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Share Name | Share Symbol | Market | Type |
---|---|---|---|
ViaSat Inc | NASDAQ:VSAT | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.42 | 2.50% | 17.21 | 16.02 | 39.98 | 17.74 | 17.03 | 17.21 | 1,001,764 | 05:00:08 |
CARLSBAD, Calif., Nov. 1, 2018 /PRNewswire/ -- Viasat Inc. (NASDAQ: VSAT), a global communications company, today announced financial results for the fiscal second quarter ended September 30, 2018.
"We are executing on our objective of converting our investments in prior periods into significant revenue and Adjusted EBITDA growth now in fiscal year 2019. We entered the year with a substantial order book and we're capitalizing on that by ramping activation of In-Flight Connectivity (IFC) on commercial airlines and delivering products and mobile broadband services to government customers. Satellite services segment revenues are accelerating on a more diversified base including residential, IFC, enterprise and community Wi-Fi applications – while our government segment is also reflecting the benefits of many of these same investments," said Mark Dankberg, Viasat chairman and CEO. "Strong sequential and quarter-over-quarter Adjusted EBITDA growth is indicative of the earnings potential as we scale these businesses. Exceptional new order activity helps highlight the momentum we are achieving in our target markets, yielding record levels of backlog, and lending confidence to sustained growth through the balance of the fiscal year and beyond. The near term momentum behind these more global services reinforces the medium- and long-term potential that will be enabled by our groundbreaking ViaSat-3 constellation."
Financial Results | ||||||
(In millions, except per share data) | Q2 FY19 | Q2 FY18 | Year-Over- | First 6 FY19 | First 6 FY18 | Year-Over- |
Revenues | $ 517.5 | $ 393.1 | 31.6% | $ 956.3 | $ 773.1 | 23.7% |
Net loss1 | $ (25.7) | $ (13.7) | 87.9% | $ (59.7) | $ (22.7) | 162.8% |
Non-GAAP net (loss) income1 | $ (9.0) | $ 5.2 | * | $ (26.4) | $ 7.8 | * |
Adjusted EBITDA | $ 77.5 | $ 61.9 | 25.1% | $ 122.5 | $ 123.1 | (0.5)% |
Diluted per share net loss1 | $ (0.43) | $ (0.24) | 79.2% | $ (1.00) | $ (0.39) | 156.4% |
Non-GAAP diluted per share net (loss) income1 | $ (0.15) | $ 0.09 | * | $ (0.44) | $ 0.13 | * |
Fully diluted weighted average shares2 | 59.7 | 58.2 | 2.6% | 59.5 | 58.0 | 2.5% |
New contract awards3 | $ 738.6 | $ 384.8 | 92.0% | $ 1,308.3 | $ 826.6 | 58.3% |
Sales backlog4 | $ 1,911.7 | $ 1,078.9 | 77.2% | $ 1,911.7 | $ 1,078.9 | 77.2% |
Segment Results | ||||||
(In millions) | Q2 FY19 | Q2 FY18 | Year-Over- | First 6 FY19 | First 6 FY18 | Year-Over- |
Satellite Services | ||||||
New contract awards3 | $ 164.7 | $ 147.7 | 11.5% | $ 318.2 | $ 299.0 | 6.4% |
Revenues | $ 163.0 | $ 147.6 | 10.4% | $ 316.5 | $ 299.8 | 5.6% |
Operating (loss) profit5 | $ (24.8) | $ 12.6 | * | $ (54.8) | $ 31.5 | * |
Adjusted EBITDA | $ 39.9 | $ 55.4 | (28.1)% | $ 74.1 | $ 117.4 | (36.9)% |
Commercial Networks | ||||||
New contract awards | $ 123.2 | $ 54.5 | 126.2% | $ 237.3 | $ 97.1 | 144.5% |
Revenues | $ 114.5 | $ 56.3 | 103.5% | $ 209.6 | $ 101.5 | 106.5% |
Operating loss5 | $ (39.2) | $ (59.4) | (34.0)% | $ (86.2) | $ (125.5) | (31.3)% |
Adjusted EBITDA | $ (24.6) | $ (45.0) | (45.3)% | $ (57.4) | $ (95.0) | (39.6)% |
Government Systems | ||||||
New contract awards | $ 450.7 | $ 182.6 | 146.8% | $ 752.8 | $ 430.5 | 74.9% |
Revenues | $ 240.0 | $ 189.2 | 26.8% | $ 430.2 | $ 371.8 | 15.7% |
Operating profit5 | $ 44.9 | $ 34.2 | 31.2% | $ 69.8 | $ 66.8 | 4.5% |
Adjusted EBITDA | $ 62.2 | $ 51.5 | 20.8% | $ 105.7 | $ 100.7 | 5.0% |
1 Attributable to Viasat, Inc. common stockholders. |
2 As the three and six months ended September 30, 2018 and 2017 financial information resulted in a net loss, the weighted average number of shares used to calculate basic and diluted net loss per share is the same, as diluted shares would be anti-dilutive. |
3 Awards exclude future revenue under recurring consumer commitment arrangements. |
4 Amounts include certain backlog adjustments due to contract changes and amendments. Backlog does not include anticipated purchase orders and requests for the installation of IFC systems or future recurring in-flight internet service revenues under our commercial in-flight internet agreements in our Commercial Networks and Satellite Services segments, respectively. Starting with the first quarter of fiscal year 2019, upon adoption of ASC 606, our backlog includes contracts with subscribers for fixed broadband services in our Satellite Services segment. Backlog as of September 30, 2017 does not include contracts with our subscribers for fixed broadband services in our Satellite Services segment. |
5 Before corporate and amortization of acquired intangible assets. |
* Percentage not meaningful. |
Satellite Services
Viasat's Satellite Services segment achieved record revenue of $163.0 million for the second quarter of fiscal year 2019, representing an increase both year-over-year and sequentially. Year-over-year growth was primarily driven by fixed broadband internet service revenue increases and accelerating commercial aviation IFC gains, as commercial aircraft in service grew by 56% compared to the second quarter of fiscal year 2018, bringing revenues from services other than fixed broadband to nearly 20% of segment revenues. Sequential quarter performance also included a narrowed operating loss, which declined 17%, as a result of improved segment Adjusted EBITDA, up 16% from the first quarter of fiscal 2019. Highlights for the quarter include:
Fiscal year-to-date, Satellite Services segment revenues reached a new record as ViaSat-2-based services began to scale. In addition, operating profit and Adjusted EBITDA for the segment were lower compared to the same period last year, reflecting the same fixed expense impacts seen year-over-year.
Commercial Networks
Viasat's Commercial Networks segment second quarter fiscal 2019 revenues hit record levels, doubling year-over-year as the Company's scaling IFC equipment business continued to gain market penetration. The strong revenue growth coupled with segment operating cost decreases led to narrowed segment operating losses and improved Adjusted EBITDA on both a sequential quarter and year-over-year basis. Research and development (R&D) expenses declined for the fourth consecutive quarter, contributing to segment year-over-year performance by $15.4 million, as the Company's ViaSat-3 payload program migrated to the capital portion of the project. Sequential quarter earnings performance improved, primarily due to large-scale mobile terminal deliveries, and to a lesser extent to reductions in segment level R&D expenses. Highlights for the quarter include:
Fiscal year-to-date, Commercial Networks segment revenues increased significantly to a new record. In addition, operating loss narrowed and Adjusted EBITDA was higher for the segment compared to the same period last year, reflecting the same year-over-year impacts and investment trends seen in the second quarter of fiscal year 2019.
Government Systems
Viasat's Government Systems segment achieved quarterly record revenues, operating profit and Adjusted EBITDA. Second quarter fiscal year 2019 revenues increased 27% year-over-year to $240.0 million; operating profits increased 31% year-over-year to $44.9 million; and Adjusted EBITDA increased 21% year-over-year to $62.2 million. Higher operating profit and Adjusted EBITDA were achieved primarily by strong demand for Viasat's unique Non-Developmental Item (NDI) products, as well as government mobile broadband products and services, with segment level service revenues hitting record levels. Highlights for the quarter include:
On a fiscal year-to-date basis, Viasat's Government Systems segment achieved record performance with revenue growth of 16% to $430.2 million, operating profit increases of 4% to $69.8 million and Adjusted EBITDA increases of 5% to $105.7 million, over the same period last year.
Conference Call
Viasat will host a conference call to discuss the second quarter of fiscal year 2019 results. Details follow:
DATE/TIME: | Thursday, November 1, 2018 at 1:00 p.m. Eastern Time |
DIAL-IN: | (877) 640-9809 in the U.S.; (914) 495-8528 international |
WEBCAST: | investors.viasat.com. |
REPLAY: | Available from 4:00 p.m. Eastern Time on Thursday, November 1 until 11:59 p.m. Eastern Time on Friday, November 2 by dialing (855) 859-2056 for U.S. callers and (404) 537-3406 for international callers; conference ID 1486685. |
Forward-Looking Statements
This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements include, among others, statements that refer to opportunities, growth and outlook for fiscal year 2019 and beyond; satellite construction and launch activities; the performance and benefits of our ViaSat-2 and ViaSat-3 class satellites; the expected completion, capacity, service, coverage, service speeds, availability and other features of our satellites, and the timing, cost, economics and other benefits associated therewith; the development and performance of equipment and hardware for the ViaSat-2 and ViaSat-3 class satellite platforms, the timing thereof and the benefits associated therewith; domestic and international expansion plans; the realization of IFC and W-IFE investments and the number of IFC systems expected to be installed under existing contracts with commercial airlines; the impacts of new contracts entered into with, and the roll-out, ramp-up and uptake of products and services by, and services to be offered by, our airline partners and other customers; and expected payments for providing advanced satellite broadband services resulting from the CAF-II auction. Readers are cautioned that actual results could differ materially and adversely from those expressed in any forward-looking statements. Factors that could cause actual results to differ include: our ability to realize the anticipated benefits of the ViaSat-2 and ViaSat-3 class satellites; unexpected expenses related to our satellite projects; our ability to successfully implement our business plan for our broadband satellite services on our anticipated timeline or at all; risks associated with the construction, launch and operation of our satellites, including the effect of any anomaly, operational failure or degradation in satellite performance; our ability to realize the anticipated benefits of our strategic partnership arrangement with Eutelsat; our ability to successfully develop, introduce and sell new technologies, products and services; the number of purchase orders that are submitted and accepted for the installation of IFC systems with respect to aircraft under contract; audits by the U.S. government; changes in the global business environment and economic conditions; delays in approving U.S. government budgets and cuts in government defense expenditures; our reliance on U.S. government contracts, and on a small number of contracts which account for a significant percentage of our revenues; reduced demand for products and services as a result of continued constraints on capital spending by customers; changes in relationships with, or the financial condition of, key customers or suppliers; our reliance on a limited number of third parties to manufacture and supply our products; increased competition; introduction of new technologies and other factors affecting the communications and defense industries generally; the effect of adverse regulatory changes on our ability to sell products and services; our level of indebtedness and ability to comply with applicable debt covenants; our involvement in litigation, including intellectual property claims and litigation to protect our proprietary technology; and our dependence on a limited number of key employees. In addition, please refer to the risk factors contained in our SEC filings available at www.sec.gov, including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update or revise any forward-looking statements for any reason.
About Viasat
Viasat is a global communications company that believes everyone and everything in the world can be connected. For more than 30 years, Viasat has helped shape how consumers, businesses, governments and militaries around the world communicate. Today, the Company is developing the ultimate global communications network to power high-quality, secure, affordable, fast connections to impact people's lives anywhere they are—on the ground, in the air or at sea. To learn more about Viasat, visit: www.viasat.com, go to Viasat's Corporate Blog, or follow the Company on social media at: Facebook, Instagram, LinkedIn, Twitter or YouTube.
Use of Non-GAAP Financial Information
To supplement Viasat's consolidated financial statements presented in accordance with generally accepted accounting principles (GAAP), ViaSat uses non-GAAP net income (loss) attributable to Viasat Inc. and Adjusted EBITDA, measures Viasat believes are appropriate to enhance an overall understanding of Viasat's past financial performance and prospects for the future. We believe the non-GAAP results provide useful information to both management and investors by excluding specific expenses that we believe are not indicative of our core operating results. In addition, since we have historically reported non-GAAP results to the investment community, we believe the inclusion of non-GAAP numbers provides consistency in our financial reporting and facilitates comparisons to the Company's historical operating results. Further, these non-GAAP results are among the primary indicators that management uses as a basis for evaluating the operating performance of our segments, allocating resources to such segments, planning and forecasting in future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for measures of financial performance prepared in accordance with GAAP. A reconciliation of specific adjustments to GAAP results is provided in the tables below.
Copyright © 2018 Viasat, Inc. All rights reserved. Viasat is a registered trademark of Viasat, Inc. The Viasat logo is a trademark of Viasat, Inc. All other product or company names mentioned are used for identification purposes only and may be trademarks of their respective owners.
Condensed Consolidated Statements of Operations | |||||||
(Unaudited) | |||||||
(In thousands, except per share data) | |||||||
Three months ended |
Six months ended | ||||||
September 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | ||||
Revenues: | |||||||
Product revenues | $ 280,435 | $ 181,783 | $ 498,564 | $ 347,901 | |||
Service revenues | 237,039 | 211,291 | 457,779 | 425,217 | |||
Total revenues | 517,474 | 393,074 | 956,343 | 773,118 | |||
Operating expenses: | |||||||
Cost of product revenues | 216,900 | 133,850 | 390,348 | 256,495 | |||
Cost of service revenues | 175,230 | 135,412 | 346,662 | 273,263 | |||
Selling, general and administrative | 113,120 | 90,084 | 225,762 | 179,257 | |||
Independent research and development | 31,360 | 46,268 | 64,733 | 91,333 | |||
Amortization of acquired intangible assets | 2,435 | 3,320 | 4,888 | 6,580 | |||
Loss from operations | (21,571) | (15,860) | (76,050) | (33,810) | |||
Interest (expense) income, net | (14,045) | (20) | (25,333) | 17 | |||
Loss on extinguishment of debt | - | (10,217) | - | (10,217) | |||
Loss before income taxes | (35,616) | (26,097) | (101,383) | (44,010) | |||
Benefit from income taxes | 9,704 | 11,464 | 38,909 | 20,644 | |||
Equity in income of unconsolidated affiliate, net | 314 | 741 | 1,379 | 228 | |||
Net loss | (25,598) | (13,892) | (61,095) | (23,138) | |||
Less: net income (loss) attributable to noncontrolling interests, net of tax | 126 | (203) | (1,361) | (410) | |||
Net loss attributable to Viasat Inc. | $ (25,724) | $ (13,689) | $ (59,734) | $ (22,728) | |||
Diluted net loss per share attributable to Viasat Inc. common stockholders | $ (0.43) | $ (0.24) | $ (1.00) | $ (0.39) | |||
Diluted common equivalent shares | 59,734 | 58,229 | 59,470 | 58,039 | |||
AN ITEMIZED RECONCILIATION BETWEEN NET INCOME (LOSS) ATTRIBUTABLE TO VIASAT INC. | |||||||
ON A GAAP BASIS AND NON-GAAP BASIS IS AS FOLLOWS: | |||||||
(In thousands, except per share data) |
Three months ended |
Six months ended | |||||
September 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | ||||
GAAP net loss attributable to Viasat Inc. | $ (25,724) | $ (13,689) | $ (59,734) | $ (22,728) | |||
Amortization of acquired intangible assets | 2,435 | 3,320 | 4,888 | 6,580 | |||
Stock-based compensation expense | 19,377 | 15,983 | 38,503 | 31,490 | |||
Loss on extinguishment of debt | - | 10,217 | - | 10,217 | |||
Income tax effect (1) | (5,042) | (10,592) | (10,087) | (17,809) | |||
Non-GAAP net (loss) income attributable to Viasat Inc. | $ (8,954) | $ 5,239 | $ (26,430) | $ 7,750 | |||
Non-GAAP diluted net (loss) income per share attributable to Viasat Inc. common stockholders | $ (0.15) | $ 0.09 | $ (0.44) | $ 0.13 | |||
Diluted common equivalent shares | 59,734 | 58,229 | 59,470 | 58,039 | |||
(1)The income tax effect is calculated using the tax rate applicable for the non-GAAP adjustments. | |||||||
AN ITEMIZED RECONCILIATION BETWEEN NET INCOME (LOSS) ATTRIBUTABLE TO VIASAT INC. | |||||||
AND ADJUSTED EBITDA IS AS FOLLOWS: | |||||||
(In thousands) |
Three months ended |
Six months ended | |||||
September 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | ||||
GAAP net loss attributable to Viasat Inc. | $ (25,724) | $ (13,689) | $ (59,734) | $ (22,728) | |||
Benefit from income taxes | (9,704) | (11,464) | (38,909) | (20,644) | |||
Interest expense (income), net | 14,045 | 20 | 25,333 | (17) | |||
Depreciation and amortization | 79,474 | 60,874 | 157,271 | 124,809 | |||
Stock-based compensation expense | 19,377 | 15,983 | 38,503 | 31,490 | |||
Loss on extinguishment of debt | - | 10,217 | - | 10,217 | |||
Adjusted EBITDA | $ 77,468 | $ 61,941 | $ 122,464 | $ 123,127 |
AN ITEMIZED RECONCILIATION BETWEEN SEGMENT OPERATING PROFIT (LOSS) BEFORE | ||||||||||||||||||
CORPORATE AND AMORTIZATION OF ACQUIRED INTANGIBLE ASSETS AND ADJUSTED EBITDA IS AS FOLLOWS: | ||||||||||||||||||
(In thousands) | ||||||||||||||||||
Three months ended September 30, 2018 | Three months ended September 30, 2017 | |||||||||||||||||
Satellite | Commercial | Government | Total | Satellite | Commercial | Government | Total | |||||||||||
Segment operating (loss) profit before corporate and amortization of acquired intangible assets | $ (24,839) | $ (39,197) | $ 44,900 | $ (19,136) | $ 12,616 | $ (59,377) | $ 34,221 | $ (12,540) | ||||||||||
Depreciation(2) | 50,823 | 5,502 | 8,872 | 65,197 | 35,307 | 6,729 | 8,795 | 50,831 | ||||||||||
Stock-based compensation expense | 5,733 | 6,758 | 6,886 | 19,377 | 3,816 | 6,109 | 6,058 | 15,983 | ||||||||||
Other amortization | 7,051 | 2,328 | 2,463 | 11,842 | 2,502 | 1,573 | 2,648 | 6,723 | ||||||||||
Equity in income of unconsolidated affiliate, net | 314 | - | - | 314 | 741 | - | - | 741 | ||||||||||
Noncontrolling interests | 783 | - | (909) | (126) | 436 | - | (233) | 203 | ||||||||||
Adjusted EBITDA | $ 39,865 | $ (24,609) | $ 62,212 | $ 77,468 | $ 55,418 | $ (44,966) | $ 51,489 | $ 61,941 | ||||||||||
Six months ended September 30, 2018 | Six months ended September 30, 2017 | |||||||||||||||||
Satellite | Commercial | Government | Total | Satellite | Commercial | Government | Total | |||||||||||
Segment operating (loss) profit before corporate and amortization of acquired intangible assets | $ (54,775) | $ (86,205) | $ 69,818 | $ (71,162) | $ 31,459 | $ (125,502) | $ 66,813 | $ (27,230) | ||||||||||
Depreciation(2) | 100,833 | 10,995 | 17,162 | 128,990 | 70,944 | 13,255 | 17,460 | 101,659 | ||||||||||
Stock-based compensation expense | 11,026 | 13,864 | 13,613 | 38,503 | 7,448 | 12,080 | 11,962 | 31,490 | ||||||||||
Other amortization | 13,960 | 3,995 | 5,438 | 23,393 | 6,546 | 5,161 | 4,863 | 16,570 | ||||||||||
Equity in income of unconsolidated affiliate, net | 1,379 | - | - | 1,379 | 228 | - | - | 228 | ||||||||||
Noncontrolling interests | 1,707 | - | (346) | 1,361 | 813 | - | (403) | 410 | ||||||||||
Adjusted EBITDA | $ 74,130 | $ (57,351) | $ 105,685 | $ 122,464 | $ 117,438 | $ (95,006) | $ 100,695 | $ 123,127 | ||||||||||
(2)Depreciation expenses not specifically recorded in a particular segment have been allocated based on other indirect allocable costs, which management believes is a reasonable method. |
Condensed Consolidated Balance Sheets | ||||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
As of | As of | As of | As of | |||||
Assets | September 30, 2018 | March 31, 2018 | Liabilities and Equity | September 30, 2018 | March 31, 2018 | |||
Current assets: | Current liabilities: | |||||||
Cash and cash equivalents | $ 44,458 | $ 71,446 | Accounts payable | $ 165,317 | $ 157,481 | |||
Restricted cash | 7,169 | - | Accrued liabilities | 250,407 | 263,676 | |||
Accounts receivable, net | 268,803 | 267,665 | Current portion of long-term debt | 47,702 | 45,300 | |||
Inventories | 232,078 | 196,307 | Total current liabilities | 463,426 | 466,457 | |||
Prepaid expenses and other current assets | 233,258 | 77,135 | Senior notes | 691,497 | 690,886 | |||
Total current assets | 785,766 | 612,553 | Other long-term debt | 460,101 | 287,519 | |||
Other liabilities | 130,266 | 121,240 | ||||||
Total liabilities | 1,745,290 | 1,566,102 | ||||||
Property, equipment and satellites, net | 1,950,373 | 1,962,475 | ||||||
Other acquired intangible assets, net | 26,072 | 31,862 | Total Viasat Inc. stockholders' equity | 1,874,713 | 1,837,166 | |||
Goodwill | 122,676 | 121,085 | Noncontrolling interest in subsidiaries | 9,624 | 10,841 | |||
Other assets | 744,740 | 686,134 | Total equity | 1,884,337 | 1,848,007 | |||
Total assets | $ 3,629,627 | $ 3,414,109 | Total liabilities and equity | $ 3,629,627 | $ 3,414,109 |
View original content:http://www.prnewswire.com/news-releases/viasat-announces-second-quarter-fiscal-year-2019-results-300741917.html
SOURCE Viasat, Inc.
Copyright 2018 PR Newswire
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