Viasat (VSAT) 5 Aug 212022 Q1 Earnings call transcript

Company Profile

Participants

Rick Baldridge	President and CEO
Robert Blair	VP General Counsel & Secretary
Mark Dankberg	Co-Founder & Executive Chairman
Shawn Duffy	Senior VP & CFO
Sebastiano Petti	JPMorgan
Rick Prentiss	Raymond James
Mathieu Robilliard	Barclays
Simon Flannery	Morgan Stanley
Mike Crawford	B. Riley Securities
Caleb Henry	Quilty
Ryan Koontz	Needham & Company
Giles Thorne	Jefferies
Louie DiPalma	William Blair

Call transcript

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Operator

Hello, and welcome to ViaSat's Fiscal Year 2022 First Quarter Earnings Conference Call.

Your host for today's call is Rick Baldridge, President and CEO.

You may proceed, Mr. Baldridge.

Rick Baldridge

Okay. Thanks. us joining for everybody, today. Thanks, shareholder We market today the earlier released our opened. before letter hope had And it. guys you we have time review to Today's a we'll just call, remark, we then and brief go opening Q&A. into have can Robert, first, safe harbor? you But the provide

Robert Blair

Sure. Thanks, Rick.

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

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

Rick Baldridge

Rob. Okay. Thanks,

addition the Corporate Dankberg, Shawn Mark In Investor and joining Robert our Paul Duffy; to from me Development; call will CFO, Chairman; Executive on Peter be from Froelich, Lopez our Relations.

grew that we EBITDA another We before last XX% is year, revenue, year-over-year to finished one more the the Just air. of first fiscal build generated we record we by quarter up with. it of reflecting jump commercial that great rate, adjusted We the than that last hit Revenue a had EBITDA, and was adjusted on our part year record at grew can comments hardest Q&A. quarter. XX% was $XXX that into million, momentum couple and twice

year business, Our was double-digit growth. driven connectivity severely segments in as delivered was In strong we've year-over-year year-over-year COVID. revenue which last organic improvement impacted in-flight revenue by our growth Satellite Services, mainly the mentioned, by

pre-pandemic travel, levels. We we're continue to see below as to quarterly sequential business but return improvements still well passengers air

was Strong acquisitions EBI made, lines we demand the as contributed. performance, organically also closed X% broadband the both revenue and well, in revenue organic X% in continue mobile increase we product tactical cybersecurity and a up EBITDA sequentially two segment good across Government and also see in fixed by quarter. XX% service to was to main data and had grow links, strong the augmented growth driver, RigNet and as Our year-over-year continued the that year-over-year, Systems revenue while market. early the year-over-year

We growth -- IDIQ $XXX $XXX expect unawarded about loss reflected value doesn't of in of shipments And IDIQ from was isn't that segment our the backlog. segment. revenue this we Networks the it's from represents that terminals and In systems into had in of have of the by words, restarted, demand. addition in with kind unawarded in IDIQ, space lot that -- values of our backlog is in IFC large ground division, win of ramp-up large in our new you another with those XXX growth great potential other million million this driven campus the that IDIQs $X recorded continued strong Commercial to have one. reduction performance billion strong which period. all another up, that a A contribution another and

both the Americas of the to and April. RigNet first customer, accelerate acquisition key addition we environmental aircraft really integration under We We our IFC the with with have good we testing. broadband XXX for installing and the equipment completed energy bus EMEA Boeing first the as for those constellation constellation, the three ViaSat-X aircraft global as module geographical and has try such whom regarding a been Delta X on satellite we and the into markets, markets months new and maritime Both In for EBI, now Device European in -- financial Airlines, ViaSat-X final new over began services payload to contract. in our particularly to launch the global had expand expansion our the geographies. on of the customer-facing adjacent execution several and in late region, will our closed by supported vertical new these milestones. results, capabilities operational our

We install aircraft installed, continue we'll weekend, that's over few And have accelerating. this the next expect and about by XX to the to accelerate quarters.

continued our ahead markets. as new reflect execution achievements these into focus and of footprint on Now geographic ViaSat-X vertical and our expand global

expect recent proof this targets talked you near-term next years over our the in a the confident I goals year. the think last key ViaSat-X we we as shows to of picture X-year you our X-year that communicated deliver and network points, that to of we that This business our we on in about EBITDA to all revenue adjusted two as ramp bring that across online. remain also we To we end, that results towards Our financial solid guidance letter, year. as our began give last see ability guidance introduced time growth

operator, that, to go with we'll questions. So

Operator

comes the first from with of [Operator Instructions] line JPMorgan. Cusick Philip question Our

Sebastiano Petti

mean had you Sebastiano subscribers and stronger provide than are anticipated. of little What if for helpful. trends. into in are Phil. mobility seeing seeing is The This in from and you trends. of you fixed incremental domestic indication and if maybe a wanted some StarLink's very more see underlying could other terms the perhaps what, just some versus broadband breakout was you the impact or ARPU, launch And the color to Space I just fixed I any deeper on we ramp? on broadband results delve broadband Wondering were can if letter similar

Mark Dankberg

U.S. timelines supply, issue us be dominant to quarters few over have sold just much we next U.S. that the in pretty it's over going out for The broadband, Mark. the It's the

that trend is more by that absorbed bandwidth, high provide lot the and bandwidth. demand of customers for are we're upgrading to a So seeing is being main

a have in buying So plans. the premium subscribers, of we're more are thousand the but few fewer we subscribers seeing few probably a -- thousand order

holding of sort all factor teleconnectivity. it other these developing to entering that markets that's in then of that's the up. into is we're so ViaSat-X steady of But return And that the other advance

earnings to new the So that to bandwidth both for the and is and growth in way causing counting businesses allocate our the revenue that growth on way the the us new system. paved that in basically we're fastest the deliver finance

factors play. in kind are are those that of So the

terms can start they demand overall but overall are far, really on yes, tools people overall -- of their just is than serving course, demand, market, that can hot. And so see really not the we In in where greater material. demand the we have of at we

Rick Baldridge

indicated expected Thank But call, we general, year-over-year you that be subscribers the we until a decline in online. we residential to the U.S. will the had revenue in in broadband comes that last about flat market over list segment. think

Sebastiano Petti

I any divestiture Link of That's business. guess, government you perhaps could helpful. of the portion the subsequent -- potential been XX the headlines And to haven't if a

Link and some how remain thinking business of be I mean, we trends other verticals about your So anything there? should in strong. that? Obviously, XX

be as we to your government should anything it So of a potential portion thinking about pertains monetization of business?

Mark Dankberg

here. But like No. wouldn't growing. If the -- anything about say was, business mean there we is it I we

so see continued high And demand we good very that and in segment. growth

we're think strongly. I positioned So

launch note we're that it. we pretty hear first will our the where Link in to has XX on soon going saw You leo

area. And so that new space a element of is leasing growth business

whether So or but make wouldn't it in -- we on here. any acquisitions divestitures, general, comments it's

Sebastiano Petti

maybe And one Fair. ask one for Shawn.

rate think the called Obviously, Just we you how year. year. through leverage run rest should higher about the the of the remainder of out for the ticking about CapEx

be would So fiscal overall 'XX, just expectations great. within CapEx

Shawn Duffy

Yes, no problem.

lighter that to average So I through quarter to mark. quarter closer this on but was the of get targeting year think of about ramp a starts what million quarter, kind We kind we XXX as per talked little it last launch. we were

still that's good a So number.

Operator

Our from James. Raymond of the Rick next Prentiss question line comes with

Your open. line is

Rick Prentiss

fixed fixed in A appreciate assume the one. broadband? housekeeping couple RigNet of I is path. not U.S. I the Again, questions. long-term is percent, guidance that broadband on U.S. near-term that then One truly quick just fixed

Rick Baldridge

I that should correct. Shawn That's let answer

Shawn Duffy

correct. That's

Rick Prentiss

when of mid-teens. year, look of think You what get XX% Obviously, M&A of benefit this growth fiscal of revenue And two M&A you worth How near-term XX revenue did and annual call we months the about quarter. much approximately acquisitions. annual how period? think was average should average we like helping out in the might EBITDA over guidance that the -- growth in ex about that growth

Shawn Duffy

Yes.

we last when talked notionally quarter, additives kind EBI. all gave million if expected think tried the guidance, line. on we the But of about kind the about that $XX you you RigNet, I for year that in. That recall, looked So EBITDA this at we we of was

Rick Prentiss

does like networks. between split our looks satellite services RigNet commercial and product or it And

Shawn Duffy

there in side about up -- service on efforts the product sorry, and their that of shows some XX% commercial. satellite that the Yes, the about XX% shows over to XX% about is in side, XX% I'm related service up

Rick Prentiss

Sure.

recalibration you might mentioned reporting what And when the you sense. understand Can telling help thinking take you what reported. think what How that you're you're you're from makes you're telling of letter, That to us? Okay. add so might and metrics about we what about? from you away then us

Rick Baldridge

Yes. Sure.

demand of lot seeing markets. So right vertical a what now, and we're multiple geographic is across

energy. So mobile, in-flight general aviation, connectivity, land maritime that's enterprise, residential government,

and got across them. all we've -- or can next We demand different that across And got geographic markets. What we want one of to resources these we really more the vertical allocate it markets. don't any all figure that like the you there's market. serve we've And those we than and way broad, how to one clearly, base a with for overexposed few quarters any resilient have when we've aggregate So to having market robust to markets. out be

planning we revenue have, the cash want and have X. to our the So here's we total And look, as earnings get, is our say, the coverage earnings our revenue, will we do and objectives. want economic build flexibility capital flow trying line diversity also the we for momentum bandwidth increased our and leverage And to want and and what what that with increase at in resilience is will we're focus earn will to robustness. ViSat that to productivity, geographic

what use our those metrics will -- that be. we to are forecast of we're our growth trying people And some do what to is, that's are know to So one looking these objectives. is, other

we And going to saying, and has So this during which the see the on guidance revenue track U.S. we're also get to business, diversification -- that diversification. U.S., is that it get we're adjusted here's We're And our in continue back the you we're metric shows that getting give EBITDA. been can to that. will here's of COVID, to very was especially which residential-centric. now basically

some them we're give service. have year, still other the certainly, we introduce looking refine So And in ways metrics all by probably And into so, those we'll metrics account next that. you next or take then over capture over ViaSat-X the to year at that probably these markets, holistically. time the we'll

Rick Prentiss

companies priority a have, high given you've a And that's looking a lot got as hear not Other thing Should because don't the such it's one now? with Things. right is assume are way at about to than supply a more we problem gold I of Internet probably opportunities. good IoT low demand

Rick Baldridge

Yes.

of them sort definition are things. There interesting as a lot that businesses IoT applications. low of addition -- businesses by of that working high So some people basically, relative as the they're really think on, acquisition find of IoT the we're our recurring actually Those of is the revenue pretty the cost are bandwidth with especially terminals. -- to broadband

stuff a us. really of might is imagine things are interesting those, of Those type IoT of that are, bandwidth to you video-intensive. are lot there say, applications So intensive. that some And types IoT are

So certain are processes, like industrial that. in mining, drilling, monitoring things things

be And elements. So you have things are compute back opportunity near-term elements how AI control the -- to cloud in to that need set be need the also those to think us. for to of absolutely able

just will enterprise we we're And because in data But those they're Yes. are so enterprise -- applications. right That's all all our now, things very segment. including intensive. that

Operator

from next question with of the Our comes Barclays. line

is line open. Your

Mathieu Robilliard

satellite always to give is had have in a more. launch clarity, And I you the So that it's a growth? want with schedule question. that the I you I that Obviously, -- order assumed was of bit in the deliver terms my to wondering we what question more guess was but regards first guidance that guidance. great first the in

Mark Dankberg

part Boeing ship factors we to can we gave predictable delivered Obviously, there's When cause can the that Yes. that schedule multiple had building a the time move Well, of hasn't about satellite Obviously, it payload. until the the it we from to it left right. before. most hasn't changed. X-month talked to schedule versus they the things since a around should but the move It time roughly to be those it. the or changed little would the bit,

a X well, to say, frame might of had launch testing time could preparation couple represents have on we to anything X it early or a too you now. we could interim. -- you a said months to and and -- we've we then something and for for So -- gave reason to just what the to once a then we orbit. month change different X But given that change it now, don't that right gets predict and any real than It's Boeing but happen schedule right different in the before since

Mathieu Robilliard

Okay.

QX XXXX still that's calendar So of... kind

Mark Dankberg

time frame QX. likely and schedule more that, QX the I'd say, things QX, just given

Mathieu Robilliard

Yes, just kind wanted million of noted on to $XXX the million $XXX of we obviously, basically confirm hit we're over And in It's I always assume down had you've on a Sunlite, track. point about is what maybe have question for given side its cost what like CapEx. can time. And difficult plus second because the side. I But about years. from be some And given to ground. that different I for the you phasing at numbers constellation, our the initially have indications ViaSat-X

want I already was is had So whether wait or guys that And we something in our that to incorporate ViaSat-X. mind? to that plan that or something on confirm in little what the estimates. you're not bit start just you still should to more ViaSat-X, for less spending a

Shawn Duffy

Yes.

So there I are things. couple of think a

all is full Constellation about the been for have ranges full and $X.X talked X the As billion and cost about say, for that there at satellites. we've the so

And this of progress. continuing to out say I'd so we're coming make

Rick Baldridge

just that the and was That, launched ground and in has I satellite

Shawn Duffy

Yes.

initial the ground. On

sure So your we make you numbers. need all to that into that got

is The more complete that a now, we're funding. little other right thing on bit maybe XX%, about

notion years. kind the go left of can to over of a So couple you next of get what's

Mathieu Robilliard

I relevant? sorry, on is in maybe missed And being your there already spent anything it answer. that Is ViaSat-X,

Shawn Duffy

what not We're early It's initial some scoping out doing there. is small significant. But still like. looks some efforts there We're that spending. ultimately real

Mark Dankberg

that, We have it’s started ramping up. but on work

Mathieu Robilliard

maybe And question. a last

megabytes shows article by as So on make speeds are think other was respectable more I XXX test reaching I'll XX some Ookla, done Starlink which use can I and you there further. not is bit around a I this was it of it megabits, are guys is realize say. as it and the that yesterday speed that and far an now, And apples-to-apples.

full are capacity. You

again, base. to to there's customer thought that mix if those you as in numbers, that trying a your can. manage But well different -- a speed, guess I we you is can in could start ARPU. line with what curious obviously with it's from just about as how And to always what mix volume, you think And about deliver hear you're maybe you I expecting? ViaSat-X? You're what between it's was --

Rick Baldridge

Yes.

thing it is yes, obvious these the the all is, with measurements $ is offer So things, but speeds. we test most plans different that speed on service

is majority of that XX Though customers So customers have And per are they're speed. plans, the and that, XX number speed of with per would our XX the emphasize satellites megabit we the XXX above speed that And have plans And speeds. megabits we I with full, meet or that are on thousands the XXX even our apples-to-apples we on second above of advertise. effectively vast or we those yes, megabits being we the do be megabit that subscribers deliver XXX mean the comparison. tens of plans second. thing I would with

the So that X,XXX megabit includes plan.

service just service it's it's for provide all that that multiple same that be the which is at what a it only not would tiers for and compare They of anything. tier. does different true, Starlink, look us, relevant is you're So has you versus to provide all that across if providers service article referencing, more the And article, us average that their speeds. comparison X just

I to. really should think the the people pay attention part most that So that's

Operator

with of Simon Flannery question Morgan Stanley. comes next from line Our the

is line open. Your

Simon Flannery

wanted little about a less bit. to talk I

testing Link-XX the We've broadband for there way was infrastructure domestic talked I broadband significant the process a What about obviously then if You through broadband. the for up. the about for going its of following the government larger is order a that working LEO Congress got the with of think And funding to you've talked might past, potentially you. interesting be kind LEO and bill in that? bill funding or product

you as apply So had wondered thoughts that well? I if on and might ViaSat to that how any

Rick Baldridge

Okay.

extend range there -- a the the U.S. Link but have you line fairly LEO, first, is DoD Link particular each which of So on network. network, still of the has applications sight well that beyond limited is it's to coverage on relays, area XX is Link for really, the of applications, any are in interest XX XX terrestrial The range and definitely including is data of valuable number network. a of really that it

interest that's Link mean, initiatives, in I'd So are different XX of in Link involved that's few DoD -- all fundamentally, a There which to what's in space. driving we're I say, what's XX. provide

So bunch in we program on Link still how lead. little ultimate of is, on space to space, bit Force -- networking, are the the functionality up it links. with the of have that of having additional well with it Force program, data for what done interoperability There that Air believe space. which as -- will a a we're organizations other end terminal we depend is the now to involved a work how there's what in XX be there's integrate anticipation ground, Right an

to on organizations with us, about of work given do that other for really customer it as -- how that's programmatically really, little been to overall, and users been successful in really a interesting reasons big order so ability end it Link bit of one of the work And potentially we've really XX, and a especially what's help we lot is I think opportunity, see program. with specific our be with kind shape there's that's in their develop is the really -- what That's more the similar a is like going we in needs work now, Also, of are. early it our turn opportunity nondevelopmental that space. XX now. a but we Link thing there's think So to really a how type line that that item. product will of that good, it's anticipate opportunities most how we about we through we And

On to have where order proposed for front, latency commercial a filing in lower from a nongeosynchronous we've LEO altitude to orbit to deliver sub-XXX that MEO the that's millisecond range. in system, Ka-band, we LEO done the the we've

it's -- which LEO We're FCC. work So on is be still really, especially sustainability, business very in of doing that, quarters. of the work to on -- factor the doing on work how given from we're XXX,XXX LEO few the space market I We've think, a pending approval to don't close additional going filings a is still develops, models. we're for in the new LEOs big say LEO. couple I done ton last entire

I'd tuned So for say just that. stay

our I we're plans. to -- think up continue we'll come evolve to going

want extent, others But think other everything allow an would through the to to is to is can, own also ultimately services work where, this going are to to LEO hybrid we deliver partners We extent we that way models, we want with and just turn which out. that rather ourselves. that NGSO may we things work with area us still the the that our

Operator

with of comes from question Riley Next Crawford Securities. the Mike line B.

open. Your line is

Mike Crawford

they back get of any data. it progress the people data of to satellite ViaSat-X upload ever-increasing up backhaul to quickly? the -- talking the into could want to Has is the that the that hands anyone -- network just these of then are like more on going about just down sensory in to and up earth to all where proliferation more geo been down amounts collecting data of Further a there sort constellations of using

Rick Baldridge

Absolutely. Yes. Yes.

Mike Crawford

That's there? to -- them that require And an requirement antenna them pointing just what pointing the would main you.

Rick Baldridge

are it Yes. earth mode primarily, And government data dominant world. Think send for to now two have systems. that the the things now and collect commercial as the that it's is there's work distributed they satellites around pointing of stations really same radios way pretty much The modes. that ground the

information, lot areas. a the especially in trying that of is places sight oceans in no issues other are where ground of and main we're One over to there collect

are sooner. that so interested And people back data in getting

So a we're to involved do in ways of different number that.

of a have a mentioned, which you One a the they world, as upward satellites could kind the upon billion that be that are there much far, additional satellite radio they in NASA data And expensive with which some satellites geosynchronous like an node. is pointing expensive can immediately relay It's ViaSat-X. relay number of satellites government and use of that that pretty already. And far do is like and very or less anywhere that. can relay satellite government stuff just if what very, to use governments do just you it when

operators people that's area that we're There's as -- successful other with we're government similar both a commercial doing other doing satellites, sort interested working So relaying another who are thing, in thing well doing among that are really and NGSO the that. of in. been is we've

those So we've all on on well. inter-satellite government there built inter-satellite number network, as we their the have programs a for links links, -- instance, and of Iridium

allow that volumes the earth relay then that as perspective. satellites powerful of than data allow a to to make data just number control or large same So lower a building would to thing without other And higher we're ground to the which is, from of transmit information satellites much these into the really ties and would especially sensing more doing, having geosynchronous. thing which stations, transmission bigger people

get back at the So issue, which it ground. same that's X -- approaches, so basically, how that as aimed down the different other fast. I as to I I is then get collect part the data do And lot all of of is, quickly from it that data possible, do a when really as to how think

Mike Crawford

just And to me CPE. for question final then relates the

flat you phased panel get easy would in Or for broadband your to and make if at install still that that have billions invested of you being antennas others low something And technology? and array companies to envision And soon? dollars own with looking cost with well. are just are that is ViaSat-X? how their data So offer so, as consumers trying their and to or able or be --

Rick Baldridge

Okay.

for can are moving have rays repoint. to terminal to a constantly can it now on them moving be That's those phase why that modes. and a the to a a similar constellation. -- moving and and constantly something or fixed on you satellite. or array or test you all have that to nongeosynchronous you working got business of lot repoint because of platforms you've and could a So jet. valuable And of so flight small for means And fixed moving at you when antenna satellite have we're user terminals a a satellites have have have We recently did a a you platform,

platforms think the so are we apply would And phase mobility that technology. array probably that type first of place we

terminals. to apply could also it ground We

you other ground among inert One of different the would to quickly satellites. multiple of allow benefits terminals hop

we're phase is that a So services that And terminal about, could satellites. makes satellite antenna for talking of or fixed be type fixed hybrid for having the different array what NGSO multiple a possible. different multiple even that

on we're time those. certainly, So all sure, we'll those in out Yes, ViaSat-X frame. the have working

Mark Dankberg

that, the working addition things to as on phased presidential do self array of other mean, low it on and one In you have stuff, I be the a doesn't can install, to things well. those cost

Operator

Quilty. of line Henry comes question next with from Our Caleb the

is line Your open.

Caleb Henry

had a IDIQ million the the and question contracts. ViaSat-X recent I $XXX about

think hold you amongst have percentage group And do claim? the you is for million, a ViaSat's there's think to perhaps that what Can XX up share is? exactly I on $XXX different companies of that. ViaSat you

Mark Dankberg

the That shared contractual among an lot of years, will markets And evaluate That's -- window. which they piece. isn't to not the what IDIQ that been that use value the evolve do multiple with they simulators But And of for near-term of rehab test in primarily the simulations hard it all is aircraft. that is other for for primary use there's on developer could provider studies one these done things fighter communication the and value. We've -- contract simulation that That's and is all tasks and to a that's everybody. done our it our the that do for from we've we there pertains from simulators jets is orders community. that to the in task XX for it's to -- aircraft we distributed on evolved specific hard we what that over we But area have equipment. that estimate the get quarters. That's to major it's advanced communications what -- ViaSat.

Caleb Henry

And then clarification from right. of I a once wasn't had heard ViaSat-X testing just say it's you months earlier, that said X you launched? something have will Did

Mark Dankberg

be to X X our in it complicated I sooner. very to months. one, This want very, would is mean have hoping said it I and could network. we it's it We're a be incredibly X. for first to testing be Obviously, thorough the of it.

to we But be X. we'd could It that. get love be X. So we closer it for as give more updates to will

Caleb Henry

earth the And just on network. then question a real-time

how solutions can antennas You ground stations And this point? globally? were or at us various you gateway you deploying have many connectivity. just completed you're many about for those How talking of remind

Rick Baldridge

We've time. for working this space in a long been

platforms news-based right was Mark and market the bunch about that very, So very large very, the it's in antennas of talking a now.

now. programs simultaneously We have multiple going right

Mark Dankberg

that elements their different this. two for to use two, One earth-providing is There's networks. antennas purchased antennas; own customers them those and only

that also those service as either will we own or own systems a antennas multiple partners use that and where a service. time sell have we we So on

antennas we to or not size matters antennas, that. oriented emerges in by in think think It's number where main partner what RF that are is is where for network antennas building towards antennas, a bands lot to which now the important. placement number markets, where think but most I don't higher the the we we have and more to the whole higher the can right So answer by higher towards ways the antennas places what RF operate market band on but those bands they're placing of effort and what of a And the market right now but emerging of give what there which speeds. our know service, they is a are we've on and the going differentiated services the because exactly. owning on really others well applications. not of worried what way not bands similar be we're will been located, an those to the I'm in. in which a capacity, a frequency of it of going, is those But and bunch suited are is the is be antennas And enormous, Two, is

Operator

the Ryan Our Koontz Company. next of & question comes with line from Needham

Your line is open.

Ryan Koontz

I ask and seeing your of your impact semiconductor costs, want supply an chain from about deliverables, terminals, on sort you're of the impacts shortage much to thing.

Mark Dankberg

-- that seen deliveries date, the little We have for Yes. impact, longer in but really we're impact business, the very mainly across to we items see lead we starting to have.

we're So It's going had deliveries it. on actually side. I'd the the good news it that We government inventory say less we where cycle not on during pretty we inventory. got in good the have will have have to pretty -- impact window the and -- built biggest everybody,

for but delays. And in outlook so we haven't impact we forecast seen additional much to have date, our

Operator

of Our Thorne question comes Gil Jefferies. next the from with line

open. is line Your

Giles Thorne

what the XX% and of of to several so think I to within be different obviously, program. question anyone be about in traffic departure, high-level in I multilayered weeks active big a over from has is Anyway, question ISD a years, else think would capability One is the been the discussions months. few you airlines will saying. LEO the comment is LEO predicting to LEO and [Indiscernible] application and and about then want what with this having And discussing lost rather installing mobility with Internet it you than business? just come is network past And interested back with that a which XX

Rick Baldridge

It's that? be a allocated, make the global that not issue can might have that low hard as or There I a only sense numbers think likely going very, I that I some in how to with it's we'll the doing Inmarsat or difficult with that turn hybrid can in be but or lot come factor Well, kind Those I problems NGSO with you're of multi-orbit that's be mean And mobile yes, market, that could into LEO of of more Okay. for could. that in super space satellites kind of that. hybrid other of land. might solution. large out challenges the surprising that especially numbers to going terrestrial I small lots big or now the are where say this LEO very that's to satellite that operators go more of airplanes we've I multi-orbit different problems large conclusion Maybe everywhere. mobile think how really disperse seen are have to say certainly when I think that the it are you can many as makes those really satellites. very Unless a systems, very to this of be anywhere, number have say, long-term approach some would small in which we complete of it's we mobility has a coverage possible, where have land you and operators. around and supported approach beams. do is directions One global very about we you have should seeing, be whole especially sustainability, view you in And think all can't I'd a for and airports, directions. coverage, of think how What satellites

in that some Internet with is of but deliver we access, would to Does not good. going media scale, just I include more service think there toolkit but probably is comprehensive to other those possible. are And communications remember, other tools What say entertainment, question? are forms well. comprehensive a services having your challenges answer that your that it's as

Mark Dankberg

demand, I'd the delivering one, add of the still that think an high problem. successful is in thing. the right lot that's value at So we that's been there's have We and just a one that and area dimension of where and

Rick Baldridge

bandwidth a in most right absolutely dominant proposition. been I lowest right mean, for focused Yes. capital And the value the the there's value is we've is on track thing most the in place the cost. dominant on a bandwidth

Mark Dankberg

and value. against lower latency Gogo latency that we wasn't very compete network we that a was the is and Remember, right underground LEO, that than low

Giles Thorne

It yourself that's see I you do allocating like probability, XX from your term? no. LEO In mean into Link capital sounds the medium mobility in

Rick Baldridge

said We're networks. I in in NGSO. we're interested interested hybrid

with discussions have NGSO on going cooperating. about We providers

way it. broadband the total. Cisco traction a that or is not latency way one from fulfill of of I think one it big component clear, traffic that's low to total very So it's and We've been pretty the look others research is at

at economics things of we and because makes in us it can using to Whether things somebody So on on can it get networks. we the enter for pricing own these when But at. market still whether firm will lot others, greatly will to improve invest productivity that those scale have to looking not just to owner get that them, or or an on can compared depend certainly we third-party market the are influence we it. capital we're sense bring

Mark Dankberg

the our to And of our confidence that there we're they're on most be network. and part going counting

Operator

we for that call Ladies caller, from Blair. and more DiPalma is Louie gentlemen, have and time William with one

open. is line Your

Louie DiPalma

Many of government Booz seeing funding even though the and Allen, Systems are delays. grew providers the tech your seeing defense well as Are and ManTech quarter? nicely program you this during Parsons, division Mercury like

Mark Dankberg

say last we normal, in back mean, We impact in I of flow administration of had not both and year, talked order business but segment. to it delays, about COVID of some but lot where I'd seen it's a that not really. changes seen we've terms

Louie DiPalma

do order they're regulators it And pause the that in because number space into as relates limit is Mark, traffic can go be you licenses ultimately everything granting a going sustainability, for sustainable LEO satellites And to much of do or to that expect and like eventually to to there? even good. prevent you so stop Sounds up think collisions? keep there to

Mark Dankberg

Yes. Okay.

a the is number answer our yes. question, one simple is, complicated it's So

to the bit because depends it it's answer what satellites the overlap number is those It's only LEO. intersect the or are. orbits orbits limit things those complicated a how in, the or they're of with yes, there's what satellites on little mass So of going not a of may like the area cross-sectional

It's want for yes, a -- lot makings yes, help saying, other issue. just So in what FCC sort think said, But was of NSS there's comes I things or done calculating oversimplify. proposed I itself for it compile it's don't people's are, that there's a think So and XXX-kilometer X the of to real been to us number for U.S. that we've can't of the before that start has doing satellites to where are well, that and an limits. are. to But number well. debris that it's in it's the objects as to satellites be maintain of other of can like also satellites collision rule there's only I'd So by times starts The have a proceedings limit inputs bonds, I limits of without a not when is thousands that published, work the study those let's -- you same time including that roughly orbit, headed. refer low question others research the calculated to you of in the orbit people in of even that that are many growing say, tens have because characteristics correlate of

having what countries can is of a satellites in the well different saying, is limits the given there rights to European to on is done that as I help issue with think they're lot the or be how of user seeing be a be putting with but that bounded been are. Union administrations what Europe international geosynchronous. with that among then number similar of should talking a a tools more And allocated and is, think other do countries? to which what's satellites there's that things I if very number situation, And orbital operators, very, rapidly characteristics, evolving think, headed you're main what about that we're you're certainly constellation. And have what with will and it's I think we're seeing

Rick Baldridge

thing for approach we make The to the space. really all against to would add, just We're responsible it clear. want we're other not I business

So back Mark said. what to underscore

Louie DiPalma

And one last one.

is liquidity, enough million you raise of million do either fully $XXX For divestiture? have ViaSat-X? the Or how Sean, in to $XXX the from part debt or you as market a you of that capital either fund discussed to need potential more build-out

Shawn Duffy

Yes.

the last out of up liquidity, we So to position performance, our fund look performance think operating see what at trajectory that well, consistent we're good plus kind a generation guys and our in of is we and if really what as you I you told the the quarter to cash that

Rick Baldridge

the form revolver, but take using a might different It just than other

Shawn Duffy

Yes capital our cost of

Operator

the gentlemen, like now Ladies over to call our that concludes and closing management turn I for would remarks. to Q&A session. back

Rick Baldridge

and achieving excited Okay. to joining heard and our Thank afternoon. momentum had you you, operator. ViaSat-X We're We market. this the confident is Mark longer-term really both to Together year, financial including targets Hopefully, near-term targets. to outlook, our that our you our positive. financial rest capabilities quarter with for of and the thank a us start in really team, we're off strong operating bring

our if They've want them. hesitate this leadership today. pandemic to really our diligently you results or or and to you We the and our a guys say to executing Peter any hard on plan. today, continued our next on are rest team working to other topics been contact or you on progress and employees our team, Our look our focused of we thank Don't quarter. forward updating questions Shawn have through to

hand So with the back I that, operator. to it

Operator

gentlemen, participation. and today's conference concludes Thank Ladies call. you this for your

You may disconnect. now

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