Profile: Globecomm Systems Inc (GCOM.O)

Globecomm Systems Inc. (Globecomm), incorporated in August 1994, is a provider of satellite-based communications infrastructure solutions and services. The Company’s services are provided by its wholly-owned subsidiaries, Globecomm Network Services Corp. and Globecomm Services Maryland LLC. It has two segments: infrastructure solutions segment and services segment. Infrastructure solutions segment is engaged in the design, assembly and installation of ground segment systems and networks, which includes both its pre-engineered systems, and custom systems design and integration product lines. Services segment provides satellite communication services capabilities, which include its Access, Hosted and Lifecycle Support service lines. In March 2009, the Company acquired B.V. Mach 6 (Mach 6) and in June 2009, it acquired Telaurus Communications LLC.

Infrastructure solutions segment

The Company’s infrastructure solutions consist of the design, engineering and installation of ground segment systems and networks, which are deployed in communications networks that include a satellite component. It combines engineering and design capabilities with technologies and products to provide solutions for building and maintaining satellite earth stations, uplink centers, broadcast centers and Internet protocol-based (IP) communication networks. The Company assigns a project team to provide its infrastructure solutions. This includes engineering and design, assembly and testing, installation and customer acceptance. The Company maintains facilities for complete in-plant testing of all its systems before delivery.

Pre-Engineered Systems

The Pre-Engineered Systems product line includes pre-engineered fixed and mobile/transportable satellite terminals and network management systems, which are marketed under the Summit and Explorer brands. Summit satellite terminals have antenna apertures ranging from sub meter to 21 meters in diameter using pre-engineered building blocks. Explorer satellite terminals have antenna apertures ranging from sub meter to 3 meters in diameter using integrated electronics. Its pre-engineered systems also include a line of AxxSys network management systems designed for management and control of satellite-terrestrial networks and include flexible interface devices that can be configured to communicate with satellite communications equipment and networking equipment from various manufacturers.

Summit Modular Building Block Earth Station MBB 2001 satellite terminal provides point-to-point high-capacity data links and hubs for satellite networks. Generally, all electronics are housed in an indoor equipment enclosure. Summit Commercial Terminal CTF 2001 family of satellite terminals encompasses a range of general purpose, medium-capacity satellite terminals, and is principally used by corporate, common carrier and government networks. Generally, all radio frequency electronics are housed in weatherproof enclosures mounted on the antenna. The satellite modem is housed in an indoor equipment enclosure.

Summit Compact Earth Station CES 2001 is used principally to provide limited capacity to areas with limited or no telecommunications infrastructure. These satellite terminals integrate radio frequency and satellite modem components into one antenna mounted package. Auto-Explorer Fly-Away Satellite Terminals include an integrated electronics package designed to incorporate the radio frequency, monitor and control, and satellite modem components into an outdoor mounted package. This family of satellite terminals is designed for use in military tactical environments and is tested and qualified for the appropriate military environmental standards.

Explorer MIL-COTS HMMWV Transportable Satellite Terminals is designed for United States and international government customers. This transportable system group is comprised of transportable earth stations designed to be deployed and operated anywhere in the world in military tactical environments. Its model High-Mobility Multipurpose Wheeled Vehicle (HMMWV) mounted satellite terminal incorporates the commercial off the shelf (COTS).

AxxSys Network Management Systemsis designed to monitor and control satellite communication equipment and satellite terminal networks. AxxSys-based network management systems provide status reporting locally or remotely and provide the ability to manage distributed satellite communications networks on a global basis. Deployed over an industry-standard IP network, it is capable of monitoring and controlling from dozens to thousands of devices. SpyGlass Carrier Monitoring Systems is designed for service providers who need to monitor and manage their transmissions. Its SpyGlass family of carrier monitoring tools integrates with the AxxSys network management system to provide ease of operation.

Systems Design and Integration

The Company designs, integrates, installs, tests and commissions facilities and networks to meet the needs of its customers. Its custom systems design and integration services are focused on requirements for satellite earth stations, uplink centers, broadcast centers and IP-based networks. This segment is based on its core engineering expertise in satellite earth stations and network design, broadcast engineering, IP network engineering and network management system design.

Services Solution Overview

The Company offers service-based solutions with fixed monthly pricing. It owns two teleport facilities, Kenneth A. Miller International Teleport and GSM facility. These teleports are used to transmit and receive signals from satellites positioned to serve customers in Latin America, the United States, Canada, Europe, the Middle East and Africa. The Company also leases teleport services in Los Angeles, Hong Kong, the United Kingdom, the Netherlands and Poland to transmit and receive signals via satellite to other areas of the world. It has a centralized global network operation center (NOC) to provide global services. The NOC operates around the clock to monitor customer networks, provide help desk services, respond to customer inquiries and initiate new services.

The Company’s core service line, Access, supports transport and connectivity for video, voice and data services globally. The Access service line consists of specific products, which utilizes a combination of terrestrial connectivity, satellite bandwidth, teleports, along with a variety of remote very small aperture terminal (VSAT), or a network of VSAT’s, to provide end to end connectivity.

Access Video Backhaul is specifically developed for video centric delivery. The primary technology enabling this service is the Digital Video Broadcast standard (DVB/DVB-S2). Access Voice Termination is also based upon the Access Plus product and is specifically designed for voice trunking services. Access Bandwidth service is a derivative of its base Access line and affords to provide long term satellite bandwidth resale opportunities with minimal overall risk.

Access Maritime is technically similar to the Access Plus line, provides vessel operators with traditional IP services, including, e-mail, Internet, video streaming, virtual private network and voice over IP applications. Access Maritime incorporates Inmarsat and Iridium services to provide a set of solutions to the maritime market. Access Hardware products range from VSAT terminals to IP-centric routing hardware and co-location hardware. It is shipped, installed and maintained globally.

Hosted Service Line

Hosted service platform supports switching services through a full featured hosted mobile switching center for GSM/UMTS and CDMA/EVDO technologies. The Hosted service line consists of specific products to address the mobile marketplace. This product includes GSM-UMTS/HSPA Switching/Core Platform, CDMA-EVDO Switching/Core Platform, domestic and international connectivity for voice, data and Internet by leveraging its core network, network of Tier 1 IP terrestrial providers at its teleport locations and the interconnectivity between the teleport facilities, pool of diverse satellite bandwidth coverage, frequencies and providers, and centralized NOC.

Hosted Cellular

Hosted Cellular allows its customers the ability to outsource their switching services through a full-featured hosted mobile switching center for GSM/UMTS and CDMA/EVDO technologies. The customer base include small to mid-size cellular operators in North America, emerging cellular operators and large international operators extending their coverage.

Hosted Video

Hosted Video includes both the hardware for hosting the services and the software platforms for customers to securely publish process and distribute their content. This solution also allows viewers to interact with the content and provides stakeholders with valuable viewership reporting. It acts as a publishing platform for hosting of Video On Demand content; media processing infrastructure for the transcoding of live and on-demand content for viewing across hybrid networks; security platforms to ensure secure content delivery and digital rights management across diverse networks; streaming media platform for delivery across hybrid network topologies; interactive platform allowing viewers to interact with live presenters and on-demand content, and administrative platform providing customers with back office control and reporting.

Lifecycle Support Service Line

Lifecycle Support service line includes installation, network monitoring, help desk, maintenance and professional engineering services. The Company provides the products on either a stand-alone basis, or bundled with infrastructure solutions or other service, which include network monitoring and help desk, installation and maintenance and professional engineering.

The Company competes with Thales, Data Path, SED Systems, General Dynamics, SATCOM Technologies, Viasat, Alcatel and ND Satcom AG.