Viasat Wins Contract from Northrop Grumman on U.S. Air Force's Commercial Space Internet Experiments

Rhea-AI Summary

Viasat, Inc. (NASDAQ: VSAT) secures a contract from Northrop Grumman to support the U.S. Air Force Research Laboratory initiative, 'Global Lightning,' integrating high-capacity geostationary satellites for military internet services. Viasat's ViaSat-3 Satellite Communications Network will enable military users to access high-bandwidth satellite internet connectivity from existing USAF aircraft or ground vehicles.

Insights

Defense Technology Analyst

The contract awarded to Viasat by Northrop Grumman to support the U.S. Air Force Research Laboratory's 'Global Lightning' program represents a significant advancement in integrating commercial satellite communications within military operations. This collaboration underscores the strategic importance of satellite technology in modern warfare, where high-bandwidth and reliable communication systems are critical for mission success.

From a defense technology perspective, the integration of Viasat's ViaSat-3 Satellite Communications Network into military systems provides a dual-use capability that enhances operational flexibility. The use of open standards, such as OpenAMIP, CMOSS and SOSA, is a critical factor in this integration, as it allows for rapid incorporation of advancements and interoperability among different systems. The move towards open systems architecture is a trend within the defense industry aimed at reducing costs, increasing competition and improving the speed at which new technologies can be deployed.

Financial Analyst

The announcement of Viasat's contract with Northrop Grumman could potentially have a positive impact on Viasat's financial performance and stock valuation. Contracts with the defense sector often provide a stable revenue stream due to the long-term nature and size of government contracts. Investors may view this as a positive signal for Viasat's future earnings and stability.

However, the defense sector is known for its rigorous testing and validation processes, which can impact the timeline and cost efficiency of projects. Monitoring the execution of the contract and its impact on Viasat's margins will be essential. The market will also be attentive to how this contract affects Viasat's competitive position within the satellite communications industry, particularly regarding its ability to secure additional government contracts.

Market Research Analyst

The growing demand for enhanced military communication capabilities is a key driver for the satellite communications market. Viasat's involvement in the 'Global Lightning' program could set a precedent for future commercial-military partnerships. The successful integration and demonstration of Viasat's technology in military applications may lead to increased market demand for their products and services, not just within the U.S., but potentially from allied nations seeking similar capabilities.

It is also important to consider the broader implications of this contract on the satellite communications market. As military entities increasingly rely on commercial satellite networks, companies like Viasat may benefit from the expansion into new market segments, potentially leading to a diversification of their customer base and revenue streams.

The company's high-capacity geostationary satellites will support the program, which is connecting commercial space internet services for military users

CARLSBAD, Calif., Feb. 29, 2024 /PRNewswire/ -- Viasat, Inc. (NASDAQ: VSAT), a global leader in satellite communications, has been awarded a contract from Northrop Grumman to support the U.S. Air Force Research Laboratory (AFRL) initiative, called the Defense Experimentation Using Commercial Space Internet (DEUCSI) Call 003 program – better known by its nickname 'Global Lightning.'

Northrop Grumman was awarded a four-year contract to test how defense contractors and commercial satcom providers could integrate space internet services into existing military systems. As part of its contract with Northrop Grumman, Viasat will provide its ViaSat-3 Satellite Communications Network to enable military users to easily access high-bandwidth satellite internet connectivity from existing USAF aircraft or ground vehicles.

Under the deal, Viasat will integrate its ViaSat-3 modem into Northrop Grumman's open systems processors and antenna solutions to conduct experiments demonstrating its use on multiple platforms. The modem is aligned with open communications and IP-protocol standards in use by the military, for example OpenAMIP, CMOSS, and SOSA. Open standards have been identified as a top priority for the Department of Defense because they enable faster adoption of new communications technologies so military users can keep up with industry innovation. The ViaSat-3 modem is a low size weight and power embeddable module that can seamlessly integrate with multiple mission systems by operating with open standards.

"Global Lightning is about delivering flexibility and agility for military users," said Victor Farah, Head of Viasat Government Systems. "Our reliable satellite services - coupled with the open source optimized ViaSat-3 modem - are designed to be able to offer game changing communications capability so they can connect with ease and deliver mission success. We are delighted to be working on the program to offer our expertise across USAF's defense platforms."

About Viasat
Viasat is a global communications company that believes everyone and everything in the world can be connected. With offices in 24 countries around the world, our mission shapes how consumers, businesses, governments and militaries around the world communicate and connect. Viasat is developing the ultimate global communications network to power high-quality, reliable, secure, affordable, fast connections to positively impact people's lives anywhere they are—on the ground, in the air or at sea, while building a sustainable future in space. In May 2023, Viasat completed its acquisition of Inmarsat, combining the teams, technologies and resources of the two companies to create a new global communications partner. Learn more at www.viasat.com, the Viasat News Room or follow us on Facebook, Instagram, LinkedIn, X or YouTube. 

Forward-Looking Statements
This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934.  Forward-looking statements include, among others, statements that refer to the availability of Viasat resources supporting the program, and the features and performance of such resources.  Readers are cautioned that actual results could differ materially from those expressed in any forward-looking statements.  Factors that could cause actual results to differ include: risks associated with the construction, launch and operation of satellites, including the effect of any anomaly, operational failure or degradation in satellite performance; our ability to successfully develop, introduce and sell new technologies, products and services; audits by the U.S. Government; changes in the global business environment and economic conditions; delays in approving U.S. Government budgets and cuts in government defense expenditures; our reliance on U.S. Government contracts, and on a small number of contracts which account for a significant percentage of our revenues; reduced demand for products and services as a result of continued constraints on capital spending by customers; changes in relationships with, or the financial condition of, key customers or suppliers; our reliance on a limited number of third parties to manufacture and supply our products; and other factors affecting the communications and defense industries generally. In addition, please refer to the risk factors contained in our SEC filings available at www.sec.gov, including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update or revise any forward-looking statements for any reason.

Copyright © 2024 Viasat, Inc. All rights reserved. Viasat, the Viasat logo and the Viasat Signal are registered in the U.S and in other countries to Viasat, Inc. All other product or company names mentioned are used for identification purposes only and may be trademarks of their respective owners.

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SOURCE Viasat, Inc.

FAQ

What contract did Viasat secure and from whom?

Viasat secured a contract from Northrop Grumman to support the U.S. Air Force Research Laboratory initiative, 'Global Lightning.'

What is the program that Viasat is supporting with their satellites?

Viasat is supporting the Defense Experimentation Using Commercial Space Internet (DEUCSI) Call 003 program, also known as 'Global Lightning,' for military internet services.

What is the name of Viasat's satellite communications network being used in the program?

Viasat is using the ViaSat-3 Satellite Communications Network to provide high-bandwidth satellite internet connectivity for military users.

Which military users will benefit from Viasat's satellite internet connectivity?

Military users from existing USAF aircraft or ground vehicles will benefit from Viasat's high-bandwidth satellite internet connectivity.

What technology will Viasat integrate into Northrop Grumman's systems for the program?

Viasat will integrate its ViaSat-3 modem into Northrop Grumman's open systems processors and antenna solutions for the 'Global Lightning' program.