Viasat (VSAT) Reports Narrower Q1 Loss on Higher Revenues

Core Viewpoint - Viasat Inc. reported strong first-quarter fiscal 2025 results, with revenues exceeding expectations and a narrower net loss compared to the previous year, driven by solid demand across its segments and contributions from Inmarsat [1][2][4]. Financial Performance - The company incurred a net loss of $32.9 million, or 26 cents per share, an improvement from a net loss of $77 million, or 83 cents per share, in the same quarter last year [2]. - Excluding non-recurring items, Viasat reported a non-GAAP net income of $39 million, or 30 cents per share, compared to a net loss of $0.4 million in the prior year [3]. - Revenues surged 44% to $1.13 billion, surpassing the consensus estimate by $45 million, with product revenues at $305.9 million and service revenues at $820.7 million [4]. Segment Performance - The Communication Services segment's revenues improved to $826.8 million from $560.3 million year-over-year, driven by growth in aviation services and contributions from Inmarsat [7]. - The Defense and Advanced Technologies segment reported revenues of $299.7 million, up from $219.5 million, supported by higher revenues from licensing agreements and tactical networking products [8]. Operational Metrics - Viasat reported an operating profit of $59.7 million, compared to an operating loss of $41.5 million in the prior year, with adjusted EBITDA rising to $403.9 million from $183.3 million [9]. - The company generated an operating cash flow of $151 million, up from $104 million in the previous year, and had $1.81 billion in cash and cash equivalents as of June 30, 2024 [10]. Future Outlook - For fiscal 2025, management expects total revenues to remain flat or increase slightly, with adjusted EBITDA projected to grow by mid-single digits [11]. - Communication Services revenues are anticipated to decline slightly due to reduced U.S. fixed broadband revenue, while Defense and Advanced Technologies revenues are expected to grow in low-single digits [12]. Structural Changes - Viasat restructured its operating segments into two distinct categories: Communication Services and Defense and Advanced Technologies, effective from the first quarter of fiscal 2025 [5][6].