ViaSat(VSAT)2024-11-06 21:11Financial Performance - Q2 FY2025 revenue was $1.1 billion, a decrease of 8% YoY, with a 1% decrease when excluding a non-recurring litigation settlement contribution[9]. - Net loss for Q2 FY2025 improved to $138 million from a net loss of $767 million in Q2 FY2024, primarily due to prior year impairment charges[9]. - Adjusted EBITDA for Q2 FY2025 was $375 million, a decrease of 23% YoY, with a 2% decrease when excluding non-recurring items[9]. - Viasat reported Q2 FY25 revenues of $1,122.3 million, an 8% decrease from $1,225.4 million in Q2 FY24[55]. - Net loss for Q2 FY25 was $137.6 million, an 82% improvement compared to a net loss of $767.2 million in Q2 FY24[55]. - Adjusted EBITDA for Q2 FY25 was $375.0 million, down 23% from $486.3 million in Q2 FY24[55]. - Non-GAAP net loss for Q2 FY25 was $29.4 million, compared to a non-GAAP net income of $149.7 million in Q2 FY24[58]. - For the three months ended September 30, 2024, GAAP net loss attributable to Viasat, Inc. was $137.58 million, compared to a net loss of $767.24 million for the same period in 2023[59]. - Adjusted EBITDA for the three months ended September 30, 2024, was $374.97 million, down from $486.29 million in the prior year[59]. Revenue Segments - Communication Services revenue decreased 2% YoY to $826 million, with service revenue increases in aviation and government satcom offset by declines in FS&O and maritime services[17]. - Defense and Advanced Technologies revenue was $296 million, a 22% decrease YoY, but grew 4% YoY when excluding litigation settlement contributions[26]. - Communication Services segment revenues decreased by 2% to $826.4 million in Q2 FY25 from $846.6 million in Q2 FY24[56]. - The Communication Services Segment reported an operating profit of $41.47 million for the six months ended September 30, 2024, compared to a loss of $841.13 million for the same period in 2023[61]. - The Defense and Advanced Technologies Segment generated an operating profit of $125.82 million for the six months ended September 30, 2024, compared to $348.45 million in the prior year[61]. Contract Awards and Backlog - Record new contract awards in Q2 FY2025 reached $1.3 billion, an increase of 25% YoY, with Defense and Advanced Technologies segment awards more than doubling to $510 million[10][25]. - New contract awards in Q2 FY25 totaled $1,275.2 million, a 25% increase from $1,019.3 million in Q2 FY24[55]. - Backlog for Defense and Advanced Technologies increased 19% YoY to $921 million, with a book-to-bill ratio of 1.7[25]. - The backlog at the end of Q2 FY25 was $3,746.9 million, a 3% increase from $3,644.2 million in Q2 FY24[55]. Cash Flow and Capital Expenditures - Viasat generated $239 million in operating cash flow during Q2 FY2025, an increase of $20 million YoY and $88 million sequentially[34]. - Capital expenditures for Q2 FY2025 declined 37% YoY to $229 million, marking the fourth consecutive quarter of decline[35]. - Capital expenditures for FY2025 are expected to range from $1.3 billion to $1.4 billion, including approximately $400 million for Inmarsat-related expenditures[44]. Debt and Financial Outlook - Net debt decreased to $5.53 billion, with a net leverage ratio of 3.6x LTM Adjusted EBITDA[37]. - For FY2025, Viasat expects flat to slightly up YoY revenue growth, excluding one-time benefits from a litigation settlement[39]. - Communication Services combined revenue is projected to decline low-single digits in FY2025 compared to FY2024[40]. - DAT YoY revenue growth in FY2025 is expected to increase in the mid-teens, supported by a backlog of over $900 million[41]. - Viasat anticipates mid-single-digit YoY Adjusted EBITDA growth for FY2025, off a reference base of $1.5 billion from FY2024[42]. Product Initiatives and Contracts - New product initiatives include the launch of Enhanced LAISR for global communications and the introduction of the Multi-Mission Orchestrator for satellite constellation management[15][24]. - Space and Mission Systems secured a $33.6 million contract from the U.S. Air Force Research Laboratory for developing Active Electronically Scanned Array systems[28]. Asset and Liability Overview - Total assets as of September 30, 2024, amounted to $17.75 billion, an increase from $16.33 billion as of March 31, 2024[62]. - Cash and cash equivalents increased to $3.53 billion as of September 30, 2024, compared to $1.90 billion as of March 31, 2024[62]. - The company reported a total current liability of $3.52 billion as of September 30, 2024, compared to $1.30 billion as of March 31, 2024[62].