Core Viewpoint - Carronade Capital Management advocates for the separation of Viasat's Defense and Advanced Technologies (DAT) segment through a spin-off or IPO, suggesting this could unlock significant shareholder value, potentially raising the stock price to between $50 and $100+ per share [4][23]. Summary by Sections Strategic Review and Separation Proposal - Carronade emphasizes that the current valuation of Viasat does not reflect the true value of its DAT segment, which is seen as a high-growth, high-margin defense technology platform [2][4]. - The firm believes that separating DAT would allow both DAT and the Communications Services segments to pursue focused growth strategies and improve financial flexibility [2][22]. Financial Performance and Valuation - DAT has shown strong financial performance, with a nearly 17% revenue growth over the last 12 months and an EBITDA margin of 28% [6]. - The backlog for DAT grew by 50% year-over-year, indicating robust demand and a favorable book-to-bill ratio of 1.2x [6][15]. - Carronade's analysis suggests that Viasat's stock could be valued at over $50 per share based on a conservative EBITDA multiple compared to its peers in the defense technology sector [10][19]. Market Position and Growth Potential - The DAT segment is positioned in critical growth areas such as tactical networking, advanced encryption, and drone technology, which are expected to drive future growth [7][11]. - Carronade notes that despite the strong performance of DAT, the market undervalues it due to broader concerns regarding the Communications Services segment, which has a nearly 20% short interest [8][9]. Communications Services Segment - The Communications Services segment is expected to generate consistent positive free cash flow, supported by long-term contracts in the in-flight connectivity business and growth in government and maritime sectors [18][20]. - Carronade believes that the market has misunderstood the potential of the Communications Services segment, which could benefit from the deployment of new satellites and a shift towards higher-margin services [17][19]. Conclusion and Call to Action - Carronade urges Viasat's management to prioritize the separation of DAT as a key outcome of the strategic review, asserting that this move would be well-received by investors and would enhance the visibility and valuation of both segments [3][22][23].