Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of James Ratcliffe – Barclays Capital
James Ratcliffe – Barclays Capital
Couple of questions, first off can you talk about how you see the ViaSat WildBlue deal effecting the US consumer SMD market dynamic.
Pradman Kaul
We don’t really see much of a change in the competitive market dynamics from today. As you know today there are two of us competing this market, WildBlue and us. WildBlue has their space segment capacity today with Anik F2 and WildBlue 1, and we have SPACEWAY and WildBlue uses ViaSat’s technology and equipment and we use our own.
Once this acquisition is complete and nothing really changes, there’ll still be two competitors in the marketplace and the two competitors will be using their own satellites and one will be using ViaSat’s hardware technology, the other will be using our, we’ll be using obviously our technology. So I don’t really see any change in the market dynamics.
James Ratcliffe – Barclays Capital
Do you think there’s a timing issue at all in terms of the timing of the ViaSat 1 launch versus the Jupiter launch in that they may have an edge for some period of time when you’re essentially maxed out on SPACEWAY 3.
Pradman Kaul
We don’t expect to be maxed out on SPACEWAY 3 in that timeframe. We are planning on SPACEWAY 3 to be available for our consumers into the time period that we expect to launch Jupiter. So really I don’t see any advantage one way or the other. In fact, to be honest we believe we have an advantage between now and the time ViaSat 1 is launched because we have capacity in SPACEWAY all over the country and as you know, WildBlue has had to close a few beams now and then to account for saturation of beams.
James Ratcliffe – Barclays Capital
And working cap particularly looks like receivables were a major source of cash in the quarter is that sustainable or should we expect to see that reverse in future periods.
Grant Barber
Well what we did as you know its been a significant focus of ours both on collecting on the receivables that we have and extending the payables as much as possible as well. So the combination of the dropping the DSO to approximately 60 days for us down from the 63 to 65 that we’ve traditionally been has been a big source of cash in the quarter.
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