Lance Vitanza: Yes.
Mike Bondi: Yeah, I think the way to — Yeah, the GFSR contract, I think the way to think about it is it’s close to a five-year type contract. Once you get up running at full scale, could be several hundred positions that the Army is looking to field globally. And so, those fielding plans will be set once we get going. The first quarter or two is going to be a still ramping up mode. Certainly, it’s going to be a meaningful annual contribution if you just take a carving up to $544 million over like five years.
Ken Peterman: Yeah.
Lance Vitanza: Perfect. Now, that’s exactly what I was looking for. And then on the Ohio 911 contract, $85 million total, $21 million I think you received I guess as a pre-payment in July and I assume that then you probably booked that as deferred revenue or it’s a prepaid amount, so that’s going to create some non-cash EBITDA in fiscal ’25 when you actually start recognizing that. Is that right? And maybe just talk a little bit about going forward, what the differential between the timing of the future cash inflows versus future revenue recognition, if there is going to be continued differences there?
Mike Bondi: Lance, on this particular contract, the $21 million was the initial funding that was signed into the budget at the end of July. So, in terms of cash flow, I don’t believe there was anything meaningful on that initial funding. What we’re going to do now is start the design work and getting ready to architect the platform for the state. And so that’s why it’s not going to generate meaningful revenues right away. It’s something that we’ll design, we’ll get sign-off from the customer, and then we’ll start building the platform. And once we get the platform ready to go live, that’s when the revenue will kick in, and that’s when will start amortizing the asset that we’re creating for this particular project.
Ken Peterman: The contract is in initial period, two years, and it has options thorough 2031.
Lance Vitanza: Got it. And then just last one for me, and thank you for taking these questions. Could you talk a little bit about how EVOKE has sort of played out in terms of development since the Investor Day? I know obviously the broader story there, which I think it’s pretty exciting. I’m just wondering if there’s been any update that you can speak to.
Ken Peterman: We’re getting continual and deeper engagement with our EVOKE partners. They’re part of the collaborative working sessions we have with certain customers. To give you a little light on this, typical — in our history satellite — we think of satellite communications mostly as geospatial satellites, and they acquired their ground infrastructure by buying boxes and then stacking them together. And then the boxes basically stayed in place for the 15 to 20-year life of the satellite. New space at low Earth orbit is very different, because the satellites have to exert energy and propellant just to stay in orbit because the gravitational pull is so much greater at low Earth orbit. So those satellites typically only have a life of four or five years, okay.
So, low Earth orbit satellite service providers don’t want to buy hardware like the geo satellite providers did where they buy the hardware one time and live with it statically for 20 years. What they want is a ground infrastructure partner that can be largely cloud native that can evolve with them because they have the opportunity to replace their entire satellite constellation every four to five years. In fact, they have to do that. So, they move from gen 1 to gen 2 to gen 3 every five years or so. So, they need a ground infrastructure partner that has an integrated solution that’s virtualized. And that’s where, frankly, bringing our 14 silos together to be two segments, our new Satellite and Space segment, has the organic capability to support a large degree of that kind of value proposition for those low Earth service satellite providers.
