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ViaSat Announces First Quarter Fiscal Year 2016 Results

Aug. 6, 2015

ViaSat Inc. announced financial results for the fiscal first quarter ended June 30, 2015.

"We're off to a good start in fiscal year 2016 as our focus on attractive bandwidth economics delivers results in multiple applications," said Mark Dankberg, ViaSat chairman and CEO. "This quarter, for the first time, service revenues represented over half of sales. Residential broadband leads the way, with good opportunities for sustained growth in revenues, Adjusted EBITDA and margins. With almost 1,000 aircraft in service spanning commercial, government and general aviation markets, in-flight connectivity is a significant contributor. JetBlue and United are setting the commercial aeronautical Wi-Fi pace, and we're excited about our recently announced partnership with Virgin America. Our government business grew revenues 24% and Adjusted EBITDA 35% - also driven by satellite broadband as well as tactical data links. We continue to invest in delivering higher broadband speeds, more bandwidth, more coverage and better service across our markets, and see significant opportunities for continued growth."

Satellite Services
ViaSat's Satellite Services segment revenues rose 21% year-over-year in the fiscal first quarter, and segment Adjusted EBITDA rose 67% year-over-year to $54.6 million. Performance was driven by revenue growth and improved profitability in consumer residential broadband services as well as higher income from in-flight Wi-Fi services: 

  • Total consumer residential broadband subscribers were approximately 685,000 as of the end of the fiscal first quarter, including quarterly gross adds of 46,300, a 7% increase compared to the same period last year.
  • Weighted average revenue per user (ARPU) expanded to $55.79, a new record high.
  • Commercial in-flight
  • Wi-Fi services continued to grow, with more than 380 aircraft in service at the end of the first quarter of fiscal year 2016, from 135 aircraft for the same period last year.
  • ViaSat secured Virgin America as a new airline partner. The relationship will bring faster, higher-quality Wi-Fi to the skies, enabling travelers at 35,000 feet to stream video content from the internet. Additionally, Virgin America will be the first commercial airline to operate in both Ku- and Ka-band satellite networks on the same aircraft, ensuring passengers have the best available connection in the sky.
  • ViaSat won the Excellence in Avionics Award, marking the Company's fifth industry recognition for in-flight connectivity innovation in a 12-month period. ViaSat won the award for its ability to deliver a high-quality in-flight broadband experience coupled with the best economic model for both airlines and passengers.

Commercial Networks
ViaSat's Commercial Networks segment saw a decrease in quarterly revenue compared to the same period last year as well as lower segment Adjusted EBITDA:

  • Year-over-year comparisons reflect the wind-down of ViaSat's Australian Ka-band infrastructure project for NBN, which continued its final construction and integration activities in the fiscal first quarter.
  • Results were offset in part by growth in mobile broadband satellite communication systems sales.
  • Lower Adjusted EBITDA for this segment also reflected increased research and development activities in mobile broadband solutions, next-generation consumer broadband integrated networking and next-generation satellite payload technologies.

Government Systems
In the first quarter of fiscal year 2016, ViaSat's Government Systems segment revenues increased 24% year-over-year and segment Adjusted EBITDA grew 35%:

  • Revenue growth reflected an increase in government satellite communication systems and tactical data link products sales, partially offset by lower information assurance products revenues.
  • ViaSat's acquisition of NetNearU in late first quarter of fiscal year 2015 continued to increase the Company's Wi-Fi service revenue base, contributing to year-over-year Government Systems segment growth.
  • Higher segment Adjusted EBITDA reflected the Company's expanded service revenue base and related Adjusted EBITDA margin improvement.
  • ViaSat's Government Systems segment backlog results ended the fiscal first quarter at $372.4 million, reflecting a 22% increase over the same period last year.