Double Digit Adjusted EBITDA growth at ViaSat Driven by Broadband and Mobility Services
Carlsbad, Calif., August 12, 2014 – ViaSat Inc., announced its fiscal year 2015 first quarter financial results, which included revenues of US$ 319.5 million and a new Adjusted EBITDA record of US$ 60.2 million, up 14% from US$ 52.7 million recorded in the same period last year.
Non-GAAP diluted net income attributable to ViaSat common stockholders for the first quarter of fiscal year 2015 was $0.05 per share compared to $0.11 per share in the fiscal year 2014 first quarter. The results reflect a $0.05 non-GAAP diluted net income per share reduction due to the expiration of the federal income tax credit for research and development expenditures and a $0.03 per share year-over-year reduction due to increased legal expenses, net of tax, supporting our satellite litigation activities resulting in a favorable jury verdict. The company's first quarter fiscal year 2015 and fiscal year 2014 diluted GAAP net loss per share was $0.13 and $0.04, respectively, reflecting the same year-over-year tax and legal expense per share impacts as our non-GAAP diluted per share results.
“ViaSat earned record quarterly Adjusted EBITDA largely driven by steady increases in average revenue per subscriber and expanding margins in satellite services,” said Mark Dankberg, CEO and chairman of ViaSat. “Government backlog is building as delayed orders are beginning to accrue. Our commercial in-flight Wi-Fi is beginning to grow on steady aircraft installation and unprecedented usage per flight. We’re pleased by the opportunities we have in each of these areas to continue our run of strong annual Adjusted EBITDA growth,” he added.
Satellite Services
ViaSat's Satellite Services segment reported revenues of US$ 109.7 million for the first quarter of fiscal year 2015, rising 28% from $85.8 million in the first quarter last year, setting a new quarterly record. Consumer residential broadband revenues continue to drive our year-over-year growth, increasing over 20% from the same period last year, driven by both year-over-year customer growth and increased average revenue per customer. The company's commercial mobility satellite internet offerings, launched in December 2013, also began contributing to growth with 140 planes in service and another 120 in-flight terminals delivered as of our fiscal year 2015 first quarter end. First quarter fiscal year 2015 Satellite Services segment Adjusted EBITDA also hit a new record at US$ 32.8 million, almost double the amount reported for the same period last year, even though litigation costs and expenses increased by $1.8 million from the same period last year.
Commercial Networks
The Commercial Networks segment revenues were US$ 92.2 million for the first quarter of fiscal year 2015 compared to US$ 97.4 million for the same period last year. The year-over-year revenue decrease occurred as a result of large scale Australian Ka-band infrastructure project moving closer to completion, and the transitioning of engineering resources to our recently awarded next generation Ka-band system contract for Xplornet Communications Inc. in Canada. Additionally,the first quarter fiscal year 2015 reflected reduced revenues from consumer broadband terminal sales. The segment's Adjusted EBITDA results of US$ 5.5 million for the first quarter of fiscal year 2015 were also lower compared to the same period last year reflecting the decrease in quarterly revenues coupled with a change in revenue mix to more funded development activities versus terminal production contracts in both our consumer broadband and mobility products.
Government Systems
The government Systems segment reported revenue of US$ 117.5 million for the first quarter of fiscal year 2015, a decrease of US$ 20.3 million compared to the same period last year, primarily due to completion of many production and service obligations under the Blue Force Tracking project, offset by growth from advanced tactical radio and information distribution systems and information assurance and security products. New Government Systems segment contract awards of US$ 138.0 million exceeded revenues by just over US$ 20.0 million. Segment Adjusted EBITDA was US$ 21.5 million for the first quarter of fiscal year 2015, a US$ 3.1 million decrease compared to the same period last year, reflecting the year-over-year revenue impact offset by improved margins from our government mobile broadband service offerings.
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