Viasat (VSAT) 8 Aug 202021 Q1 Earnings call transcript

Welcome to Viasat's FY '21 first-quarter earnings conference call.

Your host for today's call is Mark Dankberg, chairman and CEO.

You may proceed, Mr. Dankberg.

Hey, thanks very much.

shareholder most night we'll of in our first-quarter described discuss published there. and results, the we letter that last our is So details that go few want points make just take a I before to we ahead and questions. quick

better came looking from in So opening we grew EBITDA things what in the had than overall, about the March. results expected, at X%.

awards adjusted management. business cost first able was in helped showed that helped confidence business very in-flight strong is but and did just our have Government the a connectivity and little this the for demand, a of the In-flight headwinds the the on than actually new that lot for space, theme had from probably COVID Just second what results think, which that was on grow diversity all results. broadband our We've very were significant on that us opportunity there of it business. And despite main leads here, commercial really connectivity revenue really and had still quarter, in worse us. of That our kind contract point, got, expected I slightly year. Fixed gave well. lower that EBITDA. rest with we're especially overall, we situation strong, really was -- our good we such into our what business, to second which along

the program. partners to of international that expect we on I'm some make low pandemic. our satellite able just start to about proposal and is opportunities ViaSat-X COVID again, first encountered activity businesses, to Last we're We the aeronautical to due for and see our have progress opportunities plus making our to grow demand after And the delay that point want the a first quarter, very I value. strong government out of we of our business talking during be lot point quarter. in We that expanding encountered segment. our good

some but is us of pandemic is at to COVID the overcome, the for issues make definitely to where the together. program continue integration So payload the creating coming good progress. point We're we

reported of making progress testing milestones. being will and larger have able we quarter. shifted then, look next date more to we and really were payload, enough a earnings we ship when at quarter. report time the good that doesn't aiming we we're be we'll We on next around but larger that So subsets to have those by that -- can payload the It close we're for definitive report

take with I'd So to that, be now. happy questions

we moment Instructions] And will for Q&A to roster. compile pause just a [Operator the

give Just quickly just to before safe our we I'll you take disclosures. add harbor questions.

As forward-looking discussion you contain will this statements. know that

actual could that reminder a differ materially. cause factors as Just to results

these contained website. on XX-K filings, factors available Additional Form XX-Q. our SEC and most from is from in our Form are SEC information or including our the concerning recent reports Copies

Now, to questions.

And Cusick question from your with Morgan. is JP first Philip

off from delays government. wonder for up of quarter, signings. getting if getting thanks can had things we start the some this Hey, you on point? with getting I What's early. at Last signed status

I were issues prime that biggest government last contract, think we the direct security involve especially quarter, that things on highlighted classification. ones the

kind And acceptance of we signed kind as went those required way issues able main contracts two not the the gone security. the it. put have and get that some and I it's off, of We where, better say products the would I'd being just was in to but cases, expected, other of

despite up that back will needing for signing how morning, anticipate be the that that shareholder build issues? to those the government momentum And issues -- this play the I in you is year. say signing does into letter of cleaned in your half noted Do that you or systems

the think the we've other good for that is that I that's segment. with quarter. awards got that outlook on, we're is a just good we our thing And the continue that things good. mean, backlog I had on trajectory consistent really

So backlog in. we've going got

have, product the orders of each always in go that a quarter, fair have. contracts we IDIQ So amount against we that

So it's based build through continue is up. for everything not things in business. way usually all on the But that and are have good us we outlook, it to earnings as locked going, the year like to the seems revenue

a ViaSat-X timing Okay. bit. That's And then it helpful. out little getting like sounds pushed

You pressure Should 'XX? bit we and calendar being look in that little scheduling mentioned later. shipping launched some at a still

straightforward payload have Like said rest we Yes. there with Boeing I F&O That's on, middle from then last pretty aiming were them. production we're is that aiming big is said thing the of milestone as program And we shipping that program for the around think year. of two to the was because the we really before, back what for. the really a the for

to aiming to able a year. next But the feel close that a I more being giving have we think So because, comfortable next specifics ship back that quarter payload we'll lot I'd Boeing. we're quite be launch certainly to at say point, to

raise a I release. post seems Sounds understand, Thank do equity million equity? help raise, if you last recently. strange very then? then pre-earnings can. And Why the one, you. you the little number good. us why $XXX bit timing The it wanted number Can two, And one quarter to

Okay.

our raise it partner our as international helpful equity Intercorp, who with really, kind see really two by catalyzed the we expansion. was investors, Intercorp and in a was relationship And of with So Baupost.

the environments are came months, so say And have a quite on the together dynamic. very overall a and been it I for it it market we would working few did. at that time probably while,

it because say... it be That's deal ready together. execute even Baupost the timing will that better to expressed we the put in explains weeks same deal. would I And so was figured deal opposed what in we've waiting when markets as volatile. to so just that interest are once the just participating

the an outbound, and wasn't It key. that's

coming equity but terms it's a I that are having mean, And can we're we are of with maneuvering just that things to come anything base I that people never lot. think And I volatile done, definitely with -- us kind Yes. more additional out sort to think looking fair. I we're for. and Yes. say bunch are gives be of the understand to opportunities environment a We we Yes. are there see what if the where of that there I that That's of opportunities And they a deal things think why, say in. deal would until that in -- will was helpful. room that opportunity, this fruition, will

much. very Thanks Understood.

Thank you.

with question Prentiss from is Raymond James. Rick next The

doing Can morning. talked potential might employees Great. Question little follow-up are early as what's hope guys success-based in or opportunities in your sounds business you your question what I COVID-XX. might okay, Yes. you array elaborate there, investments. Phil's you on letter about on doing shareholder there. growth bit need diversified that is one opportunities in about Good Mark, the you want, evaluating of obviously families, strategic like well The Then, out there. a interesting out what you portfolio? there's and well. and mentioned It

No. It's hard give to specifics.

some help also, generally, we're are, possibly in in things theme to a then we in good might also segments And look of by of there's track in at. be, elements strategic helpful technology the the specific in looking they're geographic the pretty And opportunities make those us that our or broadband that of of we think be It record could general, type possibly potential some do specific areas. would either some that have kind either that or things things general, I transactions. defense aeronautical I'd that's properly interesting kind to transactions with be doing these specific would thing. kinds of propositions tuck-in potential would we services markets and in say of market that to things value that of enabled some at.

obviously, of a Fund. with discussion the lot RDOF, Digital And Opportunity the Rural Okay.

the incoming about competitive the you far as your You versus But businesses. well. given where new it have into Mark, as all last us lot they'll also, it requirements? talked can expand operators in deeper play Other satellite the update what's RDOF you quarter. LEOs be into about in particularly of moving talking fiber it think could happening started latency Can you if as on providers as about some then broadly as marketplace speculation what the as also more dynamic the far and calls the competitive universe. far A a as satellite

Okay.

point are fair all those where none, RDOF has Rick. and RDOF comments make participant the on reached potential any no can The So whatsoever. program questions, good

very taking that seriously. So we're

pasture I'm you So asked. everything much out to pretty

as how about what competitive threat the as LEOs they far new might pose? And

FCC don't I the evolving expected. the the system surprised it's Amazon are we that -- be think think LEOs of say I I'd approval. anybody Well, Hyper got way that don't that should kind

perspective, think get to little do. to our I useful think the is that's that FCC's orbital-dynamics extent notice cost those LEO it LEO complicate be the will approval. But that going it's to a those we've satellites. main an higher then that I be themes of some the going still think address clearly -- are going space. are from in because things And of to crowded region I that all we'll situation in than for on a been There's work bandwidth that to is the GEO quite bit just saying

that strong advantage we're in before most We'll for LEO also of think especially too. have systems, the we pretty And the coverage, in. ocean so in of markets that's lots us areas, probably the a

with comfortable we're So our situation.

will I market. bring the to think growth it

will markets new as we'll launch can to that it of band those launched we've And time be customers as each improve in our think satellites, done of to expand we anticipating, how been with we I satellites. amount each our the deliver the we've market. we've able

So quarter I anything's major think to in think last those relative don't of -- changed points. the I that's kind

as forces And and into quite tough since and government you at forces a hit you beyond far military Where elaborate in doing backlog the product your couple that I a little opportunity strong. the Obviously, like are as deeper maybe government subjects. moving mainline set special business? maybe one, could of for

make we're progress there. good say I'd continuing to

forces is operational something we've one said, markets, that's that of into that has programs think the better. And the see a have long described what not is that be of mainline of record. the in business for a other which basic underlying and theme is is government kind of would example I call in our in It's is amount as business that get these really showing a lot such business reasons one work steadily our of lot time. first one a capability to then been adopters that and I you fair so it early of the growing kind responders, adopt. our also the of can themes more takes that The

that out valuable over our lending to stuff. acquire customer important figuring base to So that is allocate how

for that's not theme adopting these we framed there it's the I things you'll What case, we've way on so being often shifting is for the the I -- more platforms. would or in think, forces for also Asia as to competitors and of the how area near-peer of major onto we particular is been the continue terminal, those to group. start creating doing to things and then generally of this with able controllers they special part continuing get service the occurs. expand. given focus see forces, just in us. Link XX and are application getting we've into is particular grow. to and small recently, special platforms kind first again, satellite they our rotary-wing and more that be Link and start There's is event near-peer on DoD, event say opportunities able it's call And each to with that broadband. I user air pivot of like what a are was main going of for each particular to see some a think lot go. And handheld get of good of some big Pacific examples like XX that's Usually, More overall, priorities we a that the small that the platform these tactical tactical rotary-wing getting first kind generally That's things major a on thing on seeing are other a that really

them they technical generally then demonstration. bigger into or study are go opportunities, start pass some also out on we we of those but quarters. progress form And with programs. often those those, If of prototyping make if well, over or of may some the bring few larger next they'll those Some

and well under nose the to you family, in your these wish your then times. Okay. tent, get Great. and crazy employees. Good all safe Stay

Thank you very much.

You, too.

Morgan is with next from Your question Flannery Stanley. Simon

I morning. build through Is a in environment potential continuing plans third lot color very to to for of and industry But There's pipeline? on overall? got planes you in you opportunities And there more months wonder if the about last IFC. in more little any all the about you've that about what great. a the WiFi the of Thank Delta's of be have given terms and COVID focus like much. other bit It the could quarter? than kind you seeing overall. industry a What the pipeline. few Good been several would seems flying go talk Mark, free hold financial their for the ramp-up that? that perhaps Is Great. been

Okay.

of and airline most progression market slowly, -- is but out bottom challenging it's ever like happening. obviously the our it's steadily. commercial customers for is of It's the this happening happening the So time the

-- you that the think seen, proportion are planes. a our bit see of that's filed first this really the higher passengers biggest is what report, are lot airlines the proportion one we've the from deal issue a of And the little I instance, to that those on with. for things of that is claims for than can that and

TSA we you statistics some at we -- July. use and a from those I June XX% in XX% checks in in down looked May, if Just XX% about think are, as metric, saw it

coming things So are back.

little I they're service. planes a cost just I connectivity that than we as that then input planes seeing, want before while see things with. of that's have think because anything -- empathy will a that issues you'll that, more, people back paying think them and attention a fill connected is think there, And the you'll of more say more see into I to important significant. this it's airlines Clearly, dealing as is hopefully great back it flying. bit in-flight be a coming on to would forth The for was the little for the the mean, they're even the airlines. up just they're way they're I But I that I themselves mean, are go. probably

around had it the do we've constructive, discussions time. lot with about through this all and so have been I'd and offered. improve that the and And available they But it's discussions they're them of them ways say helping centered a expand those make more how we maybe offerings,

don't lot retirements which I planes, would of more So there I And think in on with -- of in activity that that newer it markets our to either made is progress part, we're have we're I one the they the were that. talking a evident of service been to because expand offer expand which points potentially where because is or fewer both making which are we the other is switching their and where levers, airlines -- on about becoming coming out part, to then the Delta case the that airlines in service last some providers, we've is other IFC probably fleet think is last or as providers. than say, us part, their expand going situation. dealing service, of among the help going that the Then yet

our of lot mostly, I'd virtual that And of for and anything how again. already is seeing still we optimistic, hopefully had be really that's a the have of meetings we're pandemic, that's all things. will lots to customers, letter with the shareholder much virtual airlines. we schedule announce robust of them we'll meetings still activity. we into market airline that other describe we on a are but entering And We still now be pretty convenient point the the and the orders up in once those able that intact, that made to are we But say deploy expect picks

very you valuable do availability you Or think capacity consumer the How of Are satisfy obviously, broadband, of limits the room to like against in then pushing to add time turning subscribers? up demand to to your continue there's a ViaSat-X? is to continue And a Great. this. product still there?

the tends seen is basic that's high -- in and which industry concentrated theme same that where high the be is what that's as where is think there's that And in demand not we but to Well, high in places there the the demand, areas. the was now demand lower certainly, there's demand a demand areas. demand. also areas, we've more more before, what's lot And the the I in demand in happening

been in factor. supply constraint the that's demand. a I meeting So we are mean,

launch a attractive is more will I more think be sign able more to plans good we our as lot that's a perspective, a it from get bandwidth. to ViaSat-X and that offer into going of plans people

do also I we have what for certainly room are we internationally. lower in in the though, for the think growth and growth areas demand have room U.S.,

some U.S. the are now sort And that so constrained time by that's of seeing do the areas the the in have for who main will temporarily service, that interval but in the be between look we're to kind up of our international people determined or able kind now to ViaSat-X And distribution on being when kind those of partners of because been have we and open are that in of of you're going side virus, mostly their engage bounded to we'll economies. growth.

the to service. programs grow demand the with improving side, will the trend long-term new in think we'll up the long-term overall, going us some plans that I think we'll I -- going our help So trend international be and But lower in to and there. areas see some come on be is is the

is increasing already increased, higher demand have about lots switching creating is we highest and bandwidth talked and stress for speeds can demand then of higher areas. the the offer bandwidth. people One some using two us services services forms. so subscribers And more lower-end with has in the to that as demand That and in

So be is one of quality. to we're maintaining the focused on service things going

about pretty we we'd on the and U.S. XX of last we're things and build that excited is report to One reputation. preserve like ISPs, news quarter, the talked about for top that in being in

that now so harder. the that making a seeing demand bit definitely is little And you're [indiscernible]

Understood. Mark. Thanks,

Simon. you, Thank

is question Needham Next Rich from with Company. Valera &

of was terms just Rich is Chad I the [indiscernible] Valera. this Hey, in raise. on recent wondering equity for

give in could arise business color more it. that If from opportunities Latin you us around could America potential any

as so in America. Well, Okay. we mentioned Intercorp partner strategic a Latin

and it's that I -- with And so to number little is will also help in And a the us relationship And funding strategic order skills of to think markets that it that. in do to in distribution to can we're specific them. services our the a more Intercore and needed that relationship and of really looking markets. some resources we little the of expand value markets. we bring those those brings a that with We and that service less

or that necessarily Great. in us and it the strong with And connection I globally wouldn't of terms into think a in strategic about across maneuvering draw would more more for relationship Thank what that strategic so opportunities America. investment I flexibility across region. is we and and giving a think you. Latin geographies. between go businesses kind of partner a room really then overall And

Robilliard comes question Your with Mathieu from next Barclays.

this their of packages. ARPU difference thank is And linked calling to sustainable to existing And current this on when a of Is was some or because consumers Europe, early. understand situation the plan moving and making for up about bigger Obviously, to that it satellite morning. trying quarter. the that. spike is is. really ladder topping makes the It actually on just much ARPU very from is what your trying that for the increase so more service. Good I how understand is do also or I structural? What Yes. taking I'm other consumers had you plans up how thanks a think progression question impressive in you on a call the

Okay.

of main – one the reasons okay. So,

is a also of our So higher that additional was tend of upgrades is in that ongoing ARPU that more subscribers, kind in then the mentioned. you to terms having And additional and past, of a way gigabytes been an fact our plans And work, over value, services the subscribers. higher there's the lower top-up the minimize we proportion wholesale course aimed in the proportion bandwidth of of kind that during have month been. years the we've way the rise, talked more a But And we've don't there expect growth to last two the in higher that last reasons ingredient, the that higher has and it of plans. so quarter, a speed at of that's about which generally which allocation. to trend that it is bandwidth happened. going the is, We plans continue ARPU retail purchasing

be I dynamics of as especially points now. ViaSat-X just lower offer we think we the that will will, ARPU. service do go One number general, that we in at it are price -- are affect expect we plans here, is to into than going the

So come longer-term, over ARPU down. I the we think expect, to

And grow, WiFi funny much, users of less much total The tend other on a money thing month, sites. And expanding international expect that of a impact business that fixed our a The them the will little on per hotspot to but in then be that our that ARPU. broadband site. business. individual ARPU also and bit per be impact to mitigating a there lot continue we'll we have will our spend is has

mix of you is stuff as put revenue into at of kind the way which the mix, this sites. all that our starting we that we're it site to when get per look so And

so over next the think a it of the or Our going might I those each that don't few it's -- up to in it's mix think trend little a of either down direction. bit trend might to move on don't little categories revenue going it depending But growth just in per quarters. I site, dramatically bit,

of on following just mechanics And Thanks. the upgrade. the up

and may I'm that, or there's consumer even is mean, Is package, a on easy? want I to have I'm I like And okay. come quite a I say, as down, on XX though Liberty it conversely, that and been something to move if up. easy? So -- constraint, no

yes. the up go customers Yes, give to or yes, down. We ability

Great. points Have seen the the noticeable programs of in And or then, the some in markets. you time your operate? broadband emerging in following you actually, in any by up one realize markets connectivity pickup of emerging importance that on volumes where this in governance of

same seen issue demand definitely Okay. and of more in There's themes really universally not strong the every school There's quite intensity, U.S. strong spiked We've But from definitely the equality from there. much Those government been that of interest work same the state, more interest an the and level. would we've U.S. with local at in making interest because domestically, Internationally, in whether available. I every home federal, counties, as in opportunity. especially that gone level, fairness, to of that's have the it's universal home interest broadband theme, that. maybe education, in municipalities, say seeing at

probably I as the see we internationally, as to quickly think not in inbound the or those as to markets we're in them similar discern to be have get we'll able embedded as quickly but U.S. themes

premises of for will schools that rural Brazil, think as in biggest main see we there mean, reach was them. example, I to the one our and program communities. rural I an

So it. I think we see will

I embedded more basis. connectivity, more more say, notion a global those universal a would But markets, become on attention is we the us. getting of for that of in be more factor think and will I as

Thank great. very That's you much.

Thank Sure. you.

Mike Crawford Riley. next with B. is Your question from

Mark, were gross around in broadband quarter? fixed adds the XX,XXX

you mean sorry. were ask if adds did net you net? -- gross or I'm that Did

Net No. gross.

The are gross always. adds

adds? net You mean

what net The X,XXX. wondering were. adds the I gross was adds were

would us. I for constant, slightly improving has say been relatively churn

And in so for up go a the amount, eats net by kind adds. gross improvement that of corresponding adds up to that

Right.

So improving, in as of wondering, have I kind is. what could if I these has around sneak especially you know I I was wondering just and churn fit churn higher-value a plans better with always. was where customer been

less So a all our mean, The of you're of I enterprise going, talk these in in. about trying are And where community moved customers, net get we're actual some kind close, adding Mike. becoming away gross an differ we less they we've all of other space indicator adds pretty as business especially brand standpoint. from to from Internet this sites. these and

we don't in will So the probably. future, right now, but ARPU, we have blended

we're to of out give to add some sort going gross numbers figure be going. where the you of It's and that's that probably how guys indicator are not net critical. So trying current to

purchase Rick. Is to particularly And gives a before DoD commitment switching you that hybrid from you flexibility adaptive government roaming network actually Okay. Thanks, ViaSat-X With concept gears. more your on network get there customers. precommitment then chance ViaSat-X the or launched capacity? could from prebuys

difficult for government multiyear government, the government business Well, I'd It's see the look, the yes mean, say the into make in what that is that -- to I when customers services for that and a get of is no. or lot the -- even works. general, commitments. to go with way so you look platforms But let me we that we say, let's we along onto new that. equipment acquire the main get often to aero provide, the go with terminals reason when our platforms, ground-based way the

before that acquire usually service they And those in so contracts. come firm either basically, IDIQ these options or -- under they with contracts are are can

form an make or a announcement number bandwidth will is over But get as will the that us happened says this what see see a and a that X of And that necessarily period that's wouldn't with for organization six- you amount it that a seven-year contract you year of a purchased So five-year base years. period. has option occurs.

may not because that. That take-or-pay predictable our but been that. those they they or may experience after really not years, contracts they're has So that's exactly the quite been contracts, execute take once option

So that is the mechanism.

which along take activities outside place make, point or this U.S. the of other with goes defense Continental most that that territories. The I'd is U.S.

for bandwidth, the cases, being attractions partnerships so the use with all more organic of And actually, big other that assets assets, In they're And only kind this, they be wherever that means that us those going of that are In say other you're have not coverage fact that thing assets likely work that almost that cases, have on good say the a operators of is globally. benefits these our may I'd other and work government's some ViaSat-X able everywhere of roam is one well. one satellite or they're the they be. forces knew predictable. terminals on we part, as the is then other all, seeing commercial all I I'd to they but our to that we but global to geographically

they'll well into we'll a up lined that systems what access well global things as on that that path and kind the form be the commercial we're will as But by generally, they'll Did launched. it of business WGS the But So I out that help? have time good in their need described. satellites do expect these government on think play to ones. or of use on are have pretty the amount I plans, what that they on bake like that

global Yes, you. since just then And coverage. yes. Thank you the mentioned

orbital think customer. I say, of part globally, hard be networks going for of in then take So, to how to of aggression orbiting that nation-state -- and sorry, say, had what concept have sophisticated and to hybrid a say, the also geostationary to such, say target, fire a can region? which where moving many satellite it I would not like go get DoD the -- around. a whole -- But a used adaptive up And repercussions about try be something would would LEO what ability or I mean, up how some people you space -- directly if low-earth say in like network a I repercussions if that? mess was there we're as let's pretty mean, form the potential, a But

Okay.

Okay.

about for these in And So, really uses emergency communications that or touching now DoD phrase look, having common the it surfacing primary resilience. I becoming think that one -- where talk just -- wasn't for so that on any more alternative there's an situations and and the area is about communications. that's you're of contingency DoD the acronym they'll and is

to they have to levels levels try different attribute resilience and different those. they so And of

of the the assessments on would of high of different say that extreme one brings assets in seeing every against cases. absolutely cost concerns in the out scale. And day, news energy is attacking which as that's are using consequences that's recently, DoD there's down. about be of are the assets taking so it the orbit things talking But -- geopolitical especially it's satellites the of the economic example, directed evolving in I space forms So brings people most notion the of you're enormous actually one weapons pretty read an because an like as the example, could that. Obviously, lower which is, cost, we that actions

the to at networks. seamlessly one you adaptive switch array difficult difficult, able assets being attacking a extreme main broad a a we assets of this pretty defense orbit, of well-attended targets and together being using just than among that of assets the goes topic on access which demonstration any And is able geosynchronous good, space. hybrid But theme, it single commercial resilience, very are, platforms pulling into theme the across things broad that the had in think a government mentioned that that more and that So commercial geosynchronous to say, that space, this was range is customers, been network, target. show that with to is is and much more are we've in the could are more beginning network there and main I valuable our much

that's I so that the a are force. proliferated already really highly can terminals done proposition, with that value be especially throughout when attractive And think

work that you'll we're can non-geosynchronous orbits with like current both of main access well with. government that's that terminals the extent that, themes one get working commercial theme. more And the and on of the that that's to think each kind satellite of I you regime the that from other being in, something see assets that interested in assets, participating So operators to orbital

Quilty Analytics. Quilty Your next Chris from question is with

time? of Mark, nowadays of mix? old in days, the what us a the it mean, sense like on had Were you of And in these somewhat unexpected? -- most government were difficult that Can schedule I Or in expecting? two-thirds these backlog. in the along been this you was quarter, that to orders, accelerate I has phenomenal on mean, Thanks. question lines terms kind MIDS. of it the looks kind a orders give the trying of those the was were

Okay.

lumpy and First, in orders is back make make, quarters always in DoD. it good want the one that to I that of are both points the quarters we the

there's was bluebirds that so that temped And that we the on. contracts say good that are much pretty things And things things been it we've us. working quarter mean, I for all no awards that out. or received I'd a the

-- of just have did point for high. proposal us, both I we to quantity are is in want activities that before, think make, value terms I I of that would we reiterate the and one and

think that's thing. I good So a

you going proposals submit orders not more get You're to for. than

much MIDS. that. the of backlog, it's It's definitely makeup diverse terms of the more not than In a of two-thirds space

itself Link So business diverse. lot more just a become the XX has

us then now have has our a tactical the bit products because and in So there. down are intending instantaneous other And areas links the of growing you, total describe the and the as some more general, that platforms. that. makeup the the we us. is And in multiple things part into to in government can products information to broadband one -- services to as the other not strong that's space, and diverse gone I of describe we're proportion get cloud think been are MIDS data the I the actually intending tell that an more has of diversity But area today. I'm a -- very them goes then in. and that for assurance little of to especially really area satellite extent appliances, helping, It's good And backlog for do backlog more if that's within a more general,

a of as a services is than broadband our one. things business how a defense mobile that aero it's And rate. One It's at commercial -- than obviously couple it's bigger now, substantially ago the that's is. those us run in about good for really tactical networks being a the is terrestrial able integration growth then area lot together. and is other area And commercial of two customers. was interesting our quarters the aero we've satellite to of that talked big as bigger or of It something merge is to the

our that's been fastest-growing product of so areas. one And

that there? sat in terms talk But real you that SDA or, thinking it play how interesting And guess, On DARPA networking the has launch Okay. sneak to you of currently did what that the Link can information orbit? into opportunity does about XX point, I specifically, in more small layers?

Okay.

is a customer And recently it completed performance for well ago, the that only market sat our mission, we first first pleased it not can't of it. us a our we XX different satellite. was was our year the small sat. thing but mission. First creates think is describe prime orbit. It was And launched. Link do I space. in particular And It that over in is think really That opportunity for small I but the with have additional

year-ish Link away expect. from satellite maybe XX So say is I probably a what

Okay.

general. SDA, Going in in so of area interest there's one small to and DARPA sates

interest and remember, Blackjack, a where now SDA there's kind seen which things they programs different among generic provide types sensor transport reuse notion of talked of What the not you've specific necessarily systems would a sensors and the with bus missions. they're that among seen on for themselves, totally of about multiple to a of of a from of layer. that multiple think of is One And payloads. coordinated work shooters. kind they're at sort could seeing transport of and number but looking like And them you're layer, -- targeting programs, a in you've systems is has as and

that one that But targeting consider they're the out and is communication you're or that would aren't be that proof-of-concept is of talking what certain transmission the main of networks. communication necessarily of no, would I are in areas news phase. for types necessarily lots interesting an good systems, definitely connections and sats. They're we're mission-specific that government just and and organizations And variety among looking make points is a more interest I old pipes. systems broadband in broadband now, research about, That's they're and there. interested interested it's among Right different there's other main that area. the in specific of more seeing small the the One -- for to more us not say, really plain systems looking missions would of sensors things these you the for

make we've a or more physical up while of quite countermeasures. vulnerable to systems or would Some sort them to viewed are of that for or shore replace either that more had resilient be electronic

information? looking to all lot clarify going more different be be gets these satellites, kind them of so at that system involved. applied that's the less greater universal that of missions that just really more of that we It's single help the presence Did a all? organizations going good things. of with to is have that -- and we're that Some the a to are of good? from familiarity with individual a a kind can market timely get come at. And And that will Is

on satellite? That work if can XX funding current remind the does. And us, Who, maybe just that you a is Link quick clarification.

Lab. Research Force Air the That's

business Viasat that question there's on else paid, which terms again, pluses in without the minuses Global is and be companies, sense? it whatnot, Okay. IFC day I'll release consolidation market. but generically, make press why industry price here, guess a that judge blunt Everything mess. We I be something responding to of sector can Final woke in the here. sale, just individual Eagle is and acquired we bought. for would -- on If one Global can CA up IFC is a Gogo's

Okay.

that's say I do the on to it want they able proposition. and times proposition high space to Internet. or to fulfill day. using destinations especially be out the that to it's airports think that available flights see resources I'm or value is demand able basically really they we are to these So to on plane And that just of we're to that think everybody offering attract plant value whatever the the hub a to I And repeated some of in to have true a to fleets terminals of the difficult that given that allow a average multiple There's planes peak Generally, connectivity competitors the of do that going when the lot things lot be floor. the on the provide everybody have. segment the not

acquire in or of part assets transitioning to us good we a we'll that like say pretty for So something it's to not feel align that proposition I position. for strategy something that probably right are now, But wants we value a use the would Unless with somehow that us do. airline is that. don't like

Our serve is have good reputation confidence to be there a for diverse, them. we'll We've airlines got really that business the base reliability.

things had of I the And problems they're think other or have very concerned -- the other bandwidth are one installations airlines about reliability generally just reliability you've seen that is independent availability. of and terminals quality. that

we have come to for overconfident. proposition So good I across well plays certainly don't that I as I us. think want I people value it mean, respect. think But a

it's think I opportunity. we're in and seeing demand, continued

us other the I some more there say grow and over that's quarters be new opportunities Look, unique maybe would is can the that to working going next now, us help see few to value present and for are thing propositions years. likely So us the as you'll on, that well. take we're path that

capacity think I limited in be about that pretty exists And which and you're the three online partially outside the Ku years, LEO. next amount coming will is of talking Understand. of

a of on launch talked a that for of satellites are pretty sort the in as just we about also that staying potential you have Ka coverage. a You the the Is interim, in ViaSat-X or a committed dual-band airline enough of you're close to expand the your focus to, still pure to past the antenna path? using getting way

No.

yes. okay, -- have we So

general. of So, yes, terms your bandwidth all availability the correct observations in of in are of Ku

and we're now. air commercial government, have wide-bodies, in good. on, Ka/Ku have the that's flying shipped, dual-band We now so but did only have on it newer fit on We we again,

opportunities I Ka/Ku. in there be could that think

and that the will are some antennas. of lower cost, satellites existing bring satellites as our that we're non-geosynchronous things well. more agile not of also antennas done these on Ka in profile I building already global are with we'll think focused but And bring one lower we've band pretty of that in, only all

the extent terminal more to non-geosynchronous that greater systems bring and products new we're of in we'll on, do that a well. as Some working

So we things. are doing those

let theme I satellites. them Mike to responded adaptive about on multiple the network, would move general I think that the government us Crawford's that the question and

grows, I they see the commercial markets Because well. think that's of a participants places average as theme the as occur, that peak and you'll out increase. number play the where of in demands to increase number

to the access systems, what good. agreements able and being do, having those is we a multiple so And orbital with of it's operators aspect really valuable

the the airlines think I same it in government appreciate ways just that the do.

into of and over I to those satellites. think they that's commercial carry typical reliability All still the certainly a little and but are concerned threats, about market. factors jamming availability bit sensitive congestion or less the

Well, appreciate I it.

Thanks, Chris.

is we'll William Blair. that one Louie DiPalma of more caller And call, take and

Can Sean, morning. Rick, hear good and you me? Bruce, Mark,

we Good morning. Yes, can.

be of appears Can moving terms SES to to was with Boeing partnership Department the to mPOWER for U.S. quarter? a SES constellation friendly SES seem the and Systems You group this Satellite the relative and the to competitors? and And their constellation? with on other SES that plan with target your be to fairly you Defense. terminals for related discuss bookings ahead your

-- going we're not more we're to not detail going any backlog. Louie, on One, so, give to Okay. any announce

we expect so is that mPOWER, the deploy things absolutely -- one of going One they're on just that to on system.

sense that and and how they'll -- knows build Boeing them, I that fund satellites think make deploy them. to will that think I the

it's I -- interesting there's very that non-geosynchronous system. think a I think

any it's like got strengths other, weaknesses. Just its and own

We SES. with have worked

among geosynchronous worked them on been with quite able defense satellites. a demonstrations for have and to they've done We've particular, where where in customers, for OXb We while. switch non-geosynchronous

common and systems some I systems the access like think being able access. having absolutely like different customers They like our through features to hardware. non-GEO multiple of that to of terminal they their

true. are themes all So those

to their terminals that terminals, is broad in plus. experience SES can of because So I value of think access perspective, the services of deliver a appreciates that range market partly able being with having system right? from OXb their through the their a

a I a could to for particular think that better than that with a cooperate location from service in to thing cases, customers. the we or under partner deliver can our we perspective for that's, particular that's some some good do what extent and customer our certain conditions, in a us

mPOWER is might might because coverage think terms be a speeds way I to bear is little bandwidth, focus geography. is the one help -- specific have we in and quite will be a going The to area to for bring able in we'll peak that a for array thing was of of our higher for thing relationship instance, terminals particular just being with -- only that ago your a other The platforms, phased other operates, while question quantity than mPOWER is able able to with to ViaSat-X, that good. announced it on of probably, broader for really SES back do mPOWER.

better is think really so of as much to to our work get high-performance expand has as But now, array certainly, these leader that progressed and low Generally, business phased with those things arrays working phased I that's well. with, band program we're out talk don't I Ka the be one terminals and as will we're systems. the SES But array And that well, into in that with both well. probably non-geosynchronous phased customers Ku cost, we about able may as that people do. at there we other think other

there's We good SES. with think I a there. relationship have that. want for opportunity to us do we So And preserve

good. Skynet ViaSat-X the that contract. future multi-satellite And will a the commercial government-owned during a the anticipate in utilize you announced partnership you architecture? of Skynet quarter, Wrap services also on Sounds to bid Do part as like

Okay.

the do the Defense -- we Ministry Defense. So, of with a yes, of U.K. business lot

would next and the has say, NATO. look includes to also I the and called the itself interoperability a Eyes go U.K. certainly is our defense Five Skynet the among a history. main we you U.S., is focus Europe, If at Five kind priority, focus then the long with high what's truly business, which of Eyes, all is

of to more I'd more trying I a probably current say, out, working is think system from ties to a in in transition assets the past. they've had than there to what way to the got, a is kind and space that's program comprehensive broader figure system capability the on more U.K. -- a

of little to our But while go program, And team. that think while. be good finally on on anticipated been a next I we quite we're recently, of that a team But generation. but for space of before ahead Skynet think a that went asset, think one would for long-term bring their program what's think things I really that's interim That's will I fairly we're it program I on -- short a is, yes. think and good probably a the it just answer, yes, to they that a envision, kind the a in fruition. though, that's the long-term beyond long-term vision dedicated comes we competitor

Thanks. Sounds good.

Thanks.

the call Mark remarks. Dankberg turn to And for now I'll back closing

Okay.

So a in lot to of Really a forward that look us early needed quarter. do, Thanks everybody appreciate interest we'll to lot. morning joining so questions. the again next and everybody's speaking and we

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

disconnect. You now may