ViaSat Posts Record Revenues of $321-M, Narrows Loss to $1.8-M in 1Q 2014
Carlsbad, Calif., Aug. 6, 2013 — ViaSat Inc. posted a record 33 percent increase in revenue to US$ 321.1 million for first quarter fiscal 2014, narrowing its loss to US$ 1.8 million or $0.04 per share, from a loss of $14.4 million or $0.33 per share from the same period last year.
ViaSat reported 78 percent year-over-year Adjusted EBITDA growth, driving first quarter fiscal year 2014 results to a record US$ 52.7 million. Its Non-GAAP diluted net income rose from a loss of $0.18 per share in the first quarter last year to US$ 0.11 per share in the first quarter of fiscal year 2014 reflecting a strong operating performance. Diluted results on a GAAP basis also improved from a US$ 0.33 loss per share last year to US$ 0.04 loss per share during the first quarter 2014 period.
"We're proud to have achieved our sixth consecutive quarter of record revenue," said Mark Dankberg, chairman and CEO of ViaSat. "Broadband satellite services are leading the way, but growth was again strong throughout the company. EBITDA surged 78 percent compared to this quarter last year due to the cumulative effect of Exede subscriber and ARPU growth, continued strength in government systems despite the challenging federal spending environment, and solid performance in commercial products.”
He said earnings are growing even while ViaSat is almost doubling R&D investments as it pursues opportunities for growth. The company, he added is cultivating even more opportunities to expand global markets for satellite broadband services and technology.
ViaSat’s satellite services segment revenues grew $26.5 million, or 45 percent, to US$ 85.8 million for the first quarter of fiscal 2014. It acquired 76,000 gross adds in a seasonally slower period, ending with 550,000 subscribers. The quarter-over-quarter blended ARPU also reached record levels, rising to over $50.50 per month, up nearly 10 percent from the same quarter last year. Satellite services segment Adjusted EBITDA of US$ 17.4 million for the first quarter of fiscal year 2014 is up over 295 percent from the same period last year, and 71 percent sequentially.
The company’s commercial networks segment first quarter revenues of US$ 97.4 million increased by US$ 21.3 million, or 28 percent, compared to the same period last year, also setting a record for the segment. The increase reflects progress in ViaSat’s international Ka-band infrastructure and third-party satellite payload development programs as well as rising demand in the aeronautical mobile broadband market.
Recently ViaSat obtained regulatory authorization for airborne Ka-band services over all 50 U.S. states. The company’s success in these markets drove first quarter commercial networks segment Adjusted EBITDA results to a record US$ 11.1 million, a 204 percent increase compared to the first quarter of last year, despite substantial increases in R&D investments.
ViaSat’s government systems segment revenues also increased US$ 31.5 million, or 30 percent, compared to the same period last year. Growth in the mobile broadband business continues to drive ViaSat’s service offerings in the government segment, which comprised over 34 percent of total segment revenues in the first quarter of fiscal year 2014.
First quarter government systems segment Adjusted EBITDA was US$ 24.5 million, an increase of 14 percent compared to the same period last year, despite significant increases in R&D and network infrastructure spending.
Analyst Raymond James percent Associates said ViaSat should continue to benefit from strong growth in its consumer broadband business, but could encounter some turbulence on the expense side and within its government business. Although the analyst said it continues to like ViaSat’s broadband business, innovation, and long-term growth prospects, it remains leery of the stock’s valuation and consensus expectations, which it believes are still too high. Raymond James reiterated its “Underperform” rating on the company.
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