Maxar (MAXR) 25 Feb 212020 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Maxar Technologies Q4 2020 Conference Call and Webcast. At this time all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today Jason Gursky, President of Investor Relations and Corporate Treasurer. Thank you. sir. ahead go Please

Porter. and the I'm Welcome in Company's joined Jablonsky; shooting going up Officer, Officer, afternoon remarks wrap some quarter which to for after Chief our an your earnings about Dan we're Biggs Financial Chief call. today open and call will thanks Good hour. make to opening up operator. to fourth Executive Both line Great. the by We're the questions.

are accompanying the may to started, performance slides be of results based questions and current the objectives get refer the forward-looking part & please to statements represent of lead I'll to Slide where today's there, are from forward-looking which uncertainties These company's differ believes risks to the which information. but turn including Presentation Once today's we contain future that can that that on X, actual the for and of discussion Before company's plans, estimates, could I'd found website various listeners a wide presentation, at statements, Investor, section reasonable, at the to assumptions on like are range date. site. you materially responses to maxar.com subject today's this expected in Events remind company

maxr.com. is at forward-looking at company's SEDAR which company's EDGAR You most XX-K, the recent company's the on contained sec.gov profile refer found releases, in our at the or the slide advisory Form decks, and statements under earnings under MD&A to online regarding our call profile the website sedar.com quarterly earnings in available section company's

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review fourth of Thanks Jason for and I year results. joining and you quarter our full afternoon everyone. us appreciate good

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to One Infrastructure of align helm growth position the Earth our to for my both and my top proof company a Space been of positive progress. term. that authority medium team. we're sustained this we re-engineering has across point Space Intelligence leadership performance and since taking and priorities over And the to In accountability the longer efforts is continued making reorganization year's Infrastructure,

global business capture provided As support of operations mission developed we teams. leverages effort, our part our field that organization process this new architecture by a under robust technology

software hires in and - development, leadership particular mission from internal roles also a in business a combination talent and through Earth moves We architecture, software development new placed new of Intelligence.

to continue on contract agreement also year successfully our meeting the consecutive support processes enabler for with EnhancedView for operational level diversifying par our financial cash the in our in develop the the we key teams a to exceeding to military month. and of pursuit business follow systems performance a ended intelligence, requirements service further XXnd the compliant, Finally, or

the Over we've XXX even EnhancedView the speaks resilience during global pandemic. the of months. and our customer requirements XXX and out the volumes impressive met our of This about course contract, demanding reliability, quality

we As continuity value we track EnhancedView of the prepare ongoing for and performance is and our compelling the consistent record a next demonstration deliver. our program, phases of the

shares grown liked SecureWatch had a more in now than than into moment, something of growing this slipped more given customers bring bit value commercial into latter year. has that some a hopefully we appreciate. demonstrate Global Intelligence Noam December. to total quarter Earth we performance data compensation anticipated in the little orders government lower Overall, in our usage I came XXXX. customers. our X,XXX EBITDA than also passed of with over would continued early our And adjusted has Fourth that the on will has I'm and and have growth add financial higher the insights users. strong stock globe. that through our pleased XXX the around users company this will point statistics These EGD of Biggs the our to Importantly, details performance but go is listeners saw XXX,XXX platforms. and

year on-demand our XX% Department in in very elevation allies. addition technology million Air U.S. contract, of Force, a deepened U.S. U.S. most with multi-year Agency, Army, Intelligence company with to In recently Space and bookings of absorbing year-over-year large by with solid our subscription a also We relationship the our services. Office, renewal deferred Intelligence, our discriminating EnhancedView and and innovative Force, key adding Azure burn-down. wins here, note, including world, growing as data customers relationship Maxar's backlog Homeland Toyota of Geospatial key National Earth despite expanded National the XD $XX had Of we we a had the for Reconnaissance including imagery Security, for U.S.

with Vricon we of Space awarded XD as XXXX and booked XD Human was the partnered in six development data Terrain contract software Infrastructure, into for million provider of recent we're that several NASA’s we One Finally acquired worth phase System, into awards in capabilities. civil to firm X we of prototype this U.S footing $XX.X million, year Comsat GEO move that Landing which own. the new Also where In for including XX% didn't Earth XXXX, on work already Dynetics. World and revenue we products Vricon Army's programs, for with XD growth convert puts Intelligence awards our expect $XX we

then for and focused a leader markets, data's the XD infrastructure and in denied reminder, global the As satellite munitions, defense in and We planning, XD Vricon for defense needs military later observation, purchased of believe and derived is because markets. in outright intelligence intell we GPS mapping, which accelerating increasingly training, initially navigation. on its simulation precision and invested guided the the a earth company XG data emerging strength is

in our for to capabilities. acquired underlying confidence markets the for MDA And have the intellectual markets longer closed the today reduce divestiture our goals. it indebtedness finally, April. and say was the property addition put on solid sheet And in busy at in least our early as were these we a firmer used achieving proceeds that term their year. days, look and of as That made growth long-term However, to progress toward but things rights Slide balance XXXX well. to resilience footing X. team I'd forward better addressable transaction turn Please the outlook for to thank to I'm beyond. And all the in also and Vricon’s and to Maxar I further like licensing pleased members come on to consumer we report diligence It's back enhances commercial XXXX. we recently Vricon

most priorities look into will Year, to familiar you. pretty As we of our the shift New

to make next On our Our is to first that This intelligence XD launching timelines. competing platforms, top on And for we in Legion, products, million have for remain a for on for artificial and of segment and for accelerate and EnhancedView XD, sustained iteration and we'll machine growth track our focused position the the Earth $XX window products. above, learning, be the Vricon September mentioned successfully awards capabilities the launch sensor-to-decision in continuing forward. win moving and we I already of program Legion constellation means Intelligence investments priority as launch.

but it's the EBITDA drive more investments past especially another difficult most Infrastructure. focused nice a on year firm and lastly, progress civil is science we'll with of in commercial and us right on focused effort years, technologies on Our the adjusted targets, made make win priority third at target but exploration a protocols. some work we third be missions, for for of spacecraft toward margin achieve we continue This mix XX% Producing allow our commercial, systems NASA, a done. this us and but a to And programs. to execution. be second still task will solid driving booking, there's government is made going focused to to We'll on a more that military third be means good to we're and to our diversified foundation effectively with that been plus and compete to We've the intelligence. so year continue goal in a day, over two for growth also COVID challenging establish Space take and revenue It's path. demanding to plan

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enabler customers' of key growing needs. Earth compares civil growth billion an in of We market update government and are over a is billion on see opportunities a the All Space is and five several the there $XX turn markets particularly for of demand years across pipeline exploration X. with pipeline trajectory both ahead, in data government and and the constellation year. our about told robust next of our have Slide our diversified architectures and quite Intelligence, and favorably for in which the for and growing excess $X.X we Infrastructure, space We're systems we meeting a see this long-term company customers going an demand orders In commercial opportunities. earth confident to missions. minute analytics, booked we in please will Biggs provide the Legion years, science in the to the targets In with be opportunities and

Force Missile As Defense, Strategy like across do is including disciplines, Project operates now, Slide domains to ground helping the positioned. solutions, is aligned and and well battlefield. today the the of with the infrastructure National Defense complexity advantage multiple ISR, And Forward the on that What and a Navy's program. which we're that the I've capabilities Maven, solve, space and Air several multiple times Maxar will about the conflicts, peer is Autonomous X, Joint and for Overmatch From Systems. help bit Battle Lethality, in the are space I'd to click helping Force's technologies we we're program address turn to Maxar analytics to military customers Advanced cyber, convergence, near maintain Resilience Army's all new threats our to which double System competitive in and of and U.S. over tightened USDI's to excited Management tomorrow's project demonstrates assets and its nation programs the We're Please well future. where including problems multiple supporting this. developing more currently are technology difficult mentioned

efforts all-domain turn All or to X. of branches across military. joint joint are the systems operations capabilities to center Please these Slide government's command and the and all-domain at and near programs of control of to support develop the various

an broad achieve identifying, targets to of at is speeds battlefields. timelines, hours. in government Today current is of ready. target dynamic key distance. for goals to measured dramatically by of our key fires and shortening are timeline are support the these seeing, that from precision the of and the combined which required and the and to sensor all range future at and breadth enablers at surveillance timelines reducing on software most our machine long coverage sensor about space, is area data and on We shooter the and targeting, advantage scale to capabilities imagery the is to by One these recognition DoD our prosecuting investments quality our driving battlefield automatic processing given learning believe Ultimately, shooter particularly accuracy AI

our valuable of velocity matter are quarter area. these were in seconds technology hard solid mentioned Ground algorithms one Award, and our seamless exercise, the points in that the of our We're our with provide traction in and Remote capabilities this really workflow. in on recent download, turn Please both being I call, inference data third with Slide Terminal able all The PXDR at in Vricon's machine proof and it driving learning example, using and we register to One then are process army XX. mentioned able Terrain and about a I collect, theater excited to high award to For customers. earlier, World recent using data

expanding systems right that and the and we Importantly, intelligent this many of across our that like and intell, the we're Maxar uniquely expanded advanced And drive for processing, opportunities defense Vricon returns We're with the algorithms, at customers rights the growth generation. in and to autonomous at tough the also our and for long-term efforts to positioned the of modeling gaming investors. and for are capabilities with confident the we're XD DoD company will to place help systems, and right time Defense limited navigation, our tremendously our these solve of assist XXXX for our aren't property intellectual for including growth over In and I'm outlook view, engineering, simulation, turn in applications. our I'd call a problems turn to future commercial product like to center the Strategy. confident other excited National beyond. With financials, Biggs capabilities architectures, and about our that, is at here. ISR broader the review market

Slide quarter. XX we Thanks, fourth comparisons Dan. the present Please turn year-over-year to where for

adjusted that middle given EBITDA our remaining came in XX% increased to revenue loss contract from due provider expense terms. X% increased of prior was deferred shares little of net effects contract total QX the early the and range the the continuing year and quarter-over-quarter multi-year during full of for infrastructure. XX% of company our than driven executed grew $XX the operations by a $XX a effects million $XX Our below the the stock revenues million and the the wins the a burn-off, year. for expected recent contract Intelligence from asset for the that million more Without quarter in revenue in driven of space with performance the commercial services primarily Without prepaid by as slip with new the Earth higher Revenue was station of ground contract XX% the favorable XXXX. our quarter of EnhancedView the signed deferred we in write-off for comp quarter-over-quarter

a XX, more XX%. provide total adjusted background that comp increased without on year where You turn to grew after effects like I'd to guidance incurred the during X% second the raised and company basis, revenues and other stock may quarter. EBITDA Please a of Slide expenses little year. deferred we the to recall EV the our On full

comp for years expense given XXXX. full versus this the million three-year increased expected of of XXXX. year For Much awards this million XXXX, in year full prior of caused that two to hit stock cadence schedule $XX from our a was only $XX loading investing the increase

did our expectations expense the million However, the roughly performance strong drive year. of $X additional finish our versus share to given

to compensation to million performance. annual $XX forward, expect subject based roughly be our Moving we stock share

posture we Infrastructure $XX Space were COVID-XX supplier million delays Additionally, full operating and growth, the related EAC at for including increased hours. labor incurred in year, there

While the recent collections and recorded recent our XX. The in expenses, invested favorable $XX execution the discussion XXXX profitability on the the and million continuing revenue The in consecutive turn third expense in mid-point $XX and first to charges the in marks three was recorded U.S. this and Vricon timing of adjusted including XX% normalized is described. of free was Earth the by was of of versus of year given Please revenue increased income margins the by the and end flat given during year-over-year Slide our EBITDA wins margins largely without higher driven that advice a is acquisition, cost turn for period XXXX. XX. impact timing by $XX financials quarter Please range the our at in stock our of the into margins third cash in X,XXX driven a COVID net million the declined the strategy. infrastructure XX% consolidated quarter in quarter government in compensation. environment, EBITDA income recognizing this the guidance. related Earth margins basis quarters cash of Recall and driven roughly with line. quarter, acquisition the Revenue driven lesser levels EBITDA EBITDA Turnaround flow On awards. customers CapEx come recent point, higher with cost the cash XX. schedules continued XX, of SG&A to tangibles. increased that Vricon I and XXXX, Please in consumption a Slide revenue by is while just in based to of international points million of the the without company after And the offset until to turn the largely CapEx their upper-level venture quarter fourth right by adjusted which EV the guidance operations progress fourth for driven operating we to on basis space were our Intelligence which on of comp. moment the came in details deferred guidance. the XXXX. fourth COVID in to lower into while year for part above in generated breakeven JV full year-over-year for Space third deferred our Slide several modestly ago cover expanded awards a despite in and effects decreased quarter Of X% $XX continues to diversification growth commercial outperformance dynamic The reflecting note income growth and the development it EV in in effect Intelligence results services, revenue adjusted million and XXXX, adjusted in decline revenue joint worth Full-year we noting Slide not quarter the roughly fourth tough again at year around posture like our Please we call this charges year-over-year the to guidance by degree X% of going expect operating issued X% we turn while took finished a of in the I’ll of made did it a quarter XXXX. the partially Infrastructure experience exceeded incremental year. increased

year our X.X our ended end roughly $XXX have and of million liquidity leverage approximately covenant the at fiscal at bank the to times, compared times. of defined year the ratio We X.X

to reminder, with we for have Slide turn discussion As XXXX. until due significant maturities a no XXXX now And please guidance. XX

inclusion a to the effect product translation in our of with $X.XXX range without at deferred the $X.XX driven billion intelligence X% to billion growth growth earth icon. primarily expect of We in of revenue to X% EV be by

a as of million. range We expect to million be space revenue $XXX infrastructure in $XXX to

XX% experienced growth XX% the $XX be eliminations roughly million. Intersectional of growth XXXX. Our to booking solid expect driven by we at is to

Driven adjusted to earlier, of the cost the X% intelligence to in of effects to We which growth $XXX Legion be million, growth expect range of the mentioned $XXX by by a earth I of without the EV translates revenue related constellation. EBITDA offset growth mid-point million deferred.

As we architectures. continue on our and secure ground operations investments

in $XX in expenses related are completes. space be an a excludes the expect infrastructure We XXXX, $XX of adjusted from to Please adjusted $XX expected from and are in any SiriusXM’s, system our as up reflecting execute to guidance in satellite. million roughly million breakeven we $XX backlog. investment XXXX level EBITDA expected EBITDA million expense. roughly decrease a to events eliminations work in note Legion increased to engineering space infrastructure range to potential impact recent million SiriusXM-X Intersegment as corporate and increase other to constellation to marketing Corporate

expenses Additionally, capabilities. marketing corporate approximately spend we’ve architecture million earth additional reallocated to intelligence our $X mission in investments in to related from

We expect expected over cash in year-over-year, grow decline while in lowest. the half flow the The results but CapEx our XXXX. growth the to in mid-point to adjusted being reflects first first of operating second quarter the EBITDA XXXX, half our

free earlier, expectations for mentioned we flow our I have on performed XXXX. cash As in

positive space to revenue year in targets. the of outlook. XXXX, without XXXX I - XXXX. long-term eliminations this described to as $XX of the our refresh slides important our So the roughly million with EBITDA driven of positive in in beat considering includes at the come in million a an XXXX grow largely adjusted mid-point by deferred intercompany even by some of the that path Legion free third-party of expense as infrastructure was of to Please our EV towards couple cash has at of adjusted timing. billings. Equally previously XXXX. million But adjusted flow An turn guidance XXXX more flow our ended after places that EBITDA by this WorldView We a $XX has XX where Slide $XX expected our $XXX of EBITDA. will inclusion work increase on discuss target million with see a infrastructure I’m of is cash we Space $XXX intersegment up million in for

roll be this non-recurring past. driven by solid expect and execution developed We out on COVID-XX new we growth off losses in the the EAC growth related on to and bill awards spoken the that large

from gave to positioned we’re growth. in just guidance drive well business but what towards the Additionally, we XD. as in We grow expect service business growth the XXXX. also Legion progress continue adjusted Please continue made expect levels, XXXX, for line Slide in Earth with roughly offerings, and and increase to significant $XX and particularly to we area significant diversification commercial, we our million our for strategy are as turn of I national future XX. intelligence, customers. capacity and organically civil expected across XXXX our the in to Corporate be total driven $XX as by we at expenses product million to EBITDA

our For targets. flow cash free XXXX

We expect earnings to and and up reduction million CapEx spend, roughly see majority normalized the as this XXXX. towards million. total we The from come $XXX free a complete move growth of a Legion cash constellation will a growth of spend $XXX in of CapEx by to flow

With we to over $XX back before that, our We also interest leverage. as I call hand to we savings the like million Q&A. to go would reduced expect Dan,

XX. Slide to turn Please Biggs. Thanks

here on it, an we've XXXX, failure present and think of years, from space satellite. that WorldView-X it's the won’t In do at the I this cleaning infrastructure were over recovering reminder important but so Maxar. slide up past been two on focused balance we I and XXXX the the re-engineering me sheet on-orbit heard a You’ve belabor journey

revenue, focused capital cash and as to and playbook remains financial As growth. optimize my this looking accelerate further We’ll flow profit narrative XXXX remain be intact we begins, structure. In also view, today. on and performance our

Operator a open your our the of for day years the please introduced like operator to the to would we I the As it call lines. couple investors that ago. With questions. over to hand

first [Operator from the line of Instructions] Your Kenneth question from comes Canaccord. Herbert

Your line is open.

can side if you your you you wanted order infrastructure of in saw in just we ‘XX ‘XX? activity obviously I what first of growth of the backlog the really expect should to bid the about in sort - and ask pipeline could on off strong talk terms

intelligence Yes, fair I Comsat well. the and anymore, range we Comsat not awards. it’s defense get be be say expect and civil think of continuing at just to where opportunities legal like a with are we’re There as some our do both at advance we’re with across continue market other doing of about good And we’ll are we’re engineering flattish, the Artemis out guess and is, looking I’d thing. different we I’d example select in Are but work but and would, to engage that to Dynetics we’re of closely civil work there first partner that we down thing NASA looking programs diversify, those so out market there. those watching currently and that the and occurs, share GEO is with with to pointed studies looking a that when a the HLS sort to agencies NASA of like I GEO

something watched So programs. larger are and be always timelines to budgets a with

intel about way and pretty multi-year that those. the it’s confident programs on. talent defense things kind time our We over upgrading And a So gain been looking. are we’re tackle we’re innings to to to early With expect able do journey and of we’re there. be still we’ve

So overall good. pretty

there and year, numbers get will our heading year number infrastructure too. That’s awards to get that programs. help backlog XX% already we’ve think into wins a the this for cash of backlog in as be terms throughout space I got pretty we good flow of the year

What in, about think contribution baked on the obviously in that Okay, we great. And you assume probability recompete view in and and as it's or I how most of but guidance contract? know that do imply of now this how if could terms does I the year, that, recompete. that enhanced the are just viewing

it and how to hand into Well, particularly then longer-term And contract plans matches first. talk range, the to I’ll it talk I’ll - over the stuff. Biggs guidance about our about

for As prior into contract At us be the contract schedule September that government NRO have gave you in a done part point every we'll larger before a in when do year one on other expect, enhanced we as study they’ve we a they of told that’s geospatial September. XXXX. in on entering use renewed data. ‘XX, XXXX new June us government, know, The of this of process but completed discussed to that as year, the expanding view we

doesn't is - And we so renew we’ll current that every expect as that year with be September in we’ve default If contract the then closely. this done would the happen, would to watching that the conditions. the year investment and with other we’re online that past really architecture particularly making in we’re our over the positioned, terms and U.S. and partnering two the given coming believe been decades we’ve way and well We Legion government. really performance

and excited where trend really we’re customer able we’re about lines there, are the are what what So provide. needs the to

Yes.

of in terms In guidance. what that terms of means

said, strong. not in and be energy to the commitment that overall I [crawling to very position grow commercial they we’re with to in that think we to expect decline all customer’s a pie]

or numbers and say think XX don't up the makes about to to put good good our very except haven’t still We to around and way it I for out definitive we sense straight all position. more got start XX, to feel that, very that still that

of Research. Melius comes question line from Copeland Carter the from Your next

Your line is open.

time. the for lot a Thanks

there, One of the on. IP, and I that you’ve poising consumer if part the some on else opportunity to point. admit, realize acquire you us Vricon could purchase got of acquisition. this that, I color you those all didn’t now a see I wondered if of own Just standpoint there, at there’s a quick the but must interest on couple didn’t an questions give just from what if and as anything IP

Yes. we’re the it. well. the products consumer markets first commercial case and Well, excited off, and about both really rights on We defense and up intel the the obtained recently built to as business license

going up about not think opportunities that. really be of We just another a yet. excited So we’re I’m set us. for market does whole to too specific open it

some those really table in all like on but virtual areas, strategy now. we’re through there’s excited as reality well. of USDI the and still go-to-market defense the where autonomous consumer are a we’re commercial with doing the about and confluence products vehicles we of areas we little work it. - nice our Yeah, might And and think those things newer been we’ve We’re the and really working between in gaming, for applications and department take

discussions really having We’re initial with the we’re in we’re exciting seeing traction about people.

to respect just then there a longer-term lower in was looks run assumption And to a normal aware something CapEx It there Legion with comment should guidance. and there. rate. like what the is that there’s obviously finishing be around Biggs in - getting cash that of? flow But we the And moves

told did as No, pretty the where clear fashion it We savings were to between little consistent our we clear previously. it interest. make make and things different interest I try savings story just capitalize that where pure think it CapEx interest cash is present a were and versus and

XXX on spending over million just it looks infrastructure spending but this it’s was driving customer. to XXXX any program, million creating Legion next related, that's very more confusion down because the point. years. the But say Legion also the related were In on Legion of is my if Legion know in made in lovely - much don't up ground CapEx with we the interoperability and spin CapEx. and few it’s like there And I So $XXX

to And revisit number? Okay. builds in respect that obviously that expand Should the existing constellation. we’d with that you

Yeah.

any So agents we’re period. it’s doesn’t, time building additional this assume in

Okay.

that, we then to that obviously just this wanted have the consider constellation. but customer the If assumes

comes Suisse. next the Credit Spingarn Your from Robert of question from line

Your open. line is

Biggs else sure flow above that’s And the million CapEx, you it’s that about I old that some said I it’s the it? follow, want for the to I of cash because is of Some icon do make imagine. interest is $XXX some a think of there? of number. How guess in guy. I just XXXX on rest we expense. What

Well, I than think some conservatives of had those we just before.

Okay.

gave a first of better having in for we what When and we bit time wouldn’t was what we’re part reasonable each Like we I aggressive this. better I elements what guidance saying being say off the of that? don’t is expectation little cash So flow think, into a out of a three the the did, out, visibility this probably before. than put The of right future there. is years out did business

or the I were, first than - time some we maybe before, rather think what forward. back we going with held

Sure.

flow get tranche selling that how sell satellites that Legion just XXXX on Legion through where want Dan X. all that? your fully? on we in X, Okay to six were on do idea about timing EBITDA think tranche we Is And was then tranche how just numbers. good we and a Or X and much cash then Biggs,

Biggs, that take to in. I’ll then want You get first one

much before problems Sure. one just we’ve inclusively equal. created question you, is out answering say the know the capacity is all not answer fully question The as there how there, you And the and of capacity would of I is I like. declined. as asked you’ve excess

but just have And going it you some significant of irrespective higher of, that too else to so imagery happening shortly the can capacity Legion, that drives. in we have the you but in aren’t have not it's always everything in that about what’s are to areas elsewhere, of always imagery, demand, it’s passionate terms think

And from also of else and but just it off relative it, Legion of the and the to products generate we solid terms so, associated, we products in enables could determined let imagery. - and all deliver more everything all isn’t the X-D sell with analysis traditionally the capacity also by

world around more and number six revisits open-ended think the those might upon than satellite the based constellation. of So it’s just passes you from

I of growing ‘XX, the have can off but recently, that’s would any we’re kind in assets on revenue of assumption expect to don’t in our we ability. being we’re specific, in So treat it grow that not place. we of out terms tapped start that

Okay.

- this Investor They’re [MetaLab] to team told out last remember there those They’re weeks two speaking at ago. on Day, our about just assets, Rob, I the good. So looking time year we was I beautiful. area you that and with was

everything now satellites you a out really are coming look, You too but there along. We take protocols right to bad. get and with COVID can’t

for track window. on still We’re the first two in launch September the

towards excited we’re all and the company’s moving So timeframe. that up that about that geared and

which ones go On will the be the mid-inclination into the next be launch. orbit. will second Those that four,

work to those three last call, the starting on think to I now with said six to windows look on up. the of after the I And first what on go launch to the SpaceX launch we order just months like. We’re expecting

looking of conflicts for So those But and early guess. very that. everything would we’re continue lined be on launch work else ‘XX, part up to get my we’ll program SpaceX probably with ‘XX right windows to the now it

perhaps with this just analytics has and then latest between the do wanted just the and breakdown And last a business to question, EI, the as imagery to that I Okay. and get a revisit other on the business are those then to is players, and trying competitors, their some there both to starting that And are How follow-up are that trending. to accelerate growth trajectory business. that question smaller compete.

others out see I some rates lower do starting with competition imagery maybe offerings rates. see Maxar cost or show maybe Do and and higher that? there? up through claim think that this revisit may revisit whether they on higher analytics you How you to

we as becoming waiting for analytics said fronts. COVID And great part the it’s the analyst I its got blogs to is but constellation. were testament this we with I’d trend say our had data is And the coming We’ve because birds its the that’s out as of ready. topic more the today imagery well keep even this EI, each now. made good on the year, intertwined machine we well, we've Legion some moving lines. they’re guess ready, forward. And as learning that think we the reason of off wins as did seamlessly during got I pretty is performance gains a environment, capacity that. limited and we’ve constrained got when what great traction I And Yes, great and a It’s We’ve customers. on

kind type that of doing Network you’re on seamlessly of an the the else. so Neural whether you run right transitions this, if that software Convolutional of environment artificial a goes intelligence type into And or algorithms, into something

yes, go ahead. So,

the - way the analytics in would is two outgrowing growing They're Or the around? are say parallel? other two areas imagery you or

fact software we're Right world capacity imagery and now, that's and most we analytics to due and lost that constraint. the of outgrowing before

year the end kind and think the we're of we that then towards flips that the kind I capacity - operable that changes there. back probably if of and Legion XXX can so of capacity nears there, X.X forth we’ll a that here becomes our nears into when of doubling like because lot

of of entrance around had a guess almost it's to to make new particular, though I'd On specific the comments about for them. points like are been others - kind anybody of decade I in make a couple don't a I exactly some maybe now that

We've We're that a companies there had good aware to capabilities. we're aware look sets. it's our growing of - with - customer continuing So their of out traction them. market. And are

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comes the next question of Thanos BMO Moschopoulos Markets. Capital from line from Your

Your line is open.

it of pipeline that seeing but you how selling evolve, and flip talk front? or that the Legion terms the pipeline dynamic the space, or realized of geopolitical some be in you're current just once or demand they're in happens for will we the the and pre-selling of can pandemic in being on the Dan, about activity. sides is and seeing environment The by held most that

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easier it's like hand - bit a to one stuff do the that. on So little some that

ability On the we classified the conversation some of might difficult in level to those overseas the without at especially to Defense get same to other establishment it travel the customers more Intelligence hand, of with have their is into locations.

timelines be can and pictures think signals the really and there - announce send and they're conversations we discrete because constellation strong getting. kind nations excited what seeing closely. really And just those, really be them having that the data allied customers watching to it's we're seeing some customer once countries but on with the able once we're will we able some good we're you will of there People the pretty were We'll we're about purchase the really, updates, demand talk they've well. of to assets having. as side some on got the the build-out of progress commercial we're on and early traction the and orbit, programs, once see them. awards as will And said they and be and won't kind really good be uptake I

rates they're With type provide constellation. and with excited and revisit and very the the to quantity going customers, technology about we're accuracy large

in markets us for be step incremental terms OpEx the the launch now help intelligence of year or just because evolve the some that mean, may happens, And get to of that understand, the I for once comes segment? temporary there year, on margin how - Great. a throughout is margin

Take that lost… one Biggs. I'll it. I take

hear you’re can't what you we Biggs, talking.

My line apologies, of disconnected. the has Biggs

generating that quarter the of the on got kind We've roughly those we're in data. you've one margins, - to or - about Thanos say a would producing - have I what having launched aiming mind talked to Yes, September. keep satellites, in those revenue

the into regard infrastructure from during much a constellation. not his did remarks of for mentioned Legion the have there's build-out on XXXX we with linear prepared ground perspective. do incremental associated some baked the costs year to Biggs that So margins this with

the this extra see and of that costs accelerate into So time - and ‘XX begin capacity move we ‘XX, generating comes online we we incremental revenue, and some kind year, Legion have that’s do as as frame. margins

time margin this helps offset year. and constellation in can the the expect, online and ‘XX as do ‘XX As the imagine, costs you comes margin can the those absorbing increased Legion we expansion frame

costs mentioned I great. potential Biggs infrastructure but failure. implications guidance wording, forget the the Okay, SiriusXM-X doesn't contemplate, the exact potential that space of or finally And

presume course the cause what identifying of are the if just on focused So still a of be might your be that costs. but any? I you I would the solider that any point, couple understand mean protentional defense there now

XX-K haven’t and anything with a and and We’ve honest. guys you some doing probably through. customer. the We don’t go the chance continued our on troubleshooting have we’re the in to got did extensive work report with had I pretty satellite Yeah we know disclosure to

December $XX unbilled had are over years. we XX that orbit the receivables or $XX life receivables XX, an As million of in and collectible, in of payments million XXXX

we’ve liquidated up million some haven’t exposed $X also got, of previously $XX then there. damages million. to And to accrued we’re that So that been

hard So, yeah, business. I’d satellites it’s like what are to I think a is remind everyone

We’re to we this quality or pride and and can. continuing the their back to as Maxar on on to ourselves going they’re best on expected lives. And we’re as one it performance really be billed orbit to work do our get specifications our to do operating products. to have satellites of We XX we

from same So any on our looking learnings known and of reliability, for this spacecraft with we’ll us we get be type know we’re customers and the XX the can focus that producing for. next

Dan and its helpful on. Thanks Great.

Thanks Dennis.

I’m back. line Biggs. but this Dan dropped, was is My

think… Biggs we’re Texas, is how still I going, not but in storms are sure the

It’s here pretty and warm now.

comes line from of Quilty Quilty Chris question from next the Analytics. Your

line open. Your is

you Is with fault just that a if XM-X since X any could determined was intrinsic twin line. X, other production to satellite kind some follow-up EAC orbit is the some a number to get and a going Dan X? on need we on still possibility there there of charges that be corrected was satellite, that's

do network. able their the customer expect soon to X the as with we’re possible. to And It’s as part here. up working get of of that launch to We’re as quickly resiliency as we

want charges handle that In you additional terms do of Biggs piece to of it.

optimized and this all there point making analysis doing we operational. for the anything can X expect on or obviously time, what and At Yes. focused it in and don’t we

So don’t will but have their to I a on things always expect respect unfold, significant cost that think anything standpoint. to

and do a the the done commercial had for that question Where activities business? they sitting And pre-existing about on on consumer those that them Okay. something on rice simply Was that rights. Vricon with, follow-up the any shelf and use? that was anything have

with And able company property large of the detail on, here, third-party body intellectual got there. work been access too those rights but full rights much large a to some technology I into some to we’ve go with just acquire were there’s work to large a that of because to technology company.

in And assets? so XX-K was cost acquisition of there in terms find those of something the I’ll the

do Biggs take to want you that?

I’m rights? there sorry. The cost with question the associated commercial is, is are

to in Are disclosures rights? about the of cost XX-K, the I there which haven’t acquisition commercial the any gotten

acquisition There those. associated really with not is discrete a cost

We capitalizing with arrangement, are result not as any those acquiring a the as a broader no associated part additional a IP. cost tangibles, of discrete of

Understand.

in I of primary year. pickup. in percent intelligence the Vricon XXXX? revenue was revenue down a the excluding factors the the couple guess this business were decrease earth What So

I’m the quarter? to decrease. numbers you Sorry. not get same Are looking at I on sure last the just

million back on back. No, exclude a basis, contribution We to $X saying you can Vricon. for circle I’m full-year if the

I’m not sure I get.

We can back. to circle back

to get be analytic data. about a performing well what talked you Jason and or can we’re business we there. constrained doing of I’m what but will growing. year ‘XX, particularly the weakness little but slipping follow-up you, on I is that strength good Why COVID timing the the is side in imagery, into same from Yes, that back. saying Dan There are disclosed, environment. on an maybe for with don’t sure the some capacity the any using at we end the other otherwise that’s but There see is I than a are not businesses standpoint, do we real is about what talked don’t

of quarter last deferred that the revenue. we burn had was EV this think off Chris, I the

which $XX So and XXX% margin books. on in a from last off a of revenue year-over-year finally was This is the million business. non-cash gone basis the year, deferred

right. All

page you the you your basis, get revenue without streams help I at Chris XX, if full-year think on to you’ll deferred. EV see the answer help And the look Yes. that’ll question. bottom of of effect

Okay.

apologize. Yes, is and but for I there. on sorry I’m data you that, target I asking answer were yeah, was the thinking

problem. No

I revenues of both for your you used terms can and where way, call a you we you revenues about as So report don’t Legion. know guys customers that but of to talk in number question, in pipeline what is this business prepare and

in the those had XX said of make know on think the time disclosure, I facilities. I that types we does don’t did countries it So we last

themselves, program. the continue access the both traction the to software hardware as the We direct marketplace facilities component access tree, strong rapid as with virtual and in see well the

capabilities plus countries and we’re are and a blend countries secure virtual and coming solutions hardware platform other have a That’s us watch great now seeing and in the countries business. there the also in some direct features, the provides great our for our So It the increasingly those we’re business on for not satellites increasingly componentry software capacity the the on-orbit be those to And and to and sort the there. type contracts and but It access. a of software seeing that just virtual solution. for of continues tasking the X-D us. top demonstrate organizations this, countries direct our

It’s it’s solid, to good. very which that’s help think So been our underpin I is, very, performance.

than looking and away. can and the Legion on and depending of a that it world really then down, the leave make one we’re others, runs constellation, on to little every buildings situations a but environment, software customers Sometimes their the our up right little the it online, COVID, Legion is to lot ground people by faster infrastructure again to of pulling in that ran and had couldn’t a of world some as runs And were sure threat up and areas constellation in down those making upgrades we back to the forward start task. and money comes

the that is, there. XXXX, it’s this $XXX between years. competitor to Great. revenue one deck two this risk have ounce growth I incremental intelligence your obviously specific slacks back, and And and out filed last and of is think of I guess final the They question this presentation over in timeframe guy a million now

capacity So constraint. it’s I backs guess our spend

$XX $XXX marketplace in growth I is growing million Do for of Maxar and competitors there the other the growth. I seen think guess haven’t there You also? you of in see years in two at, next excess million

piece comment read and we tabs about everything Yes, our decks day marketplace, and good growing, and out for Biggs in - than I XXXX that’s think I’d gave We is what work to we into longer-term course the track of the think our as seen guidance. competitive on say and won’t we I it customers. XXXX is the you very, think happening say, about as type do the numbers our is in our of other we our record, day them on them. very industry think very on positioning, that the with think well market we factored that keep

things we’re our it you very of into speak numbers, if we’ve factored not to in about numbers. we’re else’s. anybody those for our some to So way, confident including going but in I’m kind think capacity proposing what in

Okay. to a conferences. about time great out time on And with look to on look quarter our sell the and have forward quarter And of listeners today. call coming certainly We’ve of this forward for Operator us the returning then. at you Thanks with here. we forward earnings. weeks. first for joining look those next we’ll speaking discussion in day. to all thank side a everybody we're And seeing the got calendar many some conferences to I’m busy going

gentlemen and you this Thank Ladies concludes participating. conference today’s call. for

disconnect. now You may