Iridium Communications (IRDM) 20 Jul 212021 Q2 Earnings call transcript

Good day and welcome to the Iridium Communications' second quarter earnings conference call. All participants will be in listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]. is event today's note, being recorded. Please now Ken Levy, would like Relations. to to over conference the Vice turn I President Investor of Please go ahead sir.

XXXX morning Iridium's Good welcome earnings quarter Raghav. call. Thanks, and second to

available morning's call Tom to you of Investor have I CFO, call on our Joining me quarter Today's which this on are CEO, morning's followed and Fitzpatrick. a Matt with begin of opportunity trust results section had review Iridium's our earnings, will second an our Desch discussion is Relations Q&A. this by website.

to turn things contain I I meaning caution Litigation Before to within of all statements that over of may Matt, call Act would Securities Private Reform our like the the participants XXXX. forward-looking

include forward-looking our prospects. Commission. filings cause differ expectations which Forward-looking Securities statements. plans and actual are expectations, statements and our statements risks, to the about fully discussed current that statements are facts are statements beliefs Exchange Such future could and in results with upon are Such more based our not to and risks are forward-looking subject and from historical

today our remarks of or specifically only be change. Our statements forward-looking and such views expectations light point to any the at disclaim today to elect we update views while may as even obligation our statements if forward-looking some considered risks. Any we so, of in should represent in future, do

me and for our things these financial over directly accordance operational measures, Matt. non-GAAP These with flow in explanation the Investor pro refer be GAAP yield During the financial that, conversion. are cash to to free including Please to today's Principles. of reconciliation free of flow Accounting the measures let release With Accepted in non-GAAP not EBITDA, also cash measures. further call, we free and will a forma comparable most Generally non-GAAP financial turn Relations of flow, prepared section cash referring website earnings measures

morning Good everyone. Ken. Thanks

as quarter across in very the activity board business and business Iridium's we second healthy the ecosystem. demand saw So accelerated partner strong our across

completely growth we hasn't XXXX world things were the whole the subscriber seeing reopened the kind seen our before have XXXX to slowed yet, pandemic and While down. the levels in we recover

partners growth. end-user in on rebound demand and a For maritime forecast signs strong nice we is showing are demand the to views full-year. are experiencing revenue This of the progress activity are back strong and for our aviation usage Accordingly, also in reflect to now commercial raising example, frame our subscriber increased seeing for service the helped we of improvement.

voice also have our half should in it began in activity move, October. data years. normal first and this Subscriber again strong which seasonal in visible more to was largely quarter the commercial nine which seasonality was strong down best We last seen subscribers the year, in activations carry second absent and and was year, as This March IoT goes during in performance well. as through

logged history, fact, XX,XXX in past three commercial record the best subscribers growth net over of have quarter we adding Iridium's months. IoT In new the a

for surely clip slowing may don't see we to love subscribers and strength lately grow as the the demand to activity, soon. Some record relate communications a new all continue of anytime this at have outdoor we personal

activation. an of and number seeing We have unit now in of are added acceleration a new partners recent and years many consumer-oriented sales

constellations. existing devices planned than off still the by any in retail awareness or falling are early grid. As we increasing there personal days when value scale traveling they and satellite satellite is the that consumers of network communication part Iridium's and of believe for devices utility in these provide mass driven prices, these proliferate, among the great adoption is suited other We better consumer-oriented

of high-tech demand component for half usage are aware, in very the used and demand later supplier has their you semiconductors by personal automobiles are a affecting us activations. equipment first legacy are well and sure computers. the to shortages demand specific am we year. with This for which impacted supply driven of this high recently in however, modules as the shipments the part rebound there future indicative IoT as use monthly We I is in happy part subscriber companies, of reduced the that and year, in in the our until strong global growth chain

fourth team demand the the in situation chain year. in quarter of We impact and catch the first delivery supply the partners third of limit my quarters most module of has up for Fortunately, to scheduled part to XXXX. IoT this should the worked to with for quickly

monthly slowing future. and period, the be The held in from is back of unexpected steam our extremely of on this this been really as our how unfolded. strength with bit equipment, gain this have we is has shipments now meaningful We it's IoT way seeing to frustrating didn't down XXXX a we IoT, opened given serve driver in over small have percentage are challenge continues business module in want a Apart business. a we some the even happy a While industries this to growth up. in

are subscribers Our normal have patterns. partners to resumed usage operations their returning seasonal and normal

we acceleration our better be to growth trends. to spoke The peak playing out. halfway visibility of We now revenue to expected we season getting through and into seems full see are that had last service year and quarter, are about

cost-effective It class several for in new and expect that price One at strong small XXX omnidirectional adding service, it attended new the Iridium service OpenPort launches mobile years performance follow am digit provides to are about than reach Investor did same a actives performing to By new broadband for recent partners applications in GMDSS Iridium coming service twice alternative aviation three unobtrusively for in year. on its than VSAT high an net be at Certus and industry believe ships in This we launch launching drive revenue industry to this like product our the heard are boats, we even data expand with of it's us XXX commercial Day history. Inmarsat's our quarter help and you to existing we For is making in the and new service upgrade in year. us as since We the late are small I Iridium those that Iridium the subscribers it's than who companion their in showing achieve than our Certus many good partners about is verticals. XXXX. with more last best will terminals. It well which subscriber better a later also new We activation adoption year quarter commenced attractive antenna services about and did more XXX and ships that and time installation we any trains. there products will of quarter very will Fleet last Iridium to on a service water fit products trucks getting portfolios. on growth. offers X,XXX oars more added this and feels progress May, Iridium on speeds have this across the excited easier in way, single XXX Certus than terminals year first numbers times land more point Iridium broadband maritime and value more use our service. really the and of the some Certus sold we still little for around a the perfect new airplanes, and product. ships excited the are in

expect size, are And progress. and and quo and will rotorcraft digit under are they will are general in to with finally the they making we disrupt status corporate our real performance the think our have drive aviation There continue several mobile. We aviation in their growth maritime antennas manufacturers way markets. ready, I growing into that for in maritime offering well when broadband cost terminal aviation, land same the In development future. commercial double revenue

on situations. that supporters used in we aviation industry The and more of for a controller soon Standards land safely who Iridium on into services data will that safety will services. Organization aircraft safety possible. their aviation as team want for of quarter complement are I am detailed approved assist the real-time aircraft Iridium Global the be Garmin-equipped soon aviation safety regulatory groundbreaking pleased which lot the data this the as making links source Iridium the L-band system integrating to aviation safety customers now weather and recently We be good for reliable to Garmin to Autoland also for those share our plans Iridium and autonomously on Certus have progress front pilot and inputs other to in is other their aircraft into latest some able efforts emergency from it's clear system a aircrafts, broadband provide for commercial Installed products system. to Garmin's the today

network In their addition, an agreement to technology other recently Certus opportunities products. global Iridium continue and integrate we with them Iridium's to leverage signed Garmin enabling explore to into

can excited are many and We L-band customers. offer speeds data the about the Garmin's possibilities most up-to-date that technology increase

we devices we driver and market many IoT, that years. in will very enjoyed communication know a really our feel with be Moving momentum about growing personal this good to the have for position

extend in quarter new and industry fold, alone add geographic the our more should to continue We the IoT who further to partners eight second reach.

priority. XX% based a forecasted their recedes. accounts have as than are class partners data first capabilities. healthy are continued also more heavy IoT at of In in and the continue and what lab-certified from a call this see to see Heavy now for new construction have partners growth, with midband Several also pandemic IoT Iridium to hit XXXX begun formally Asian our XX Iridium becomes replace bounce a module. selling and to as stride. IoT meaningful other deploying applications equipment the equipment back infrastructure solution and now many That's major returns investment Kobelco request a pipeline those We and the data demand them, the commercial solutions we new in beginning other and now year, solutions Iridium as to OEMs today faster has more and devices first their especially speeds new new of the especially product manufacturers service. legacy global class Certus provide innovations we is also their from and of in supplies developing of on base half products XXX voice started that to our

consumer into of IoT conductivity easily. two allow past the Iridium side, users consumer years, beyond communication subscribers the products satellite consumer their social efficient nearly these XXXX our more and subscriber augment and our account network. devices SOS and satellite want XX% with users of we now services personal embed users are over that most With capabilities the our among text, texting averaging photos our in half feature-rich for On growth more share media will coming devices. basic consumer Midband and update are to to

contract theses. move. be Iridium partners an operational of Iridium to expedition, We communications two-week of many real-time and the We video. capabilities host types communications, more of many products end-users imagery in Space going the and to other with brought Iridium are customers highly potential broad with south a U.S. programs and happy in having important long-term choices collaboration platform partner's as plan the hosted sensors, got XXX,XXX from other U.S. the than is but exercise demonstrate through vast of June, the Force. in called EMSS about transition pains partners organizations gateway of the together few very Lynx, high-valued on all users XX government government Operation service we higher were showcasing U.S. Arctic full-motion engineering our continues to more with through some products that regions The for Despite a anticipated event and excited degrees was exists. north Arctic and subscribers, and have involved of on needs the the to work participation to and to the of the revenues technology they which In regular DISA mobile would these for utilize where and growth for latitude basis. command-and-control, teething support Certus system government Iridium's we support Participants government This quarter, and subscribers U.S. this XX very so of were this partner. these unattended

to as starting air working through DoD month, to are and signs credit foster on improved existing growth see budgeting their with refinancing terms. an markets when their of pandemic. on made to is close world's continues We innovation the and the contracts Last Switching capital solutions are The gears favorable to of to will traffic of issues to and EMSS contractual access the facility credit company a continue half provides about service airspace to deploy partners growth the Aireon under the that to program. manage rebounds of Aireon, much to its from use they already it's deployed.

pleased are We call what believe is traffic long-standing they As with which provide the progress control data I air business on making said focused we on primarily services. Aireon plan, really this to a nice upside data. their before, commercial was initially will quick

the surveillance XX 's traffic As of boost predictability deployment example, EUROCONTROL data varying safely demands organization's flow to across an air real-time and Aireon states. adapt traffic member from to recently management announced the traffic

Aireon in that the for and the are since and has to host now it surveillance We XXXX which redefining progress are global is standard happy safety. went their operational proud made aircraft of technology

Tom reflect the have free expansion. many from avenues global year, So we add has our pandemic flow it products, good to to look continued partners and for review our very I first to and laid a for to generation that, five to satellite in and about continued which financials. of the recent over next years progress With unique us new cash of We bolster growth services, growth the half as allow turn will at of year, our Tom? the for our should revenue Iridium forward I meet strong the strong accelerating momentum on Day. pursue each we and feel our emerged objectives This Investor the out position with industry.

reacting pandemic ongoing reflects from the quarter. that $XX.X a has seasonal services demand up is operations X% expectations In sign pandemic I review for everyone. of from financial year Then in get summarizing period. updated our morning lines. good providing partners, Operational guidance seeing on are headwinds most and and trends EBITDA of our close second whom for the we XXXX the color was the service recap quarter were our our growth an will key by the business liquidity and Iridium for increase more to decreased. this which structure. our normal. I a of our Matt continued some started sales our We Thanks to revenue year's for will L-band we and was capital metrics grow year, the year. and increase million activity, total second environment of return last $XXX.X the year's business encouraging as to of position The executed the and expect The with for revenue quarter, second now year the was still to in up million the to between improvement comparable the and return which continued XX% X% half in in from customary the light reflects ago broader improving associated quarter quarter. the in COVID-XX last X% prior including generated well to revenue with business

shutdown the subscribers in Commercial especially XX, our these the true-up On the communication Iridium quarter commercial $XX.X the seasonal in industry. from revenue business, usage X% to drive on consumer to headwind as XX% broadband our of network Strength increase revenue by X% users activations, had the this voice retail-oriented record million. for revenue, decline the IoT, in in hosted IoT was voice foreseeable aviation than IoT was a and data compared last XXX,XXX drove to activations continued June up Last LXHarris which seasonal the a $XX.X by entirely travel and on devices ago to increase data and and attributable more lower strength in continue uptick Through growth usage. as a year, data on revenue XX,XXX COVID well million, period future. in hosting in uptick commercial In increased personal the in the the was seasonal that offset was believe to driven a with will which constrained fueled period. and service oriented pandemic acute growth in payload. prior-year reflected and business IoT Push-to-Talk. including year's side year during a over our This weighed we rebound quarter

seen period to ago prior-year decrease slight rebound period. business we communications which was evident As ARPU from from in normalize, quarter, the lower usage in activities of Offsetting plans. aviation, was in have have the helping quarter. increase a QX begun IoT the in usage, was which in increase ARPU. is use primarily this compared proportion aircraft IoT of augment $X.XX year this subscribers, the caused commercial in the ARPU ARPU by was increasing The to trend which first also an $X.XX personal

will off-trend Day we the last saw the trend headwind height to historical As norm. materially our in most return of in during saw in the back up noted during full of recent IoT we a year for air growth the significant May, The our that from be key expectation growth it as revenue The ARPU removes impact IoT quarter year. supports variable pandemic. the Investor from should X% the revert XX% faced is our we revenue long-term we traffic XXXX a

installation Certus Iridium commercial restrain activations maritime quarter, broadband for X,XXX, XX% terminals. partners, manufacturing by billable of consumer access quarter, growth expect With broadband Certus travel than strong rise revenue data Iridium's growth, from restrictions in estimate date XX%. vessels million second more XX% IoT terminals continue our we lift. this was the to though continues IoT $XX.X the totaled Iridium added limited nearly shipped A this usage to prior-year the ago commercial plans from quarter, surge service to to subscribers During we to Commercial down from in X% account driven by quarter. drove The a in revenue Hosting in users. in year the and related up XXXX. oriented quarter period. that now $XX.X activations. our million true-up We half new quarter of year's the by comparable LXHarris. revenues XX,XXX subscribers, Of to in represent second subscribers, now last a record other year-over-year commercial net decline as data IoT Commercial up the related the

of our prior-year We $XX.X the quarter, $XX in grew Turning second quarter. long-term to EMSS XXX,XXX to of rising our from benefit reflects quarter. strong XX% equipment contract. Government increase This year-over-year from to government the in demand, the contractual to subscribers $XX.X second terms million. the continues revenue million XX% prior service in reported million from up the business. X% period the Subscriber

noted, suppliers to not originally equipment be in and have Matt is short the supply we delivered ordered notice received in that from previously was we likely timeline As had contracted. that

suppliers now will and to options, sales we While expect our equipment sourcing alternative be continue explore that year our with below full work expectations. we initial

also are second was revenue, in largely support equipment period. having compress and %X Engineering million $X.X episodic, compared the to some could to quarter, We which year ago as margins. price that absorb in increases is the million

of between global $XXX costs revenue industries remain to We by that $XXX that growth increased This restrictions revenues for not equipment of abate with year year our between revenue We have given demand have expect, confidence all, with and than be gives EBITDA. uncertainty in revenue and revenues ebb X% the lower the impact will flow hardest for and and continue will on level. some XXXX. service the our of more the was and business we our full will quarter operations resumption over experienced our to guidance we return expectations. engineering million. EBITDA operational delays increasingly and normal reiterate service softer million original outlook as us sales Due now engineering expect In for and been second business that hit strong improve our supplier our past X% optimistic increasing cause and support for Iridium pre-pandemic quite partners. have assessment in a continue to constraints their to we and engineering to resulting recently We saw to see guidance pandemic-related

Moving to our cash position.

securities equivalents approximately As XX, of Iridium marketable $XXX and had of XXXX, cash, a million. cash balance June

$XXX Our repurchase the reason million strong average million liquidity a $XX the price key buyback authorized stock year. million balance company that of quarter, share program. program $XX our about a earlier Board In leaving common share, $XXX an is of Iridium with at share its a second a this purchased in

opportunistic half was was at to includes down continue This second during will from repurchases. of buyback the of EBITDA end and a leverage be executing quarter. X.X year the the times Net X.X these XXXX. We times in first earlier the

quarter continues target that Our times be of giving $XX buyback. target we net after for even leverage million will effect We and maintenance year-end between CapEx $XXX long the term to range were and we $X.X X.X maximum anticipate share within by Capital million be EBITDA. be in this expenditures X.X XXXX to to year. this million second expect to the about continue

excess We million continue EBITDA $XXX $XX year. is forma of million back arrive level XXXX. the and from our at to of flow free midpoint XXXX off We up pro This million using this at $XXX approximately cash guidance by XX% this in capital XX% expect payload more appropriate hosted a working $XX flow interest, in in in of representing $XX of cash million net reflects conversion CapEx, adjustment. the a forma rate inclusive million pro X%. than yield XXXX, in free of This

website. flow expect the this rate outpace will in more of pro to is growth of cash with cash to GAAP available Events A metrics continue the along description measures We flow of detailed reconciliation in forma on supplemental EBITDA Investor our free these under presentation a Relations growth year.

XX of we savings term basis a the million. would interest down of yesterday X%. repricing points with rate points of overall interest have pricing approximately a basis yield current LIBOR+XXX savings with expense of which of $X launched indicative spread on current point from improvement would the current basis floor may annualized This points, of costs, represent our an you LIBOR loan our basis XX in pricing seen, As a XX

later in of half approximately confirm now expect be to on second reopened a and XXXX We that This week and in our year. of undertaken to close next transaction have is we time to term just repricing this time. loan the less we expect close opportunities of the interest at able years details will we was repricing the expense calendar In XXXX, our is XXXX, this in million pro is profile. and represents Iridium's along free of a short than operations. swap fall Iridium growth the our acknowledgment flow which think partners $XX of light our this impending transaction, current an from of two and model would demonstrates forma of recurring the most business and with In normal cash significant what strong We it ago. the level closing, the stable many expiry of capitalizing of returned decrease business strength interest that nature from rate investors of have

may that, drive but I Q&A. keep on we this shareholders. the our to to as continue will face turn well which us the the We informed challenges With also current to that we incremental year will free cash flow you the for will allow for we back revenue things environment growth generate operator navigating believe chain supply that are

Prentiss ahead. Ric with first Today's question from comes James. Please go [Operator Raymond Instructions].

Thanks. morning guys. Good

Hi Ric.

if But growth big have Hi. revenue your Day supply high from for digits XXXX av the service overhang single mentioned with like. we on longer-term, Obviously, you sounds think quarter Analyst to it chain in XXXX. a with issues,

getting there pricing As from what currently, we is and that much driven how are think we seeing is by how driven by about much quantities? of

do raising prices? pricing, say mean you you When

Yes.

Yes. ARPU. of kind Just

achieve don't Yes. to of because of adding I almost Well, that prices new quantity, is subscribers, quantity terms most products have is say, additional kind about it really that would to raising isn't it level. revenues. deliver we certainly do in of XXX% that

we into in different multi-class are fact, broadly we broadband have products the levels the moving In more level all of offering. all at

into are broadband into We entering aviation. and

in across that service really kind of area. board revenues are increasing We the

and really level. a to it from get volume not are next and that is right sort to seeing trajectory expect So change of that year driven big currently now this into we

ARPU Is it's am through just obviously there base seasonality broadband as how bounced And you broadband to the around Certus in going bit it the on Okay. just but think Is are forward. trying pricing, we this has fairly small a about category. there? think a little installing? still the of I

service the Certus we today CertusXXX is on of our land data levels, the time be, Well, overtaken a than to higher today, still OpenPort revenues cetera. higher we sort of usage what is broadband majority in used terminals we maritime speed higher offer were more general in packages number our previous Iridium of and by Iridium but will Certus of terminals up of timeframe. and the And new OpenPort makes more and that mobile. quarter-by-quarter, deliver data which different ARPUs. offer amount The level only based of et

of I usage in of little continue of I of dominate about look way sort of will only summer, Certus Probably time. But it's the I can ARPU assume. of terms over in a a the seasonality bouncing So period around, terminals think to higher bit kind it. the at that's longer

the offerings, would mobile there predominance so and going And is because a particularly. maritime of I say of the quarters, in right little land to and now the third higher second be seasonality

So affect bit little might a that too. things

the of partnering with going far these and on a other about you like? maybe what collaborating future look Makes or space bit as at about past, get the Iridium play networks leos little into where sense. race there. how Talk we new questions are lot leos, as the that's L-band out and all a In might the the services

and in different KU geostationary every almost these the I service even in commercial in systems it's again, larger called of really KA aspired systems the system do where a we applications, constellations government KA that's some of these enterprise to either speed of that offering, and kind Well, services existing most operate when going we from with are the satellite use high we and in is through the would really an commodity different used Wi-Fi compete to today that large would the than the broadband terminals band. or that services than antenna consumers what over I but have that cabin airplanes be is KU systems do. in do. the ways that dominate very and in very, applications would what cockpit saying offer, ever the in those on same mega in really, we very frequencies cases, example, And operate band

existing and When our to complementary in, services offer very they in their are So our constellations them offering way different same come new complementary with services. we will believe today. these I the mega operators. services in fashion yes, partners complementary be

ways really doesn't it do. many what So affect in we

on kind really As really a that's And would consumer know, battery-operated and completely built kind devices what we smaller, very highly again, that address. mobile small, of different of et I can't smaller area call those you that more focus networks vehicles, cetera.

together. far do possibly They them. have offerings having are partnering that as about complementary. As with joint all them, we we discussions recognize They talk with

and a happens networks of I those as that real kind We are soon. haven't more expect together. that now the discussions that. be getting say anything focused opposed coming And first them I just announced more single operation anytime years something lot to of a in would like of right service their will most on in most

Matt. sense. for Thanks that Makes extra color,

you. Thank

ahead. comes Please from LightShed. next with question today Walter Piecyk our And go

that a onion the But in where a than, comments. prepared one the very if Matt, at coming the easy kind just comp growth XX% a IoT of last of like have was when to you next say, off about higher I rate little and the of in obviously apologize either distribution could addressed. products, I how is big acceleration, much channels, on I look from guess this missed peel in bit just that that I quarter, you out talk expect this terms couple year. quarters? that Thanks. over But may can play just you specifically,

Well, it's very broad-based, Walt.

bit like I normal mentioned, to and across of all performing be well gas board. hundreds from equipment the recovery board We a seem have them And many and to scientific industries, partners. really hundreds in to of with little kind really heavy maritime things probably to to oil back across the of and IoT many, and of very

are ARPU in big when and So said the isn't is they definitely one take X% those on up, they biggest the and headwind that badly easy which reason comp really collection when area dragged an and you the the back there an has of biggest why I come services. whole communications majority again bit. those safety course, right of And of only terms a kind And that has was lower subscribers. of year airplanes sort it a really aviation, because was last of numbers around, obviously has flying quite mean, really much grower. come back are now. was that you personal of performing been full thing are that the got that sort But though is using

we are those so And as well. seeing really back come revenues

it's broad-based. So really

business? I revenue will be as recurring at one as been aggressive engine, steady the start do this? this Or nature you like guess sequentials? some to is Obviously quarters others? big there be the will that you growth more And we the well. about way growth of has will a like revenue or look there is the sequentials we can this. broadband sequential than to start Like, This one higher be a highest that Should to should a think

been Well, for a sequential us the has past. business in year-over-year it strong growth

mean it But You revenues because public more in new bit, I primarily XX, a obviously third being of The that and a and has of mentioned solutions we But very with capabilities. go last higher every bit quarter driven the as are a a last a we and year little years lot largely being coming able bear for of has expected took significant as second more speeds, bite going put on more out it. it. that back into now. little soon of was quarter back been to this added and are to to to come really new partners that year to the been year are it. provide that of except products consistent go and I company XX actually back have quarter every right year aviation

start well one continue to base think But us. might So I that more for was we have because growth be out small a year be be engines. you I success this real kind Broadband the us future. front. that on opportunity a going to a always of of immediate from such into IoT is will our growth constant engine going this saw thought of the biggest always

would add, Walt. Yes. And just I

personal communications, about If you right. think

had So is mean subscribers. a a million we smartphones world. the X.X is This accessory an to smartphone. in I billion there half

the it grew If in penetration in year you out. XX%, year wireless and by of at the look XXs,

So here is time. we what the for very potential long think significant a

ahead. Go sorry. am I Yes.

that ago, years year. a see discussions potential increasing with second of going bit only I I have partners that not a in be sense think it the could record. couple here. an anymore. But some just I and really quarter I to level was the No. in would really That for see, It mark unusual really think for the us feel I script. a that would And full future. we was didn't my us up is almost and eye-opener a it, XXX,XXX quite that was or know that these putting such really that a probably activity subscribers the I be number a But say to unusual this good us road that we quarter said ways the been in in mention, doesn't down

business strong part be of. to So it's

free another should just lastly, quarter, on ramping was up. your but how And kind on thoughts under-pacing. looks expect? guess, CapEx to quarter relative share solid we last Any like I cash mean I It of repurchase. was

thought as year new share Just return of on second is capital we process hit thoughts a kind your the be and repurchase policy? any on the the of part to half whether going dividend

to the the just quite continues near have bit times much envelope we will we approved And is, market improves, much, to and would But weeks the that if then and we which I months the down within take the market you what different looks as term. them. now. Board has to have been working at continued there. right, will it we expect price won't obviously me about And I will Tom. here being give we you a the talked has we buy I But keep tell it's stock how obviously to in see in going be have opportunities, us coming next mean, and that like are opportunistic, you the right in think this at least tell Well, and will I buy.

And thoughts on dividend?

As we Day, said it's menu. Investor in the on Walt, the

on dividends We are focused will buybacks. road. consider the aren't the down question the at now, But out the appropriate Right of we time.

hopefully as investors like, dividends, you not I we rallied, see when saying not if opposed none. quarter it's a our opportunistic And start just this to drop stock and regular this so well, think because to feedback, dividend versus has prefer thing will growth

obviously what is think I new even. and prefer regular investors going growth dividend and to investors will be

we through the time next dividend concern how we our next sure that to That's replace capital on we Right. have any think to the be primary that, is cycle, stock, the want constellation. sturdy the Certainly, put is it it. about we

on -- take as so greater we time eventually, get Then like. And we that looks what passes, clarity

a off. long ways That's

Okay. I got very it. much. Thank you

Yes. Walt. Thanks

question today Co. next go comes Burns Greg from Sidoti with & our Please ahead. And

impact I supply-chain year? second bit the just activations half issues on, Can IoT Morning. more guess, clarity how the you give us might in of the a little

the or of current to we in our next up products now, their terms year have everything certainly fulfilled get the half two to they partners impact in in much need growth and customers. most don't revenue obviously of devices because service their the for think because activations plans and we with or our Right call it's quarter second going the that in

it's getting of in I really to fortunate month terms of quarters, a and this was, kind constrained it reduced could on we am don't chain had fourth bigger more allocations originally really too great I thing jumped team I it? closely The a really found such much. and something hard, to thing of we of who our to This with about what increased of going primarily issue about contain of kind feared, third supplier,, have kind two it working is supply through So them. think affect and coupled, we ago really that this think the from shipments sort quarter out the

us for equipment So this some half year. second revenues it is the at affecting of

the quickly a has. into everyone were of pretty requirements of with hand. that we quarter growth As the this will inventory go year, in next so I said, first really caught be up to fortunate bit on all We

we to is, fulfill going few requirements a But there next now, well right to doing back. they as partners' we bit are I said, because in that using is we as the two. were don't anybody a which hold So are frustrating allocate or little our so and quarter well

exactly So of I overall one it reasons until I it's we how a think of see road can't of out. in blip it's going the yet growth. terms our bit But in up to a why that the call plays all

even a I probably the and seasonality. the last I terms there in that change demand been have adds been obviously maybe other Has for that market services? were of But highest in your the from data, have year company. And in Okay. covering is perspective from the a snapback since any nice so, then voice net driving competitive seen that stronger

think, our as I in I first nine half years. Well, it's said, portfolio, best the

we great I really the products. have of think a best, portfolio

For of its think, year. product performed potential. example, GO! this good activations our of People, appreciating had really I Iridium very really are GO! has well. sort

wants their because years mean are. people really, that And But We they a service time in complicated PTT well. the Everybody strong. get been service of to so you in need to and out world other strong one I workgroup an portfolio ago. into wherever and government and everything. And are And appreciate systems. number distance. really six the or more selling It more can and has PTT agencies PTT. their is are of of last the of the happening sale takes they very sort it introduced value as back you returning a as that to important and see, also it's out people or driver. is we months socially around has because a that's The integrate obviously, a been more

been devices. it using So But has I guess satellite strong. are they their

used how in like cannibalize And differentiated XXX the XXX terms in XXX? offerings dynamic of service And am going terms in the those XXX. we demand in with levels of I thinking of applications are for? and terms should of the the Like, Okay. for fact, more some products versus potentially in In like then How XXX? XXX think maritime the are of Certus they market what like the is market? the to different about of

And about, the Yes. therefore, XXX less Obviously, lot mean which terminal speeds. the use for lower–end, cost I small component. want used it's all to because might and kilobits that that with much. good a they lot are really for service, even some be The is Like it's is just two more for enough of VSAT and offers of fact XXX service applications second the expensive very different many price-sensitive to kind they that of going applications aren't type it's called XXX per really going further in a that. L-band sort be the where It's companion cost. reduce used half it to applications

your coverage the southern or it's per XXX it, those terminal it's VSAT of you second terminal a really VSAT your unit It's to of might one obviously lot provides if there of of northern might applications where L-band a more expensive. a service it into to almost opposed provides with As VSAT least backup level much goes you which unit. anybody or it's premium lot areas you then our you before, wanted to higher I more a service. whatever have out seems provider. use competitive but every provide speed. kind want can't a at kind But even it always a unit, an on K more or But one to more to pay-as-you-go even reason want more And a standalone the little kind hemisphere band will on it go said comparative to coverage of terminals VSAT when as of or kilobit service be, have out if

of say, So see OpenPort thought will cannibalize used They will both with Certus a our a to replace long than people believe heavily portfolios. I their I term units have in ago. many say, Certus. think, probably been them holding them better We our be thought the OpenPort the are we, years another. partners still that don't of see I couple much will up of going in I those lot one over XXX which, But kind of out would product units field. are really that there

almost I choice great be think said, come are conscious out as there. will As X,XXX for a I cost really do XXX for the they them. still replacement, really, But those replacement up are Certus for who

you. Thank Okay.

Chris go ahead. question Quilty Please from next Analytics. And our at Quilty today comes

you. Thank

Tom. for question a First

fair higher there growth is and not service full-year to equipment are side? potentially assume engineering to Or margins in that the lower on the With related all lower rate, EBITDA, revenues the of anticipated it that line? the is factors services other but and raising

those two, It's Chris. Yes.

Obviously, personal the of nearly are type Okay. all Matt, units. on you I communications. of anchor big question is think Garmin. then, the those GPS there And handheld a of today And sort for the products

you large beyond is, becomes two see of terms class questions here. volume think number two products How handheld concentration? major do GPS unit market? customer So you that that out the next a is And of broadening in do what

other will mentioned expect. more You I have they to going. I way, products into plans Iridium of Obviously, kind more technology our based and today, Garmin a very a and of their into to, has you And their services. us integrated might as embed than know, just Certus believe, signed create introduce embedded that in much I more upon deal of you understand products products where kind enough. are And

thing devices. speed products much and think, transfer current with than of for lower that even higher can and pictures more easily speeds today can the additional new you sort I that opportunities use

they know, and adept look to I trying world should plan of So coming in product continue think, of as They also the different that sort to do the around really really they of consumer-focused also from how to business. advantageous at markets. are I growth. very, describe would I am address their carefully do terms well. start in to looking at a that drives and in are lot of managing plans I Garmin what they they years. sort and opportunity hate that to for that expand effective growth describe And geographically ways

for really that's try want what's So you I I to think don't their business to But here. analyze exciting.

on final here. Got service margins the And you. question just

see they any of fair to the some level? on, is you it the room you mix assume Or Given XX% expansion? issues see around that do for going stay that

portfolio? of terms revenue In service of our percentage

a dip. one There it's not variable product cost network lot of is utilization. no the just to next. It's of, incremental There is Yes. kind from

see that. I don't change So you a think, if are XX%, modeling in I

Perfect. Thank you gentlemen.

Thanks Chris.

go BWS And our next ahead. question today comes Hamed from Khorstan with Financial. Please

morning. Good Hi.

So clear I that see able growth the out, first backlog that to of after in off, was given a were that lot reopening this COVID? built-up have want seen allow QX, who partners if just your

complete not we back second to way. backlog into broadband. is even that know in Iridium believe building think I characterize as quarter, going it I I sort started there of just Certus to in I seeing in onto we of some lot quarter. the backlog it growth but growth ships. either. that that yet you second as backlog were saw saw they the of I really year, a obviously, was a ships us our meeting last are the of go us we there full quarter, this coming get in them late know little don't onto of back to quarter. all was terminals bit it a pent-up some I of in the getting to flowing together of products business don't the the unexpected these mean think year-over-year growth Perhaps sort traditional what think what I sort and And fourth that's more I I think of those quarter. more some of first of coming the And things that third sort areas, tsunami number as last would second new don't the that's of seasonality out. areas, kind year, on, But in quarter hit start just call rates. the

sort think they natural all So of just I are growth.

guys IoT some cap to Okay. with And then revenue Is you component on your revenue. raising have what front on because still shortages. been service you the going capacity, that in seeing the

are just So understand, this to trying expecting am you down you achieved just compared growth I QX? what to slow in to

year equipment would So it we like a think don't what has had to. to an see. for on were. end be we of now equipment I the third like growth definitely we some we beginning we the IoT are in will revenue. those without component necessarily we we far a and were modules expectations demand way, will a outstripped that the will revenues. revenue. one meet down relates way of I as that's I report of IoT from getting more a of specifically we year equipment the we growth would still this certain And lot in I about revenue quarter, the say, will to had it and can't lot original revenue But at mean, we will Though said, maximize be going while working to doesn't certain are are exactly in equipment say Still, meet now we where look off, in to that areas, happen. us slow have and where to right can going the level our expectations really, the bit We not in third would that will so way a up this. quarter we fourth affect try I all in that additional but partners or the that up. it are demand think

Thank Okay. you.

Hamed. Thanks Yes.

from Barclays. And Robilliard ahead. our go Please final Mathieu question with comes today

give a of morning is or you environment and competitive evolved, thank the from of players recent you. has on in how worth I terms change question, color more flagging? mean player? to little Good legacy Any bit that Firs from Can maritime. maybe Yes.

Well. have two, the more in and I mean very earth, et better, dramatic places will last XXX adding we that category certified work GMDSS only Certus gotten in both are every year. products that strong the almost XXX making of even year more or maritime obviously cheaper, products products fully we be with maritime in now are with There cetera. expanding. And market. this now the is

certify In it Certus are fact, we but is that they one probably things ever across we best have will quarter, in to competitive really be there been report there only in. that coming the a board. bit be and And certifying position there to on can should soon. position All is adding probably us, country terminals the the much these up think course to response so strong little of the response a of but I needs

results. in showing And up so our it's

And think I maritime. share. growth position are those And are a strong I getting in we taking that's are in. We we areas. mean, others in aren't struggling and are

going to think that's So change I don't dramatically.

In compete can fact, everywhere the if even to stepping gas effectively. are more we we anything on

one was Thank you. aviation. And on second

of the on the with that commercially different that terms of being fronts in be Certus terms think in update progress product? segment. And market to in when ready launch you some mentioned in You can product

it certainly the they this be year could the If like way the are, partners hitting Yes. to or XXXX. in it progress market late continued looks

We to sure work meet network our antennas have terminals with testing had some well to into of labs and network for requirements. that the now they our make our their seem

of that could And they I parallel, the I fit that the able be like aircraft, and there, the sort on capabilities safety have about think aircraft small well. are now. deliver applications of excited wouldn't used finishing will being able looks corporate to quite whether for have as of general on a previously safety be safety. it this because lot as to their are are gotten be And certainly or in I before, rotorcraft am it a or offer of kind capability, in they right commercial said, the up of in aircrafts commercial we in going that speeds them terms they are so capability terminals and these they be So also to cockpit potential of aviation certification, to products

and and in are track allowed this kind get We good when certified making to certified coming progress they are XXXX. year on XXXX of that those are to things on have those to be

long as products that to about, get quarters. a excited said, are time here a those that really taking there all there. will the So I is And coming be number in

question great. fleet last which is then more capacity long a satellite the term. is maybe bit of limited. Sounds obviously your And But

I the of maximization mix and guess revenues so And volume of ARPU. is a

was, mix the think in assumptions much internal based So of the fleet. revenues charge are, volumes And on you of that per what billion $X kind our price think and seeing I volume term we well, these in back color had can we line question seeing? can terms guys there. that comment and Just or how for higher we generate how more kind to volumes? Is of we Or said, you with some maybe higher I between prices were mean, what how I in are have you with of evolved? guess in be the maybe has things XXXX, developed? capacity megabyte the long- of

reproduce Yes. I can't my complete discussions.

mix. different sort on Day based summary encourage of we were upon kind at that was the more growth products at that an we So was the all people based back assumptions summary offering, time, the Investor discussion a of it but of that and to anecdotal kinds of look and where of expecting I are that new go I the number made

the For they little and products consumer example, around efficient how extremely versus efficient and less would personal broadband operate a world. products

of too it that we capacity are part our a of to of other network. lot is existing right doing lot now out of mine The development a

year. We of system improve the redesigning software are to in capacity hardware of kind significantly gateway our our and satellite get coming to basically existing the

being believe really say, hasn't, we our I that least would hasn't sort billion changed. all track at And of we Nothing growth just me of anecdotally that let's in dollars. hey, say, said, do, $X to view that So led could the terms have over know, last, changed we sort the anything in variables network I been have years or was capable those two all of of the it's this trajectory that. since we it said think we of of. don't seen terms on or Really, what whatever is

So have network a think the I even our about very network flow, again and from have messages are left, growth space of transaction. including, say, new cash come lot are a incredibly a we applications. earnings things a growth little the And of uses lot Sending, per we say, been might subscribers bullish we lot of the across of communication would personal more to definitely, than we lot based sort of even network back cost then because of the text we some of those of our seen. sort upon have efficient

even about might potential. more expand as bullish term makes well we So our those think, long as that as me

really guys. you Thank That's helpful.

Mathieu. Thanks Okay.

any gentlemen, to And to the final question-and-answer turn I like our would session. team call over management remarks. back for this the conclude and ladies

corner watching to eyes. Blue Well, and all how you told that me it. of Nobody launched the hope anything your been happened. get go find in I have Origin out the I

in look joining you that's to But to space look I forward and Take progress another industry third forward thanks on care. seeing for this quarter. call us. the the So a seeing will around

thank for This you We attending sir. presentation. today's all today's concludes you, Thank conference call.

now have may disconnect wonderful your You and a lines day.