ViaSat Announces Record Fourth Quarter and Fiscal Year 2016 Results
Carlsbad, CA., May 24, 2016-- ViaSat (NASDAQ: VSAT), a global broadband services and technology company, today announced financial results for the fiscal fourth quarter ended March 31, 2016.
Highlights of the quarter include;
- Achieved record revenues for both the fourth quarter and fiscal year 2016 at $372.0 million and $1.4 billion, respectively, fueled by ViaSat's Satellite Services and Government Systems segments.
- Secured record awards of $1.5 billion for fiscal year 2016, generating a positive book-to-bill ratio for both the fourth quarter and fiscal year, driven by ViaSat's Government Systems segment.
- Adjusted EBITDA for both the fourth quarter and fiscal year 2016 reflected strong year-over-year gains in ViaSat's Satellite Services and Government Systems segments, offset by rising investments in new global broadband opportunities.
"Fiscal 2016 was a milestone year for ViaSat both financially and strategically. Our results highlight three important themes around current performance momentum, the potential of our next-generation satellite technology and a favorable business outlook," said Mark Dankberg, ViaSat chairman and CEO. "First, we had very strong performance in the Satellite Services and Government Systems segments, areas we anticipate will continue to propel our growth. Solid revenue and margin growth in both of these segments led to a combined 22% Adjusted EBITDA increase for the fourth quarter of fiscal year 2016 compared to the fourth quarter of fiscal year 2015 for those two segments. Fiscal year 2016 Adjusted EBITDA grew 35% for those segments compared to the Adjusted EBITDA in fiscal year 2015, excluding the second quarter 2015 settlement impact. The second theme is that technical progress has enabled us to start construction of the first two ViaSat-3 class satellites. Since we are building - versus buying - the payloads, the start of the construction program involves significant new research and development (R&D) expenses that began impacting Adjusted EBITDA performance in our commercial segment this fiscal year; ViaSat-3 class satellite construction expenses are expected to grow in future quarters. The third theme is a favorable growth outlook supported by record new orders for fiscal 2016 combined with the disruptive satellite technology we are bringing to market. Our ViaSat-2 satellite launch window begins in less than seven months. ViaSat-2 is expected to more than double the capacity of the record-breaking ViaSat-1 satellite, with even greater gains expected from the first ViaSat-3 class satellites" mentioned Dankberg.
According to analyst firm Raymond James, VSAT currently trades at 12.4x our FY17 Adj. EBITDA estimate of $355 million compared to 7-10x for traditional satellite operators. A premium is justified based on ViaSat’s higher long-term growth potential, and expectations for core growth rate to be constrained over the next year pending the successful launch of the ViaSat-2 satellite.
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