L3Harris (LHX) 27 Jan 232022 Q4 Earnings call transcript

Greetings. Welcome to the L3Harris Technologies Fourth Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this call is being recorded.

pleasure Relations. your my Vice Rajeev now Investor President, is to host, introduce Lalwani, It and may you Thank you now begin.

letter We Thank welcome you, our call. to and market investor published our fourth yesterday. Rob. quarter XXXX Good after the morning close earnings

be will on answering So primarily your today's focused call questions.

and on for and forward-looking the CEO; non-GAAP Chris CFO. our measures. Kubasik, are me Turner, A statements Joining our call Michelle few words

uncertainties Forward-looking materially. that risks, statements and could differ assumptions results actual cause to involve

letter investor and filings. For more our information, see SEC please

A our reconciliation to a GAAP is of will non-GAAP financial comparable Investor where call measures measures the in also Relations is be replay lXharris.com, website, included of this section available. of which

questions, Before comments. make Chris brief some will going to

Okay. Thank you, and morning, Rajeev, good everyone.

in guidance also consistent our expectations, As we present ahead M&A on as reported of opportunities points trends. We've steady themselves. yesterday, XXXX or been improving active our strategy, front, the came and with our to quarter fourth

delivered start up team Let's electronic top with quarter This improvements within saw as component QX. for organically, contributed leading in availability line, growth second company. tactical our X% with the of consecutive the we comms. way The a to solid organic Communications

expected, inflated Segment EPS labor. our billion what pressures about free flow we factors, and our cash recently including above outlook. ongoing at just $X margins net macro of costs were from and material is for with The this guided midpoint

results, on expecting Expanding EPS margins headwinds the cash Turning profile. industry-leading we're acquisition, to revenue for call: about holding XX said including the consistent stable to at a XX.X%. last X% improving while we We're steady range, X% Link operating points pension the and XXXX. what with an flow in our adjusted to our

business had an to Link M&A recent previously ViaSat's Lastly, Aerojet We two balanced our on Rocketdyne. we've capital Tactical acquire unique allocation Data framework. and in opportunistic approach assets opportunities discussed within activity,

in start a weeks with are to and strong We closed off XX TDL integration.

to the on in networking participating resiliency capability are and as role needed solutions. employees develop JADCX This our newest XXX(k) programs. our LXHarris a fills already benefit for customers in well and in payroll fact, our and a In play us central system defense positions global we and acquisition

asset that leadership Regarding propulsion, growth future markets Aerojet and brings critical nearly of exposure has us to hypersonics. space global backlog by a national to tailwinds position adding exploration warfare It a it's for in with billion munitions, $X Rocketdyne, driven and new demand.

acquisitions, our these of both we'll equals. experience of With recent merger our from utilize

the once into our We for much year to LXHarris. Rocketdyne expect of strategy the we Investor later company. Day growing complete integration more We'll for work hold to outlook bring Aerojet an and the be TDL about talk in

forward building momentum with executing and our XXXX. on strategy to we're our in initiative first So performance look

for With the questions. that, open line let's

And question-and-answer the first Bernstein. proceed from conducting be question. now question Thank Instructions] We’ll with you. Harned you. with line the comes Thank our Please [Operator session. of your Doug

you. Good morning. Thank

Good morning Doug.

talked a merchant diversifies supplier. asset. parts, a you've been it Yeah. this a But I your Aerojet question lot a have understand as because to your about more want it's to case is said, Rocketdyne. I valuable for about I'm few portfolio. little you've It Well, afraid also a bit going mean, being

look revenue the company at So synergy? of have When parts trying of few there here. are for understand, a to things some specific are you what the that it, potential

I there are costs? of just beyond the Second, example. for Because know to difficult corporate some are cost reduction there areas facilities move,

the better do performance Third, are improve end for to things and that there operations you customers? can

deteriorate some over in value last, pre-close asset when then And ensure you're period, how of this do the this you that time? doesn't

you. thank Well, Okay.

those. and those. be try maybe I'll answer but I'm some hit longer give I if several Aerojet can all usual see of a questions, me of Rocketdyne than there'll sure to Let preempt

defense look we outside acquisitions, largest when which and of weapons. to markets when platforms, the control; we're market for command sensors with the three CX, like at global data market. the looking start are I'd at And is So and

we're the on positioned TDL the two, with I'm So after especially first acquisition. comfortable very how

Our market is in practically billion presence $XX nonexistent. weapon this

missiles, So want the are we believe to and growth that with customer weapons, whatever It them, current the aligned future is fight. a munitions, absolutely you call emerging for demand. market

in STINGER, for products on is rocket regular solid And to basis a and position that and we great motors, defense they're missile market. especially many us like about way the Javelin, missile a know

so with Artemis, be So munition have the We're I able us XXX to is to with several launch Vulcan the visibility with And honored observation. RLXX to then there's the upper SLS space, vehicle. have for new stage or history and and premium come. already ELA and years engine honored over a engines contract for space at support NOAA, there to relative exploration side on under and the well relationships. they're look and NASA working that we We long of soon from a these the

the well budget this And really I get crown of the jewel believe the the other hypersonics it the hypersonics there's could And customers. day, opportunities attention be future. think deserves. is is growth is the supported reality we And said And now. the someone by doesn't hypersonics acquisition, that significant and the I are and think,

our relates line us $X we the three jump financials, the to when cycle If portfolio. as you longer markets, faster mentioned Rocketdyne gives business will I do, Aerojet at visibility. billion believe can I I it of backlog, those will, see I so and I to more the grow So look current this if than growth. top what on

with believe coming there we're will get consolidated over now I be believe two. year to favorable. cash we improve have we'll basis And line those and potentially continue are to ability time. negotiate in milestone doing in as the or more what I programs multi-year be renegotiation more And a up margins that on for next we several payments, to the be

maybe there couple to out that throw questions. answer the of I a So

$XX cost some million the in and the public On believe easily eliminating from cost something overhead. the company duplicative synergy, range we of the there's

You're right.

offices offices no we D.C. We at to plan or in didn't move look both any plans There's at really and anticipate both have this supply We to low-hanging chain. the but synergies in there, have have point some We Huntsville. fruit I relative facilities, footprint.

and to So of take power the into dig we new need that course, of the enterprise.

to on details, So from into to your And I gets once potential synergies. think numbers exceed we that we to question, the those And the synergy. us overachieved. on from cost gets Doug, get cost there's continue LXHarris,

no are Revenue in at this synergy, these synergies time. point new markets, given there's that have we no revenue overlap, and

Rocketdyne. are scale we are new I TRX be the the business able – before the I processes, was late. at think locations did program more to opportunities the performance – we but of new our And of program facility Both to we'll money. clearly that was I ability I the – talent, I look TRX the our at and with in what budget have at that an Look that, the our here Waco Aerojet policies, enhance capabilities operations, company, merger. it's Aerojet losing to, And to Rocketdyne. So those think, facility. great example, those answer. the a program, and on bring is people, attract not to only able to straightforward the that think as we around. set bring LXHarris over And Waco were controls, turn guess skill maybe

of we'll to unique or on acquisitions. don't relative having process. Relative The next this week would I these in to people integration start think integration the meets pre-closing basis. regular at exposure, week of there's I anything after, the team some part on-site other as it's a facilities think

As meet would on Drake expect, regular – you regularly and Eileen I a basis.

week fact, sometimes more. one call a in and had we, we I have So yesterday and every

a going acquisition. or is can your that's very are The excited. do to Doug. long we're I how to touch, we hit of to So and answer, that the whatever apologize five in to to we optimistic help accretive I and successful going wanted I for employees this but them. six all try questions, stay We're excited, think can I'm and be

you. Thank

with the with from Our next Vertical proceed Research. Stallard question. Robert Please line question is your

so morning. Good Thanks much.

Good morning.

Good morning.

though. levers option it to buyback? I'll look why with is Aerojet on the you deployment, this capital keep from When up looked versus to go Chris, share other pull for Thank think one Doug's shareholders the best question could you you and to you continuing did the you. at following with

right. first Well, you. of our All Well, thank all, consistent strategy. it's with

to give the been I've more think talking within alternatives. industry new DoD I several to for competition and We're building a the years. company provide

seemed to and saw companies and pretty been organically And inorganically. a and the I've saying when gap. focus at looked at Different the have the different munitions, to markets grow consistent growth on team it looked the So, we want I we portfolios. market and be in

this to of trends. lay to and tried But think look for we you're thing going great long-term there's long-term. some hypersonics I and I to to on see So, going be this why employees munitions great so some it's makes mid-term, the and and technologies, growth company for awesome over continued the of think this much the space back and has some legacy and strategy sense. a the in and Doug out

deployment, a consistent aren't capital make assets wanted come and to pretty is to do. a want There XX so with available, it come on and decision, decision was I'm they don't that integration the we them. when And underway. yes, it -- but what I industry. days many to excited act say -- it TDL Relative this we got to that -- And was available a you easy to done in was got in that already

getting then on and focus Rocketdyne can the we So, integration. Aerojet approved start

nice imagine. acquisitions a investor a look a shows XX, you you period and out amount page chart capital a of fair But for it's years, think couple balance. I that of our I deployment lays as the us kind pie it don't over us any doing If would of foresee letter, at five-year has

to non-core keep years. competitive, dividend We going to remain going down that assets sell, few have we're next the imagine. and use increases the we're proceeds those to would you over and We'll bring annual as debt some

at And then we'll absorb flow and could least dynamics, number year we a go cash dilution million that to other $XXX increase repurchase depending shares on and forward. any probably as

So, answered that question. your Rob, I think, hopefully,

from Please question. Jefferies. is with Sheila of the Kahyaoglu line with question next proceed Our your

busy of Aerojet. You augmenting you've been TDL in headwinds in portfolio us on you. $X.XX noted morning Chris, XXXX EPS how the spend with XXXX? last and and about think costs. bridge and IRAD Thank good But investment do versus point, your Chris internal you just Michelle. clearly your input

on what working some returning on? are these accelerators And and you're to your focused do to technologies they how of products So, topline contribute that that growth? the you're mid-single-digit

that IRAD morning been something Sheila yes, in investing we is and Yes. have year-over-year. Good

our ERAD, When We IRAD the two kind billion. X.X% of we're at over the together, in have call look significantly R&D We've increased from well range. external customers. we industry-leading what $X I

So we very process prioritize have spend a process a we -- good money. to pretty good how that to

through think space, Basically, optics. out we'd this in of replacement in I if of some excited I start made telescopes made replicated refer to about the that exciting things, mirrors as we've some glass graphite. the composite So optics that in is for investments new carbon we're

the about the ever significantly middle the thing year. the replicated So is weight. launching of it's the going less half and the to time And in to takes first exciting be It of it's we're expensive. about manufacture, optics two-thirds

see So for I a but this be risk. We'll reduce to satellite going is could changer performs, it game business. think a this how

Link in investing And with We're the domains air land the Data a advanced lot ViaSat. more and resiliency. Tactical with

And part think have waveform. of whole that's of the library Link XX. there I strategy So to modernize largest we the

So we're very excited about that.

on us our then, is past. pretty maritime the the we've front, recently launch ever our think recovery talked for a -- nation's in I has that autonomous autonomous and enhance undersea opportunity our step torpedo the the a This And gives our to company, I'm about first vehicle undersea tube. considerably an repetitive just vehicle, This submerged significant Iver capabilities. excited and is maybe achieved from it

to insight of will it's examples new result some those or we're maybe whether business coming you all ERAD. programs and you tangible in of give to each spending, and of what's trying give that record the money IRAD out some So

pretty this As looked portfolio you and of other the the year, on, can potential. John us and letter speak went for join were and in some them we the through probably segment have working as the and they two both release, about say saw at IRAD we're I in our and things new Sam presidents excited

So thank you, Sheila.

the is question Suisse. next from of your Deuschle with Scott line with Please Our Credit proceed question.

Hey, and this morning on good to great congratulations progress see. quarter. the It's

Good morning.

particularly yet, from opportunity, contracts more more missionization and large just way? that's your been the just on trying sense haven't ISR or risk of that there's an get any timing-related Thank the whether downside there go that. contracts Or are guides any to international Michelle, finalized if one if I'm do side? a upside you.

I appreciate note and a guide this, is this for that, different the thanks we we think Yes. because No, on as for it year, of approach Scott, important a question, couple take did our about things. to

missionization Our ISR is business of them. one

question, answer large no, We year. one international aircraft. of ISR there which the not the pursuits in anticipating the in have directly half your to any So do domestic have the are pursuit, we're first We already plan.

So it's perspective. budgetary funded and that's risk, program. the It's a minimizing CXD from our

aircraft around So tied four that. we have

really think we this, that's how important, with our XXXX. is we how supply this along the about thinking chain, played think I And XXXX guide as for key guide the out influencing through when that, were two we're because about components walk

just we're if question. going And get question. I'm disappointed so we because the upfront, the I'll assuming chain be didn't get hit to I'd supply

the look But QX guide what for the off half XXXX. the across our proud our product incredibly the based second current when of particular. we're Coming results, strong businesses of we teams year, we're in is all of we consistent what at with in did something assuming

throughout results half a having I to momentum the we're second year So want along We full with PSPC, guide. XXXX aviation. finish our the of do Communications we're that really we're Tactical year. into building XXXX that WESCAM, had of the the to as on a And coming to commercial shout-out XXXX, assuming consistent strong in team,

missionization this land optimistic thought going what And using so outlook, learned And to be although to we're that up, not XXXX in with ISR programs we to able demand. point key influencing a upside. our really to it two we're it to point, Scott, XXXX One those components. around your would around at a and contract. into continuing our handful was being We there's was pursue of that be budgets and put we're prudent guide the

line Michael Truist. of Our Ciarmoli Please next the question. is your from with with question proceed

Hey good seen lack I the $XXX rocket just chain. cost about Aerojet thinking all a had seems morning It the maybe savings obviously, Maybe I'm expansion questions. margin to executed went back there. program. they for challenges Thanks taking customers. There's, cost these of million to like know about and guys. synergies, go previously the takeout of those been to supply the And just in we've on thinking motor

up, has Raytheon system? of And make think this think, contemplated production maybe expansion entity? cost margin GMLRS Is confidence to in the have outspoken synergies? at the level pretty of status production investments? What's I you that your been you there. Northrop the in that their year. picking any guess think I is motor I entire Do

Thank have Yeah. do margin in you, We Michael. expansion. confidence

plus combination portfolio you at they when I of industry, the in a you the cost it's mix think customer, it's look at fixed and look have, like everybody the price. or

obviously it in it go they the looking to forward. I'm price. all able fixed on the back sure should should not keep customer. I'm But be It past. -- to that's So the would going

Like systems acquisitions, any are or like put and that these Harris technology are together. fragmented we maybe of just older LX when there

been a Our hasn't systems, are convert month. reference to fact IT our that and used ViaSat, on these. even to organization knows employees already I those it my the how

And it or and down So be length, in challenged been business we'll one in most week Like they've everything case. to has at two. people talked program, I have of contemplated the there the at I about challenges, know next said, facility. our seems

-- a I the merger, an to -- this like is a of part an a organization, of make not large larger a just important One acquisition, again, being distinction. of benefits

buying about quick cetera. be migrate them. a lot We to systems et a payroll, one-tenth their whether to integration benefits, cap, to market and are this ours, decisions relative will of They're our and will on made, it's need be that of

have capital. systems, with With execution those systems, with those technology. familiar with the We're And they've that On in. scale, all contemplated. manufacturing the has we familiar been the ERP our systems, putting been those familiar

IRAD. doing class. they it, we them We the invest to make ability prioritize have world have to as been have the We and

JPMorgan. next of with with Seth Our Seifman the your question line Please is from question. proceed

morning. Hey. good Thanks and much, very

Good morning.

looking years. a business recent fresh you business. in the budgets about outlook look growth beyond, – seen Communications change I thinking the a the management and could been for of and kind that when if the company. that's necessarily We the of different it talk wonder, kind for in as radio really we core saw the earnings decade we've bit the medium-term good in a suggest look management little and the out But the the recently to details of you're the change of there, of some some good. doesn't And middle for the

tell thought you medium-term process can So, us about your for communications?

of he's leader I Sam, Sam people financially. like mean, Yeah. everyone, mean, first Sam experience Whether global Seth. And He's success business relative I us to with a he's Absolutely, lot led I few and and I a And footprint, were a foreign who's questions CS a the Collins, globally. had of No. the at for the and I military manager. sales, foremost it's commercial sales short-cycle I asking When I – joined someone everywhere and strategically, know do versus hired led when look Army operationally a programs. year. beginning with business. Marine is a of business. been, he's a and production. familiar Sikorsky, direct look lot He's UTC,

I value to the successful going be no he's doubt very add corporation. have to So and

underestimate a to like, talking I'm and across acquisition on an able the sure connect And want the it been the don't on the – I to about, comms, on term that medium line. for which networks, decade. ability to their seems the we focus customer the significance JADCX has the and at haven't, look ViaSat on I of as to part the goal that – there's get frustration industry, been When

in contract not the continue I growth Internationally, a that to we customer continue. the got Australia in when another quarter, to the only business, fourth going is we great has low mid-single to digits, been radio domestically look see So at tactical ours. the where of here from modernization

look continues. we So visibility need for modernization good continues continues see to as the the the resiliency

there think across about, more that's still And the a then brought never quite but been the as – line. ability for a system I goal is soldier talked of

So we have the ENVG goggles.

the We that the can at soldier higher a level. also have radios. connectivity at happen There's networks level and

to So you key execute year, resiliency said of it's the and to our the part ability in the over of think future. it's is And the think I've look future. anything, war And our capability to our and before, communicate a continue business. I is the foreseeable grow at fight past critical for the as going I Ukraine, to unique,

next Khanna with line Our from & Gautam with Company. of question your the is Cowen proceed question. Please

Good guys. Hi. morning,

Good morning.

Good morning.

I curious are chain guys cetera. you QX? of holding saw of couple of kind company guys out and you could the supply talk in Chris, years a moving the on business, integration assumed about et ago, integrated Thanks. that and you was to what LX in do an talked of just you could years you Meaning healing annual you And if number the just for cost within it cetera, pace I'm where a from also you of a on if are comment in think journey. million then to curious, journey? et guidance where kind the of $XXX

Okay.

chain. the the part. talk take about Michelle me first I'll ask to Let supply

We we're trying the out going As it's say savings journey. ongoing three-year the stop $XXX ever an assure complete. continuous separately we But costs million. move call part never I can into to of cycle We're to out of a talked EX initiative, took I'd out $XXX to million. We acquisitions. next our plan the take one-time as about improvement and

the a I made We fruit. low-hanging think got progress. lot we of

come way So, ERP systems, maybe at look of systems down have substantially. I'd I the And through the the integration. two-thirds say the when we're IT

By think we be the we'll say there used in the of XXX. the to end were I year, XXs. about

that's progress. So, good

manufacturing We've execution year. in one we're consistent that got implementing. systems The done should this Greenville be

job the done facilities, have couple in shared We a all good services. a on other

So, done. be in process that at would moves to is done. and been But and The have the facility looking continuing it. case, and every optimize that each team function

said, and will ways relooking which we easy function-by-function, I we're stuff optimize us the like the now business, at at the cash faster the out. procedures, So, continuing take going and ultimately the and systems look make did policies, to to

So, supply the I'll agrees with her to with see me of chain two-thirds lateral through. some Michelle, go then way if have insight. she I'll give and

continuing this bit you, with Chris. add example and agree more on our think little our real phase is always But to where estate a efforts. consolidation a I just around I footprint next great color, of we're

And of we years. so couple first to point, the the low-hanging took Chris' in fruit

additional and in Green phase out Byron a of We're have his plan as take result that. this really we been operating of focused hybrid workforce. environment real of of have a two-year current overall an estate XX% next where the of as what's a the -- result sites a our on more to XX% team middle

offset inflationary continuing for. challenges some that So, to industry. evolution are continue an of to going It's that's across really the pay macro helping be it's dividends the to to permeating

the start make XXXX XXXX. at of to half end the remains from a this to the I chain bit versus second about balanced XXXX more as our just think to different approach. to helpful what's guide. performance. assumes give I of, describe at perspective, is the our with it's little a it's a would color think And consistent a I the then -- word or we as say, what But And supply talked about about same it XXXX more think guide Again, XXXX bit tangible, little use just

the about think how illuminate you business our Frankly, for because I it guidance. I'll things So, you few helps think as managing bound we're it's internally. a risk the

ecosystem is hiccups industries. same see new supply the same? other do our consistent is industry chain we and the from that's the of This perspective. This an something continue a So, across become is overall What's bit to what's norm.

on is within continue when even What's a continue improvements also allocation see we like really And this manufacturers. important is be chip because XX-day is a our that year. about reality perspective more good the supply getting the we're part gets insights get from XX the we chip our to Then to the to with into the QX, process it is did as for a out. consistent point microelectronic we nebulous latter do of we days

And this know is than some or But we've then to we're not QX radio that XX% to be deliver But if earnings washers or we're reminder, I nuts, portfolio, finally, going able our put a to turret. short product that of just our within tied short call. we're different or on is our chips on of in which deliveries. peers,

And guide. remain same think you as so those things the about our XXXX

be actions really this Now in XXXX, XXXX. focusing those took and we risk but what on what's They a things the can different about year been of we to proactive is control. help talking minimize to is And lot different, right? in purposeful that last we've the

big reminder, so that XXXX. engineering for benefit get a in And XXXX. the were of full We just redesigns value a focus

in X,XXX part XXX within Communications our bank have is parts That to Systems parts. alternate at Our XXXX. would up business been Tactical

terms increased in base Our it's also coverage, double overall digits. DPAS revenue of

aids our of So prioritization the supply material in availability. that and

indicator acute second where we're in XXXX. to at chain important the predictive manage supply we critical today, most shortages the hundreds felt of and we had we're and forward to impact most Fast what the terms And we of half of impact We from number is really are critical then part the was having finally, the When that and in XXs through. parts. started of time. is in the I this think

way improvement not this We're woods see the a we supply any So perspective. sequential of out I chain from by is means. the would characterize to continue

a And approach to we're so in our reflected as what's taking balanced a XXXX, that's and result, guide.

your Please comes Research. proceed Spingarn question. question next the Robert with of with Melius from Our line

you. Thank Hi.

on that, just there back like all of Michelle, the the XXXX. in seems higher So positives of might it margins support are

guidance allows Now downside? that. range I But the would the what cause know for

Yeah. No, great questions.

perspective. Chris we through right? assuming space. a so team walk about about headwind have Rob, phenomenal continued revenue. flattish in margins, assuming a perspective. in inflationary a overall business. talked your I'll margin are the To doing from me growing about From XX.X, Kelly point, macro from also where of our let enterprise, So of we perspective, X.X% start challenges we're XX.X-ish. of million, $XXX terms and investing her headwinds are overall we some from mix And the are

time, At drag be our same on a margins. however, that the will

at improve. programs book on see And new board, the these in mitigate typically come to As profitability risk, we we them programs start lower rates. we as the those

estate offset So inflationary, great of our is is being example challenges from that Real earlier. and EX continued as that. a headwinds perspective, mix, by strong savings program, Chris a to alluded

also QX we that And offset and a dividends the pricing. planning end capital year. of program perspective. assumed that help retirement increases announced voluntary at the going of pay commercial human is we're last the to That's example level great to we've some for from Another merit then

The a was from of more downside, lot the unknown right? There my continuation a point, an what permeated within downside? of XXXX it the from reactionary your that unknowns was Rob, this is inflationary year. like perspective like is perspective, it To that specifically, felt challenge

controllables. control as through the through And that we we're result, XXXX. prudently to our way as we will we a that make doing can And everything manage so,

the some about that, them talked we're workforce, just mentioned the focusing increased and attrition. keeping talked things our doing and October, of you about we recall, the Michelle importance of I'll that of some in chime on we engaged unique. motivated And And last time the are merit. if recall, in

benefit headwind a and absorbing of flat and We've the awards XXXX We to it's $XXX that increased perspective. a for recognize off. in and to also was I'm performance other investments And and costs thing that initiatives. provides employee that little bit confident it we're pay of million but going a over drag, do, some the right the was held from to all of budget the spot an

proceed Next Kristine with question your comes question. Morgan Please from the Stanley. Liwag of line with

closed Hey. Aerojet did ViaSat ahead the you earlier Good how guys. that expectations. is of mentioned XX of that that Chris, much And speed acquisition playbook the deal to to Rocketdyne morning, with up regulatory something this differently help you deal? applicable days this the Was review?

Yes, question days. Great I morning, closed Kristine. said it XX good and we in Yes.

forecasting at for I and have for all We process within made responded And mid-year. that filings sure We a we sense, it, is. all out. was to looked think lot play some it of made are going the that the We appropriate been international when ViaSat to There XX-day approvals. how weren't questions the just period, you HSR.

Relative to been the We reviewing met that in very FTC questions. filing. key process is We're Rocketdyne, out. explain Pentagon the their mid-January, -- we'll the with HSR I answering Aerojet questions, in and how made Eileen responsive works and know their We've to customers and rationale answer all our we see it. jointly

I it's just in, responsive timely and think manner, request the in can So, process work. being being a so the transparent, getting data

out. everything see we'll it plays But is so tracking. far, how So

proceed from the Arment you. with line your Peter with question. Thank The question of next is Baird. Please

it had road kind see a seems what you acquisition Maybe of it's upgrade LX. fit, talk or as product you cycle that of big just morning, about, Hey, you of with is Thanks. the capabilities. like TD that two Chris, bit a for opportunity you map kind kind or Good Michelle. great could really a Chris, if little like highlighted

Yes. Thanks, Peter.

being ability really talked us the And to that upgrade Link modernize. XX,XXX platforms. gives on and we've XX look, Now about

mentioned I the when IRAD that's spending tactical fit. link, an the So obvious data advanced we're on

we this things a focused the on negotiation, One was carve-out. of the in

we don't to little we was to relatively business, be to buy. a And unique of a what and small the wanted this Link piece Later we Viasat's Link XX that's the the really get which what access launch. and So transport. will buy, SDA year to a as space XX on

be think, is capability air in XX have that's game thing. kind The will this first-ever connectivity the in again, Link space. jewel to There's the changer We from Link And to in XX a to focus on space of resiliency. space. hidden I going

ViaSat. the excited we're synergies, about revenue to with relative here So very potential

happen. to new in going is investing upgrade We're products. the So

also well. the product We existing that's have production going

look to on good I this to back a It's and and straightforward So pretty going we're successful to going one. off pretty start. think look

helps. So that hopefully,

you. Thank

Our question Partners. with proceed your Richard Seaport Safran Research comes with from Please final question.

Michelle, Chris, morning. good Thanks. Rajeev,

morning. Good

two, to think year, they're I try Chris, last quick. going I'm because

getting funding view to you're be the higher knowledge contracts. inflation is costs? indicates asked wondering that, your Second the and question unforeseen was spending your compensated we adjustments be on your would letter that is your for you allowing fixed just just of guide? and competitors. on defense upside I on continued so, reduction, going a sentiment if to new general seems Chris, is I given I based this on as any the a existing about, your So – price And into on just contracts, though, to kind was It Thanks. of bill view modernization? deficit move defense for of curious payer. the Hill government

Yeah. Thanks, Rich.

to have of we nor on inflation everything just On survived the received the and upside. price Similar feel we contracts kind it as just years, looking business. of compensation one, we fixed the much COVID we not and like the better any expenses others, first on absorbed part have these for I three asked any. for is

as money, would there got new on If if But claim we moving do to easy now, the prove that. and upside. to would changes you if some have it. just of be not bring or forward we'll clear us Obviously, we're that DoD forward think encourages documentation. as be contracts. sort, of to a as the focused something It's But

referenced all a reduction, actually defense deficit the year. budget the our in we're On excited we're start to to I watching. letter. have And it's fiscal something

us session And in lame-duck deal deal a for of big section getting that it's a the and industry a the to the everybody deal shout-out for done. Defense. – lame-duck for bigger a and even Department So probably the for big

budget, it's when these know, threats and that's of mean, just the play in world. really rhetoric that. going People thing I'm payer. defense you I justify thing there, to predict around hard how not going it's And leadership really thinks out a kind of Congress. positions bill the gives at reducing It's that's say to things is look think flattening But the get or I back to to matter out. for it's comes that DoD future So certain. that dangerous there's acquisitions the be I situational of confidence the camp awareness the resilient comms, at the different in some and in us to it's hard ISR, one type end future. and going the day And to it's and the to fight what's looking what that is. with is munitions.

relative where Rich. So those positions, I we like are to

up. that, So wrap with I we'll think

you quarters like So acquisitions. I of I'm future my know positive excited two momentum, I potential appreciate Aerojet I the I voice feel in. feedback have in initial don't Michelle's, a and employees everybody really from some growth, if consecutive Rocketdyne believer we with momentum big the can know and in and what hear the calling the beginning employees. and the we're all ViaSat And of been brings. about it but the has some

actually excited who also former transaction. Rocketdyne about we've And the heard from the employees Aerojet many of are

the going forward closed, about once they're we're employees to looking if So, And back it's former get focus on any Aerojet passionate with connecting them done. deal we're and mission. the Rocketdyne welcome to closing, this

it's think couple of to exciting I be So, an going years.

to Mehnert service. wanted I off, XX recognize Dana his and sign I for before of But years thank

As is Dana smooth and his QX announced transition. you in with know, assisting a retirement

over I Michelle we the it his him So, and best to future appreciate quick. turn that, to And in Dana all want wish real endeavors.

for So, company. your everyone, and call the thank for interest continued in joining you, our today

to minute. want take just I disconnect, a we Before

Relations this many I for you, all our want LXHarris in transition next and for Investor know, Rajeev, earnings As And best over me, very with of my contributions this your thank you to in wish Rajeev's the personally, We year. call function, you be will for the last last us. overall adventure.

So, thank you.

concludes This today's teleconference.

may You and wonderful lines at have you this your for a your participation disconnect day. Thank time.