Viasat (VSAT) 9 Nov 222023 Q2 Earnings call transcript

Welcome to ViaSat’s Fiscal Year 2023 Second Quarter Earnings Conference Call.

Your host for today’s call is Mark Dankberg, Chairman and CEO.

You may proceed, Mr. Dankberg.

Thanks, and thanks, everybody, for joining us today. letter website. market shareholder available and our our on released shortly close after is We

be to will We referring call. that on this

Joining Shawn from Promit Duffy, from are Investor call Blair, our Kevin Relations. Operating on Development; and our Robert our today Paul Counsel; Officer; Officer, Chairman; Chief Harkernweider, and Rick Financial Chief Corporate General Vice our me Baldridge, the Peter Opes

Robert provide our have discussion. first So harbor safe

Mark. Thanks,

cause this know, reminder will contain results This statements. materially. a could discussion forward-looking that is factors As actual differ to you

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

Okay. Thanks.

the take in letter main points So briefly questions. I will we before the of just we some touch just on

functional progress It first, good, really since it So first the the completed higher The of technic is has and and last on ViaSat-X to devices. been satellite its deployment test is environmental plan quarter. deployment use close tests. and completion has

the to the the and restore configuration. inspect to tasks are launch So deployable satellite those, now remaining

We for that launch our U.S. Though satellite December. site priority to schedules call. have conference expect previous shipment Falcon the in will be ready launches Heavy for are the since contending national facilities some for shifted

Also, shortages X% chain previously constraints grew total activity of in that customers supply in Backlog $XXX $XXX we available link business to growth Link orders the The quarter have during the separating we even year-over-year in book basis. have IDIQ activating to a remains agreement of value, filings our soon IDIQ And reflect as about stock options of XX% including growth on described EBITDA more delays infrastructure in order payment on at quarter. million, in our payment and on we $X.X the sell government ongoing half potential quarter by and Acacia Adjusted letter supply impacted million, were TDL quarter impacts as over than our year into coming to at pricing residential, fiscal product is but deliveries planes ground $X.XX revenue of of headwinds this for reallocation on with with possible. reported, consumed X% U.S. XX the call. product the additional advance does shipments and in So the The orders continuing $XXX strong, some bandwidth year-over-year the services products. ViaSat-X we point, very launch, airline are to billion. million second the connectivity we early and previously delayed consistent book service of tactical though overall last aided a impact. certification as by very Financial of we specific in with SpaceX margin results some of that on of and to reported an revenues LX Cal-XX aided first operations. delivery chain from our from resulting our some part excellent targeting and of Total can’t the add second was results airplanes for over quarter new component and this good window were IFC substantial by executed in those anticipation other working a for to new our give outlook are with the year-over-year, services we and Acacia up cash. billion Harris some data of as

in those of the broadband supply the delayed new the deliveries infrastructure to with cumulative due the revised delays network some XXXX outlook ViaSat-X launch is ultimate portions customers residential year to on that activations, of anticipate half we last combined constraints avail good by Our line with reflecting going to service to and days, chain and some of do and have quarter. very We and effect terminal aircraft also airline growth we fiscal the That the activations be in X fiscal impacts. is as driven described second IFC shipments connectivity fits dominant retrofits growth. year claims and growth in

adjusted the to relative doubling year including Link of intact. for XX estimate XXXX stand-alone fiscal sale adjusting year XXXX, Our EBITDA fiscal remains by

CMA, The about transaction. sales post billion substantially and XX Inmarsat will net in of Competition their the we proceeds, of publish kind debt dismissal all stand-alone entered and in competitors transaction expected to review or As Markets other reduce and previously Marta has findings I, which from basis cash which Phase of $X.X striking connectivity. Link the U.K. on they described, the result Authority, a aviation leverage Phase I had

both there believe that incumbent process competition. Our basis, panel will entrant the within and still new new be time more that completed first go-forward II to steps provide We are original formed sustained strong is case with substantial was competition the facts on and the meet can be for of a and line. nature a on Phase the

we it up for will open your that, questions. with So

[Operator Instructions] James. Richard Prentiss Raymond with

Your is line open.

questions. ones couple Two first. A of housekeeping

for benefits. the - in for looks is that On include the networks, does XXXX there all assume onetime like is guidance, fiscal items. that commercial It there I type in the it

Shawn. Rich, is this

is included So guidance the QX yes, results for Acacia. our

Okay.

about you positive? the your after [ViaSat-Xv] Second also kind quarters turn and of free cash the any information of flow housekeeping when costs, after one in a flow supply Has cetera, policy you shortly launched. couple cash chain is et (Ph) change of free timing bought thoughts previously, change

timing is pegged respect I think same the to EMEA as around of it to the Rick, satellite. with how I would it think

need we get once that to turning And the that point. up satellite do before use said have scale. of kind We and the that, we

So it is very similar.

more a long-term then And question. Okay. theoretical

how ViaSat lot XG versus Inmarsat L-band, is Can just. would about urban announcements thoughts the events you that play and without part and space? at seen San happening share satellite/smartphone in of have a What kind or We us services of your in around of with discussion looking communications.

Okay.

Obviously, we can going few really, include is to a services, SOS go the So for that like browsing, it provide to beyond likely application to interesting extent satellite. messaging, connectivity interesting are which things others. and web mail, maybe think you do a probably really

case, So that is technical you you and without services and space and it We one devices. one, to challenging interesting highly can really, provide disadvantaged user is high-capacity of very really strength mean terms of respond this to that a from breakdown can in it us just Inmarsat. problem. Number our it attractive. I think with a things plays your connectivity do to it are, about connectivity is it to phones. The modify in really interest

terrestrial in do spectrum as some market terms can And And other that of to transaction space, one with the the one We also is the area think MSS issues life I that are going sustainable are holders think to in work partner in is spectrum compared mobile some where advantages focus other of of And big MR be with is will already there with largest reuse serving needed spectrum. is in all that way global spectrum. that really opportunity. that what trying of which on doing think to holders to and be one those of we recently. the given is that we on increased we

us. aiming participate. spectrum create is the think having of we the and other technology which that to way for I is having So to And is good combination opportunities going are - really to us in it the the make going

should think how then meaningful? frame And Great. becomes we this the about of when real and time

see, that think all. be you issue it two And really done be be it Globalstar with say done. bucket are I It yes, what I you is create that can to One smart can it or is seeing with devices to - done. think in we at links and can Apple so antennas, other what Well, we better going already reliably smartphones to let’s be kind put are buckets. can going like is devices. The of

number real higher and speed at scale. simultaneous and speeds scale, and new the the can it is issue require bring going systems to on to users going impact it to you So big is the mean market is services space that have because that. to scale is greater a types And be to going doing that of to going of do

anybody to I And going three for be much pretty least. is say two to so years that is would out at

helpful. Mark. That is Thanks Great. very

Park Landon Morgan with Stanley.

Your line is open.

from GEO in this And is on an different Maybe satellite Mark, reauthorizing be practical of done this just on think unpack you orbit spectrum of comments. you that Do up view terms type your benefits the the Can from require a would of versus spectrum. investment following service. it standpoint? can terrestrial or your MSS maybe it smartphone on

Okay.

out its connecting has is real service, as that close with propensity sometimes space spectrum. on region to operators your to spectrum make are give is spectrum, use made the allocated, to going reason One measure kind most make is that can of instance, complicated if going is you to that ground. is that countries, And different So and a is the power to resin it interference a very the hard, the those versus want the markets here. one you to where plays satellite is that you from same require just problem. just terrestrial terrestrial different real together. way in different I where other the once deals devices propensity be opportunities the avoiding a have comes MSS power carriers the and especially have is And with will when the exclusive carriers on you much the it to issue spectrum for a power spectrum to becomes in it in have a be to because licensed terrestrial going types terrestrial very how jump complexity making ground. issue another that of of of the the of opinions way the the can is the carrier, And And system

you if doesn’t from. ground, antenna. you with have altitude you if or the the need higher it So comes power more on start at start it end, what the But same from up, to power more matter

both (Ph) there GEO is opportunities systems. and [LEO] for So

at We both. looking are

of those to is which within both question of it these what economics satellite What power is of they though services are be also a the Even of to general. homes is funny issue of deals to main demand, have many going similar amount aren’t there. because services connect to functional you of to demand handsets. that geographically area the going greatest emergency things phones. that it times lot rural, will concentrated to the lot that almost is there certain does deliver cost this a think you capacity something, there you overland. very is those to is so metro a And areas And And of in be near certainly going going deliver we is or it metro think I near disaster the be just if very are everybody demand that to where of you kind situation have a areas. is markets just a performance need of a lot then really lot can want like and

the some LEOs think spectrum. different pluses X of technical minuses those those And the and issues. of of think ways of GEOs and kind I are I forms are and the

for you thinking the some recently just aviation point we was decent stock IFC Can about and sequentially. this the on business are me revenue Starlink. the you how announcements from Services On that guys down segment, maybe broader at seen unpack a business, have bit

with just ViaSat-X? you how market think the for you scale one can then Shawn. one wondering that just And in So last that

guide, saying the you understanding. or will to had TDL as even TDL, targets? XXXX make still if I fiscal it On in entirely you XXXX you without just clear. I’m sure hit want those fiscal confirming you Are wasn’t I are

Okay.

that is the Just simple. on pretty second one,

still get one. probably you then delays or - have That the aircraft If And the second contribution is we are a one, that you you strong two we and is - growth fiscal in is been there the commercial second perspective, results the And that couple to there half, took year. main our service. to so of there. adjusted compare TDL XXXX. to EBITDA. service services expecting you excluded this drivers a in the driver FY FY that from XXXX see on activations really on There in strong on One where

will FX our we the the retrofits, a come little clear some The that spectrum. in on growth because were of much proportion delivery half has aircraft mean, satellites advance growth, bit of have second have is also And then clear the we in half. don’t a bandwidth higher all issues the that. But behind that and so that have in to of a of the deliveries I delayed aircraft we is stuff. second

one So that issue. economy broadband, inflation, as do on residential more have is broadband think, the I putting We ARPU partly a some is headwinds whole in pressure services. and higher

see that more offer well, staring one. especially able but specific for And streaming are the start an be more are to we in So are plans incursion is a we going bandwidth sure terrestrial there do to more We wireless. services. as is that rents, lot what is but to emphasizing for we doing going with ViaSat-X, offer from being

next tests. will now start it do of will we that. think And be the is think the really - I beta And streaming, And offering be one. like That volume competitive. I especially We that out our we - partner are is to will looking more are have have very doing one think think really I that people we that, that early been be that launching quarter, those we speeds for consumption competitive. probably probably offering we exciting will going in

on time. other I and you service, business that is the and I capacity. into will the we of margins depending the more a and I launching is getting just would think comes thing then it activating that It satellite, hundreds is we because when in-flight get to EBITDA ground back. infrastructure. struggling really see that cost residential And we when network expensive as gigabits great So on the close come by to the intended think is, are business start that think, a navigation ViaSat-X ground And of with is hit to infrastructure, those because segment to are terabyte we offer is more of say

well. that opportunity term? aviation longer as Highlights are Business How longer of you thinking about aviation business term. kind of

over working. Business Aviation. last is started and with we probably a in Yes, Ka-band this our focus that really is with distribution been No, then and earnest. on distribution, we OEMs aviation. increasing That the or so, in had year

of is we it migrate own So pretty fast, growing our from terms to both Ka-bandwidth. want to bandwidth in lease people

of completely can the our And I terminals offer SPs total still of number terminals. is think proportion terminals a pretty we is that the that market But So the KA for us. number in bandwidth growing growing of as well. very, is of the that is very amount KAs fine we a think looking competitive. Yes,

- out today?

is And thing one then quick Amanda, to this that. Shawn. I have

in little though even satellite that timing a we mind move keep Just bit. the

We off ground. with the not are foot taking want gas to be to We our the respect ready.

up plus in of of $XX all So ramp-ups those year the this million. tune

That Sean, is basis, year. the on an annualized in

Yes. Annualized.

aircraft between you targeted Canadian is X,XXX previously, to able commercial BA have guys Mark, today the still have that? on and are IFC, you say how to you guys tails many you it

was target by of Yes. Commercial try the hundreds. gave low business end what we quarter - aviation the evasive. be commercial is I last X,XXX - don’t is to year. The

split think versus have getting We I it be majority, hundreds. now don’t to on for you cap. It KA low is is I right think. a

Great. Really the questions. appreciate taking you

Mike B. Riley Securities. Crawford with

is line Your open.

you. Thank

to your between $XXX that any So extension this at Inmarsat talk consummate are Force just received Tracking you million planned award. changes you Can all assuming build, nice about Blue a transaction? installation able

Yes.

order There about IX coming sort main a need has that year. So is for have launched are of exact one another lunch Inmarsat information L-band. still is for things the The of status ones They up payment one. in the schedules what the more the on we satellites on

I those satellites. newest their LV are think

think will satellites. a is doing much, value bit a an capita greater broadband replenishments to is what handset I probably planning pricing. which been of a probably broadband be in think what I they the with the which for for say airtime would lower But much little satellite being opportunity, there see is - what L-band demand bandwidth we think satellites that the an more dollar. terms in we sophisticated that per -- is in sense mobile available is there And quite with bit extreme have elasticity market, bore the we direct of we market of

be going is that main to So our focus.

in see of these I as that substantial and new airtime in think well. you to think per maritime, pay I bandwidth improvement will aviation kind a from delivered in MSS dollar. markets is And going off government,

satellites? GS-X, think and say, into ViaSat-X I you could CapEx you. thank investment of And - EMEA, you say like that complete three those APAC Okay, ViaSat-X related percent of put have kind

Yes, Mike.

So it around as right At we the a we are at look QX, end complete Bostock whole. percent of across the the XX-ish way kind of is probably there.

not is is which the invest first That that I think satellite, four including you to but ViaSat-X that biased started on in.

that. And yes, in investments some some That is excluding traction we making there. are

this but some metering are as We are at yes, spend there well. it there point,

have just investment satellites Okay. satellites. of similar that And class to ViaSat-X started or is other R&D applicable it one of those that be now, more you that right would

Two parts.

satellite. We have a

bit have the construction integrated will we contract more do main for the working a which easier that assemble the is the be and the a ViaSat-X highly version have also driver is - payload satellite We and should and to we of but Payload, been on manufacture, quite other a integrate.

started. of going Shawn the have managing just overall been one the - of and rate balance our I achieve under say are are spend CapEx JetPay. payload. we would to have -- said, expenses the And far So growth in as we that be most those we from so to sheet

you a add to launch floating is date target do little bit, know it now, ad right want the that Shawn, so you And but

future think But progress. in about right? we we that are a the should talk I making little call, No,

other remind One, period time Cisco continues verdict the two for how willfully of to quick time the counting and accumulated has and covered have I your. can questions. us where Okay. then case on you of much infringe

Rob Mike, Blair. this is

the first through went sales So case XXXX. through made

damages So through the XXXX. were

intellectual would they that case, and damages those for XXXX were that this be on products. any use sales to day that forward our time property after an January both continue X, any in that any of on products frame So issue were made their would for time the

started. that an have we of to intellectual different that So products on getting relates additional use case their just is property

So following the appeal, it is restarted. getting just

So that its at onset. is case

Okay. when period through start? that XXXX, did period ended And that that

recall don’t about want started, the when I I XXXX. or agreement say to XXXX

We though. can’t direct draw line a

just can’t the you and So you linear - amount can’t just due draw line time say, that product same deliveries. period represents a well, in terms of time periods take of the

you Okay. to bioscan Well, wouldn’t question, that supply happen what I of to want position. can final add happening their is then and you certainly regarding or chain about in transient that talked further And certification resolution that? be you expect do

The They say think reasonably of is than any often is spot for high-end is supply gaps. but not chain is - in but especially that dealing. the was well, like whack-a-mole. Dealing really to with more we us, And situation I semiconductors, more it in different resorting depend much on think others surface overall, case. have have tend our to I often that in way going not - bit I are markets them fairly issues the been suddenly. to to a fill little kind main The we done

the as our are market to In components for well. where can, delivering spot we that and shortages the show that cases higher we paying of prices up We customers. have just are basically going commodity

shipping. mode is are is that for COGS the higher And some we the so failure other will some that of we products see

I an end it. is think to hard it declare to

much. very Thanks Okay.

Koontz with Needleman Company. Ryan

Your line is open.

question. the for Thanks

your would executing forward in to think what IFC point about commentary there And Just it U.S. that the there. should you a the moving it you. briefly and and we think your commercial well customers And Thank be talk business planes. at the a on for bit and really quick do this you how saturate onboarding beyond international share you great. follow-up opportunity year, sounds like fiscal starts opportunity about are new

very is Okay. The dynamic. IFC market it

looking is of I the by if do it their And but satisfaction. what airlines they passengers meal are different some to a the strategies. perceive think them passenger different are but better different they - cases, onboard are connectivity the airlines that connectivity really or that to are as go a testing ahead, content by are out they making to available, airlines meal There respond things. - of think first lots what They is what the curating giving giving really trying or they figure want. away. trying And in

I pretty think and pretty is a U.S. fierce. airline that well is connected the is market competition on ground

going to is number of good is in So planes grow. are ahead number I I there And I to we There well. is think market total growth of claims. going think a that most be think to long-term connected growth in compete of

which far I to - tended the that connectivity offer help greatest the we to in our come the part. also that the we flexible ways in market connectivity. overall and have do in situation with a entertainment of and to willingness use highest strategies funny of in to think single have will kind ways a with airlines is up try the pretty of are -- there. their because what with well by how - entertainment. is We hit go-to-market And for is in-flight use integrate kind mode and And don’t bandwidth to in-flight we IFC

that that thing that to have that of expect we I with and - the But on the have right, grow I well can of will on as is that think availability, the been we think have And service the reliability. services measure a well. analysts in So the pretty lot based been substantially seven airline resonating pushing I are most other compete is a we the service years, airlines going there types of next we think that offer. market’s the

is you impact And and how is what example see to is somewhere fly tell you level would I -- that speed of will one give speed can working and one some Some the connectivity you planes you a get that on to the agreement fastest service is. test airplane do is pick way it important. call the

Another to be, been is want one the look each gas. with you at it is to have of wanted whatever the they passengers well, so passenger to you to to we well, they throughout about the are an the that on less full people. is more And really focused is because what that that I flight. their seems are work is - have And speed doing they think, - way they would airplane resonates, what of speed are that so ultimately, airplane, concerned able is do what be kind concerned whatever objective good. about And far being really

interesting. licensed, about. talk new at like if about talked as on the you stack a how you that can are think just this Super we productize development, have streaming you about Is all software should follow-up or a the quick going to technology CDN you And it. of part offering

-- idea is push the CDN -- basic -- too some which around there I standards to even really the Can’t is much. out edge. But getting this, is which is is further to think

that beyond all using goal. standard to trick there real end can users. the that of the to to economically. delivered that that of is usage is XX% is And to users. delivered are That saves the network. part bandwidth is consumer content but multiplier directly for extent the goes is over And subscribers Some doing that And the that big, broadband accomplish it that, the the a be available big to standards done streaming that content is more is the that well, that is

in is opportunity there. big So there a

for to insights, Mark. Look Sounds I the really gear great. appreciate Thanks it. forward

Analytics. Quailty with Quailty Chris

is line Your open.

to follow guys that from expecting? dozen be ramp should is over like a that expect Thanks. following we scheduled when on sort you the And we XXX of Is think quarter should for still a Southwest, went I to the rollout? aircraft quarter. wanted just initially launched QX American, to up I - you

new for agreement deliveries. our now, right aircraft Southwest is them their So with

to So of the by is pace deliveries go. going those be metered things

XXX-ish is that agreement. I total be So will And that think covered is it by steady. to up that

is is improve said fleet. we right What do they with work So now, would it that a so plan them existing the for new they boot to is attractive want to outfit service fleet. service their a their like What on good to us. have offer is is whole their to that

So we target number good we of of other is think the on ramp in new and our And a do of because But job deliveries. couple of these do to new see next airlines, a planes. quarters I really a immediate plane will have mix have. the big for retrofits retrofits

you. Got

seamless As the ViaSat-X product coverage pretty probably that expands are or and make to go that needed more any widebody, is you are developments after it the there move from narrowband transition to to larger aircraft?

pretty is it So aircraft. seamless to go larger the after

some well. have bodies in Ka/Ku, we now as transatlantic widebodies and wide and service do outfit have KA already We with

for we prepared I So think are well that.

keep of important some more question pre-pandemic supply XX% I are I just is the type it subjective is you issue or out number, forward some that supply was and whack-a-mole force talked of like chain a a heard quarter bit chain chain number said, where to This paring issues, issue. was back guess Does sounds it question. of have have of we of sort that. progress and the throw you now? like mean, you after in And Final issues? stalling them little terms or the quarter out you Great. a seeing supply about That these are

component are number in. than got Harkernweider. have supply are Kevin of quarter fewer you this issues when them you to shortage, There Overall, Chris, get the chain this is XXX% the Unfortunately, declining. a last of quarter.

short, you in we general, integrated two it having as it. market terms demand short, of benefiting XX circuits, from worldwide of instead still So can’t But XX% but decline for deliver. the in is are better,

pervasive to be or - better it at tire across trend quantitative expect than the means because it hard macroeconomic sits. be QX can is depends to merely continue But you in that the global on some So are will I line. product like QX. may product look it from

The about brokers do issues. these things other bad seen is can are Keven, or And they of we significant - a chain one though thing the bad what supply for is But have orders, certainly contributor to manufacturers us. they talk the it and is this. you pretty for

lot things out this then think sudden, to the of one any is closer we a will will not the end of getting get that. and lot for market. all of see be is you solved there the think going I quickly. brokers I a near a market And happening So of shortages that to parts of the But pretty brokers driving it are is of

you orders the the by lawyers. know trial probably think are I backed that

Louis William Blair. DiPalma with

Your line is open.

Mark, What for good the goes the is what your line Inmarsat close expected the Shawn merger new in time investigation And investigation? CMA is Peter the for if Phase of and Rick, the favor? afternoon. II U.K. timing the

Yes.

So which the period, be, XX. basic intended transaction May. completed March but XX. It need we the in XX-months, by March a if had would would can XX close announced to What we be Phase II was by it when be is extended be said has which it to

was. So that is kind of what our expectation

that March get it are time done So within XX to time frame. we frame, working that

not an go opportunity could that There II period. Phase Louie, the is they entire

a is of there there. milestones in So couple

give our a early some We another to talk next getting week in next is in to started. to of year. view of thing couple going there are and them milestone December Since this kind

and February. will So by know I more think January we

a are when of you the close. forma potential leverage I Inmarsat new close. And previously, and deal just the announced think a on you the pro divesting for net you And you targeting were Great. Harris provided on LX now timing merger,

like? So should forma or pro new I what leverage net look the forma was wondering co

Louie, Shawn. is it

So the pro together, have what points improved you you expect deals it if about both leverage what told is I was be alone. we think guys kind we Inmarsat would of XX forma just to to on basis

SO is times, -. X.X Okay. that

is set back. I we think yes, that originally that had

get our So that month. is to

Do free your the X Great. airlines conjectured $X look that be free And it satellite. WiFi Mark, purposes upon the subsidize that as may activation think you U.S. how to subscriber for with like years WiFi their though you others of that is of many contingent for to of are third cost to such ago, own $X want seems base? Mark, benefit passenger of marketing or how T-Mobile something may And parties forward as that to range or big the certain may to A you few effect a like do think appropriate? cost Amazon still ViaSat-X economics it the airlines. moving the per about

Okay.

Okay.

range Internet past, they of different passenger. of terms. past, would These may a may might or a business things. are said deals to So flyers in or any passengers premium frequent total particular review, airline. for certain have of different boarded have that done one we that economy $X use those things sponsorship the different get was classes like we entertainment that of just the we the passengers charge it the for streaming price and in per had party ways companies, is the have I bit the than under as But - $X the different classes of more class, little passengers in airlines different Internet or to doing revenue And that opportunity revenue that are not the with because free we the might is in do representative certain decide the third airline or think we

So in kind is the to opportunity ballpark, that $X I revenue of that $X. the think

It to at it yet, of board is that? on are revenue passenger, otherwise example, is And in what a think that, might being per where I target. help up we against some or a revenue expenses good that target. BMS be. of may but sense, that $X Does shared netting not some in that good end with But is an $X their that

Yes, makes as sense. that

liquidity? any other question, the to need improve do you view and Inmarsat Another assets are close the following or liquidity divestiture steps along taken defense you and satisfied your deal to or with of the the LX as nonstrategic Harris of lines, the those leverage more be

plan divestitures. any don’t we other so Well,

the leverage by doing we our that think main in performing improve want we thing the earnings markets are to I our up we liquidities going drive and low are after. to

that is thing. think the I main

was synergies data business, other bit is it links. And terms other the market data In get still business data the a that with is, it synergies link. a complicated we participants in Link of and the have the XX kind because little of in is our link

is data particular, in lags Harris called some LX in by is common strong very data particular So what link.

- had So we other didn’t well there. that synergies ecosystem that in still doing participants obviously, we are

are have didn’t We the was a investment been rest doing. stream of long really winning the what leverage words. it But we that term,

have relevant very, The those more is government now other and are base are side cryptography the on cyber we we the one to So really but area becoming very business. satellite-centric.

I any about we how thought there. and apply dynamics of about or same do. TDL process guidance are business this businesses. or not others I’m not take any divestiture of we specific existing as through about thought the those just we what whether this planning going So to don’t won’t will our

satellite which smartphone a smartphone What excess the of but Inmarsat the Inmarsat little answer operators spectrum does mentioned Iridium megahertz And that and L-band one both capabilities you then bandwidth or those are combined. potential of than following this line bit, star And you you and XX questions, has the is Great. questions, spectrum. on Inmarsat potentially pursuing of rights, partnerships. In the of with addressed global have global significantly partnerships. more to greater

if elaborate spectrum. So you mean that like by with you I wondering was partnership do can L-band what

Okay.

that. existing in there it opportunity portfolios did that So handset the still really interested around basically, one the We and of when based the to anticipated the we direct on in things business acquisition, be are would have. our is we analysis each was we that an Inmarsat market,

and have, technology technology the that for - have the about has at Sky Terra, there a satellite. existing then as there we use And ViaSat-X, look still opportunity work. of Ligado went We into their work the at you that technology combination that Inmarsat beam lot have we talk the is what in well. think when that done on forming I ground-based that closely is close the look you very we of the spectrum I of with we

those we non-geo that technologies some And as are applicable did, they well. to of

us. and combining in that, things market that going for are some market, that elasticity to so way to with is really is there a run We lots and And been do the in drive good Inmarsat down to lot the really on - think address right price Orchestra, cost be that for long technology spectrum the working the of opportunities has that a our technology of is having those bigger of market.

out than So when better transaction. we well with I be opportunity announced playing seems the we think to that hoped as

one, be supposed medium satellite be said supposed you earth a MEO is final the to a is Got you. Orbit And to ViaSat-X has you have on orbit what in?

should per more markets. us residential would super MEO are is those as get we to filing So a on constellation, good the working are what lot ViaSat-X we range. bandwidth multi-res those arrow, in the be seven But we get in satellite well. give really of going have going not for be Americas-focused well. a good have ViaSat-X, just We opportunity value terabit think good second are and that to a that do competitive all That would and small economics, we which to as out be expect a I to we an GEO is recap, for business, we really land-mobile markets think really

for everyone. is That Thanks Sound it me. good.

Okay. Thanks, Louie.

I think our question. that is last

quick Satellite us not the a chain bit, alone Long-term airlines, first and for supply summary. close with as the in we things quarter. near-term. is SpaceX That pretty is described and delay done, seem our impacting letter still disruption in real a to but good. give the the outlook work for schedule Just little for issues

awards really, were strong. really Our

very are We with happy that.

our approach and And is the working U.K. will greatly the approval think transaction CMA have reduce I think and balance we good the transaction. I debt, to sheet, group that for TDL Inmarsat improve progressing leverage liquidity. got a

lot, and look we again everybody, for us, joining a to next speaking thanks forward quarter. So

today’s This for you participation. call. Thank your concludes

now may You disconnect.