talk Satellite

ViaSat Inc. announced record fiscal fourth quarter financial results, including record revenues of $364.8 million and strong Adjusted EBITDA of $89.1 million, which grew more than 55% over the same period last year. Non-GAAP diluted net income attributable to ViaSat common stockholders for the fourth quarter of fiscal year 2015 also grew significantly to $0.36 per share, compared to $0.10 per share in the prior year period, a 260% increase. Diluted GAAP net income attributable to ViaSat common stockholders was $0.16 in the fourth quarter of fiscal year 2015 compared to a net loss of $0.08 per share in the fourth quarter of fiscal year 2014.

ViaSat's fiscal year 2015 results also reflected record performance and strong earnings growth. Revenues reached nearly $1.4 billion, a new record high, and Adjusted EBITDA grew 56% compared to fiscal year 2014 to $344.8 million, also a record. Fiscal year 2015 marked another strong order year with awards of over $1.4 billion, generating a positive book-to-bill ratio for fiscal year 2015 and backlog of $915.6 million. Net income attributable to ViaSat common stockholders also grew significantly, increasing to $1.58 per share on a non-GAAP diluted basis, or $0.84 on a diluted GAAP basis, both inclusive of tax benefits of approximately $0.20 per share related to the retroactive reinstatement of the federal research and development credit legislation through December 31, 2014. In fiscal year 2014, net income attributable to ViaSat common stockholders was $0.44 per share on a non-GAAP diluted basis and a net loss of $0.21 per share on a diluted GAAP basis.

"Adjusted EBITDA growth of over 55% for both the fourth quarter and fiscal year 2015 reflects ViaSat's ongoing transformation to increasingly capture the value of our leading technologies through higher margin services in consumer, business and government markets," said Mark Dankberg, ViaSat CEO and chairman. "Services margins increased and services revenue growth overcame the expected headwinds from our Blue Force Tracking 2 product sales declines and a high prior year revenue comparison from our large Australian NBN project. Our progress this year buoys prospects for fiscal year 2016 given a positive book-to-bill ratio, government mobile products orders that lead to services follow-ons, good prospects for growth in commercial aeronautical Wi-Fi, and continued operational improvements in satellite services and bandwidth management while demand outstrips supply in the best geographic markets."

Our Satellite Services segment continued to generate strong year-over-year growth, with revenues of $130.4 million for the fourth quarter of fiscal year 2015 rising 23% from $105.9 million in the same period last year. Consumer residential broadband revenues continued to be the primary driver, including growth in total subscribers to 686,000 as of the end of the fourth quarter of fiscal year 2015 and weighted average revenue per user (ARPU) of $54.65, a new record high. The fourth quarter included gross adds of 65,000 and net adds of 11,000. Our commercial in-flight Wi-Fi service base also continued to grow with over 330 aircraft in service at the end of the fourth quarter of fiscal year 2015. Passenger engagement remains at an industry high at four times the levels seen on our nearest competitor as connected passengers work, play, and stream at speeds much faster than alternative services. Fourth quarter fiscal year 2015 Satellite Services segment Adjusted EBITDA more than doubled year-over-year to $52.5 million. This significant year-over-year earnings growth was driven not only by our increasing broadband services revenue base, but also through continued improvements in our quarterly per subscriber operating costs. Fiscal year 2015 Satellite Services segment results also hit new record levels with annual revenue and segment Adjusted EBITDA growing by 28% to $499.9 million, and 146% to $208.0 million, respectively, compared to fiscal year 2014. The fiscal 2015 results include $51.8 million derived from litigation settlement gains and associated technology access rights granted.

Our Commercial Networks segment revenues were $84.0 million for the fourth quarter of fiscal year 2015 compared to $96.1 million for the same period last year. In fiscal year 2015, segment revenues decreased by 12% to $347.1 million. The quarterly and annual revenue decreases compared to the same periods last year reflect lower activity related to our large Australian Ka-band infrastructure project for NBN as the project enters its final construction and integration stages. Offsetting these year-over-year decreases were growth in next-generation Canadian Ka-band network project activities, increased sales of commercial aviation broadband terminals, and strong year-over-year growth from our integrated antenna system products, which generated record revenue levels during fiscal year 2015. Our segment Adjusted EBITDA for the fourth quarter of fiscal year 2015 was $0.8 million, a 56% decrease from the prior year period, reflecting the revenue decrease and change in revenue mix to more funded development activities versus terminal production contracts in our consumer broadband products, offset in part by contributions from our commercial aviation broadband terminals and our large integrated antenna system programs. Segment fiscal year 2015 Adjusted EBITDA was $17.0 million, a 29% decrease, primarily reflecting the year-over-year revenue reduction as well as shifts in revenue mix due to lower consumer broadband terminal sales in fiscal year 2015 compared to the prior year.

Our Government Systems segment reported fourth quarter fiscal year 2015 revenues of $150.3 million, an increase of $8.4 million compared to the same period last year, mostly driven by revenue contributions from government managed Wi-Fi services from our fiscal year 2015 acquisition of NetNearU. Fiscal year 2015 Government Systems segment revenues decreased by 5% to $535.5 million reflecting completion of our Blue Force Tracking 2 project last year, offset by revenue growth in advanced tactical radio and information distribution systems, information assurance and security products, and revenue contributions from government managed Wi-Fi services. Strong Government Systems contract wins continued throughout fiscal year 2015 resulting in record awards of $642.0 million and backlog of $382.1 million. This strong order flow generated positive book-to-bill performance for fiscal year 2015 as well as year-over-year backlog expansion of 36%, establishing a strong base for future segment performance and growth. Despite the fiscal year 2015 year-over-year revenue reductions, the strength of our growing service offerings generated record earnings levels for both the fourth quarter and fiscal year 2015. Our fourth quarter segment Adjusted EBITDA increased 18% to a record of $35.6 million and fiscal year 2015 segment Adjusted EBITDA, also a record, was $119.4 million, a 5% increase compared to last year. The increases in Adjusted EBITDA reflect improved margins driven by growth in our government mobile broadband services and our government managed Wi-Fi service offerings combined with year-over-year reductions in research and development expenses as we complete certain larger internally funded development efforts.