Financial Data and Key Metrics Changes - Q1 2025 revenues reached $92 million, a 21% increase year over year from $76.1 million in Q1 2024 [8][28] - Adjusted EBITDA for Q1 2025 was $7.6 million, with an organic adjusted EBITDA of $11.2 million, representing a 20% year over year increase [8][33] - GAAP net loss for Q1 2025 was $6 million, or a loss per share of $0.10, compared to a net income of $5 million, or diluted income per share of $0.09 in Q1 2024 [32][33] Business Line Data and Key Metrics Changes - Commercial segment revenues for Q1 2025 were $64.2 million, a 56% increase from $41.2 million in Q1 2024, primarily due to the acquisition of Stellar Blue [28] - Defense segment revenues increased by 34% to $23 million in Q1 2025 from $17.2 million in Q1 2024, driven by high deliveries to defense customers in the U.S. and Asia [29] - Peru segment revenues declined to $4.8 million in Q1 2025 from $17.7 million in Q1 2024, attributed to delays in project renewals and slower progress on existing projects [29][30] Market Data and Key Metrics Changes - The company is seeing increased demand from diverse geographical markets, including North America, Europe, and Asia Pacific, particularly in the defense sector [12][13] - In Europe, there is a growing demand for secure high-performance communication over satellites, driven by increased defense budgets [12][13] Company Strategy and Development Direction - The company is focused on accelerating revenues in 2025, capitalizing on the acquisition of Stellar Blue and strong demand for Gilat Defense Solutions [7][23] - Increased investment in R&D and sales and marketing for Gilat Defense is planned for 2025 to enhance product offerings and market presence [16][24] - The company aims to leverage its diverse product portfolio to support the evolution of satellite communications and address the digital divide [21][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of global economic uncertainty and shifting international trade policies on business operations, indicating proactive adjustments to raw material sourcing [9][10] - The company reiterated its 2025 annual guidance, projecting revenues between $415 million and $455 million, representing year-over-year growth of 42% at the midpoint [35] Other Important Information - Stellar Blue is expected to contribute between $120 million and $150 million in revenue for the year, with a target of achieving a 10% adjusted EBITDA margin in the second half of 2025 [9][49] - The company secured a $100 million credit line to finance the acquisition of Stellar Blue, utilizing $60 million of it [34] Q&A Session Summary Question: Is the defense business expected to benefit from increases in European defense spending? - Management indicated that there is traction from increased defense budgets in Europe, with expectations for decent business growth in the mid-term [38] Question: What milestones need to be achieved for the Boeing line fit program? - Management stated that adaptations to the terminal are in progress, with certification expected within the next two to three quarters [39] Question: How should revenue linearity in Peru be viewed over the next few quarters? - Management expects a revenue run rate of $45 million to $50 million for Peru, with delays in project renewals impacting current revenues [40][41] Question: How is the integration of Stellar Blue progressing? - Management reported good progress, with significant market acceptance and feedback, and expects to resolve supply chain issues soon [47][48] Question: What is the anticipated revenue structure for primary and secondary aviation markets? - Management indicated that 100% of revenues in 2025 will come from retrofit, with expectations for a 50-50 split between retrofit and line fit by mid to late 2026 [60] Question: What is the impact of tariffs on the business? - Management noted that the effect of tariffs is currently not significant, and proactive measures have been taken to shift sourcing to lower tariff countries [102]

Core Insights - Viasat has launched its next-generation in-flight connectivity solution, Viasat Amara, which integrates advanced satellite network design, hardware innovations, and digital products to enhance passenger experience and airline differentiation [1][2][7] - The solution is designed to provide scalable, high-capacity connectivity across multiple satellite orbits, including GEO, HEO, and LEO, ensuring a robust service for airlines [6][7] - Viasat Amara is built on existing technology, allowing for a simple software upgrade on over 3,000 aircraft, facilitating approximately 10,000 flights daily without the need for additional hardware [3][4] Product Features - The proprietary electronically steered antenna (ESA) terminal, Viasat Aera, will enable simultaneous dual-beam connections across various satellite orbits, enhancing the in-flight connectivity experience [4][5] - Viasat Amara's roadmap includes innovations that leverage a high-capacity ecosystem of satellites, including the recently announced LEO Ka-band capacity from Telesat Lightspeed [6] - The upgrade to the Viasat Aera terminal is expected to be completed in less than a day, utilizing existing infrastructure with no changes to the in-cabin network [5] Market Positioning - Viasat aims to help airlines maximize the potential of connectivity for brand loyalty and growth, offering flexible business models and a suite of digital products to enhance customer satisfaction [2][8] - The company emphasizes that no two airlines are the same, tailoring its offerings to meet the unique needs of each airline and user [8] - Viasat's ongoing innovations are positioned to maintain its leadership in the in-flight connectivity market, ensuring high-quality service and competitive advantages for airline customers [7][8]