So, the balance goes into that unfunded calculation. But again, we know what the customer is trying to achieve with the EDIM modem. We saw what they did in the prior EBEM modem historically. So, we feel good about that visibility.
Mike Crawford: Thanks. Mike, I would like to talk about maybe the EBEM modem in a second relative to the EDIM. But with the ongoing restructuring costs and also what, I guess, you build a strategic emerging technology costs, which I think might relate to EVOKE. Is that something that should remain in the $5 million a quarter range? Or when does that ever start to tail off?
Mike Bondi: So, yes, I’ll cover the restructuring first and then get to the strategic emerging technology cost. I think in terms of the restructuring, we will start to see that unwind over the course of this year. A lot of our discovery phase happened already. A lot of our migration to the Chandler facility and Basingstoke facility. That’s now behind us. So last year, towards the end of the year, we had a restructuring event with our workforce and that’s now behind us. We have immaterial amount of severance, I think, left to pay out. So, at this point going forward, we still are seeing opportunities to invest in the business to get it on a good footing going forward. So, if we see an opportunity, we will undertake the actions.
But I think at this point, over the course of the next several quarters, you’ll start to see that winding down. Similarly, with the strategic R&D, I would say that’s more for one specific customer that we’re incurring that R&D cost floor on a particular LEO program. As we’re getting through the development efforts, we’re seeing that market as being a lucrative one to be in. So, we’re looking to be a good partner with our customer and making our own investments there. And I would say, as they get closer to production orders that would also start to go down over time over the course of the year.
Mike Crawford: Okay. Excellent. Thank you. And then you — well, first of all, can you say what the revenue and/or EBITDA was of the divested PST business? And then, I guess, ancillary to that is, are those numbers adjusted for your credit facility, EBITDA and leverage calculations?
Mike Bondi: In terms of the first question, I will not be able to give you specifics pursuant to the stock purchase agreement in terms of the size of the organization. But it was a smaller product line for us. Relatively speaking, it was a nice, good, steady business, it had good strong margins. But from a revenue and EBITDA perspective, historically, in our numbers that’s in the historical numbers in our guidance of 1% to 3%. I would think of it this way. We’re increasing our guidance 1% to 3% on a base that included that product line. So, our guidance of 1% to 3% is actually probably higher if you would do like an apples-to-apples adjustment for it. But in terms of the actual revenue for the year and the EBITDA, I won’t be able to give you that specific, but look we viewed it as a immaterial product line.
Mike Crawford: All right. And then if I go back to your…
Mike Bondi: In terms of the credit.
Mike Crawford: Yes.
Mike Bondi: Yes. In terms of our credit facility that we have today, we’re in the process of looking to refinance that. So, I would imagine all of the efforts with the divestiture would be rolled into that refinancing of a new instrument.
Mike Crawford: Okay. Thank you. And then I guess a final question. Just getting back to the modem, the EBEM modem business that Viasat has had for 15-plus years, how many of those would you estimate or ever deployed in the field?
Ken Peterman: This is Ken. Yes, the EBEM program, which was a word to Viasat, EBEM is E-B-E-M and stands for Enhanced Bandwidth Efficient Modem. Contract was awarded about 15 or more years ago. And Viasat has deployed a little over 40,000 of those EBEM modems. It’s a single-channel modem that implements DoD waveforms for satellite communications. The program that we won is the EDIM program, Enterprise Digital Intermediate Frequency Multi-Carrier Modem. It’s distinctively different because there are eight modems in each of our units — each of our EDIM units. So, it also can utilize a variety of different waveforms that operate over a variety of commercial and military satellite networks. So, we expect — there’s every reason to expect that the — we will deliver tens of thousands of these modems over the program’s life.
Mike Crawford: Excellent. Thank you, Ken.
Ken Peterman: Sure.
Operator: [Operator Instructions] We’ll move next to George Notter with Jefferies. Your line is open.
George Notter: Hi, guys. Thanks very much. I was taking a quick look at the 10-Q filing. There’s some references in there to your lenders shrinking the size of the revolver or the term loan. Could you walk through what exactly is going on there?
Mike Bondi: Hi George, in terms of the amendment that we entered into on November 7 when we cleared the transaction with Stellant, we had gone to the banks to get the ability to take some of those proceeds and actually apply to the revolver instead of all going to the term loan. So, as part of our negotiations and they understand that we’re looking to refinance. We’ve been talking very closely with our existing lenders. I think they’re just looking to make sure that they’re holding our feet to the fire and we’re doing the same to make sure that we get this done expeditiously. So, I think, in our view, it was part of the overall negotiation to retain some of the proceeds on the sale.
