Viasat (VSAT) 9 Aug 232024 Q1 Earnings call transcript

Welcome to Viasat's FY '24 First Quarter Earnings Conference Call.

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

You may proceed, Mr. Dankberg.

Good. Thanks. thanks our and today. everybody, afternoon, for call joining Good Shawn Gowrappan, Chief our With Guru President; General Duffy, Blair, me are Robert our our and Financial Counsel. Officer;

give before safe So Robert will start, harbor we disclosure. a

Mark. Thanks,

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

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

Okay. Thanks.

we everybody to read It So posted questions. then more overview shareholder on a and have afternoon. upfront, an detail. we'll have for the this of plenty we encourage points time letter the We'll give our that website will main lot earlier of

were The in good. first So results. Inmarsat month our results the and May first quarter closed to quarter X contributed acquisition very

grew Year-over-year XX% year-over-year. grew million, to $XXX EBITDA consolidated $XXX Viasat's continuing revenues adjusted performance business. revenue million grew and XX% XX% adjusted the EBITDA stand-alone good XX% with to across and grew

awards momentum into especially and quarter, second has in-flight backlog and connectivity. the in were continued New good,

synergy achieve overall good we're when the we our for a Post-merger, expected those. operations stronger we'll closed go-forward and integration track the consolidated adjust to sale segment improve that back for we sheet what On progress than the on on making to a and company are is Tactical refer results appropriate. January. stronger-than-anticipated with And we're combined even starting and aiming balance Links basis, in continuing Data and and to on goals

Inmarsat's Inmarsat's Directors, is Chairman Andy Viasat that mention who who looking CEO, and -- to and forward contributions. we're joined Suri, Rajeev of their the to formerly is Board their like I'd Also, Sukawaty,

financial questions. and So response. on Then I'll to add the outlook, we'll and our situation the more Americas some with Guru color operations and on then results, and go will start Shawn color ViaSat-X our little a

year reported for supplier anomaly been antenna the on we antenna Flight then, to an month, fiscal by X. affected the with significantly results be more FY X by will assess Flight on deployable financial and that manufacturer ViaSat-X to So the not situation last the X actions of performance XXXX discuss timing will X. the wanted affected be that XXXX flight and we've Since a the Flight corrective satellite of performance. extent but contingency those we with a point fiscal we working we fully I Flight the the to X. Flight for same grow implications have anticipate But minute. the without out the I'll to But anomaly. not current continue plans, do plans given we first will as 'XX believe information, currently would well, given in in and year

provide we'll underway that estimate be steady While to we're expect are provide that information, progress, when making we definitive earnings when analyses report insight and quarter. we have currently will next we more updates we more which

from antennas successful So on following the major I'll background product a The of a on history of decade a number antenna. Inmarsat with deployments color of satellites. manufacturer X is line a including string successful a space the some aerospace on of the XXX% a give missions, additional supplier deployments,

Flight X during X. satellite manufacturer, unaffected anomaly. is uses same completely antenna, was deployed X the design nominal placed the the uses insured on is and both and Flight a antenna with Flight results testing. satellite times X Flight Flight partially The X The satellite fully several and X from but manufacturing and a insurance already that by different different is Flight

synergies expect with and fleet. course, to revenue outlook on stand-alone dependence prior we capture had no do Inmarsat's ViaSat-X of the ViaSat-X, still

of satellite supplier the underway. the reflector actions antenna root So and cause appropriate manufacturer anomaly streams work to determine is work got our One the X. we've X and for with the corrective main Flight to

fault collect of have the into to deployment incorporate a additional plan and data that analysis. We

have report on actions to update to expect and quarter. also more regarding We information corrective from next X schedule Flight an

performance as with the infrastructure the the satellite, it satellite assess payload to the end-to-end and the of is expected measurements Initial antenna the better. with as or is. indicates rest are Viasat, including innovative of affected Second by built the ground antenna operating

anomaly additional of us give expect We on the execute have effects throughput satellite, and of measurements will potential a plan mitigations, including to drive operational and the on definitive next quarter we're data the for also. we and more the the targeting that that

mitigate and deployment the Flight third-party the capacity first existing of X required. potential to our especially mobility additional of this as the on satellites the an fourth streams. of update our optionality expect And then effects X orbital the near- provide longer-term to of outcome global will anomaly the The the improving depend we via in on of on next And ViaSat-X work each assess of business, is to X. is of quarter. the antenna Third and results Flight fleet, optimizations locations again,

one quarter can to These forward. our confident broadband today the that primarily fixed and and and XX% continue already better U.S. business we underway, affected also. global We'll plans do mobility by of next assess going support impact well revenue, today able customers to anomaly. will be be we're that's are as that represents we the about

of system Importantly, X, next tests confidence Flight where quarter. the are. for as unaffected, and measurements innovations parts mentioned, on and launch The ViaSat-X corrective X, we'll schedule the and new those X our an to actions, and to date that Flight Flight is provide X are of I Flight of inclusive increased ViaSat-X update

a 'XX. year made planned expands to of which under more X X satellite, Flight orbit satellites, calendar an the in-orbit Flight Ka-band I-X this construction raising. end satellites undergoing Inmarsat X of for including fleet and launch acquisition with of We Ka-band launched total those is XX was earlier The our before Ka-band and year

of was our and on-orbit via in fleet technology the as resilience to ground technologies. And acquisition, improve to of we've and with diversity our objectives long-term the previously growth the time that on-orbit near- one opportunity greater of our network due That an frames. show a believe and will have we discussed, and So the capacity optimizations. associated with we benefits substantially both

So will the financial. go of some with into that, Shawn

Mark. Thanks,

XX% the the Inmarsat's QX Some financials. was operations QX brief approximately revenue Viasat color continuing achieved both revenue revenue $XXX results increase companies as an Inmarsat revenue million. The of up the been include FY about double-digit that X $XXX contribution million. $XXX on This quarter, period, have year-over-year growth. about for would was billion, in 'XX. the the estimate and date to compared pre-acquisition revenue million from including $X.XXX the We XX% month from combined acquisition of of of

QX, higher $XX Adjusted quarter million for the due year-ago in amortization operations. interest million, above primarily XX% Net EBITDA loss $XX totaled intangible continuing period, net to the the was nonrecurring expense. the of higher million and the loss increase from an acquisition-related for $XXX expenses, year-over-year

impact adjusted pre-acquisition approximately and FY Inmarsat increase the a estimate million. X the of We $XX the year-over-year. been million, approximately EBITDA quarter, would month EBITDA QX of an including X% from 'XX full for period, Viasat Inmarsat have included that $XXX adjusted about combined

a more So little on color Inmarsat.

consolidated $XXX ended in government about and mix adjusted $XXX for Inmarsat's the high-quality, about results estimate mobility XX% and the million aviation XX from and business the our Viasat's XX% a around revenues fits XX% objectives months customers, EBITDA was March June in enterprise revenue which commercial and revenue base, million, of growth For for other. we the and X/X in is and business which maritime, XX X% quarter, markets. quarter. our That's with government diverse included well

strong performance. service Inmarsat's in today, and our letter will will results follows. meaningful Networks we into with folded Inmarsat. of that equipment be segment. our and And Government can make Satellite our you to enterprise results revenues be individual shareholder of revenue revenues. from a no Inmarsat posted review aviation on sales will today. a led result, in recurring maritime, as included contribution by will in continue more existing And contribution mobility Services majority as -- segments complete segment's that is Systems Commercial be it find segment up in has as will focused be the largest continue will segment, our component Government included be our segment and the And revenues SATCOM

billion and investments. We cash with short-term $X.X over of ended the quarter

we We operations expect expect our low given the to for maintain to hold a growth will on flexibility. rates and cash realization tight synergies of higher from time we liquidity debt maturity our return additional over And order preserve cash company's time. financial in flow the credit on schedule, improve outstanding rates the and of our the markets,

billion $X.XX bank. marketing the them if rates the not we debt the impacted are The go they item. choose when and of to interest based commitments transaction, on by on reminder, last will to by issued as one the market. for debt transaction. already currently our financing We'll to XXXX approximately the Inmarsat But original related issuing held provide support be from financing the set and And is a

I'll to So it with pass that, Guru. you,

exciting our cover overall combined I and on Shawn. possibilities three the Thanks, it up Great. combined two, and three, key talk company outlook. performance; opens us; will new for operational about double-click topics: one,

were you healthy just with Now year-over-year businesses. from QX growth in results financial excellent as the Shawn, heard across

in. products, And product. especially our including quarter the during quarter, our another an encryption had Type-X we for we're our Systems high-speed additional Government of certification assurance center ground-to-space next-generation strong for earned data demand information

of contract Augmentation Services, bandwidth support as due by signed commercial rapid commercial aircraft. IFC at additional for Satellite QX, During residential and contracted positioning to quarter, additional subscribers, end, offset ARPU the grew in AUD a partially XX% we fewer at approximately current pace combined stands airlines higher satellite-based per has aircraft growth X,XXX and aircraft a continue fixed on at to broadband service Southern reallocate IFC and existing update Momentum quarter improved plans. And Passenger Network and to we basis increased IFC And to including Positioning XXX revenue to new declined and driving new in backlog to accuracy. to U.S. in X,XXX revenue usage aircraft. with million continued date year-on-year service customers. also aircraft. And

growth, having scaled outlets market mobile in achieved year-on-year and in greater about Fleet excited vessels. global diversity broadband. Inmarsat We're XX% growth Xpress

this deliveries broadband customers indicator to outlooks. augment a high-speed and port. offshore, support FY and which Terminal be strength 'XX quarter to This quarter, service IFC LTE Commercial sailing in merchant, in energy equipment designed FY 'XX and announced commercial our or coast fishing docked we reported leading Reach when and continued are near IFC are growth to Fleet the our good service, coastal commercial uninterrupted a is segment. deliveries of

excellent was financial this the closing the with of and forward. overall, an quarter strong step performance an So important acquisition,

to start we we are to reminding possibilities like us would the on open provide I'll the I to by everyone a Now about integration. the then with combined combined company. as an so where excited why and company, are update

compelling Let's strategically. review is this why transaction so

First, and enterprise. best our mobility accelerates aviation, This government it and land government, is maritime, mobility mobile global the focused services, including fastest-growing markets, on and strategy strategy.

Ka- global both map brings robust Inmarsat satellite and road resilience coverage adds redundancy. launch coverage Second, augments with and that and L-band a

excited and by IoT the valuable upside are future We from L-band direct-to-device including assets, opportunities. spectrum

that's business Third, our customers enhances businesses resilience billion products greatly future also across enhancing basis. installed is we greater synergies our and company provide large have The a NPV markets Inmarsat's a by both our free combined portfolio We an base overall supported strong together, financial performance. broader estimated global combination. a $X.X that on in financial existing post-tax today, This has are will distribution. flow compelling cash to well-established but of of a

build scale options we Now that open to all markets us we we cost aggressive as effectively. intend focuses the win to and where on be can considering business

aviation In synergies such seeing key take are revenue, across units terms government, we and maritime. business already of from revenue as

In cost achieving focused are our synergies. we cost efficiencies, accelerating of terms and on targeted

lever about synergies well. FY expect creation 'XX, we in for annual CapEx as a remain achieve In synergies. key of the million half value to cost forecasted $XX

a We $XXX annually out. million are years few targeting

are we of from business to numbers, capabilities the and Now ecosystem. being the an best perspectives eye behind actual supplier best of our and the with integrating the partner processes people,

our X focused team. go-forward the of furthering, scale, very should great our I enhancing seen and fit, formalized It's technology value benefits We customers. are recently we that's that add already our a the for here culturally, have capturing on measurable leadership we the and important. deliver companies

spend We this think customers ahead. the combination integrated excited integration. to while a value to are that We important to and we diligent and of momentum our approach and delivering view successfully informs opportunities many continuing time delivering how committed is it maintain and to by to the how model operating we shareholders, to our are communicate this significance

outlook. moving shareholder financial outlook. well. a with I'll to more this our on of in the combined There Now high-level up wrap summary as is letter

single-digit For companies expectations FY year XXXX, of adding high both slightly XXXX high for of for will FY to the relative expected single-digit months percentages year. EBITDA forma which Viasat's A pro Inmarsat revenue for XXXX to approximated expect contributions, stand-alone the from full to XXXX. can expect prior FY FY adjusted operations double-digit in low continuing we adjusted fiscal growth grow approximately XX of we EBITDA view simple by of throughout the growth view be combined

XXXX, full We including expect assuming contribution a Inmarsat XXXX. for from for growth EBITDA in FY year revenue and FY adjusted

be anticipate as growth about is directly rate of We anticipate be strong XX% anomaly, we by especially and of backlog growth healthy rest that where by FX affected business. and of our growth broadband that's ViaSat-X the and But affected, by is not business, XXXX our delayed. XX% supported our are it the will the expectations in orders. currently revenue, FY Our will do fixed business that

Our to of half is point second positive occur the free calendar XXXX. in cash inflection targeted flow

Lastly, the you. fiscal more to we Day our details our with hold so before plan plans is of share an Investor can end of year, our

'XX grow EBITDA 'XX there strong are leader. company mobility and and adjusted a it. So performance on creating synergy in and government expect very to we FY you track deliver We material FY global a have in operational we powerful while the to value, combined and QX, revenue had

Guru. Thanks, Good.

So take with we'll be that, happy to questions.

from first question Simon comes Stanley. The Instructions] [Operator Morgan Flannery,

what loss would hurdles $XXX timing that? the would you we can mitigation the determined FX perhaps collecting repositioning to around assume not. much an like total you the about would to what What's you satellite, What the how or sounds It be? FX. what of would haven't be whether about through yet X get Flight just frame the And I sort think Maybe your worst a And if go is before talked time million? of have strategy happens, you've cost? that put ordering that?

success mean your that can it's prior the timing clearly, -- our in Shawn. is a process. that I still this -- in of the think on to are now. early first had would take of But Simon, on we're But I lot make hard timing. it's question in right collections happen in really the our I really, early We insurance. things I ViaSat-X. the that think to speculate when process speculation around a

that And was about or before? like something XX that months

-- be was it little of inside the XX-ish a It was think to that, a yes, around little was mark. -- I honest. It shorter of

the having the or we facts. think that more And of think will capacity put we that terms including without questions you but we -- going then we we'll on won't in some I depends zero this down obviously, as cover a, asked, would the -- to asked, the the any plans that or of of don't replacement what do a out you assessments other a to for satellite have do of one an of want be what all things performance what have statements example, And for lot do is. what we

take we to measurements to that. able And expect on be

get the to able we been satellite. mentioned, end-to-end I As have measurements through

some not in we no if be we're of having speculate, I involve little -- extent to the of the closer fork where do more but don't turns to out those in it. very do that's expected. we plans that really range we starting a those. through what got what we would won't have plans supports So we're originally we the I road, that if without to it think would is -- some forks to the we to that capacity to data the so from from to And do what quantify go road or want going

have mitigate Understood. that's Are with the work think business. out backlog on? to the their IFC handle to airlines to going the you rapidly. can as to consumer impact comes business? of on the broadband the still like And satellite? new the What you've demand bring planes you the happens on without Do growing called you to already Sounds as some it -- the

the But business. mobility the handle we've thing fixed for the depends at our to business, bandwidth handle can of handle transferring that some all applications least from this we we is backlog, doing but been period transferring So can have. we satellite. the Not to backlog particular it the on so far time, backlog main all of

to data a And -- additional We're will judgments Using And So to we time, some until completely also indefinite out. of the be have we we it. not will what the to that for take on mobility period we're through satellite. forward. have of premature that period. fine going businesses relocate we're room. get have going do it make an the more to the maneuvering Inmarsat, we we our But mentioned lot but need for we certainly, actually us that supports -- figure that potential

Next B. hear Securities. Mike Crawford, up, we'll Riley from

you that Americas If you've to North loss, that Flight supported likely would European total that it slot? is satellite it can that X over up move and been EMEA put over you over expecting make sense the most its could up satellite Europe, then the satellite get America the isn't first or to another until ViaSat-X

that Okay. Yes. is Yes, a possibility.

a at demands. the serving will all customers' perspective, customers, shot our that us way think in of our I our move satellites we best from that gives

take has scenario operational trying the operational scenarios that to what what So But to do utility. time assumes to more would that. we that that to the flexibility to those. do It premature that's account. than work -- are an satellite the because through The different scenarios we work have we're is the no into jump trying have would be we be that on to financial

And we'll we'll and make so for get it, then the decisions. data

Just you maybe one if that more don't mind. on front,

APAC antenna. configure with the a differently satellites different So

imagine up So pretty over going is developing And you've much, would ViaSat-X then your that I one, been payload. regardless. also APAC

maybe Flight to make a eventually those X.X some have satellites? X these up Americas of over So after Flight like it come features sense wouldn't X and to ViaSat take

Yes.

Okay.

locations. of be effectively to the just operate in So any satellites clear, of the can any

-- give X also get flexibility does more was imply we works the additional But in Pacific, that we've made There So the Asia we to don't that make flexibility. want That in but satellite. to the decisions. because built us is Flight want into that's there areas. operational before other works the it any data on that decisions I

going to decisions. the sound be will data. decision -- wants consequences real and months measurement in On the to lot we again, the that no do a taking I I a those But could some on we're couple for be will the replacement satellite. that and think . improvements methodical there a then clear. data there we what get is main I thing and we to ViaSat-X, through quickly with encourage analyze near good of the us significant foundation it are X term. measure there there's And know what would to a knowing more use We'll as to depend able to think that's make making And lot another get that investors know everybody

most you're you -- realize With $X.X down much single Okay. that's unawarded Systems of be award that And might that. been competing I against can you've the then completely single multi-award award quick billion know had to versus That you've others? makes not where But how in past, sense. that IDIQ contract, your unrelated Government question. in there backlog. a break a is of where of able just

of that There's a a number to with -- is back diversity but you're I multiple and are certain. we a the bidders the broad that would broad don't there. Others don't services, we fair agency be a contemplated range unique services are IDIQ there bit we this I I you awards -- are a of they're -- about of that that a it'd call. split pretty to think now well announcement, on us. maybe right those they're breakdown little can of good products more less contracts, give No. that don't right of a [indiscernible]. allocation are of might get for think some of more on them you the or are like But But

Quilty The next Chris is question Space. from Quilty,

Great.

go So got against the order here the quarter and numbers guy actually business, good is, good I a form. question on from Quilty flow. the Space government is about which to I mean, going

the that there? you at what Just line, high over to overall, the that of as are of XX continuing business think things about out resolution look in a think you the level, we months upside as next outlook the case when that scenarios worry

Boy, it's to these to macro of tie some hard trends. it

And for course, of products big But the how government around provide. classified data more instance, end that that applications, drive the quarter are is know growth going insight. fiscal drive for you high-speed highlighted in give right will generally expected there, and than the better AI doing this things for that's demand activity -- for there of the up will there's by year, We some processing. us occurs at of to lot appliances. came look it the in is more data that center just areas we And one -- a of was levels, if the that some so much one and of of we interest we're of can the types crypto that government things we the of

decide room, customers can besides more lot information And these And decisions. those use right, of factors have because like budget things so in I maneuvering be, the are the what things mean, they how appliances, assurance just will budget. way make to we their is some the our determined a

affected what we say services much predictable we're are individual our and part that might thing contracts aiming than revenue. be is lot, lot And government more other as those you types recurring Is of those revenues, subject of over is that were the the as for, realities. several these more but a budget The of like years, have of timing objectives of revenues are do of one question by a short-term some this more was that our kind change can And to was asking nuances. we about? budget some which of last and that

And Yes. just on quick see Have sort now follow-on Viasat? a you that. you the synergies between government and to of what the Inmarsat side identified

of have, us things bunch the those there's Yes. getting obviously, I'd because geographic across more to customers say -- there's a but -- customer bases. get takes areas we of exposure and to and or we it nature applications that. a similar the contracts similar of similar extend we're have of the some there. a for But little while equipment services across And -- more or of types for coverage technology opportunities bunch to different we like details

aviation government revenue yet. and Those give have any starting in well and as to identified are to these it's we the specifics going area. synergy think in I -- maritime the the the But -- don't not we're opportunities at. have things we're we area area as looking in

to I quarters or in next so. think couple on specific comment we'll more of the values be able

don't which totally deals, big tons I predicated domestically business, can customer you. international some customers the going win. from on I you're assuming feeling customers big pushback they you're switch expecting. those how Got there needed. of process some of those that gears, capacity around how you've far is And transition are were Are a to wins Southwest that and capacity IFC the in if both had that know provide I'm were customers? any new here,

us, are end-to-end specific successful that in very been which their been for system. the business, aviation So taking we've approach agreements very to the is provide has for service-level that route

So and can We new can the here's they're we how on at deliver and deliver take know look we fleet, service-level we why, look their plane show we we airports customers, when the here's that. we their agreement them, serving, that at that routes.

the of have have you ViaSat-X we so think because what And is through forward? can happening that there -- scenario. those gone, with through going the we're okay, question well the And is, do that our we that's is quite of we kind planes light I still initial yes, of -- we're customers that far, And so with routes customers resources I'd in the details going say, have. the the to they have deal their we serve again going all in that

-- have may end agreements portions of some service-level we or routes, routes or some those slightly up may some We cases, going with in different for and different through somewhat were with But the based good really fleet. the the say benefit been reception qualitative that has overall, that having customers. it's a specific I'd on because larger used. approach of we've some They understand

order book Flight orders as disclose going new regions that the order on well -- the the airlines that well. really did still as has in is as Viasat then kind And did we other good. new a existing different includes been for flow aircraft second placing of on mention of And we our thing into quarter, large amount geographic which X, both anomaly since airlines, is

about as majority, more think to We've that. on we and to you or the business, serve but different if ViaSat-X. able X international, tended And portion the been American to retrofits. it order Viasat think their Viasat's legacy linefit aircraft as of to that Inmarsat businesses, none customers, agreements dependent then service-level be -- plenty was it the And they're new North the have large oriented, of of resources heavily demonstrate book whether

proceeding. still those of And so are both

business? you if not the trying the consumer it's most to whether ViaSat-X orders GXX, to mean, it's the if that's depending that or it's point it's out, years given been So the next burning the something launch if of where on to next to your have Inmarsat. burn year scale But where X clear you've I to worth are just build down or -- and pretty North you customers' the a X a scenario Would a the lot that that, of the -- year a you down America, years of strategy, short new I at do best-case think go you capacity new. has subs, hit in next

to do answer more What things emphasizing we airline not have, short they're The logistics really the but is great because just the customers our understand it. and have No. I we've so think than that no. where extent that Remember, I is of focused. matters mean, bandwidth been amount we to a --

And we -- have doing we -- those able we're are route is that's so what the we're -- map.

deterministic, times. the into issues that at we XXX% they the aren't schedule routes course, on account different whether depending take Of take routes

problem we build that demand, good then a for things across as that supply. -- us of this we -- is of satellites for add with So if lot fleet, on gives of maneuvering is reinforcing areas it room the the the then when the from we a supply, multiple if the we areas. if that real you think and reinforcing the way when demand highest one map work high-demand And

is areas. routes operators What we have about of both of agreements already are in delays additional to partly -- already mentioned do in concerns because doing, and schedule before, some and reinforce we with we done America the crossing this other the high-demand ocean had partner we'd we work and North

We'll of So agreements. we and already probably those, those we execute tools. other have then our had some

about I same. same, thing without one the won't is you It's -- our we wouldn't I have talking Flight we're outlook If X. not tell the what's And pipeline. wouldn't what financially,

more can be we through assertions hopeful, do be We'll data. will capacity again, until I it in hard to get communicate is take that don't fact any think, that about what I able but the to want November. So we

guess condolences. I just note, say maybe that my On It sucks. you. Got I

binary that worked have a it kind sucks. of hard been on innovative guys outcome component, to just You and this, have at

through that, Appreciate but Thanks. it. we're working

from The Ric Raymond comes James. question Prentiss, next

everything earnings a is last missed It good. words X be you busy might this Obviously, but but talk doing some been Flight maybe season. but going like echo make build if I when to it's what could. clearly use review Obviously, it's it. anomaly, I we've of disappointing, Flight expect I'll just would assume say you to Chris' through the working day, questions, and you're them up? But we sure earnings the about comments, time would not should want I of A seems X-letter during this, couple X's week. process have frame? glad did

Yes.

streams the the knowledgeable. work is that the antenna participating mention I spacecraft the cause analysis. We're They are -- the the we did of leading are one is So manufacturer root that most really ones are participating. manufacturers and

to So root root we will by get on insight cause. quarter. actions corrective next have into probably think the based and we our cause analyzing to the more are data still analysis collecting We

determine launch we date you And when what benign Those any speculate -- corrective range can -- or it's And but the will frame -- that I'm be, for -- what imagine actions underway. next cause will again, good actions the one the is determine complex. the basis us time they shouldn't satellite. corrective one more the to another is without sure it's choose from can help from that's root on to no there's analysis, data which will

launch and this the it, time next to Flight more of had for about frame to we able launch be we'll X antenna close schedule when was quarter. It able to a pretty anomaly. There's being a report

So be that's the actions antenna determining for is. launch will probably date in new main the when the factor corrective the

flow maybe previous was was cash us kind to positive what the Flight Or or certain, going X remember thought I of positive And was cash months it Okay. previously, to X when was up? going flow be? free path was to of the free after be remind

Shawn. Ric, this is

in kind what I XXXX. we was of spring partially that of So think had earlier

still shooting to in but probably XXXX, we're back So the be in half.

Great.

me guidance? had I Viasat but And CapEx was know you've if you provided, you separate. provide some already did Okay. excuse

You Inmarsat. had

bring had You to altogether. them

year arrangements should over what this how at -- next we but to the next to CapEx going think year the had be, about out fiscal were figure and least? You fiscal

year. on months X for the month this So side, full think, think set of about you of Inmarsat this X CapEx having only each first, quarters the the yes, quarter, if of a need of we to I have for rest

way bit for coming we about of the next close this down months. billion, a year-over-year of say next to it's think rest would both year. to the year, then about could good X kind $X.X kind that see a year if for think of $X.X And companies out you this relative that probably I billion So to is

that events big talked but of was shown? the were direct-to-device you our asset DISH private questions A would was of Is they one call on the also interested have network. XG And And of an to what Okay. in there. DISH-EchoStar about the couple obviously, universe EchoStar. in been buying or both part the excitement

could if on So you maybe expand that.

pass them. question first on acquiring to about the going I'm

the... on think I

I tried.

Yes.

to the that to we that of to And on really to But able the deal do interesting perspectives, a think suited working including think really we devices. that about other evolve we the I order are the make part, good do from using a direct-to-device business in it's how don't our we'll the demand we type effective satellites, devices also lot good will provide for smart category, -- services watches to able in specialized of or putting from that the more I cell to people be big you on more a the cell service are X at enhance satellite off-the-shelf antenna, conventional a think, speeds to that's more terminals, still still very direct-to-device bandwidth but phones antennas need that normal greatly, a device satphone, for think think what -- optimistic direct-to-device it a be to that. throughput be need do other than specialized talked away. -- mobile goes deliver we're that. is phone. -- because both We're about technical a And and that well have that which the in or keep different not the that's L-band thing look mean, one device. -- from business you still should to and can systems are as so On we we into to We much lot as then XXx satellite we an close with. with implication, satellite But better scale? We -- the the throughput mind people problem number antenna higher small

opportunities. we're that we're capital we assets the other we direct-to-device be what And that space that to to monetize have to So able business do really as invest system looking use markets familiar and all to we these matures, still with. the this creates through want

think So is yes, a we it's the answer really short opportunity. big

think several mean, get resources, that us going I really, both think we really it's have you years. state attractive, be successful to technology details. assets, there. we do the But play I we over out into will think And we and is the -- help think end the

-- always people don't personally, of mean, position also think know these I to And things as want sort I I winner-take-all.

I going think standards will that work order uses that in them. that standards, think them, that can -- ground technology that opportunity those within to an well be be to the business systems deliver I really work for there's types scalable, certain of for space operators with

that all not big individual just being think a for win operator. play a I it sector, stuff one will into

We'll go to Ryan & Koontz, Company. Needham

barriers It I wanted some LEOs and to the that's strength of from maritime and at me area. core if to from competitive there's the seems obviously, environment, Inmarsat. hear the in ask to lower ask And progress long a been Starlink. at about about maritime about all. legacy that's business the time them I theirs, changing entry

that great. you So can would Appreciate it. be space any in share insights

Yes.

I is think, maritime yes, space So changing. the

level because interesting barriers what demand. actually in-flight over segments businesses that's need especially, is places spoken perspective the big that hubs. and individual I which -- where are opportunity hubs, -- airlines, is maritime looking from a what is providing across plane enterprise we're space. of and if is of as of entry thing an think have where the the of The you And lot predictable we part for, makes it's the the congregate, problem the of so these who then the in of not different predictable it a big geographically, big service right, is service think airlines is doing businesses of service. are high real to specialty the market we type where level provide what because of the low. users this look the for part mobility at a is a in-flight, problem The are connecting mobility The is airport the the issue over on where a

the not mission sporadically a to seeing to where important the people major boats use is is with or leisure operationally in those are systems in what you're where especially like an lot LEO of occasionally. connectivity And trying ships. congestion a dealing So maritime the space individual ship And early or it's we are on. may but things of nice that these that places are where unsurprisingly, ports have,

ships on service-level areas the these agreements areas improve those our already them us make level services where for -- where end-to-end some that predictable a LEO both to congestion So you're looking more the on at there's focused. enduring. that's real opportunity And are -- a of where seeing systems, for and are and to we're

a the So different it's segment business. maritime of

that's the what across that has has I one a they've can And most. that been think maritime the we been meanwhile, on segments. show That's opportunity do. one segment we Inmarsat really customers to the That's grown multiple the best -- have

Louie DiPalma, Our William from Blair. comes today last question

government in for war Has as of connectivity. of has Starlink the how robust a Ka-band also backup demand regarding war defense and publicity for the primary or even the there's in lot demand been Ukraine defense source to a side, tension Asia On triggered a Inmarsat's services? a geopolitical led Ukraine surge a

various overly on single one can unlike reasons. specific doing you think others, go the there multiple just read concern newspapers about the is I just we're being connectivity into to going I you I about in don't and dependent is great of fronts sources depth don't we're -- you think what of can communications. that things -- for -- defense you in see

a so demand. are that of operators seeing elements satellite think serve to somewhat And different demand, positioned different I uniquely number of are operators

could you in So put that group. us

could was news Mark, the lines. status and your restructuring. discuss with that again Great. regarding there the Inmarsat? payments making large And Ligado? Ligado potential to of potential the recently in begin different you relationship is And Inmarsat's along Ligado Can

Okay.

more been satellite. relationship Viasat we're really has think really fronts. So and going their domains. both our on discussing but is -- operational not to mean relationship to want proceed. bring Ligado on with different with relationship Inmarsat, was the And be around each spectrum, to around while those and two we're a to Ligado performance had I we're do quite but how Inmarsat's determine using for how proceed what to in It's in trying they those Ligado things of own, together. up about discussions to their I best a

makes that Ligado And choices -- it's did. on decisions as depends of that well some that we as

I in one -- the a has it's to business little things expressed the than expressed of in long-term have more satellite past. tell. they interest They've Ligado think So is early that

discussions. a for it's basis too to further the discussions. outcome just But what us comment of on those for early that's so And

Mark, say I add, piece, to one our models. excluded Louie, The would this financial have Guru. is Ligado we from

or be spectrum would payments So an any upside. return

So our models. we've in not included that

been our all Yes. since announced the much. position That's Thanks. Thanks. we acquisition. Thanks very along

network interoperable for Great. Inmarsat to also has your North with airline And North one make like Mark. in-flight is the final process one for What customers systems coverage Viasat connectivity existing America? that the American over

Okay.

with, little we think of So -- network of ways one it of both, to bit on support as is build so we this and so pretty can straightforwardly. can the it's either a start nuanced that Either problem. a

a it becomes it were and our a fleet, So the it's think part part of there's fleet. a of -- nuanced -- little little little bit as our bit of a a of more nuanced of

some can we a where of we third-party place. that ability for to and exactly -- And is there's But the the satellites for to this, but both more do satellites, instance, satellites. make specific lot Inmarsat, seen with at what same adapt to basically little same a not well. to complicated used -- where -- but do in the it's satellites, that places time Inmarsat that networks other the you've as of not can third-party speaks just But used networks the has we've

mean, satellites. not -- way simplest -- special Satellites than of they're repeaters. not -- I just is -- the it really think onboard because they're to are case, think not So this one other process on that about they're

can we including is, to. we there basic network from each run or perspective, satellites, other's of their a Inmarsat our and need each including different parts can as interoperability network other's So run over third-party

you're do we all, exact that, at is exactly cases, at what both what do not to place The that asking the to can cover them same you're pieces. be same of use And while that's that some piece Does asking? about? the to exactly pretty last best get time. the able -- much Does

Yes.

can to line make be those the done already set America to North are if Delta, North that networks? being For add such customers a like United, your both JetBlue, the as you aircraft I of one existing over was ViaSat-X. you certain loss capacity American of now, for make the American to sources how have like need capacity capacity. Inmarsat Airlines, amount of antenna of interoperable wondering for the work discussed you've up the And like And with

Yes.

depending on there that the airplanes, on of specific airplane. the to the not equipment are much airplane, age that's nuances apply of couple so those the a So airplanes,

There's the already -- we are I'm East North oceans isn't is and Inmarsat is answer that And have. equipment deploying capacity it's Inmarsat but it's going deploying. But over covers satellites across and strive what that the to the newer the true. that already America especially West. centered the true there and yes, South the true newer board, largely more Americas for the So short to and we're

our the We gave we answer be. add to it to the agreement service forecast places the the service, the to where back in would going to it need our as everywhere. what Quilty, we Chris floor or can it of want think want then bandwidth need to and customers demand that to we improve -- doesn't service-level So our that mean when airplanes I

on that problem so we can a fleet Does Inmarsat And drop that... to us. solve lot the for of

the looking was ViaSat-X yes. exactly And for. and and Guru, good Excellent. Peter. -- investigation. That's with Shawn That makes what I Thanks, Mark luck

I you. quarter. on give update next that an that. appreciate We'll Thank

Dankberg call for back does or And Mark like hand our remarks. session. conclude any additional I'd everyone, the closing Mr. that to to question-and-answer

Okay. Good. Thanks.

like this for leave important takeaways. again I thanks us to again, joining afternoon. would three So you with

that specific of the in that we're had good had. that businesses the quarter, lot first a backlog and financial is A So we performance. on strong one, really based we

grow not about same X. be Flight year, do. clear, as to same, if not satellite the both to and just of not this from revenue assumption and our even year ViaSat-X contribution to expect ViaSat-X. next adjusted what That's will prediction that's We no same EBITDA a continue about made Flight very ViaSat-X the conservative It's we prediction what the a the as X

with lot global build we market-leading do for create to can material both And we're market. we it. broadband a that device have does the growing and free of opportunities markets it financial mobility potential a these cash then government flow strong mobile building We synergy on a opportunity profile. services got in resilient diverse, long-term positions And executing and like value. and We've great on, bring

hand to I'll we with to you that, our look And updating So forward progress it on next the quarter. back operator. Thanks.

conference. Once to again, thank that We participation. everyone, like does for conclude you today's your would all

You disconnect. now may