Globalstar - degradation of the amplifiers

On Feb 7th, 2007 the company filed an incredible 8-K document with the SEC. In a section labeled “Satellite Constellation Operations,” the company made some disturbing disclosures. Globalstar has previously said that a number of its satellites have suffered from degradation of performance of power amplifiers to the S-band antenna which provides the downlink to subscriber phones or data terminals.
And now, the punch line: Based on data recently collected from satellite operations, the Company has concluded that the degradation of the amplifiers is now occurring at a rate that is faster than previously experienced and faster than the Company had previously anticipated. In response, the Company, in consultation with outside experts, has implemented innovative methods, and plans to continue to implement additional corrective measures, to attempt to ameliorate this problem, including modifying the configuration of its constellation as described above, and thereby extend the life of the two-way communication capacity of the constellation. Nonetheless, to date the Company has been unable to correct the amplifier problem and may be unable to do so.