GEO Decline Deepens, Lightspeed Anchors Growth Hopes.
Erosion continues. Q2 revenue plummeted 30.4% y/y to $106.1M, mainly due to shrinking business with two North American DTH customers, lower consulting revenues, and an Indonesian broadband program that switched to local operators. Telesat hasn’t ordered a new GEO satellite in a decade and has put all current hopes on Lightspeed.
LEO backlog flat. Lightspeed business stood at $1B despite a new deal Australian telco Vocus during the quarter. Management blamed currency conversions, as the Canadian dollar strengthened against the U.S. dollar. GEO backlog was $0.9B, down 18% y/y.