Selectric II
   of 10851
We do not expect this to have any adverse economic consequences for Loral.

What a con!

Globalstar takes Loral down from $22 to $2. Loral writes off Globalstar investment.

After the thunder dies down from the kick in investors' cahones, Globalstar files B* and Loral says, "We do not expect this to have any adverse economic consequences for Loral," clearly making references to the FUTURE as opposed to the PAST buttf**k Bernie gave us. HELLOOO?

Oh, I'm sooo appreciative that my LOR won't be further hit to affect its lofty $2.00 price.

Thanks, Bud. What was that remark you made about Wheaties?

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To: Fuzzy who wrote (9891)2/16/2002 3:19:13 PM
From: Ms. Baby Boomer
   of 10851
THX...beautiful beaches in's the weather:)

Good luck...

Long LOR....

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To: Sawtooth who wrote (9901)2/18/2002 11:11:42 AM
From: Jon Koplik
   of 10851
Re : "Did you see this on the G* thread ?" ...

Did you see this on the G* thread ?

Message 17069985


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To: Jeff Vayda who wrote (9887)2/19/2002 10:29:14 AM
From: Jeff Vayda
   of 10851

(Aviation Week & Space Technology 02/18/2002 In Orbit)

A U.S. appeals court has rejected arguments by Loral Space and Communications and Space
Systems/Loral against an injunction issued by a lower court in New York last spring at the request
of Alcatel Space. Alcatel had filed for the injunction following a decision by Loral to terminate a
long-standing industrial cooperation agreement with the French company so that it could pursue a
possible alliance with Lockheed Martin. A separate Alcatel action before the arbitration court of the
International Chamber of Commerce in Geneva has yet to be decided.

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To: Don Limb who started this subject2/19/2002 1:39:09 PM
From: eikos
   of 10851

Loral Space & Communications (LOR - $2.14) 1 - Strong Buy

Company Update Feb 16, 2002

A Turnaround that Actually Turned


* Solid 4Q results: although revenue was light, lower costs and fewer eliminations helped drive a better than expected EBITDA and EPS result. Revenue of $272 million was light (versus our estimate of $324 million) due to
pushouts at SS/L, but EBITDA of $53 million was better by $16 million. Loral reported an EPS loss of $0.13 ($0.16
excluding one-time items) versus the consensus loss estimate of $0.21. Our loss estimate of $0.18 included the onetime items. SS/L’s revenue shortfall was largely cosmetic in nature due to the business segment’s fairly low margins, which make the revenue miss more noise than anything else. That said, the company’s reduction in overhead was far
more important and the main contributor to Loral’s strong quarter.

* A much healthier animal: liquidity issues are in the past. For most of last year, liquidity concerns, and even some speculation of an eventual bankruptcy stemming from an inability to refinance maturing debt, plagued Loral. In
December, Loral proved that those concerns were invalid, clearing up issues at Cyberstar (and cut its obligations by
$228 million) and extending virtually all of its bank debt to January 2005. The resulting company is still levered, but
lacks the refinance risk that some were so overly concerned about. Unfortunately, the market hasn’t given the company
adequate credit, in our estimation, for that reduction in risk or the accomplishment. The capital structure fixes also pay operational dividends. With this concern now eliminated, management can now look forward, returning their focus back
to running the company. Note: Loral ended 2001 with $229 million in cash and available credit, which we believe is
sufficient to get it through 2002.

* FSS: we anticipated a conservative 2002 outlook. In our 4Q preview, we took the initiative and moved down our
estimates slightly, being cognizant of softness in 2002 due to overall demand slowdown. Our earlier adjustments put our
Loral estimates more in line with our present thinking around FSS market evolution. For the sector, we are now
anticipating 0-2% growth in 2002 and 5% in 2003. We believe Loral should still continue to outpace the pack, but albeit
with a lowered industry bar. Specifically, Loral Skynet should remain the family leader, particularly with its strong inhouse marketing capabilities and planned launches, while SatMex and Europe*Star should more closely track the industry trend. Management, in our estimation, acted similarly, establishing a single-digit revenue and EBITDA target for its FSS business. Later years, starting in 2003, should show pronounced acceleration, driven by fleet expansion as well as an anticipated improvement in market conditions.

* FSS: debookings are now an industry norm – learn to accept it. During the company’s earnings call, it was
readily apparent that some analysts were taken aback by Loral’s FSS debookings (churn), which hit backlog by $208.2
million in the quarter, offset by $152.9 million in new bookings. Management indicated that most of the loss stemmed
from one broadband customer. Debookings of this or any noticeable magnitude are a relatively new phenomena, brought on by a number of customer/traffic types. Prior to recent years, FSS customers were much larger entities with
clear long-term satellite needs, like broadcasters and PTTs. However, in recent years, significant growth has come from a particular segment of data customers, namely foreign ISPs. These customers have seen the value of satellite
connectivity in delivering IP connectivity, particularly where fiber falls shorts. Given the parameters, it shouldn’t be surprising to learn that much of this growth has come from Eastern Europe, the Middle East and Latin America.

Unfortunately, these customers aren’t on average as likely to stay around as video or telecom customers: (1) for many
of these customers, they realize that their need for satellite connectivity is short term in nature, hence the shorter contract commitments; (2) the differential between satellite and fiber prices is so large that many customers are willing to break FSS contracts. if fiber comes early; and (3) occasionally, some smaller ISPs make for poor credit risks, but most FSS providers savvied up to that exposure long ago. Consequently, churn has started to manifest itself, in step
with the growth in data traffic. Given the causes we laid out, the real question asked of management should not be "why do you have churn?" but rather "is churn worth it?" It’s our belief that gross demand from this class of data customers, namely consumers of IP backbone traffic, continues to be the fastest growing FSS traffic segment, even when netted by churn. Clearly, slower growth segments like video and telecom traffic aren’t close competitors. VSATs and broadband, however, are doing well and could pick up further steam, but that topic seems to be somewhat of a different tangent.

Therefore, we believe that so long as more data focused, FSS companies continue to show the fruits of their data focus, the market should quickly learn to acknowledge that churn is an inescapable result of those endeavors. And with Loral in particular, Skynet has consistently outpaced its larger rivals, showing that management’s strategy works and is in the best interest of shareholders. Clearly, providing an excessive amount of transponder space to an unproven company is not what we are talking about; while that has happened in the past, we don’t think operators are supporting such initiatives today, legitimizing the churn that does exist.

* The call had a somber feel to it. The conference call’s tone wasn’t entirely reflective of the good quarter and
relatively positive outlook. Loral’s conference calls, in spite of the recent debt restructurings, continue to get off track with questions regarding debt structure minutia, which is arguably a little better than last quarter, when those questions reflected concerns. While information of any sort is clearly valuable to some, the questions do detract from the larger company message: we’re more profitable than we expected and we have no cash issues." Admittedly, no quick fixes.

However, our message is equally simple: "Don’t let the meandering style of the call mislead you, the company has met expectations and has a good outlook, even more true when contrasted against its peer group."

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To: Jeff Vayda who wrote (9906)2/20/2002 9:11:02 AM
From: Jeff Vayda
   of 10851
Loral Seeks Full Control of Satellite Venture With Alcatel

Loral Space & Communications wants to take control of the EuropeStar 1
communications satellite it owns jointly with Alcatel Space, and will not
continue to invest in marketing the spacecraft through the EuropeStar

Loral plans to decrease its equity investment in EuropeStar if it cannot gain full
control of the venture, Loral Chairman and Chief Executive Officer Bernard L.
Schwartz said in a Feb. 14 conference call with analysts. Schwartz said Loral
is not pleased with the joint venture’s performance, but added that the satellite
has potential.

Schwartz also said the profitability of Loral’s Skynet satellite operations
business — the firm’s biggest moneymaker — grew in 2001.

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To: Don Limb who started this subject2/26/2002 4:12:55 AM
From: Noel de Leon
   of 10851
Market up 2.5%, Loral down 2.5%. Staying out of the bread line with Bernie.

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To: Noel de Leon who wrote (9909)2/26/2002 11:21:52 AM
From: Jim Parkinson
   of 10851
Down on a whopping 156k shares traded. Not much interest in this right now.

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To: Jeff Vayda who wrote (9908)2/27/2002 8:43:16 AM
From: Jeff Vayda
   of 10851
Secretive X-band Goes Commercial
In what sounds like a Tom Clancy spy novel, XTAR, a startup venture of Loral
Space & Communications [LOR] will use the military's secretive "X-band" to
provide encrypted communications for military and other government users.

XTRA's top executives told SATELLITE NEWS last week that they expect
their two X-band satellites, now under construction, to be operational late next

The two satellites, XTAR-EUR and Spainsat, will provide communications
services for military agencies in the United States, Spain and other NATO
countries. SpainSat will include a Spanish Ministry of Defense (MoD) payload
and additional capacity that can be leased, while XTAR-EUR would serve as a
backup satellite for SpainSat and to provide leased bandwidth.

The satellites are under contract to be built by Space Systems/Loral, using the
manufacturer's LS-1300 model spacecraft.

The XTAR venture was formed to give primary and back-up X-band service to
the Spanish MoD, said Bill Wright, president of Arlington, Va.-based XTAR.

Loral is the managing partner and 51 percent owner of XTAR, a joint venture
with the Spanish company, HISDESAT. Spanish satellite operator Hispasat owns
43 percent of HISDESAT.

Unlike Loral's financially distressed Globalstar satellite phone venture and its
Loral Cyberstar data services unit, XTAR is pursuing a business opportunity that
appears to be ripening, Wright said. "We found there is a commercial business
opportunity," he added.

In the aftermath of the Sept. 11 terrorist attacks against the United States, the
demand for X-band services has reached unprecedented levels, Wright said.
While the XTAR project was begun a few years ago, it now seems especially
well-timed in light of increased demand by the military for satellite
communications capability, he added.

"We've had a lot of enthusiasm within the U.S. government," Wright said. The
X-band is attractive because the U.S. and NATO governments have billions of
dollars in existing infrastructure to use that band, he added.

"If every X-band ground terminal was used fully, the on-orbit satellite capacity
would need to rise by seven times, according to an independent market analysis,"
said James Truemper, XTAR's executive director of operations.

"C- and Ku-band commercial offerings have developed in systems optimized for
broadcast TV and broadband network services," Truemper said. X-band is better
suited to government users in less-populated regions, he added.

Competition from the commercial satellite users for C- and Ku-band capacity
rises during crises. Government customers typically are unable to clear
bureaucratic hurdles quickly enough to buy the capacity before broadcasters
purchase it. The U.S. military is not given priority treatment in those bands, U.S.
Defense Department sources said.

However, the competition for satellite capacity between commercial and defense
users does not occur in the X-band, which is reserved primarily for military use,
Wright said. In addition, the U.S. government's interest in "homeland defense"
likely will keep demand for X-band satellite capacity high, he added.

XTAR will be able to provide encrypted information and imagery,
bandwidth-heavy applications and streaming video from intelligence resources,
Wright said. As a retired rear admiral in the U.S. Navy, Wright said he knows
first hand the need for satellite capacity to let leaders communicate with forces in
the field.

"I spent 34 years watching my Navy struggle with the issue of keeping in
day-to-day touch," Wright said.

Marshall Kaplan, director of the space practice for Rockville, Md.-based
consulting firm Strategic Insight Ltd., said the cost of building and launching two
geostationary satellites would range between $300 million to $400 million. Ground
stations would add an additional $50 million to the total and other expenses would
push the cost of starting the XTAR venture close to $500 million, he said.

XTAR officials declined to discuss costs, but they said they were optimistic about
the company's prospects. "The only drawback of the X-band is insufficient
on-orbit capacity," Truemper said. "That is where we come in."

Mary Ann Elliott, president and CEO of the Arrowhead Space and
Telecommunications satellite consultancy, commented, "The timing [of the
XTRA venture] is great due to the increased need for capacity to support
military operations."

Roger Rusch, a satellite consultant who heads the TelAstra consulting firm in
Palos Verdes, Calif., said it "looks like the capability would be substantial
compared to most current X-band systems including NATO, France, and even
the U.S."

This article first appeared in PBI Media's Satellite News

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To: Jeff Vayda who wrote (9911)3/5/2002 2:45:46 PM
From: tuck
   of 10851
>>NEW YORK, Feb 25, 2002 (BUSINESS WIRE) -- Loral Space & Communications (NYSE: LOR chart, msgs) announced today that it was notified by an International Chamber of Commerce arbitration panel in Geneva, Switzerland, that the panel has affirmed the validity of Space System/Loral's termination of its agreements with Paris-based Alcatel Space concerning the satellite manufacturing business, effective February 22, 2002.

The agreements between Alcatel and SS/L were terminable on one year's notice and, on February 22, 2001, Loral gave notice to Alcatel that they would expire on February 22, 2002. While Alcatel maintained that the notice was not effective, the panel ruled in Loral's favor on this matter. The agreements are therefore terminated.

The agreements with Alcatel date back to 1991 and have outlived their usefulness due to the evolution of the space industry and the emergence of Alcatel as a direct competitor of Loral's.

In the arbitration, Alcatel's assertion that there were various breaches of the agreements was upheld. Alcatel claimed that certain provisions of the agreements relating to the exchange of information, along with certain procedural or administrative provisions, were violated by Loral. Loral believes that Alcatel's claims for damages are completely without merit. The panel will decide whether those breaches gave rise to damages at a later date.<<


Cheers, Tuck

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