Viasat Reports Strong Growth
Carlsbad, Calif., May 20, 2014 –ViaSat’s fiscal year 2014 results reflected strong growth. Revenues increased 21% to US$ 1.4 billion and Adjusted EBITDA grew 35% to US$ 221.2 million compared to last year. Net income attributable to ViaSat common stockholders rose to US$ 0.44 per share on a non-GAAP diluted basis, or a loss of US$ 0.21 per share on a diluted GAAP basis - compared to fiscal year 2013 net income of US$ 0.02 and a loss of US$ 0.94 per share, respectively.
Revenues for the fourth quarter increased 11% to US$ 343.9 million and Adjusted EBITDA hit record levels, growing 41% to US$ 57.4 million for the fourth quarter of fiscal year 2014 compared to the same period last year. New contract awards doubled to $454.0 million for the quarter compared to the same period last year. Non-GAAP diluted net income attributable to ViaSat common stockholders was $0.10 per share, or a loss of $0.08 per share on a diluted GAAP basis – compared to net income of $0.19 and $0.04 per share, respectively, for the fourth quarter of fiscal year 2013.
“Fiscal year 2014 was a momentous year. We made substantial progress in showing that our innovations in high-capacity satellite network technology have the potential to disrupt attractive markets in consumer broadband, mobile services such as in-flight Wi-Fi, and important government applications. We also achieved record revenues and Adjusted EBITDA, while simultaneously increasing discretionary spending in company-funded R&D, and legal expenses to protect that R&D, by nearly US$ 50.0 million compared to the prior year. We began fiscal year 2014 by commencing construction of ViaSat-2, which we expect will extend the state of the art in satellite broadband. And we begin fiscal year 2015 with a landmark legal victory validating our role in creating the current state of the art, ViaSat-1.” said Mark Dankberg, CEO and chairman of ViaSat.
Satellite Services
ViaSat's Satellite Services segment reported revenues of US$ 105.9 million for the fourth quarter of fiscal year 2014, an increase of 35% year-over-year. ViaSat ended the quarter with over 641,000 consumer broadband subscribers and performed over 75,500 installations, including new additions and migrations. Fourth quarter Satellite Services segment Adjusted EBITDA was US$ 25.5 million, which more than doubled the amount reported for the same period last year, inclusive of substantial litigation costs and expenses to protect our high-capacity satellite system intellectual property. In fiscal year 2014, our litigation expenses to protect these technologies were nearly US$ 25.0 million, and in April yielded a successful federal court verdict awarding ViaSat US$ 283.0 million in patent infringement and breach of contract damages against Space Systems/Loral (SS/L). Fiscal year 2014 Satellite Services segment results also reflected strong year-over-year results, with revenue growth of 41% to US$ 390.7 million and segment Adjusted EBITDA growth of 146% to US$ 84.4 million, in spite of these substantial costs.
Commercial Networks
The Commercial Networks segment fourth quarter revenues reflected another period of strong performance, growing to US$ 96.1 million, a 15% increase compared to the same period last year. Fiscal year 2014 revenues also grew significantly, increasing by US$ 80.6 million to US$ 395.5 million, or 26% from fiscal year 2013. Annual and quarterly revenues grew year-over-year for ViaSat's Ka-band satellite network for NBN Co. in Australia, continuing deployment of aeronautical mobile broadband systems, and antenna systems programs as new order demand expands for specialized antennas with integrated networks. Segment Adjusted EBITDA results of US$ 1.9 million for the fourth quarter were slightly lower compared to the same period last year, due to expanded investments in next-generation consumer broadband systems development, which grew over 300% year-over-year. Despite these expanded investments, fiscal year 2014 Commercial Networks segment revenue performance drove significant Adjusted EBITDA growth to US$ 24.0 million, representing a 75% increase from fiscal year 2013.
Government Systems
The Government Systems segment reported revenue of US$ 142.0 million for the fourth quarter of fiscal year 2014, a decrease of US$ 4.5 million compared to the same period last year, as completion of a Blue Force Tracking satellite service bandwidth contract partially offset growth in information assurance and security, broadband networking services for military customers, and advanced tactical radio and information distribution systems. Revenues for fiscal year 2014 continued to remain strong in an otherwise challenging defense spending environment, increasing 7% from our fiscal year 2013 results. Segment Adjusted EBITDA was US$ 30.2 million and US$ 113.6 million for the quarter and fiscal year, respectively, reflecting a quarterly increase of 7% and a slight decrease of 2% in the fiscal year compared to the same periods last year. ViaSat's iscal year 2014 Government Systems segment results also included significant growth in development activities, up 43% from fiscal year 2013, with continuing government mobility networks expansion and broadening opportunities such as dual-band terminal systems.
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