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Viasat Closes Out Fiscal Year With $2.3B in Revenue

Satellite services provider Viasat Inc. reported a slim annual net loss of $200,000 on revenue of $2.31 billion in the recently ended fiscal year. Viasat has an unconventional fiscal year which ends on March 31.

Annual revenue grew 12% from the prior fiscal year, when it was $2.07 billion. Net loss for the prior fiscal year was $67.6 million.

Like other companies, Viasat said it was facing challenges with the COVID-19 pandemic, but in a shareholder letter, the company expressed hope for the future. “It is our view that we can emerge even stronger when the crisis has passed,” said the letter signed by CEO Mark Dankberg.

In announcing its financial results, the Carlsbad company also told shareholders it is drawing up plans to launch a constellation of satellites into low-Earth orbit, possibly by 2026. That plan would complement a previously announced plan to launch a high-capacity set of satellites going into geosynchronous orbit (that is, staying in the same spot over the revolving Earth) beginning in 2021. The latter project is known as ViaSat-3.

An even more powerful ViaSat 4 may be in the works by 2025, wrote analyst Mike Crawford of B. Riley FBR.

Q4 Results Announced

In the fourth quarter, Viasat reported net income of $1.6 million on revenue of $591.7 million. Revenue was up 6% over the $557.2 million of the previous fourth quarter. Net income in the quarter ended March 31, 2019 was $2.5 million.

Pro forma earnings per share in the most recent quarter came to 32 cents. The consensus estimate of analysts polled by Yahoo Finance was that Viasat would lose a penny a share. Analyst opinions were all over the board, with the most optimistic predicting that Viasat would earn a profit of 18 cents a share, and the most pessimistic predicting a loss of 22 cents per share.

Earnings before interest, taxes, depreciation and amortization (EBITDA) were $120.3 million in the fourth quarter, down from $127.4 in the fourth quarter ended March 31, 2019.

“We long have published about Viasat’s ability to drive over $3B revenue and $1.2B EBITDA off its satellites once its global Terabit-class network deploys …,” Crawford wrote in a recent research note, making a reference to the ViaSat-3 constellation.

The business said it ended the quarter with $304 million in cash and cash equivalents after $280 million of net draws on its revolving credit facility “to allow for additional flexibility as we continue to manage the impact of the COVID-19 pandemic.” The company had another $293 million available to borrow.

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