Q1 2022 EchoStar Corp Earnings Call
Yeah.
Ladies and gentlemen, thank you for standing by and welcome to Echostar Corporation Conference call for first quarter 2010 to two results at this time all attendees are in a listen only mode. After the Speakers' remarks, there will be a question and answer session and to ask a question. During the session you will need to press star one on your telephone.
If you require any further assistance please press star zero.
Now I would like to welcome Mr. Terry Brown, Sir Please go ahead.
Thank you good morning, everybody and welcome to our earnings call for the first quarter of 2022.
Joined today by <unk>, our CEO and President David Rayner, COO, and CFO PRASM Kaul, President of Hughes, Dean Manson General Counsel and Secretary.
Ken Carroll EVP of corporate development.
As usual, we invite media to participate in a listen only mode on the call and ask that you not identify participants or their firms in your report.
We also do not allow audio recording which we ask that you respect.
We now turn the call over to Dean for the Safe Harbor disclosure.
Thank you Terry.
All statements we make during this call other than statements of historical fact constitute forward looking statements made pursuant to the safe Harbor provided by the private Securities Litigation Reform Act of 1095.
These forward looking statements involve known and unknown risks uncertainties and other factors that could cause our actual results to be materially different from historical results and from any future results expressed or implied by the forward looking statements.
For a list of those factors and risks please refer to our annual report on Form 10-K for the year ended December 31, 2021 filed on February 23, and our subsequent filings made with the SEC.
All cautionary statements, we make during the call should be understood as being applicable to any forward looking statements. We make wherever they appear you should carefully consider the risks described in our reports and should not place any undue reliance on any forward looking statements. We assume no responsibility for updating any forward looking statements.
I'll turn the call over to <unk>.
Thank you Dean and good day everyone.
I am pleased to participate in my first Echostar earnings call and I look forward to interacting with many of you in the future.
All of you are aware on those Johnson, our chief strategy Officer, and President of Echostar satellite services.
Decided to leave a costar to pursue other interests.
There's great success in his new endeavors, and we'd like to thank him for his tremendous contributions to our company.
Over the past 11 years.
Our agenda for the call today is to have our team provide a brief overview of the first quarter. Following the overview I will make some general comments on the business and competitive environment.
We'll then move to a question and answer session.
Let me now turn it over to Pat.
Can you help me.
Starting with North America, we continue to manage our U S consumer broadband sales and marketing efforts to optimize service to the existing subscriber base.
The Hughes team has several initiatives underway to help maximize their returns in the U S consumer segment.
In Q1, we adjusted the Hughesnet service plans, giving customers more data and increasing monthly fees.
New plans are being implemented across the U S base and are intended to provide a better customer experience.
Hi, Robert.
Yeah.
Another initiative in the consumer sector is an innovative product, which combines geo satellite and terrestrial LTE connectivity.
This is the first step in Sky consumer grade hybrid.
The technology sector.
So faster more responsive internet experience.
No way to bring this technology to select markets. This summer.
Our North American Enterprise view signed a significant contract with a new retail customer to provide secure.
<unk> services at their 700 locations.
We also closed upgrades and extensions with several customers in the pipeline industry.
Our defense business received new orders from them.
The U S space Force and Navy.
And then the civilian government sector.
And the award from the Department of veteran Affairs to continue to provide satellite services in support of SB eight knowledge network.
Yeah.
And an extension of the digital signage solution.
Social Security administration 1900 offices.
Activity remains.
It remains robust and the team continues a very active deployment fees for the global gateways to support one with global service.
Alright.
We announced another distribution agreement with one goal.
And to deliver new services to the U S D O D.
In another exciting development on the satellite and the satellite 2022 trade show in March are engineers demonstrated a revolutionary new electronically steered antennas.
Those.
Focused on the government and enterprise market.
<unk>, New ESC has no moving parts and a very low profile.
Ideal for fixed and mobile connectivity.
So, let's talk a little bit about our international operations.
He was net offering in Latin America like that in the U S continues to be capacity constrained in certain areas.
<unk> remains high.
These markets are also being impacted by adverse economic conditions.
In response, the team adapted our strategy to pursue more high value enterprise and government projects and community Wi Fi sites.
An example, during this quarter and the team won two new school projects in Latin America, using Jupiter system equipment and capacity.
Five service providers in Mexico selected Jupiter two.
The connects more than 7000, internet taxes and community Wi Fi hotspots.
Our surplus.
We will also cross cross more than 2300 active Hughes Express Wi Fi effects.
And we announced a successful pilot of our community LTE project in Brazil.
Uses geo satellite backhaul to connect and LTE tower.
Net.
All of these projects represent tangible progress.
Our plans to increase our yield on our Latin American capacity.
The Jupiter two satellite continues to progress as Baxter maxed out as providing an update on schedule and we now expect to launch Jupiter three in the first quarter of 2023.
Delay is due in part to reallocation of critical resources and Baxter to a higher priority government related spacecraft project.
Although we are disappointed with this delay we remain highly exciting about Jupiter three absolutely, bringing significant additional capacity to our markets.
There's the ability to offer high speed service blends as demanded by our customers.
Yeah.
All in all.
Very pleased with the execution.
During the quarter, let me now turn the call over to Dave.
Thank you Brandon good morning, everyone.
Our revenue in the first quarter of 2022 remained strong and was higher compared to the same period last year and also higher compared to fourth quarter of 2021.
While the growth of our consumer broadband business has been impact as a result of our capacity constraints and other factors. We have continued to increase revenue by capitalizing on enterprise and government opportunities both domestically and internationally.
However, this change in our revenue mix has and will continue to put some pressure on our margins.
As Prem had mentioned we have several initiatives in place to limit the impact of this change and we will remain prudent and efficient management of our business to protect our margins until we can monetize the additional capacity provided by the Jupiter three satellite.
Free cash flow defined as adjusted EBITDA minus Capex was $54 million during the quarter, increasing $47 million from the same period last year.
Our balance sheet remains one of the strongest in the industry and we continue to seek opportunities to deploy cash for growth.
In the first quarter of 2022, we bought back one 5 million shares of our stock in the open market at <unk>.
Cost of $35 million.
Let me now turn the call back over to Hamid.
Thank you Dave.
I want to begin by thanking my leadership team here at Echostar.
And all of our more than 2000 employees around the world.
Not just.
A warm welcome to me as a newcomer but for maintaining a solid track record of performance as.
As evidenced by today's results.
As we all know the satellite industry and I would venture to say the broader telecom industry.
Or I have spent a great portion of my business life is in the midst of as most rapid business and technological change in decades.
You've seen the rise of competition as well as opportunities in every vertical market and in every region of the globe, where echostar operates or serves customers.
I'm excited about the dynamic nature of our industry as I view, our position to be on the winning side of the equation, given our strong resources institutional heritage and financial flexibility.
I know that there are questions about our long term growth strategy, which I'm not prepared to address today, but I would like to mention that my leadership team and I.
In the midst of a fresh reassessment of our resources and opportunities.
And an examination of our industry and adjacent verticals with the goal to reignite and refine our corporate growth profile.
But even based on a preliminary view of the situation having been in my role just about a month today.
Serge did we are well positioned competitively.
I say it is for many reasons.
First we have a uniquely strong balance sheet something that most of our peers and competitors cannot say I think the benefit of this is strong balance sheet becomes more evident.
As interest rates rise and as the likelihood of a recessionary environment becomes meaningful.
Secondly, we have a global presence and trusted reputation worldwide.
Industry partners and customers want to work with our team.
Government and enterprises alike, we prefer working with a trusted partner during uncertain geopolitical developments as we are experiencing today.
Third we have a tremendous and I would say unmatched asset in our engineering capabilities.
And finally, we have unique span the spectrum assets that provide a strategic opportunities.
I am excited about accelerating our momentum in that domain and I want to share a couple of high level update on initiatives initiatives. We are focused on.
For one we are pleased that last month, the wireless industry's maintenance standards setting Association the third generation partnership project or three GPP.
Reached completion of its release 17.
Released 17 is the first to include non terrestrial networks for N T N into.
And to address satellite's role in the five key global communication ecosystem.
Satellite <unk> specifications include direct access to handheld devices, enabling global service coverage.
Because of its S band spectrum assets, which are standardized and three GPP echostar is positioned to become a leading global operator of five G. Mobile satellite services addressing direct to device mobility and Iot applications.
The other update is that Echostar mobile our EU licensee has begun pre commercial testing of its satellite based Lora Iot service.
Echostar mobile solution is the first real Tom bidirectional, nor our satellite service with mobile and remote capabilities and we expect it to transform the global satellite Iot market with new very low cost services and enhanced L. P Wan capabilities.
Among the many countering challenges and opportunities shaping this industry, we can be happy about one key fact, we are one of the few companies with significant ability to chart, our future independent of what other players in our industry may choose to do.
I believe any solid and defensible growth strategy requires careful thinking analysis and planning to be sure. The long term risk reward equation is asymmetrically favorable and while we will take investment leaves both organically and by acquisitions the core business the financial stability.
<unk> and independence.
We'll never be jeopardized.
I hope to participate in the Investor events post our second quarter of 'twenty, two earnings calls and to share more about the specifics of our strategic direction over the coming quarters.
Let me now turn it over to the operator to start the Q&A session.
As a reminder, if you wish to ask a question simply press Star then the number one on your telephone keypad. Once again, if you wish to ask a question simply press Star then the number one on your telephone keypad.
Your first question is from the line of Chris School from Quilty analytics Your line's now open.
Hi, Hamid and welcome aboard a question to start on the Hughes business and.
Specifically around some of the new pricing initiatives.
Was that implemented and does it still leave your general pricing strategy in alignment with other competitors in the market or are you now pricing at more of a premium.
Well, we implemented I think beginning in February of this.
This year.
And so we're beginning to see the impact on some of the Q1 results clearly shown to hire a pool.
The impact of this price increase.
So that's going well in terms of competitiveness.
It's it's fairly in the same range.
Primary competitor and obviously locked.
A.
Not lower than the.
Links.
Offerings in the market today.
I understand and I know that.
Whatever we have about a year for the satellite they come online, but how do you how and when do you begin to change the pricing plans to reflect.
The different types of service packages that will be offered with the Jupiter three satellite.
Well, it's a little premature to talk about the plans that we will have the Jupiter three but clearly we intend to give more goods to the customer we intend to do higher speeds to the customer and I think with the additional value that the customer gets it should position us.
Very strongly to be competitive in that market.
Great.
Just overall on the Hughes business.
You've had some really strong equipment sales I assume the majority of that year over year left which is due to one web gateways, how should we look at the equipment revenue out through the balance of the year is that activity starting to fall off.
No in fact, it's getting stronger.
New order input.
In Q1 was very good so our back backlog isn't that a Google business is high.
So I would expect that's going to be a strong part of our performance during the rest of this year.
Great and you didn't talk about the Bahar, well I guess, it skews communications India.
I got the name right.
The new Bill Hardy JV.
What is the plan there going forward now that Thats official and final are there any major changes in strategy that you have.
Yes, that's an exciting part I think of our international business.
No we own 65% of that joint venture Buzby.
The remaining 35%.
And.
We've already started.
Working together to come up with.
Strategy two <unk>.
<unk>.
Things like backhaul cellular backhaul Barbie and Ken as you know is one of the two leading sell another service provider.
India with over.
Over 400 million subscribers, so we expect that as.
<unk> gets implemented in India, <unk> is going to have a lot of.
<unk> percentage of backlog.
The new base stations each other.
And that business for most of it should come to this JV and we expect that to be a major part of our growth.
In India over the next two years. We also can can you give us supply.
Equipment to reliance deal, which is the other amnesia.
As a company in India, and we hope to continue to grow.
Part of our business too.
And are there any near term capacity concerns in the Indian market.
So I don't think we have any concerns right now I think the general general.
Market in India.
It's being run Unfortunately, which is highly regulated has founded changes has been major changes in the government.
<unk> announced.
They will.
Create an organization very similar to the FCC call engine space is back.
And I think Devon loosen up the regulatory issue a little bit it's not going to solve the doctor instantly, but I expect that there'll be some.
Nice.
Advances in.
Business in that.
Got it and final question on the east or flat panel antenna you announced.
Can you give us a little bit of history. There on the design of that product I know in the past you had partnered with Golan and others on flat panels, what was the size scale scope expense of that project.
And second question is where do you expect it to be positioned in terms of.
Price competitiveness with other.
Antennas on the market and is this solely intended or one web or would you be willing to sell that to other parties.
No, we certainly will senator or anybody in the market there's no exclusive.
Exclusive.
Agreement with Boswell, one and web is obviously going to be with because they have a ku band Leo.
A major.
The customer and also a major.
User of.
Often the CSA.
The original effort that we had done with Gilad.
Didn't really succeed very much so we have not pursued that anymore. This.
ESP is totally developed at Hughes.
All the elements.
Being manufactured initially at a huge factories.
And then.
We're very excited.
Potential customers are very excited too because it's a revolutionary new technology, no moving five very low profile, making it ideal for mobility and then a radical applications.
So.
It brings up a question if you designed it to.
The sort of aviation standards than this is clearly not intended to be a product that could in any way serve the consumer markets.
Consumer.
<unk>.
And so clearly you're absolutely right, it's clearly designed for mobility markets.
Logical being a big element of it and high ends of government markets and also the enterprise and enterprise market.
Very good thank you everybody.
Your next question is from the line of Ric Prentiss from Raymond James Your line is now open.
Hey, good morning, everybody.
Good morning.
I'll ask a couple of questions sorry, a busy earnings day back to back to back to back earnings calls.
Wanted to.
Yes, I mean.
A couple of questions first.
I apologize if this was asked or address what specifically attracted you to the opportunity.
Echostar.
As far as what you see in your first 30 days what have you learned so far about where some of the growth factors might be.
Thank you Rick for the question.
Yes, there are many factors that attracted me to Echostar and Hughes family first I was familiar with part.
Part of the company I had been a customer of us some 25 years ago.
Man hours part of them, a very high profile company and Hughes was a technology and product supplier and I was incredibly impressed by the capabilities of the company in terms of innovation, bringing solid technology I'm a technology is at the heart innovation at the heart.
And I believe you know one of the best opportunities in today's market and going forward.
Is to bring disruptive technologies and great technical services to market and I think the foundation here is extremely solid and I was familiar with it and in fact familiar with many of the players including Trackman here sitting next to me.
Other than that.
I came from a private equity background at least for the past five or six years of my life I've been very very actively involved in technology investments in TMT investments when I look at the balance sheet here I recognize that there's a significant opportunity for exposing value in the business that has been undervalued now I don't want to set a high expectation that you will see something.
Happening in Iraq, I have never been a I was never and I will never be a rash investor I will never be a speculative investor.
Like to use our <unk>.
First understanding of the environment that dynamics of the market, which we have been serving for decades.
To use our balance sheet, but we will be more active in terms of using our cash and our.
Abilities to expand our business using our resources and as I mentioned in my.
Earlier comments I think the market is heading in a direction where opportunities will be cheaper and better to acquire and I look forward to using our resources, even more optimally as that happens.
Long answer to your short question, but I thought that probably will cover of three or four S question follow on question Jake.
Exactly.
Kind of open the door to potential acquisitions what is it.
Hughes Echostar.
Really needs us.
New regions is it new customer bases is it new technologies, just kind of as you take a kind of a Swat analysis.
What are the strengths weaknesses opportunities and threats that you looked at it and then you see having a battleship balance sheet to put to work.
Be on a very high level something that's of interest.
So it certainly is not technology I think we have plenty of technology home I'm, not I'm, not expecting or looking he might happen in adjacencies, but in terms of how much technical power. We have in house I think we have plenty to harvest. So that's probably not a.
A shortfall in any way if there are areas, where we should be focusing on is how do we take these technologies into market new markets adjacent markets are hot.
Can we gain a scale, where perhaps organically he might take too long.
It can be accelerated in some of the areas, where we have capabilities.
Through acquisitions.
So those are routes to market and products to market to me would be.
<unk> would be the focus area, rather than innovating, new technology, which we have plenty of in house and we can do.
I guess that will is not.
It is not an inhibitor of our growth.
Okay.
Other one for me is a lot of times when new executives come in to accompany their compensation package talks a lot about.
What the important metrics or can you share was a little bit about if you've got some.
Some accomplishment goals that are tied to say revenues or EBITDA or free cash flow or return on capital.
Where's your incentive out and whatnot.
Metrics are you going to be looking at from a personal selfish standpoint of hey, I want to make sure we do well here because it will it will serve me well and hopefully served the shareholders well as also.
Right, So I would say.
I mean at the moment, obviously the compensation packages are what they have been published and there is no plan to change that in the.
In the course of this year for sure, but I think what Mike.
The way I think about this as being most effective is we are in the middle of.
Our strategic evaluations and thinking and he's going to take us a few months too.
Get to a platform, where we feel is the fair.
Fair space, let's call it.
And that will be the foundation for our compensation plans for the following year and also I think we adjusting timing in terms of doing that work in preparation for incentive systems that would promote Prague.
Progress in the direction that we want to go. So this is probably a good discussion to have towards ended the year, where we had a little bit more.
I guess orchestrated and organized around our strategic directions, I don't want to say that we don't have a strategic directions. We certainly will utilize what we have is great great plans around Jupiter three they're great plans around the expansion of our products that you heard crab then offer towards one web two towards other government.
Sectors and so no.
There is a significant amount of the strategic work that has been done and we are executing on.
The job is to accelerate that I think we could do this in hopefully on our S band.
Area and certainly.
In the directions that we are seeing progress already and just want to double down. So this would be more of an acceleration rather than <unk>.
<unk> back to a.
Blank sheet of paper, which certainly is not necessary here.
Great. Thanks, I'll, let some others ask some questions and come back and if Theres time, Thank you and welcome to the space.
Thank you.
Your next question is from the line of scatter Henry from Quilty analytics. Your line is now open.
Okay.
Hey, everyone just two or three questions from me. The first is on the flat panel antenna that was discussed earlier.
That already something that.
Star is selling and shipping or is that still in development and if so what is its release date.
So it's still in development to be the business, a prototype and done some prototypes demonstrations.
As opposed to units we should be in production early next year.
Okay, and what's your target price range for that.
I don't think we are discussing our pricing price strategy at this stage, but obviously see what the market.
It's like.
All the different applications. So I don't think we're ready yet, but what I can tell you. Though is if you just look at the bill of materials it should be very competitive.
Other units that you've seen in the market so far.
Okay.
And while I have you.
Is there any plan to procure I know in the past Echostar has leased capacity from other operators when they kind of capacity constrained do.
Do you anticipate any more capacity leases between now and Jupiter three.
You know, we're constantly looking at that and people who have excess capacity, especially over in North America.
Uh huh.
I'm talking to us.
Unfortunately, we haven't yet seen economically compelling do you from any of those guys.
If we can come up with one and I'm sure we would.
Valuate that then.
Because this can only help our business, but the economics are tough.
It has to make sense economically.
Okay.
And then my last question.
Regarding our S band and the some of the progress with three G. P. P. I was just wondering if that gives any clarity to echostar regarding your Leo constellation I think theres, the one Iot keeps that in orbit.
Have any of the plans been fleshed out for what that future system will look like.
It's a bit too early for us to answer that but I can certainly say that the.
<unk> on three GPP and a five G.
Inclusion for satellites that are standard.
Opens up.
Clearly a few angles on routes to monetizing our spectrum assets, which we are deeply analyzing and looking at certainly this was not a not a news to us that happened yesterday, we've been part of that activity ourselves than have been very supportive of that with a view that it would be helpful.
In terms of bringing satellite connectivity to pockets, which is they are already there. So.
We're excited about it.
There's still quite a bit of work to be done not just by us, but also the rest of the industry trying to figure out the technology build and commercialization of that but from a framework of the opportunity I think the clarity is is there and we understand that this will happen and we in one form or fashion we.
We'll participate in that and the question is exactly what and please allow us a.
So too and maybe maybe two two for us to kind of shape that and share that with you in more detail.
Okay. That's all my questions. Thank you guys and welcome to the industry.
Thank you.
Your next question is from the line of median <unk> from <unk> capital. Your line is now open.
Hi, guys hope you're doing well I just quickly.
Quickly could you maybe give us a sense of given the delays in Jupiter three maybe the cadence of Capex over the next year.
Year, and then maybe just talk through just given where the stock is just talk through some of what you mentioned earlier I made on kind of new capital projects and sort of what the hurdle is there versus continuing sort of aggressively buy back stock and then.
The second question is really.
I know we've talked about this in the past, but anything you can tell us around Jupiter three.
And sort of enterprise, our wholesale opportunities, whether it's mobile backhaul or anything else.
That could sort of come on quickly versus.
And I was just a ramping of.
Consumer subscribers.
Let me address the first part of this is Dave Rayner.
From a capex standpoint, I would expect capex to be somewhat below where we were in 2021.
<unk> in the $400 million range.
A significant portion of that is continuing to go into CPE.
Consumers.
And that will on a per customer basis, it will probably start ticking up.
In the second half of the year as we start deploying a new generation.
Modem and anticipation of G III.
But we also know as you correctly pointed out we will have final payments on J three as well as launching another ground infrastructure that'll be completed this year.
Let us meet Bradman address rest of the question.
Maybe you can comment on there.
The hurdle rate.
In terms of an investment hurdle rate I'm not anticipating that we would have a very specific target because.
Part of that is.
He is a function of the market.
But I did mention earlier that I believe.
We might do even better in terms of our opportunities in the market in a more downmarket, a recessionary market and I'm not looking forward to that in a you know from a personal perspective and I hope that from.
Economic growth perspective perspective of the market I hope that is not a long lasting something you know anything but if it turns out that the market is heading towards softening and we have seen the tech sector and the adjacent sectors to us are becoming a little cheaper you have seen the valuations come down to more.
Historical levels as opposed to just recent times that had been a bit over inflated. So I think that the market is heading our way, let's put it that way but.
We.
Trade.
Buying our own shares versus the acquisitions will certainly our desire is that we shifted towards acquisitions from outside in and growth of existing customer base.
But we always have the option of coming back and making sure that our.
Picking up our own shares if we think deal is significantly undervalued, you'll see us hopefully more active again I don't want to set expectation that after 90 days, maybe even a job the market has changed so much or I changed the company. So much debt that would be a little.
Too exuberant and I too rash, but you can certainly.
Except that the focus is very high on making sure we utilize our resources most efficiently.
Yeah.
Another piece of this question if you don't mind repeating that please.
Oh, Yeah of course, a problem it's just.
Around enterprise opportunities, our wholesale opportunities for Jupiter three.
You know early on since we're only now a year away versus.
That the consumer ramp that we saw consumer subscriber ramp we saw with Jupiter one and two.
Yeah sure I think clearly.
The two major new applications, we see in the enterprise sector.
Cellular backhaul and the <unk>.
Community Wifi both of them use the fact that we can.
Increased the productivity use.
Our bandwidth and get a higher.
Price per Hertz.
And with that we have in these two satellites.
So that's the probably the primary difference.
We'll obviously continue to serve the enterprise market and continue to serve the.
Defense markets.
And then add on these to other markets too.
To it.
Okay. Thank you appreciate it.
Your next question is from the line of Ric Prentiss from Raymond James Your line is now open.
Yeah, Hey, Thanks appreciate some follow ups.
Want to add.
Ask obviously Anders.
He's a he's retirees resigning effective in about four weeks or so from now.
Can you walk us through a little bit about.
How you see that playing out in the SaaS and the S band work, how deep is the pension and what does it mean as far as our thoughts on what.
Andrew Levy means to that.
That segment and the potential growth.
Right.
Well first of all I want to thank <unk> for his great contributions to the company past 11 years. He leaves a great legacy here.
And he also leaves a great great team behind we have a very deep bench in house.
In that area so.
And I personally have interesting.
Being involved.
In every aspect of.
Developing that practice I do have as I mentioned, some technical background myself I started my career as a telemetry engineering and the S band for NASA satellite.
And so the love of Est plant has always been in my heart.
And.
So I.
I guess, a long way of saying I don't think you should see us as having lost or losing.
Critical resources August was incredible in terms of his leadership, but we will.
Rally around our team here in <unk>.
Tribute my own personal attention to it to make sure that nothing gets reduced there if anything.
We are shifting more resources there in order to make sure.
We are.
Keeping up with the opportunity that is everyday getting better in that space.
So please don't read anything into it in terms of <unk>.
Negative aspects other than we.
We have a we have a very good team and that team is is interfacing with me directly at the at the top level of the business.
We saw some.
Press releases fairly recently about dish.
Dish sister company dish and Echostar Hughes working under Department of Defense contract jointly.
It was a little bit of details of what kind of partnerships are.
Interest between the sisters of dish and Echostar soft shoes that might pan out over the coming next two years.
Yes.
Clearly this is a very.
Writing part.
Okay.
New opportunities in our business and we are working with.
Excuse me, Brian Echostar, he was being prime and this being the subcontractor along with other people.
It's a naval base that we have.
Providing a <unk> network.
At the base.
It's going to be interesting to see how that element of our business grows because it's a new new area for us to enter.
So the moroccans.
Yes.
Hopefully, we will know who we.
I'll try to take it to the next step over the next few months.
Okay.
Speaking of dish.
Any of us will be attending workforce analysts investor day in Boston, almost 20 years as a major Interstate addition, certainly one of the.
Investors thoughts on both dish and Echostar is.
Not much communication with the street.
<unk>.
I mean as you come in.
Hopefully, we're looking forward to a lot more communication as you get longer in the seat there, but how do you think about communicating with the street.
I'll throw one more out there as well as in under followed stock.
There's a lot of <unk>.
Gaps in knowledge.
Any thoughts about even high level.
<unk> targets or growth targets was onto other earnings call. This morning, where companies were updating our guidance we're talking about their guidance.
Any philosophical.
Problems with providing at least aspirational targets for kind of longer term targets, because that's an underpowered. So I can certainly.
Causes people to.
Have a lot more.
Concerning your questions.
I appreciate the question but.
It would be imprudent, and you would not you should not rely on it if I gave you any guidance after 30 days in the job.
If I go back to you.
Is it something you would consider doing yeah.
Now certainly if I say anything right now would be.
Not having a solid foundation and you would not trusted anyway.
Let me please allow me to have.
A bit more understanding of the business look I can probably obviously never make a comment on dish regardless. So that's that's a different public company that we have an arm's length relationship with I.
I think we do have a connection that determine level, but honestly.
That's just about it the rest of it is.
Business.
As he would do with any any other company.
Like dish from our perspective that they are doing innovative things in their space. They are building new things and you know that.
They're bringing new technologies to market. Some of those things are hopefully are relevant even for us like some of the open ran and <unk>.
Some of the things Theyre doing which ultimately on a tree GP.
Basis and deployment basis is also applicable to our our business here at Echostar. So.
I think we see a lot of I see a lot of synergies in terms of their innovation and what they're bringing to market and what we hope to bring to market.
I think.
That just about it.
I certainly cannot give you any guidance or changing the guidance today.
But.
Let's just revisit this question again in a quarter or two where I am.
More comfortable sharing.
Yes, it makes sense and I guess the other piece of that question was just related to just as finally opening the kimono and then sharing with them all day Investor day, what time their plans are and what their vision is as you look at Jupiter three on the schedule now for first quarter 'twenty three the S band hopefully getting more clarity on that.
You see in the future possible Echostar, maybe even hosting an analyst day to kind of get people up to speed on what Jupiter. Three is an S. Band really are just are going to help people get some hires and understand where you're headed again not in the next day or two or even maybe the next quarter or two but is it something philosophically that.
It would be interesting.
Certainly one of the things we'd like to do I'd like to do is to have more interaction with the market.
I think one of the things that we can benefit from is.
Being more interactive with you.
Being more communicative.
I believe we have just by if you just look at our balance sheet. If you look at the structure of our company.
We have.
More valuable information and assets and products to expose to you.
So it is my intent that we increase our interaction with you, but as I mentioned in my earlier.
Standard comment was that.
I need a quarter or two for us to be sure that when we take your time and we share something with you, it's valuable and and you can rely on it.
But but.
We are heading in the direction of being more communicative and more interactive with you in more open with respect to our our opportunities.
Great I appreciate it and I'll see if there's some more questions. Thanks, guys stay well.
There are no further questions presenters. Please continue.
Okay.
We want to thank everybody for joining the call today and.
We wanted with that we want to go ahead and conclude the meeting so we'll look forward to talking to you next.
Next quarter.
Thank you everyone see you soon.
Okay.
And with that this concludes today's conference call. Thank you for attending you may now disconnect.
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