Question-and-Answer Session
Operator
(Operator Instructions)
We will take our first question from Jim McIlree with Colin Stewart.
Jim McIlree - Colin Stewart
Thanks. Good morning.
Martin Kits van Heyningen
Good morning.
Jim McIlree - Colin Stewart
On the services revenue, is the increase in services revenue on a quarter-to-quarter and year-on-year basis primarily related to the mini-VSAT service or was there growth in, let's call it, the legacy services business also?
Martin Kits van Heyningen
There was growth, Jim, let me check a couple of numbers. The biggest absolute growth and percentage wise was certainly in the VSAT airtime services, especially since last year we did not have.
Jim McIlree - Colin Stewart
Right, right. I was speaking more quarter-to-quarter. I mean, you are seeing --.
Martin Kits van Heyningen
We saw a growth in Inmarsat airtime. We saw a substantial, obviously, increase in the VSAT airtime. We also saw as included in that service number is non-warranty repair work, and we saw some increases there as well.
Jim McIlree - Colin Stewart
Okay. I think last around you talked about the amount of airtime that customers are taking?
Martin Kits van Heyningen
Yes.
Jim McIlree - Colin Stewart
At least your initial experience with that, has that changed at all, up or down?
Martin Kits van Heyningen
Yes, it has changed a bit. It seemed to be drifting higher now, so, I would tell you that we are seeing customers used more of other services than we expected.
Jim McIlree - Colin Stewart
Like 10% more or 20% more, a little bit more?
Martin Kits van Heyningen
In a range I think, worst that we are thinking it will be 1,800, and now we are 2,000, it is going a little bit above that now. So, I would say 10% is reasonable.
Jim McIlree - Colin Stewart
Okay, great. Pat, you mentioned that TACNAV refurbishment, that is primarily a US customer?
Pat Spratt
Yes, it is. That is for TACNAC systems that were deployed on vehicles that have been in Iraq and Afghanistan.
Jim McIlree - Colin Stewart
Right.
Martin Kits van Heyningen
It’s part of a normal reset and refurb program that they go through. So the service category includes not just airtime, it also includes government funded engineering services as Pat mentioned, the non-warranty repair service, anything that is not product is put in that category now.
Jim McIlree - Colin Stewart
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