Solid performance across all segments drives record quarterly revenue and strong growth in profitabilityCarlsbad, Calif. - ViaSat Inc. (NASDAQ: VSAT), an innovator in satellite and other wireless networking systems and services, announced its fiscal year 2014 first quarter financial results. Strong top-line growth set a new record of $321.1 million in revenue, a 33% increase compared to the same period last year. ViaSat also reported 78% year-over-year Adjusted EBITDA growth, driving first quarter fiscal year 2014 results to a record $52.7 million. Non-GAAP diluted net income reflected strong operating performance, rising from ($0.18) per share in the first quarter last year to $0.11 per share in the first quarter of fiscal year 2014, while diluted results on a GAAP basis also improved from ($0.33) per share to ($0.04) per share during the same periods.
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% 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. Earnings are growing even while we are almost doubling R&D investments as we pursue opportunities for growth. We launched Exede VoIP, are close to bringing Exede in-flight Wi-Fi into service, and are building on our achievements in government mobile broadband. In addition, with ViaSat-2 now on the horizon, we're cultivating even more opportunities to expand global markets for satellite broadband services and technology.
Financial Results1 (In millions, except per share data)
Q1 FY14
Q1 FY13
Revenues
$321.1
$241.8
Adjusted EBITDA
$52.7
$29.6
Net loss2
($1.8)
($14.4)
Diluted per share net loss2
($0.04)
($0.33)
Non-GAAP net income (loss) 2
$4.9
($7.8)
Non-GAAP diluted per share net income (loss)2
$0.11
($0.18)
Fully diluted weighted average shares 3
45.1
43.2
New contract awards
$254.0
$332.6
Sales backlog4
$778.7
$705.2
1 ViaSat uses a 52 or 53 week fiscal year which ends on the Friday closest to March 31. ViaSat quarters for fiscal year 2014 end on June 28, 2013, October 4, 2013, January 3, 2014, and April 4, 2014. This results in a 53 week fiscal year approximately every four to five years. Fiscal year 2014 is a 53 week year, compared with a 52 week year in fiscal year 2013. As a result of the shift in the fiscal calendar, the second quarter of fiscal year 2014 will include an additional week. ViaSat does not believe that the extra week will result in any material impact on its financial results.
2 Attributable to ViaSat Inc. common stockholders.
3 As the first quarter fiscal year 2014 and fiscal year 2013 financial information results 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.
4 Amounts include certain backlog adjustments due to contract changes and amendments.
Segment Results
(In millions)
Q1 FY14
Q1 FY13
Satellite Services
New contract awards
$96.5
$74.0
Revenues
$85.8
$59.3
Adjusted EBITDA
$17.4
$4.4
Commercial Networks
New contract awards
$66.4
$64.7
Revenues
$97.4
$76.1
Adjusted EBITDA
$11.1
$3.7
Government Systems
New contract awards
$91.1
$193.9
Revenues
$137.9
$106.3
Adjusted EBITDA
$24.5
$21.5
Satellite Services
Our Satellite Services segment revenues grew $26.5 million, or 45%, to $85.8 million for the first quarter of fiscal 2014, setting a new record. We acquired 76,000 gross adds in a seasonally slower period, ending with 550,000 subscribers. Our quarter-over-quarter blended ARPU also reached record levels, rising to over $50.50 per month, which is up nearly 10% from the same quarter last year. The Satellite Services segment results are showing the benefits of steady growth in subscribers and ARPU. Satellite Services segment Adjusted EBITDA of $17.4 million for the first quarter of fiscal year 2014 is up over 295% from the same period last year, and 71% sequentially.
Commercial Networks
Our Commercial Networks segment first quarter revenues of $97.4 million increased by $21.3 million, or 28%, compared to the same period last year, also setting a record for the segment. The increase reflects progress in our international Ka-band infrastructure and third-party satellite payload development programs as well as rising demand in the aeronautical mobile broadband market. Recently we obtained regulatory authorization for airborne Ka-band services over all 50 U.S. states. Our success in these markets drove first quarter Commercial Networks segment Adjusted EBITDA results to a record $11.1 million, a 204% increase compared to the first quarter of last year, despite substantial increases in R&D investments.
Government Systems
Our Government Systems segment revenues increased $31.5 million, or 30%, compared to the same period last year. Growth in our mobile broadband business continues to drive our service offerings in the government segment, which comprised over 34% of total segment revenues in the first quarter of fiscal year 2014. Core technology platforms - command and control situational awareness, tactical data links, and information assurance - also made significant contributions to this segment's performance. First quarter Government Systems segment Adjusted EBITDA was $24.5 million, an increase of 14% compared to the same period last year, despite significant increases in R&D and network infrastructure spending.
Selected Fiscal First Quarter Business Highlights
Launched Exede Voice as a complement to our Exede service, becoming the firs
