| Segment Revenues, Expenses and Operating Profits (Losses) |
Segment revenues, expenses and operating profits (losses) for the three months ended June 30, 2026 and 2025 were as follows:
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Three Months Ended |
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June 30, 2026 |
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June 30, 2025 |
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(In thousands) |
Revenues: |
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Communication services |
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Aviation services |
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$ |
324,381 |
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$ |
292,892 |
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Government satcom services |
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211,734 |
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191,768 |
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Maritime services |
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109,502 |
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117,801 |
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Fixed services and other services |
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127,425 |
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174,737 |
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Total services |
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773,042 |
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777,198 |
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Total products |
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52,041 |
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50,173 |
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Total communication services revenues |
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825,083 |
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827,371 |
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Defense and advanced technologies |
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Total services |
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59,396 |
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49,172 |
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Information security and cyber defense products |
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93,991 |
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102,148 |
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Space and mission systems products |
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66,860 |
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87,973 |
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Tactical networking products |
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92,570 |
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68,279 |
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Advanced technologies and other products |
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18,643 |
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36,111 |
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Total products |
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272,064 |
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294,511 |
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Total defense and advanced technologies revenues |
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331,460 |
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343,683 |
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Elimination of intersegment revenues |
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— |
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— |
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Total revenues |
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$ |
1,156,543 |
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$ |
1,171,054 |
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Expenses: |
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Communication services |
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Depreciation |
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$ |
221,193 |
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$ |
246,749 |
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Stock-based compensation expense |
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14,153 |
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8,312 |
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Other than acquired intangible assets amortization (1) |
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11,234 |
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14,009 |
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Acquisition and transaction related expenses |
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2,890 |
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7,874 |
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Other segment items (2) |
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513,184 |
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509,551 |
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Total communication services expenses (3) |
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762,654 |
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786,495 |
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Defense and advanced technologies |
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Depreciation |
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12,515 |
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10,952 |
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Stock-based compensation expense |
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10,038 |
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6,395 |
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Other than acquired intangible assets amortization (1) |
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5,281 |
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4,893 |
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Acquisition and transaction related expenses |
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1,166 |
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1,851 |
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Other segment items (2) |
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252,563 |
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248,055 |
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Total defense and advanced technologies expenses (3) |
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281,563 |
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272,146 |
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Total expenses |
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$ |
1,044,217 |
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$ |
1,058,641 |
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Operating profits (losses): |
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Communication services |
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$ |
62,429 |
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$ |
40,876 |
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Defense and advanced technologies |
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49,897 |
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71,537 |
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Elimination of intersegment operating profits (losses) |
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— |
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— |
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Segment operating profit (loss) before corporate |
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112,326 |
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112,413 |
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Corporate: |
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Amortization of acquired intangible assets |
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(65,018 |
) |
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(65,741 |
) |
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Interest income |
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15,391 |
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14,290 |
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Interest expense |
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(82,304 |
) |
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(100,357 |
) |
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(Loss) gain on extinguishment of debt, net |
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— |
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(288 |
) |
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Other income (expense), net |
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(306 |
) |
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(5,164 |
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Income (loss) before income taxes |
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$ |
(19,911 |
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$ |
(44,847 |
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(1)Including amortization of capitalized cloud computing implementation costs. (2)Other segment items include operating expenses such as cost of service and product revenues, selling, general and administrative expenses, IR&D expenses and related activities excluding allocable portion of depreciation, other than acquired intangibles amortization, stock-based compensation, and certain significant items that are disclosed under each segment. (3)For the three months ended June 30, 2026 and 2025, IR&D expense and related activities, including allocable depreciation, stock-based compensation and other expenses were $28.4 million and $19.2 million, respectively, for the communication services segment, and $17.1 million and $15.0 million, respectively, for the defense and advanced technologies segment.
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