10-Q/A

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                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
 
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                                  FORM 10-Q/A
 
                      AMENDMENT NO. 1 TO QUARTERLY REPORT
                  FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1998
 
                         COMMISSION FILE NUMBER 1-14180
 
                       LORAL SPACE & COMMUNICATIONS LTD.
                         C/O LORAL SPACECOM CORPORATION
                                600 THIRD AVENUE
                            NEW YORK, NEW YORK 10016
                            TELEPHONE (212) 697-1105
 
                     JURISDICTION OF INCORPORATION: BERMUDA
 
                     IRS IDENTIFICATION NUMBER: 13-3867424
 
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                                AMENDMENT NO. 1
 
     The registrant hereby amends its Quarterly Report on Form 10Q for the
quarterly period ended June 30, 1998, as set forth below:
 
PART II -- ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K
 
     (a)  Exhibits
 
     The following exhibits are filed as part of this report:
 
            
Exhibit 12   --   Computation of Ratio of Earnings to Fixed Charges.
Exhibit 27   --   Financial Data Schedule.


 
                                   SIGNATURES
 
     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
 
                                             LORAL SPACE & COMMUNICATIONS LTD.
                                          --------------------------------------
 
                                                        Registrant
Date:  September 4, 1998
                                                    MICHAEL P. DEBLASIO
                                          --------------------------------------
                                                   Michael P. DeBlasio
                                               First Senior Vice President
                                               and Chief Financial Officer
                                              (Principal Financial Officer)
                                                           and
                                             Registrant's Authorized Officer
 
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                                 EXHIBIT INDEX
 


  EXHIBIT NO.                                  DESCRIPTION
  -----------                                  -----------
                 
  Exhibit 12    --     Computation of Ratio of Earnings to Fixed Charges
 
  Exhibit 27    --     Financial Data Schedule

EX-12

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                                                                      EXHIBIT 12
 
                        LORAL SPACE & COMMUNICATIONS LTD
 
               COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                         (In thousands, except ratios)
                                  (Unaudited)
 


                                                                     SIX MONTHS ENDED JUNE 30,
                                                              ---------------------------------------
                                                                     1998                 1997
                                                              ------------------   ------------------
                                                                             
Earnings:
  Income (loss) before income taxes, minority interest and
     equity in net loss of affiliates.......................       $(23,371)            $ 22,596
  Plus:
       Interest expense.....................................         43,499               24,478
       Interest component of rent expense(1)................          2,127                1,870
  Less capitalized interest.................................         20,222                9,867
                                                                   --------             --------
Earnings available to cover fixed charges...................       $  2,033             $ 39,917
                                                                   ========             ========
Fixed charges(2)............................................       $ 78,926             $ 33,269
                                                                   ========             ========
Deficiency of earnings to cover fixed charges...............       $ 76,893
                                                                   ========
Ratio of earnings to fixed charges..........................                                 1.2x
                                                                                        --------
                                                                                        --------

 
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(1) The interest component of rent expense is deemed to be approximately 25% of
    total rent expense.
 
(2) Fixed charges include preferred dividends as adjusted for the Company's
    effective tax rate.

EX-27

 

<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF LORAL SPACE & COMMUNICATIONS LTD. FOR THE QUARTER ENDED
JUNE 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH 
FINANCIAL STATEMENTS.

<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               JUN-30-1998
<CASH>                                         876,530
<SECURITIES>                                         0
<RECEIVABLES>                                  452,122
<ALLOWANCES>                                         0
<INVENTORY>                                    129,230
<CURRENT-ASSETS>                             1,557,642
<PP&E>                                       1,669,955
<DEPRECIATION>                                 137,032
<TOTAL-ASSETS>                               5,065,979
<CURRENT-LIABILITIES>                          341,105
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                    734,598
<COMMON>                                         2,430
<OTHER-SE>                                   2,225,563
<TOTAL-LIABILITY-AND-EQUITY>                 5,065,979
<SALES>                                        543,473
<TOTAL-REVENUES>                               568,663
<CGS>                                          568,757
<TOTAL-COSTS>                                  568,757
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                              23,277
<INCOME-PRETAX>                               (23,371)
<INCOME-TAX>                                     6,651
<INCOME-CONTINUING>                           (74,416)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                  (97,629)
<EPS-PRIMARY>                                   (0.38)
<EPS-DILUTED>                                   (0.38)

<F1>Note:  The adoption of SFAS 128 had no effect on reported earnings per
share for the quarter ended June 30, 1998.

<F2>NOTE: THE CAPTION "DEPRECIATION" LISTED ABOVE REPRESENTS ACCUMULATED 
DEPRECIATION.