Earnings call transcript Q4 2022

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Operator

Good day and thank you for standing by. Welcome to the EchoStar Corporation Conference Call for Fourth Quarter 2022 Results. [Operator Instructions] Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today, Terry Brown. Please go ahead.

Terry Brown

you. Thank and XXXX. earnings everybody fourth for to of quarter welcome day, call our the Good today Hamid Manson, joined Chief our Officer; I’m by Jeffrey Accounting Chief Paul and and Operating Gaske, Officer. President; Officer; our Dean Boggs, our Legal Akhavan, Chief Interim our CEO

the participants As we or in report. on their to ask that a listen-only participate firms usual, and in you media mode invite call not identify your

not allow respect. audio recording, ask we you do which that also We

to over Dean the Let me call now the disclosure. Harbor for turn Safe

Dean Manson

that Thank from our than materially All of or forward-looking to be the Act results Private could historical implied results statements statements. made constitute call, statements you, the future known we other cause by Terry. Reform to make statements forward-looking unknown XXXX. this These involve actual results different and during Safe from risks, pursuant fact, and any uncertainties forward-looking by Litigation expressed other Harbor provided of historical the factors and Securities statements

For December a Form year those the refer please yesterday for XX-K report risks, ended our and annual XXXX, the to SEC. on filed with list XX, factors of

make applicable All make understood they being call statements during to wherever we any should cautionary as appear. forward-looking be the we statements

during updating the for should earnings release. call any reliance not the place forward-looking in on thereto our our We You any this consider are risks responsibility and reports reconciliation statements. carefully to undue assume comparable We any in described and EBITDA adjusted no presented should GAAP forward-looking measure refer statements.

the call over I Hamid. to turn will now

Hamid Akhavan

everyone. Thank good you, day and Dean

to him of and Pradman company for exciting December for we his an the a industry. announcement In align in era would the service. we had of signals This XXXX, changing have years start Kaul a as announced We success quarter. XX his retirement thank new like fourth

management Paul. Gaske was market-facing We established synergies activities. Congratulations new Officer to assumed you, As will XXXX, Chief that to global we our drive and under operating about growth. of the future Operating all more structure, lead January efficiency, believe Paul and streamlined remain greater X, enthusiastic role that and a

search Financial Chief keep our continue Officer We and you our informed our will progress. of for

call As that of overview today, After discuss and activities are our that, Horizons brief we for provide a the on fourth will from agenda for first, called financial parallel business three includes all three. which quarter. streams work our the our progress we’ll the strategy,

question-and-answer session. will We a then to move

start Let’s with financials. our

year. significant The of the the Our was for system. primarily our the was that of the of access faced period quarter brought result of prior million revenue full XXXX of of spite year of million, to basis, not the competition in achieved we which fourth benefits same on quarter fourth On we capacity XXXX did compared slightly to we year fact in increase business. $XXX This revenue have the from the our and enterprise a X to in up full Jupiter in upcoming growth. the the market $XX Starlink, growth quarter

capacity by our This prior been we business. my with consistent and broadband and diversification is constraints both continued capitalizing While our in increase opportunities, by calls factors, internationally. enterprise the focus and impacted to consumer government business earnings domestically statements has of regarding on have revenue other on continued

increase consumer of year, our with marketing by expense primarily the X% in lower and from was business. last sales driven EBITDA $XXX adjusted fourth Our quarter an million, broadband associated

With and long our continue a better mix orders about Most a to XX% our are change new period We enterprise we a allow that our our in to to focus same recognized believe compared within line increased million generate saw in capital XXXX stream. diversify In to year. revenue market enterprise with us of in stable continued to the years, We on through $XXX generation last low provide costs cash. both orders, managing quarter, continue the operating a we and the business. preserve ability our remain scalable enterprise fourth opportunities orders investment business will leverage. market, excited revenue and and over internationally cash to the several creating domestically momentum

quarter Free Capital cash component our X of expenditures year. defined our was securities. of XXXX. on cash post in purchasing of about business were to faster was a I adjusted satellite EBITDA minus as strength $XX premise $XX and balance of CapEx, quarter the the sheet program million spend and ended our We $XX $X.X in due approximately million which the in XXXX. million affords the and last lower $XXX the Jupiter QX remains primarily marketable it decrease explore billion opportunities compared to excited consumer million own stock The in million is equipment. us key as during quarter to flow, This investment flexibility could growth, that with of $XX strategy. remain

me who and our now X quarter X turn call Let over Paul, Horizon provide on additional activities. some to the and specifics the will

Paul Gaske

Thank Hamid. you,

As capacity. efficiencies our capacity changes plans to end, of our current the we have to provisioning service We portfolio continue Jupiter by focus our a price as X/EchoStar To higher satellite. service. launch while improving our optimize higher an reminder, shift we on market for align costs a better offerings service customer optimization continue In the launch resulted maximize to enhanced demand delivering we XXIV operational natural prepare towards satellite our restructured capacity, while and Horizon ARPUs, await with our and America X we customers. plans of plans the XXXX, Jupiter customers, plan consumer as our to XXXX, operations the yield experience. managing that of is our of in in service The services for in additional for North near-term priority X to

attract utilizes is a experience with while reduce and by service, user seamlessly additional course, automation, processes Internet software HughesNet improved unique experience. we launched reliable supply providing the which deployment Fusion for like to XXXX, Fusion customers Additionally, satellite service well-received and service through HughesNet Fusion, In applications HughesNet fast. expect subscribers, the applications service, responsive, help plans the that of to latency-sensitive combine our of efficiencies, is an third of quarter ARPU. HughesNet end satellite improving we focused and new high-speed compromising optimized support plans improving exceptional on terrestrial the structure the adding downloads. support to video and churn the HughesNet we our have to remain handling data been and – wireless existing new and cost The traditional without service

help competition. continue the we market optimized within service we pressures HughesNet see service we combat our combination to competitive of Although Fusion and address, underserved believe should the plans

our secure to to we In broadband business. fourth connectivity. new utilize North million managed Moving a quarter, a signed enterprise with our the service customer America $X contract

from three valued retail, received $X million extensions contracts each, see also deployments to energy We in retailers petroleum approximately markets. the and continue with and at and success

OneWeb program, planned. as deliveries our continued production gateways of In

our As in XX of of shipped XX of expectations. complete the total line end in to customer XXXX, we gateways the schedule and committed with expect gateways XXXX, have complement and

for shipped we XX,XXX inclusion have satellite terminals. modules Additionally, in subscriber more than OneWeb

OneWeb operational development the that also network ground to support X/XX deliver OneWeb executed AI includes advanced We infrastructure. contract of for management for a the capabilities

with government year ended record business revenues. Our the

a growing is the tools, DoD has still as business Although and security of development terrestrial through applications, evolving small network or relatively scale, networks. technologies been and XG it and NTN management such the

cohesive and X government unit to As our and part business groups efficiencies merged of into the for defense our future. streamlined civil management expand opportunities structure, in we drive growth

expanded our which optimizing major deliver agreement we in America, XXX continue adding we for regards of divide. to CFE backhaul operations, schools. our to address services HughesNet increase digital subscribers, cash bandwidth services approximately broadband major remain connectivity Internet Telecom allocate telecommunications enterprise schools. Antioquia to in In focused to international wide on we a yield to service high-value and Latin scope to our In In to Latin capacity as close generation. is well existing rural of locations to increased we capacity bank. Brazil, lowering while a Now added additional provider churn, Colombia, With we applications the to with our and on X,XXX cellular Mexico, as profitability American the range a the

In Jupiter In upgraded connectivity. sales, of – oil equipment a Mexico, and upgrade In system ordered we world. the Jupiter leading network their expansion the signed service around Jupiter agreement. backlog for provider and system telecommunications equipment major Hughes an sales to multiyear from system had terms Africa, a support LTE existing significant producer support orders their a

Middle enhance Jupiter ordered sizable also terminals We communications. an their a support In to BGAN redundant East, for the machine-to-machine to received gateway offerings. telecommunication service service provider a additional order

service report offerings. enterprise expansion quarter the satellite I’m and the the as activities. is X in XXXX. our is X global into Horizon bring South in occur North second on final of Now, America and to diversifying of expected which and assembly for let our to launch, me stages to our pleased Jupiter X growing service as focus include in that efforts These Jupiter of well

provide amendment the or at will interest services a and provides on know, into to Maxar Also, of the margin the requires secure in focused will during Maxar Jupiter of approximately entered million $XX experience. us on to with Fusion pay to in-orbit damages capacity $XX more Maxar our In team an service realign to many million. least X, $XX.X the racing, payments The where launch compensation in-orbit Internet manufacturer of complete more satellite As program into compensation high-speed, us, delays. The and relief path in enter with of the the for for million to you satellite, of low-latency products expeditiously. agreed speeds, of remedies event for November and plan to through payments. the for XXXX, certain data deliver on extension delays for preparation incentivize amended agreement agreement plus further higher we incentive Maxar the with is of that ultimate an HughesNet plans of Maxar, deferred XXXX developing liquidated payments to we than

needs to on includes explore. leverage pursue enterprise products our the hybrid these our with strategy, managed has service. which robust competitive is market market plan vast growth. Horizon in a we our which our potential own our business key a X enters focus the participation operational is highly have BOGO X will this services also customers’ our that believe of offerings improving We plan sector. suite continue business for Jupiter to once segment strong we and meet eager global Increased scale portfolio, variety and business of acquisitions, connectivity, solutions our government element small We a to includes of a to manufactured to services diversification

to Hamid. over back me call let Now, turn the

Hamid Akhavan

I Thank around potential like significant Paul. update around area which to expand through our progress of One organic is both is Horizon acquisitions. provide our an new you, X, well strategy world would into opportunities. innovation to S-band markets on as the as

You release probably service untapped opportunity. with of network. The Astra press which to a services, vast is saw targeting LEO global announcing our S-band construction mobile we primarily XX IoT a satellite is satellite a begin agreement constellation recent Digital believe

a our will with for measured S-band step us portfolio. constellation terms commercial of a is The next a and market provide building in ongoing service development will provide that platform license

quarter third second test constellation. mission us use S-band The the nanosatellite EG-X, of our of LEO primary in used potential you ITU that This which the launched of phase the was a design ability of Some our the quarter in third bring our recall filing. with in we to satellite and we Sirion-X completed range to services, XXXX, of applications to wide the in successfully mission XXXX. with as provided known may

are EG-X XXXX, for communication. will advance the quarter reestablish we in well ITU satellites outcome, first and of to EG-X the LEO in contact During in XXXX, our XXXX. Regardless continuing of with the constellation efforts of lost deadline required substitute

terrestrial Internet to the LoRa low-power, to we area expand Europe S-band Last also create We EchoStar of hybrid long activities. connectivity year, first or LoRaWAN have pan-European services our the satellite in satellite over range been network. XX wide the a initiated Things. working LoRa LoRa-enabled and is for

services the will an similar completed During we initial LoRa are U.S. currently our Mexico, testing hybrid These in terrestrial fourth in and we the deployment commercial services of S-band quarter, activities satellite and with thereafter constellation. LEO time a ecosystem It and forward LoRa going globally. IoT be we IoT very exciting our supported as the be satellite drive for aggressively capabilities to is shortly new satellite

partners remain at XG NTN engaged transformative in XX on of XG activities, ecosystem with engineering engineering a foundation value truly Regarding wideband LEO-based of We serve XG chain constellation the NTN all goal as NTN capability. LEO our NTN-based narrowband capabilities, for XG will beyond. XGPP the and a levels Release building of our support

addition opportunities growth. in Horizon organic activities, of and we are For new S-band inorganic other X, evaluating avenues to for actively our

We efforts will share and more details as solidify. all plans these

now the start to to me over session. it the Let operator turn Q&A

Operator

[Operator first comes from Instructions] Ric question James. Our with Raymond Prentiss

now open. line is Your

Ric Prentiss

Good morning. afternoon, Good everyone. Thanks.

Paul Gaske

Hi, Ric.

Ric Prentiss

Hey, a couple of questions.

X, Can have go a First, are firming understand and you Jupiter let’s here should with we think Jupiter stages. that timing glad you the yet to got X start we do final you when in launch the us up date help can see in service? assume

Paul Gaske

we arrangements made have launching. Yes. for Well, Ric,

Heavy. announcing not we but at SpaceX date are the setup the have time, We on launch Falcon this a

States the services the technology market. And expect The so with have system several ready into to customers that, United and deployed go, we in QX already bring has to already. our we been actual is in would deployed is being in

our the get network satellite. very the rapidly we to once we’re So deploy certain of ability

Ric Prentiss

one Great. do this you I bird added their Horizon fill what today. Similar what there, asked think And think capacity, capacity fast subs relative should to I you’ll X, up would about Horizon you able that launching. peers of that when about Jupiter think then it to up? be think are think terms? in million we of they question how they we X? next-generation X How think implies about they is fast X and How be X.X probably could fill out I between your satellite have

Paul Gaske

the are estimating would years, we’ve we what seen build typical which in X as time, the about Okay. to far past. X Well, to as be

of We consumption sorts similar capacity. expect of the

a I As think number. the you actual far as sub don’t give numbers, specific prepared we’re to

plan understand our our I the optimize capacity think is yields. to with to

dimension, So one subscribers, other ARPU. dimensions, it course, the is two dimension. is of really goes course, But growing in of

plans the these and seen improve pay we’ve improve past the customers, for to that more. capabilities customers we willing As the the in are

is which would here, expect our focus. we and our overall be So yield main capacity objective from that revenue, our key to

Ric Prentiss

that this how investors Okay. And with what commitment you talked project the did project? then in shifting gears constellation? how How is LEO satellites many this YXX should up think over capital to years launch the LEO you about come about, to

Hamid Akhavan

Ric, and the based system was application original the filing of our designed rights. on Sirion-X

completing in that. the so filing, the we’re And in this design and was already registration just

visitations the And complete launched from the provide start it even does even very in per partial so come provide a is globe one and even adequate capable perfectly beyond. anything – actually And as day, very a first this coverage deployment, wide but or additional range think of it’s services We coverage launch the with several first of in and visitation of batches and related the first IoT does that complete on, and increases. LoRa globe. satellites for rate

perhaps a been to leading NTN have is system wideband, which working only the and In and to terms the our is this a us, stone XG system follow, the on. of ambition we cost towards goal main for structure, build generation stepping second wideband

assume to not level prevent an from that capital should you certainly being our larger us would at incremental materialize this system. is the but able So expenditure, that

Ric Prentiss

am I this high within something Okay. or total. to we of have LEO could know low the XX project for $XXX there, done $XXX speculated that reasonable satellite be there? million I Was maybe realm million

Hamid Akhavan

from far would the be ballpark. I not too mean, you

plan I where close think to that and those our is. is numbers our head are

Ric Prentiss

Generation of direct-to-device view communications today briefly and obviously, you it about to Maybe a good stone, not ripe a a the busy your the that us how early about on you us a X, It’s direct-to-device. the market, ballpark. ultimate but you see seems and Can thoughts the How if mentioned stepping day Okay. smartphone market earnings And to wideband earlier the at call is for direct-to-device that DISH one. then do a somewhat LEO bit came give few satellite up question XX with satellite out but through there. investors final in be linkage, confusing walk little you seems that me, its opportunities? also

Hamid Akhavan

capability. that fundamental probably the years on – fully direct-to-device we a to a – similar we room smaller initial is of game-changing in believe not qualities and of are you are And that something that is those you in I of is come. able is A messaging terrestrial That the see a for are. which will step, a true away, think use our your that’s we what the some systems. and the messaging-based be where that it to those I the there’s variety smartphone steps many capabilities, service that offerings out expect all activating would too But what wideband hope our we is only And not today which on, in network near a we initial but it But all, large are very use and be exciting. opportunity, working there. in in market be system, and the a the have natural few demonstrate capability that game-changing opportunity, also is the will and of will first think believe direct-to-device, of obviously, provider interim, think the the of future. a And I a step leading ambitions is of capabilities work that’s commercial of some we still opportunity. think First believe very that certainly, we to to it’s will

Ric Prentiss

and Great. stay much Thanks very well.

Operator

question Analytics. Chris with Quilty Quilty from next Our comes Instructions] [Operator

Your now line open. is

Chris Quilty

start detailed more questions finally out congrats S-band of technical in I the now – constellation, forward Thank couple a you and with moving just maybe got with things. there, on it’s that

it’s And you IoT in a this to you – LoRa-based when to will what out of constellations. cross-links? of layer. use this the system And of there, Where is distinct you in existing see communications terms that there there think lot capability? Obviously, orbit adding versus about protocol? to you intend that fitting is a terms another do competition have led companies path its and eventually what In

Hamid Akhavan

Right.

there are So in questions I’ll several parse to and try there, Chris, some.

providing time a all, service We’ve LoRa. of experience had quite a with of quite for of have some been lot over we now. Europe First bit

We are able to have Mexico. commercial provide we provided now services in –

a just itself annually. billion We believe are in United IoT will end experimenting over LoRa than with be decade of that $XX more market, We States. narrowband this by

bit quite that not is use this cases applications a room, the of there is So all been different and even and identified. have

that itself is to specified large So of find mentioned, you and be the there. – so the in I think have very market room in actually our I for filing are we And public a multiple for our of domain. – as made some way Sirion-X, that we has operators system in can in capabilities those

than more now providing anything system IoT we disclosed at And like what’s not this of services. point. a in think to competitive superior the quite domain that that’s is primarily But public have capability guarded more have We to the capable system. for that We’d regarding reasons.

ever a system. having has said full Now standard that, gain advantage will step many building about or towards S-band XG There spectrum used tremendous finalized. and one step, our was we, of significant recently that this this remember system has we a of requires this NTN. with taking out that not been much there the is this it. more And consider amount capabilities, any capable a performance a And knowledge – just again, of step, the

satellite there a and perfect have want and capabilities. effective limitations to company, sure absolutely and of maximally that deep an with big may working and we can or that standards systems make are be we any engineering system proficient. links We bugs system and the of fully heritage engineering to our We understanding ensure sort of understanding the that ultimately we deep, are will on remove so that that be

fully about others are that way we And think the it. also on understand that’s working we So IoT.

enough and large all to wideband step market as the beyond also, for a we that go looking is think to said, that. of are I I system. But

Chris Quilty

you do Got it. partnerships? wholesale, intend And go to market, direct, to how

Hamid Akhavan

exploring not a Look, that the intention to we any in are multiple more markets partnerships I working routes. we geographies, But point, through mentioned. different our are clearly, giving market those. all At larger for this our today in it access system of are really with to is specifics maximize we

different us wanting robust to and different will access So see But terms limitation sell approaches you markets. probably partnership been been the of market a in and us certainly, has services. for has to take not demand in

Chris Quilty

overall Got you because does future has if, a reserve even offer capacity of existing on service you mix the it. you’re that fact, And for or else much bigger is a Fusion way somebody new in capability, and a the Jupiter expand question one is, your any service, little Fusion on a in impact margin the second still that out market part the as go-forward more become Fusion? addressable with basically since use satellite question some just X then obviously lot to you comes service? to product, actually And can the in will way, necessary a is basis, reselling a profile does the becomes it, Fusion Fusion

Paul Gaske

okay. Well,

services new what there we applications And first primarily lot customers that number that of the our So streaming as a set, and them them, question, fit, do over on look if of and Fusion augments video most that’s video towards think a today. customer have see as already the is good are we technology drifted you standard key a a their applications. and predominant service GEO we at of

we latency-sensitive low-latency that of and GEO So that, both that applications, X provide if the that the answer to them kick as get say, we at But look speed really would the Fusion, as really high terrestrial. Jupiter see allows you have the primary customers the support. see that benefits

market we to amount I think, coverage happens, as what customers get for we that, expect a Now at out rolling is our further, of primarily there. look fair this

be customers. really for think good a we will premium And it service so

Chris Quilty

any Great. material margin And impact?

Paul Gaske

from little our there players be the to capital – percentages. assets. buying own Obviously, bit to get other time, same our limited lower a on margin a capacity remains we’re use the is at that is investment as make than that we that. seen Well, But

might that balance tend So to out.

Hamid Akhavan

look, product. to a add Fusion improvement, If from the also may already churn expecting I we’re we seen that, and have significant it

the of So from churn, on provide Fusion margin, in may, would and its significant bill which cost as material, as see product margin while drop. our we using gross for not compensates own get margin that you a improvement much product,

So net-net, we think it’s an incredible far. product, and so we place have received fantastic receptiveness from the margin

Chris Quilty

Great. Great quarter.

when know us launch Let date. you got a

Hamid Akhavan

will. Absolutely

we longer We a to are of of up we’re no brand-new the introduces that had forward and first year, unlimited, it’s waiting thanks lack the team. listen, I think year no a and day. Paul had in were time ourselves, industry traffic capacity on shows underhanded We’ve – we it. our term unlimited. making we and market And great in And simply been for great a the there a every great system inching anxiously although progress have the with because satellite ever have

how been on we shows the more we revenue up that think has effectively about are But the Jupiter And we limitation the headwind, year have much and placed that Now think I used. both capacities prices during growth and can raised X EBITDA. and compete. delivered been a year have I maximum we been when excited had

Chris Quilty

good. you. Thank sounds Okay,

Operator

Our Instructions] Rollins next Citi. [Operator from question comes Michael with

is now line open. Your

Michael Rollins

Thanks.

questions. of couple a Just

payback of describing those for average and a other that what allocation is the question. the constellation at the to period and some earlier? just S-band you’re capital greenlighting including investments, you these capabilities And assets are you’re your as are the looking curious, targeting leverage question then second that projects for I’m First, projects

you, a months different to Thanks. you’re investment buyback should different to change in front more capital As the over XX pausing you opportunities deliberate flexibility thinking now as allocation provide the next about expect have of activity XX these these investors in and just financial options?

Hamid Akhavan

there our position Well, questions. we to simple the and or are financial obviously, that. and industry. over and investments that is, we’re change investments the and accretive returns few one in are advance, making This are to are we this terms horizons associated the comments improve with investments of make and the Several to typically industry, a in Right. capital no way made capital answer believe about margins years in is

we we do are the have use business that share margins wouldn’t we shareholders why grossly the believe best. use to allowing to are is off, and our because to that any the better beyond better. we good share be significantly share associated develop cases our additional with for have we longer even related stopped serve growth trajectory. capital off to new shares. put business buyback, in the better as gains would going at in undervalued. there. believe we still our we we on will generate able demands term, are have and shareholders potentially significantly faster models own that and That’s stopped would to the done our us capital, our second and as what investments We buying we able the and least However, buyback, And in think historically Otherwise, much our we though – we buyback our is absolutely are believe we share we And performance the price think be a capital

Michael Rollins

you. Thank

Operator

[Operator next Instructions] Prentiss Our Raymond comes question from Ric with James.

is open. line now Your

Ric Prentiss

there? XX-K, Hey, Continuing along follow-up process the in few I and In the we S-band have other the the what other S-band talked see S-band have you as authorizations. the well think you benefit How out of line should receiving for you might if do that about Chile, Mexico significant as regions terrestrial operators questions, authorizations I here. most be additional Europe, and in or have and about the world a of satellite to other S-band applying you? as who companies And could.

Dean Manson

Dean. Hi, Ric, it’s

which of perspective, the in focusing to So be of at to project. on we’re central world, most commercial going the the stages are that of terms most the that are really from earliest regions customers the regions the

priority we well bolstered and the that position the access, that. so with we’re at with It’s to top underway market have a significantly filing. Sirion-X the worldwide And level we’re ITU enjoy approach – we by

will, and more the the land that’s this new we the follow of market there. will find a the large that system, to will jurisdictions, So we we to have more market access system, of traffic actually as Sirion-X satellites cornerstone get access degree, effort and deployment in

in it to our the and But ITU, will very for have terms probably feel the next. be one of vary leader. the positioned to we competition, we region the we’re with with think well rights that from like I technology

Ric Prentiss

AWS the similar has your with your U.S. do within spectrum as the something far band. to in rights think, a And has that specifically, S-band? being Where U.S. I some company sister are as DISH able

Dean Manson

Yes.

We’re a point making multiple now public announcements where that. but statements that, are would or with directions on not go at that there we’re right

Ric Prentiss

I time was enterprise think to at percent quarter. also mix? that the think far Hughes, about a has goes we [indiscernible] should How as as recent of we revenues the about continued And grow the mentioned over where enterprise XX% most as

Paul Gaske

we Yes, Jupiter the we consumer enterprise next Ric, business the business X, year course, waiting And continuing I year look satellite we’ve new the grow. forward for X if and our last of or it, see well, if you think system. look to had at

expect to we because to hard segments probably that going project both So going mix little grow forward. see a forward

a So specific I that. I give you can’t on think number

Ric Prentiss

of to from of There set a trying And is has kind set and obviously, consumer that to no consumer can consumer mix? as kind grown of Okay. grow, enterprise target enterprise so there XX-XX, pressure, XX-XX, kind of but XX-XX get under is goal standpoint? has no been

Paul Gaske

point, this no. No, not at

Ric Prentiss

higher came corporate you mundane And the and and we level but too, ESS, software growing is one is Hughes corporate larger on time. corporate about of – in the anticipating, little about? we than Or the And what maybe at What is are the just question that rate about [indiscernible] the getting tiny side as had we right? level think have over you level? the right financials, of of run were I should Hughes annual some corporate and overhead think this this how think in overheads? quarter cost the overhead level should Or right a

Terry Brown

of uptick activities does projects little doing a expenses Yes, we Terry. is S-band. include you, there. with our see that to corporate to the corporate And around this new lot a Ric, remind in just the associated Yes, we’re did development addition

in project. there, new with there So of some associated general little also seeing a increases but our activity was bit

is, So we’re rate level can forward at – to that going that at near an levels future. keep we’re I do we run the the into that’s obviously, okay everything that we But think that’s think here I at.

Hamid Akhavan

at not corporate add just me level, if concern business management what from additional let adding are perspective, up your maybe but that’s not we adding philosophy it’s own These Ric, is. management. shown the are overhead, my

more joined have In make a fact a fact, if I management have the the reporting we that we streamlined flat the Paul business, so have since in , we of sure lines of order we to as anything, have house forth. by significantly our and evidenced representing organization and

there, them. So corporate some but we refer not to overhead definitely, numbers they are there is as traditionally

Ric Prentiss

business, did ESS the wrap see me noticeable for to Got up, a uptick then final it. it small, albeit EBITDA. which very is in And one

We of what’s thinking the we some are business. in residual been there and should item, that might kind segment? the point How about in small the fall think be some for ESS what lines ESS off at trend have line

Terry Brown

Ric, Yes, here. Terry

business. primarily So there additional leasing a nice the Echo-X – lot and uptick made XXX satellite, of progress so there yes, here real the business seen we’ve It’s of still into terms towards capacity end XXXX. a the selling third-party that of in is on

at keep is the to a XXXX. hopefully So plan to as increase go look, to levels, we I here it increase think continue we’re those bit it, – it

look yes, – that I we QX. saw think in level at we at are good are that a pretty we Just so

Ric Prentiss

a seeing all take Very and care. Have soon day. to good forward you good. Look

Terry Brown

Thanks, Ric.

Operator

Quilty Our Instructions] Chris Quilty comes question next [Operator from with Analytics.

Your line is now open.

Chris Quilty

than would orbit, down Since Dave Terry. more segment is But a to there that CFO. you’re we brought that’s about see. that going on you can’t current like business mean, in help better sold basis I there I think if a it ESS the other getting a left, get terms structure, going all I the in out through when to a with equipment guess, the lot the for the of reporting, the way segment think some Okay, versus without think we visibility really the we in consumer or buried hoping the you’re Hughes S-band there the that love on your lift Hughes is would heavy is say was we something I get forward, constellation or take in segment when just some is a organize on we segment? XX-K, investors building within that, that pretty I which Because about it probably enterprise segment a with how lines go-forward valuation. is it’s might broken up mean ESS I how can little got into the But business other to business And structure. today. bit reporting given that

Hamid Akhavan

that. I Chris, We agree appreciate we of understand your with view, it. and point

you a business growth have first the of of in transition. business. is have We our all, Both that enterprise seen,

aspirations business new and and area goals new through have also – enterprise of arms M&A we’re to to other our at of And of significant growth business our heard S-band. our enter out You about looking the make through a unrelated S-band that.

X and of forward will guess, XXXX I a which we transition and think move be X optimization think had. have this as what is I of of, Horizon for Horizon kind us with Horizon I an and X, year – we

which expect. change a the and to in segment seen, Horizon shape later. show introduce come go and on different additional we for be way imprudent X have a kind good just X, working a And details and significantly of in we’ve them ahead in the job result to us it going as business XXXX, running, X that, months you As keeping of but would done forward we’re

get definitive progressing think to then not with I and to to And I additional CFO take with it. and do act more do us perhaps do intend time something just our would we’re driver. that. is But think be want yes, We together, that a do are right. detail. having provide you to It to us planning will get we how some the it don’t really to honest what

we changing. ones we the what what? are of We is of know is find attention to with need and our be do that disclosures relevant? them is intend will think the going we development is business are to driver and to out even CFO, And our all additional much focused and I on on most have evidence this and How applicable which year, multiple focused that growth of make we information. of for investors, the

Chris Quilty

heard I reporting. new segment hold you what I’ll Okay. to XXXX

be program second bucket. for any you – up the CapEx dam Obviously, did guidance year? ‘XX? they CapEx last that satellite reasonable tailing CPE think, that I off satellite X So be call CPE-related their really Is programs their a I expect And question, Jupiter that no give going said off. shipping week, you’ve many so missed launches. once isn’t that CapEx terminals to on new fall around the to sorry, assumption in you’re the a threefold to or the this see is the got in going ViaSat There

Hamid Akhavan

you’ll to that significantly offsetting X, acquire what eating because us not CapEx paid us CapEx up typically to a have expect you combination customers That should additional that’s satellite you – But be for pay Jupiter We additional of of and had should of has expect CapEx some And savings. you think are the we we customers, to our much of that the vastly some similar I been different. CapEx on the for. of pay. effects. see won’t be to other hand, to seeing,

all we’re no but me our seeing have not basis. expecting not all, is are CapEx jump that to an function we every mean, of of our we’re dollar So CapEx in – in to a kind. way don’t impressive change any not on annual in going I stating an hold step disruptive that, we’re –

Chris Quilty

it. it Got on I ground been is to any have that? and what And new their technology today? segment think the sit QV-band – in you at does gateways do building able you are where testing like the

Paul Gaske

we’ve because Yes, is completely Chris, installed, and been over to cloud we of Except for have combinations of installed. we in capacity these network different an There existing with all our sites, a some a have test number on sites on [indiscernible] sites X. locations are of able two XX they Echo architecture.

So along are pretty process. that of far all in we

sure technology. very of the We’re Echo

we’ve two customers. As this I mentioned of actually the deployed configuration for in it earlier,

as we it have a operating lot So of well. experience on

Chris Quilty

X? Echo was launched? QV-band when second, on a X actually You Wait had Echo

Paul Gaske

in to able that. but No, fashion, of we testing had got test we good Ka. The that QV, we’ve not been laboratory

how pretty that of we’re operate as sure So well. will

Chris Quilty

and for distance? with market to like of the if enterprise emphasis look consumer when enterprise do the I asked be or customers? that things I it. it where is, to that’s a Jupiter brought capacity enterprise you America And able a think Got question continue And platform, from a about of a think that up ViaSat-X, which about at Ric IFC, the to reserve is just SES-XX and and as question, you’ll serve mix, more X going North

Paul Gaske

in yield. Latin America for Well, two South One, I X, optimizing Jupiter things. think for and capacity America, the we’re

enterprise continue additional to enterprise to expect we business. there, – additional add So significant

our consumer for versus depending applications will time blend space. enterprise we In we vary North on still our anticipate where of America, in the best capacity enterprise the the So having think over is. yield

So it have at point those won’t working be I still opportunities. we’re just consumer, relay. on this to but nothing

Chris Quilty

Alright. That’s it for me. guys. Thanks,

Hamid Akhavan

Chris. Thanks,

Operator

questions. show remarks. I the I closing Brown conference time, no turn like this to At would Terry now further to back for

Terry Brown

today everybody just you We’d for Yes. Thank talking to you. soon. to thank looking again forward like joining and to

Operator

conference participating. This Thank concludes today’s call. you for

You may disconnect. now

EchoStar (SATS) 23 Feb 232022 Q4 Earnings call transcript