Satellite services company Viasat Inc. (Nasdaq: VSAT) posted record revenue of $664.9 million in the quarter ending June 30, the first quarter of its 2022 fiscal year. Net income was $17 million or 23 cents per diluted share, beating a Zacks consensus estimate of 3 cents per share. In the same quarter one year ago, Viasat reported a net loss of $12.4 million on revenue of $530.5 million.
The business expects “solid growth” through March 2023, CEO Rick Baldridge told analysts on a conference call.
The company, with its main office in Carlsbad, builds satellite communications equipment and offers satellite services to consumer, commercial, government and military users.
The recently ended quarter saw Viasat complete what it called two key acquisitions, of Euro Infrastructure Co. and RigNet Inc.
Euro Infrastructure is the remainder of a joint venture that Viasat had with Eutelsat. The joint venture operated a communications satellite serving Europe, the Middle East and Africa; the business also includes ground infrastructure.
RigNet, which works in the oil and gas industry as well as other markets, offers ultra-secure, intelligent networking solutions and specialized applications. Viasat said the acquisition will let it expand into new and adjacent industries, including renewable energy, transportation, maritime, mining and other markets.
Executives said both acquisitions give Viasat a foothold in worldwide markets as it prepares to launch its ViaSat-3 constellation.
ViaSat-3 will consist of three satellites with nearly worldwide coverage.
During the previous quarter, the company shipped its first ViaSat-3 payload to the Boeing Co. (NYSE: BA) which is integrating it into a satellite that is planned to serve the Americas.
In its Commercial Networks segment, Viasat reported accelerating mobile terminal deliveries primarily in support of Delta Air Lines. Viasat provides satellite-based Wi-Fi to many air carriers.
A $2.2 Billion Order Book
Viasat received $595 million in contract awards in the recently ended quarter, which was roughly the same as the previous quarter ($593 million) but down from $737 million in the like quarter one year ago.
Viasat now has an order backlog of $2.2 billion. The backlog figure does not include certain yet-to-be-awarded military contracts, potentially worth as much as $4 billion.
The business had $275 million in cash and cash equivalents as of June 30, down from $295.9 million on March 31.
Shares of Viasat closed Aug. 10 at $54.30. Over the past 52 weeks, shares have traded in the range of $29.82 to $61.35.
20% Revenue Growth Predicted
Breaking with its usual practice, Viasat offered guidance for the year ahead and beyond.
The business said it expects average annual revenue growth of approximately 20% from the fiscal year ended in March 2021 through the fiscal year ending in March 2023.
Viasat also predicted average annual adjusted EBITDA growth in the mid-teens from the fiscal year ended in March 2021 through the fiscal year ending in March 2023. EBITDA stands for earnings before interest, taxes, depreciation and amortization. Viasat said that growth will be moderated by expenses associated with new market entry and the ViaSat-3 ground segment, as well as a higher investment in research and development.
“This guidance shows that we expect solid growth over the next two years across all of our business as we begin to bring the ViaSat-3 network online,” Baldridge said during the analyst call.
“We believe ViaSat-3 will be transformational not just for Viasat but for the global broadband services market,” wrote Baldridge and Executive Chairman Mark Dankberg in a quarterly shareholder letter.
“In the intervening quarters we are focused on executing on our substantial backlog, and growing revenue and adjusted EBITDA, while continuing to invest in unique and differentiated technologies, service offerings and new vertical and geographic markets. A vast opportunity for space-based connectivity is unfolding and we’re excited about what we can bring to a unique and diverse portfolio of applications, partners and customers.”
Work has already begun on a potential ViaSat-4 satellite project, executives said during the conference call.
CEO: Rick Baldridge
BUSINESS: Broadband services and technologies company
REVENUE: $2.26 billion in fiscal 2021 (Viasat’s fiscal year ends on March 31); $2.31 billion in fiscal 2020
NET INCOME: $3.69 million in fiscal 2021; ($200,000) in fiscal 2020
STOCK: VSAT on Nasdaq
NOTABLE: Viasat provides in-flight communications service to Air Force One
CONTACT: (760) 476-2200