Financial Data and Key Metrics Changes - The company reported a net loss of $56 million for Q1 fiscal 2026, compared to a net loss of $33 million in the same period of 2025, primarily due to increased depreciation and amortization and a higher income tax provision [6][19] - Revenue grew by 4% year over year, driven largely by double-digit growth in the defense and advanced technology segment [6][19] - Adjusted EBITDA increased by 1% year over year, reaching $408 million, with a 35% adjusted EBITDA margin [14][19] Business Line Data and Key Metrics Changes - Communication services revenue was $827 million, flat compared to the prior year, with growth in aviation and government SATCOM offset by declines in maritime and U.S. fixed broadband [21] - Aviation revenue grew by 14%, driven by a 9% year-over-year increase in commercial aircraft and service [21] - Defense and Advanced Technologies segment awards increased by 22% to $428 million, with revenue up 15% to $344 million, primarily from InfoSec and Cyber Defense [24][25] Market Data and Key Metrics Changes - The maritime business saw a 5% year-over-year decline in revenue, while fixed services and other revenue decreased by 13% due to a decline in U.S. fixed broadband subscribers [22][23] - The company ended the quarter with 172,000 fixed broadband subscribers and an average revenue per user of $115 [23] Company Strategy and Development Direction - The company aims to position fiscal 2026 as a launch year, focusing on optimizing the integration of ViaSat and Inmarsat resources to establish growth opportunities and enhance earnings power [10][11] - The strategy includes reducing capital intensity while investing for growth in target markets, with a goal to exit fiscal 2026 with a solid foundation for accelerated growth and cash generation [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as slow recovery in OEM aircraft delivery rates and pressures in U.S. fixed broadband until the ViaSat-three flight two is in service [13][14] - The company expects fiscal 2026 revenue to increase by low single digits year over year, with flattish adjusted EBITDA growth [28] Other Important Information - The company generated $60 million of positive free cash flow in the quarter, bringing the trailing twelve months total to $88 million [20] - Capital expenditures for the year are expected to be about $1.2 billion, including $250 million for the completion of the ViaSat-three constellation [29] Q&A Session Summary Question: How does Trellisware compare with mobile ad hoc networking peers? - Trellisware's system is based on a proprietary networking waveform designed for ad hoc mesh networking, while competitors like Silvis primarily use WiFi [39][40] Question: What is the general penetration of next-generation encryption products? - There is a significant upgrade cycle driven by the need for national security encryption systems to be robust against quantum computing [45][46] Question: Can Trellisware's technology be used for aerial platforms and weapon systems? - Yes, Trellisware's technology can extend to unmanned aerial vehicles and other platforms, although the initial focus has been on specific military applications [43][44] Question: What is the company's philosophy regarding potential business separations? - The company evaluates its portfolio based on synergy and capital needs, considering whether keeping businesses together provides benefits or if separation would be more advantageous [59][62] Question: How does the company view shared infrastructure in satellite operations? - The company believes shared infrastructure can reduce capital intensity and improve efficiency, allowing multiple operators to benefit from a common system [65][66]