About Viasat

ViaSat, Inc. (ViaSat) provides communications technologies and services. The company focuses on making connectivity accessible, available and secure for all. The company’s end-to-end platform of high-capacity Ka-band satellites, ground infrastructure and user terminals enables it to provide cost-effective, high-speed, high-quality broadband solutions to enterprises, consumers, military and government users around the globe, whether on the ground, in the air or at sea. In addition, the company’s government business includes a portfolio of communications gateways; situational awareness products and services; Ka-band, Ku-band and UHF satellite communication products and services; cybersecurity and information assurance products and services; and tactical data link solutions. The company’s diversification strategy—anchored in a broad portfolio of customer-centric products and services—its vertical integration approach and its ability to effectively cross-deploy technologies between government and commercial applications and segments, as well as across different geographic markets, provide the company with a strong foundation to sustain and enhance its leadership in advanced communications and networking technologies. Segments The company operates through three segments: Satellite Services, Commercial Networks, and Government Systems. Satellite Services Satellite Services segment uses the company’s proprietary technology platform to provide satellite-based high-speed broadband services around the globe for use in commercial applications. The company’s proprietary Ka-band satellites are at the core of its technology platform, and it also has access to various Ka-band and Ku-band satellites globally. The company owns four Ka-band satellites in commercial service — three over North America (its second-generation ViaSat-2 satellite (launched in 2017), its first-generation ViaSat-1 satellite (launched in 2011) and the WildBlue-1 satellite (launched in 2007)), and the KA-SAT satellite (launched in 2010) over EMEA. In addition, the company has lifetime leases of Ka-band capacity on two satellites. The company successfully launched the first of its third-generation ViaSat-3 class satellites, ViaSat-3 Americas, into orbit on April 30, 2023 (which satellite is being prepared for commercial service) and it is planning to launch two additional third-generation ViaSat-3 class satellites under construction to complete its global constellation. The primary services offered by the company’s satellite services segment are consisted of: Fixed Broadband Services, which provide consumers and businesses with high-speed, high-quality broadband internet access and Voice over Internet Protocol (VoIP) services, primarily in the United States, as well as in various countries in Europe and Latin America. The company’s service offerings include premium data plans with download speeds of up to 150 Mbps in select areas in the United States. The company also offers wholesale and retail fixed broadband services to its distribution partners. In-Flight Services, which provide industry-leading IFC, wireless in-flight entertainment (W-IFE) and aviation software services to commercial airlines and private business jets. The data capacity of the company’s IFC systems enables all passengers and crew to receive in-flight internet service in the air similar to the internet service available on the ground, supporting applications, such as high-speed web browsing, streaming and social media applications. The company’s W-IFE service is a cloud-based platform providing passengers with access to a wide range of premium entertainment, video and information services maintained on an onboard server and wirelessly delivered direct to passengers’ own devices. As of March 31, 2023, the company’s IFC systems were installed and in service on approximately 2,270 commercial aircraft, of which approximately 40 were inactive at fiscal year end (mostly due to standard aircraft maintenance). The company anticipates that approximately 1,310 additional commercial aircraft under existing customer agreements with commercial airlines will be put into service with its IFC systems. Prepaid Internet Services, which offer innovative, affordable, satellite-based connectivity in communities that have little or no access to the internet. These services help foster digital inclusion by enabling millions of people to connect to affordable, high-quality internet services via a centralized terminal connected to the internet via satellite, that is then used to provide community hotspots, home broadband and mobile broadband. The company provides Prepaid Internet services in multiple regions in Mexico and Brazil and are trialing services in advance of full-service launch in various other countries in South America and Central America. Other Mobile Broadband Services, which include high-speed, satellite-based internet services to seagoing vessels, such as energy offshore vessels, cruise ships, consumer ferries and yachts. In addition, the company offers L-band managed services enabling real-time machine-to-machine (M2M) position tracking, management of remote assets and operations and visibility into critical areas of the supply chain. The company’s high-performance M2M terminals are used for a broad range of applications, including emergency response, oil and gas pipeline monitoring, mobile fleet management and high-value asset tracking. Energy Services, which include ultra-secure solutions spanning global IP connectivity, bandwidth-optimized over-the-top applications, satellite-based managed services across multiple satellite frequency bands (Ku- and Ka-band), industrial internet-of-things, big data enablement and industry-leading machine learning analytics. These services support the evolution of always-on digital enablement and primarily derive from the company’s acquisition of RigNet in April 2021. The company’s ViaSat-3 class satellites are its third-generation, high-capacity Ka-band satellite design and are expected to further improve the speed, availability and cost-efficiency of its proprietary Ka-band satellite network. The satellites will have significantly greater data capacity and geographic coverage than the company’s second-generation ViaSat-2 satellite. The company’s third-generation satellite design has enhanced ability to flexibly and dynamically allocate capacity by service, time and geography, allowing it to allocate its satellite capacity to markets where bandwidth usage demands and returns are highest. The first ViaSat-3 class satellite is intended to cover the Americas, the second to cover the EMEA region, and the third to cover the Asia Pacific (APAC) region. On April 30, 2023, the company successfully launched ViaSat-3 Americas into orbit. Commercial Networks The company is a leading end-to-end network technology and equipment supplier in broadband satellite markets. In addition to developing its own proprietary high-capacity Ka-band satellite systems, the company’s commercial networks segment develops and sells a wide array of advanced satellite and wireless products, antenna systems and network and terminal solutions that support or enable the provision of high-speed fixed and mobile broadband services. The company designs, develops and produces space system solutions for multiple orbital regimes, including geostationary (GEO), medium earth orbit (MEO) and low earth orbit (LEO). The company’s products, systems and solutions are generally developed through a combination of customer funding and discretionary internal research and development (R&D) funding, with products often linked through common underlying technologies, customer applications and market relationships. For example, products, systems and solutions developed and sold in the company’s commercial networks segment are often complementary to those developed and sold to government customers in its government systems segment, and its portfolio of government and military offerings in its government systems segment leverages its technological investments in its commercial networks segment. The company’s commercial networks segment also drives growth in its satellite services segment. For example, the IFC terminals sold and installed on commercial aircraft and business jets in the company’s commercial networks segment are then utilized to receive IFC services, driving recurring revenues in its satellite services segment. The primary products, systems, solutions and services offered by the company’s commercial networks segment are consisted of: Mobile Broadband Satellite Communication Systems, which include systems and products designed for use in aircraft, land-mobile and seagoing vessels, such as the IFC systems it installs on business and commercial aircraft. These systems and products are designed to provide high-speed, cost-efficient broadband access to customers while on the move, and also utilize fixed broadband satellite infrastructure. The lingering impacts of the COVID-19 pandemic continue to affect its mobile broadband satellite communications system business, as global airline traffic has not yet recovered to pre-pandemic levels. Fixed Broadband Satellite Communication Systems, which include next-generation satellite network infrastructure and ground terminals designed to enable satellite-based broadband access for residential, enterprise and Prepaid Internet users. Products and solutions in this category include space-to-earth connectivity systems, ground network infrastructure, user terminals and design and implementation for customer telecommunication systems. The company also offers related products and services to enterprise customers to address bandwidth constraints and other issues. In addition to commercial sales of these products and solutions, the company’s fixed broadband satellite communication systems also support its own fleet of proprietary Ka-band satellites. Antenna Systems, which include state-of-the-art ground and airborne terminals, antennas and gateways for terrestrial and satellite customer applications (such as real-time Earth imaging and remote sensing services, mobile satellite communication, Ka-band earth stations and other multi-band/multi-function antennas). Space Systems Design and Satellite Networking Development, which includes the design and development of the architecture of high-capacity Ka-band geosynchronous satellites and the associated satellite payload and antenna technologies (both for the company’s own satellite fleet, as well as for third parties), and special purpose LEO and MEO satellites and other small satellite platforms, as well as semiconductor design for application-specific integrated circuit (ASIC) and monolithic microwave integrated circuit (MMIC) chips. Satellite networking development includes specialized design and technology services covering all aspects of satellite communication system architecture, networks and technology. Products and services include analysis, design and development of satellite and ground communications systems and network function virtualization, as well as ground-based network subsystems for various commercial, military and space uses. The company’s commercial networks segment will be driven in the coming years by continued growth in worldwide demand for mobile and fixed broadband connectivity. Government Systems The company is a leading provider of innovative communications and cybersecurity products and solutions to the U.S. Government and other military and government users around the world. The company’s government systems segment offers a broad array of products and services designed to enable the collection and transmission of secure real-time digital information and communications between fixed and mobile command centers, intelligence and defense platforms and individuals in a dispersed environment. Customers of the company’s government systems segment include the U.S. Department of Defense (DoD), U.S. Department of Homeland Security (DHS), other elements of the U.S. federal government, state governments, allied foreign governments, allied armed forces, public safety first-responders and remote government employees. The primary products and services of the company’s government systems segment include: Government Mobile Broadband Products and Services, which provide military and government users with high-speed, real-time broadband and multimedia connectivity in key regions of the world, as well as line-of-sight (LOS) and beyond-line-of-sight (BLOS) Intelligence, Surveillance and Reconnaissance (ISR) missions. The company’s government mobile broadband services include high-bandwidth global communications services in support of VIP and senior-level airborne operations and emergency response, as well as LOS and BLOS ISR missions. Products include mobile broadband modems, terminals, network access control systems and antenna systems using a range of satellite frequency bands capable of being installed and operated on a wide variety of fixed wing, rotary wing, manned and unmanned aircraft, ground vehicles and maritime platforms. Services include advanced mobility services to governments for aircraft and ships, as well as for nomadic and ground-based missions. The company’s high-capacity, secure mobile broadband products and services are enabled by its next-generation satellite network infrastructure, which will be further enhanced following the launch of commercial service on its ViaSat-3 constellation. Government Satellite Communication (SATCOM) Systems, which offer an array of portable, mobile and fixed broadband modems, terminals, network access control systems and antenna systems using a range of satellite frequency bands for Command and Control (C2) missions, satellite networking services, and network management systems for Wi-Fi and other internet access networks. The company’s SATCOM systems, products and services are designed to support high-throughput broadband data links, to increase available bandwidth using existing satellite capacity, and to be resilient to withstand certain catastrophic events. The company’s range of SATCOM broadband modems, terminals and systems support high-speed broadband and multimedia transmissions over point-to-point, mesh and hub-and-spoke satellite networking systems, and include products designed for manpacks, aircraft, unmanned aerial vehicles (UAVs), seagoing vessels, ground-mobile vehicles, space-based systems and fixed applications. Secure Networking, Cybersecurity and Information Assurance Products and Services, which provide advanced, high-speed IP-based Type 1 and High Assurance Internet Protocol Encryption (HAIPE)-compliant encryption solutions that enable military and government users to communicate information securely, and that protect the integrity of data stored on computers and storage devices. The company’s encryption products and modules use a programmable, high-assurance architecture that can be easily upgraded in the field or integrated into existing communication networks, and are available both on a stand-alone basis and as embedded modules within its tactical radio, information distribution and other SATCOM systems and products. Tactical Data Link Solutions, which continue to provide certain solutions in the tactical data link space, including the company’s Move Out/Jump Off (MOJO) tactical gateway family of products and simulation environments via its radio frequency generators which test its customers' tactical data links. Strategy The company’s business strategy is to maintain its leadership position in cost-efficient, high-quality satellite-based communications products and services, focused on making connectivity accessible, available and secure for all. The principal elements of the company’s strategy are to deliver the most productive satellite systems; intend to continue to drive efficiencies in its businesses through its vertical integration strategy and increasing scale as it moves into new and adjacent geographic, product and service markets; maintain focus on technology leadership; follow its path of proven performance; customer-centricity evolution; enter and disrupt new and adjacent markets through technology innovation; think beyond current customer requirements to open new markets; target international expansion; recognize broadband connectivity is a means to an end, not an end in itself; pursue growth through strategic alliances, partnering arrangements and relationships; and encourage safe sustainable access to space. Customers The company’s customer base is highly diversified. Customers of the company’s satellite services segment reflect the diversity in its broadband service offerings and include residential customers, small and medium-sized businesses, enterprise customers, commercial airlines and Prepaid Internet users. Customers of the company’s fixed broadband services are obtained through either its direct or partner distribution channels. The customers of the company’s government systems and commercial networks segments include the DoD, the DHS, select other U.S. federal, state and local government agencies, allied foreign governments and militaries, commercial and defense contractors, satellite network integrators, large communications service providers and enterprises requiring complex communications and networking solutions. The company enters into government contracts either directly with U.S. or foreign governments, or indirectly through domestic or international partners or resellers. In its commercial networks segment, the comopany also acts as both a prime contractor and subcontractor for the sale of equipment and services. Revenues from the U.S. Government as an individual customer consisted approximately 17% of total revenues for fiscal year 2023 (year ended March 31, 2023). U.S. Government Contracts Substantial portions of the company’s revenues are generated from contracts and subcontracts with the DoD and other federal government agencies. Many of the company’s contracts are subject to a competitive bid process and are awarded on the basis of technical merit, personnel qualifications, experience and price. The company also receives some contract awards involving special technical capabilities on a negotiated, noncompetitive basis due to its unique mix of communication products, satellite services, engineering capabilities and technical expertise in specialized areas. The company provides products and services under federal government contracts that usually require performance over a period of several months to multiple years. The company’s federal government contracts are performed under cost-reimbursement contracts, time-and-materials contracts and fixed-price contracts. The company’s federal government contracts may be terminated, in whole or in part, at the convenience of the U.S. Government. Some of the company’s federal government contracts contain options that are exercisable at the discretion of the customer. An option may extend the period of performance for one or more years for additional consideration on terms and conditions similar to those contained in the original contract. An option may also increase the level of effort and assign new tasks to it. The company’s eligibility to perform under it federal government contracts requires it to maintain adequate security measures. Research and Development For the year ended March 31, 2023, the company incurred $128.9 million on independent research and development (IR&D) expenses. Sales and Marketing The company has a sales presence in various domestic and international locations, and it sells its products and services both directly and indirectly through partners, as described below: Satellite Services Sales Organization: The company’s satellite services sales organization involves both direct and indirect channels and varies based on subscriber and service type. The company’s residential fixed broadband services are primarily sold directly to customers through its Viasat Internet website, sales call centers and active retail dealers, it utilizes extensive dealer networks across the United States, as well as in each country where residential fixed broadband services are offered, to sell such services. The company’s Prepaid Internet services are sold through local distribution partnerships. The company’s business internet offerings are sold through a mix of direct sales personnel who work with enterprises and a network of enterprise-focused master agents and wholesale distribution partners. The company’s commercial aviation offerings are sold direct to airlines, and its business aviation offerings are sold through direct sales and business development personnel, as well as through aviation-focused value-added resellers. Finally, the company’s maritime service offerings are sold through direct and indirect value-added reseller partners targeting a variety of maritime commercial prospects. In each case, the company’s focus is to identify business opportunities and develop solutions for the unique needs of each customer segment. Commercial Networks Sales Organization: The company’s commercial networks sales organization consists of sales managers and sales engineers, who act as the primary interface to establish account relationships and determine technical requirements for customer networks. In addition to its sales force, the comopany maintains a highly-trained service staff to provide technical product and service support to its customers. The sales cycle in the commercial network market is often lengthy and it is not unusual for a sale to take up to 18 months from the initial contact through the execution of the agreement. The sales process often includes several network design iterations, network demonstrations and pilot networks consisting of a few sites. Government Systems Sales Organization: The company’s government systems sales organization consists of both direct sales personnel who sell its standard products and services, and business development personnel who work with engineers, program managers, marketing managers and contract managers to identify business opportunities, develop customer relationships, develop solutions for customers’ needs, prepare proposals and negotiate contractual arrangements. The period of time from initial contact through the point of product sale and delivery can take over three years for more complex product developments. Products already in production can usually be delivered to a customer between 90 to 180 days from the point of product sale. Strategic Partners: To augment its direct sales efforts, the company seeks to develop key strategic relationships to market and sell its products and services. The company directs its sales and marketing efforts to its strategic partners, primarily through its senior management relationships. In some cases a strategic ally may be the prime contractor for a system or network installation and will subcontract a portion of the project to it. In other cases, the strategic ally may recommend the company as the prime contractor for the design and integration of the network. The company seeks strategic relationships and partners based on many factors, including financial resources, technical capability, geographic location and market presence. The company’s marketing team works closely with its corporate and segment leadership, customer account executives, and business development, sales and operations organizations to increase the awareness and value of the Viasat brand through a mix of positive program performance, agile, results-oriented multichannel marketing campaigns that reflect new and evolving customer journeys, public relations, paid and owned media, live and virtual events, and conference speaking engagements that keep the market current on the company’s services, products and features. Viasat products and services, both in the U.S. and internationally, are typically sold under one unified master global brand, using a single logo and visual identity system. The company’s marketing team also identifies and sizes new and adjacent target markets for its products and services, evaluates its customer experience, creates awareness of it and its portfolio of offerings, and generates contacts and leads within these targeted markets. Competition New entrants, some with significant financial resources and new emerging technologies (including terrestrial and space-based networks, such as LEO and MEO constellations) also compete with the company’s broadband service offerings. Additionally, wireless telecommunications carriers such as AT&T, T-Mobile and Verizon are offering unlimited wireless data plans and fixed wireless services that could attract its existing and future fixed broadband subscribers. The company’s IFC and W-IFE service offerings compete against air-to-ground mobile services and other satellite-based services, such as the services offered by Anuvu, Gogo, Inmarsat, Intelsat, SES, SpaceX, Thales Group, SmartSky, Iridium and Panasonic Avionics Corporation, among others. In its commercial networks segment, the company competes with numerous other providers of satellite and terrestrial communications systems, products and equipment, including CPI Antenna Systems Division, Comtech, EchoStar (Hughes Network Systems), General Dynamics, Gilat, iDirect Technologies, Newtec, L3Harris, Panasonic Avionics Corporation, Safran Aerosystems, Space Systems/Loral (SS/L) (MAXAR), SpaceX and Thales Group. Within its government systems segment, the company generally competes with government communications service providers and manufacturers of defense electronics products, systems or subsystems, such as BAE Systems, Collins Aerospace, General Dynamics, Inmarsat, Intelsat, Iridium, Eutelsat, OneWeb, SES, SpaceX, Telesat, L3Harris, EchoStar (Hughes Network Systems) and similar companies. Dispositions On October 1, 2022, the company entered into an Asset Purchase Agreement to sell certain assets and assign certain liabilities comprising its Link-16 Tactical Data Links business (the Link-16 TDL Business), part of its government systems segment, to L3Harris Technologies, Inc. (L3Harris) (the Link-16 TDL Sale). On January 3, 2023, the company completed the Link-16 TDL Sale. Seasonality In its satellite services segment, historically subscriber activity for the company’s fixed broadband services has been influenced by seasonal effects related to traditional retail selling periods, with new sales activity generally anticipated to be higher in the second half of the calendar year (year ended March 31, 2023). In addition, the company typically sees increased demand for its IFC services from airline passengers during peak holiday travel periods. In its government systems segment, the company’s results are impacted by various factors, including the timing of contract awards (with the second quarter of its fiscal year, for example, typically receiving a greater number of government contract awards) and the timing and availability of the U.S. Government funding, as well as the timing of product deliveries and customer acceptance. Regulatory Environment The orbital location and frequencies for the company’s satellites are subject to the International Telecommunication Union’s (ITU’s) regulations, including its frequency registration and co-ordination procedures, and its various provisions on spectrum usage. The operation of the company’s earth stations is subject to various license conditions, as well as the technical and operational requirements of the Federal Communications Commission’s (FCC) rules and regulations. The company is obligated to comply with the requirements of the Communications Assistance for Law Enforcement Act (CALEA), which requires telecommunications providers and broadband Internet access providers to ensure that law enforcement agencies are able to conduct lawfully-authorized surveillance of users of their services. As a government contractor, the company is routinely subject to audit and review by the Defense Contracting Management Agency (DCMA), the Defense Contract Audit Agency (DCAA) and other U.S. Government agencies of its performance on government contracts, indirect rates and pricing practices, accounting and management internal control business systems, and compliance with applicable contracting and procurement laws, regulations and standards. History ViaSat, Inc. was founded in 1986. The company was incorporated in California in 1986 and reincorporated in Delaware in 1996.