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ViaSat Q1 Loss Misses Estimates, Revenues Dip, Shares Tumble - Analyst Blog

Leading satellite and other wireless services provider ViaSat Inc. ( VSAT ) reported disappointing financial results for the first quarter of fiscal 2015. Both the top and the bottom line fell below the respective Zacks Consensus Estimate. Consequently, in the aftermarket trade on Nasdaq, the stock price of ViaSat was down by $2.26 (3.95%) to $55.

Quarterly GAAP net loss was $5.9 million or a loss of 13 cents per share compared with a net loss of $1.8 million or 4 cents per share. First quarter adjusted loss per share was 7 cents, in contrast to the Zacks Consensus Estimate of earnings of 4 cents per share.

Viasat, Inc - Earnings Surprise | FindTheBest

Quarterly total revenue came in at $319.5 million, down 0.5% year over year and also missed the Zacks Consensus Estimate of $354 million. Category wise, Product revenues were $168.1 million, down 7.7% year over year. Service revenues were $151.3 million, up 8.9% year over year.

Gross margin, in the first quarter of fiscal 2015 was 25.6% compared with 26.7% in the prior-year quarter. Operating loss came in at $41.2 million as against an operating income of $3.4 million in the year-ago quarter. Quarterly adjusted EBITDA was $60.2 million compared with $52.7 million in the year-earlier quarter. In the reported quarter, new contracts were of $310.1 million, up 22.1% year over year. Sales backlog was $892.3 million, up 14.7% year over year.

At the end of the first quarter of fiscal 2015, ViaSat had $58.1 million of cash & cash equivalents and $789.4 million of outstanding debt compared with $58.3 million of cash & cash equivalents and $689.8 million of outstanding debt at the end of fiscal 2014. At the end of the reported quarter, the debt-to-capitalization ratio was 0.45 as against 0.42 at the end of fiscal 2014.

Satellite Services Segment

Total revenue came in at $109.7 million, up 27.9% year over year. Adjusted EBTDA was $32.8 million, up a whopping 88.5% year over year. New contracts were of $121.9 million, up 26.3% year over year.

Commercial Networks Segment

Total revenue stood at $92.2 million, down 5.3% year over year. Adjusted EBTDA was $5.5 million, down by a significant 50.5% year over year. New contracts were of $50.2 million, down 24.4% year over year.

Government Systems Segment

Total revenue came in at $117.5 million, down 14.8% year over year. Adjusted EBTDA was $21.5 million, down 12.2% year over year. New contracts were of $138 million, p by a massive 51.5% year over year.

Other Stocks to Consider

ViaSat currently carries a Zacks Rank #3 (Hold). Other better-ranked stocks in the satellite/wireless services industry include DragonWave Inc. ( DRWI ), Ericsson LM ( ERIC ) and Intelsat S.A. ( I ). All three stocks currently carry a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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