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ViaSat Inc. Reports Operating Results (10-Q)

August 08, 2012 | About:
10qk

10qk

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ViaSat Inc. (VSAT) filed Quarterly Report for the period ended 2012-06-29.

Viasat, Inc. has a market cap of $1.46 billion; its shares were traded at around $35.49 with a P/E ratio of 1128.3 and P/S ratio of 1.7.

Highlight of Business Operations:

Our total revenues increased approximately $46.7 million during the first quarter of fiscal year 2013 when compared to the same period last fiscal year due to an increase in product revenues of approximately $25.2 million, coupled with an increase in service revenues of approximately $21.5 million. The increase in product revenues resulted from product revenue increases in our commercial networks segment of approximately $23.5 million and in our government systems segment of approximately $1.8 million. The increase in service revenues was driven by service revenue increases in our government systems segment of approximately $18.3 million and in our satellite services segment of approximately $2.6 million.

Total cost of revenues increased $46.0 million during the first quarter of fiscal year 2013 compared to the first quarter of fiscal year 2012 due to a cost of service revenues increase of approximately $29.3 million and a cost of product revenues increase of approximately $16.8 million. Cost of service revenues increased from $49.3 million to $78.6 million during the first quarter of fiscal year 2013 when compared to the first quarter of fiscal year 2012 primarily due to increased service revenues, which caused an increase of approximately $14.6 million in cost of service revenues on a constant margin basis mainly related to our government systems segment. Additionally, in the first quarter of fiscal year 2013 we experienced an increase of approximately $14.2 million in cost of service revenues associated with our new ViaSat-1 satellite and associated infrastructure costs, and with our satellite services operations support in connection with our Exede broadband services, which commenced commercial operation in January 2012. Cost of product revenues increased from $92.3 million to $109.0 million during the first quarter of fiscal year 2013 when compared to the first quarter of fiscal year 2012 primarily due to increased product revenues, which caused an increase of approximately $19.0 million in cost of product revenues on a constant margin basis mainly related to our commercial networks segment.

The increase in selling, general and administrative (SG&A) expenses of $14.8 million in the first quarter of fiscal year 2013 compared to the first quarter of fiscal year 2012 was primarily attributable to higher selling costs of approximately $10.5 million, higher support costs of approximately $2.9 million and higher new business proposal costs for new contract awards of approximately $1.4 million. Of the higher selling costs, $9.3 million related to our satellite services segment due to an increase of $5.9 million in advertising and marketing, and $3.7 million in commission costs in connection with our Exede broadband services, which commenced commercial operation in January 2012. Higher support costs were incurred across all segments: $1.2 million within our commercial networks segment, $1.1 million in our satellite services segment and $0.6 million in our government systems segment. Our commercial networks segment contributed to an increase of approximately $1.1 million in higher new business proposal costs for new contract awards. SG&A expenses consisted primarily of personnel costs, business development expenses, marketing and sales, bids and proposals, facilities, finance, contract administration and general management. Some SG&A expenses are difficult to predict and vary based on specific government, commercial and satellite service sales opportunities.

Commercial networks segment revenue increased approximately $24.1 million in the first quarter of fiscal year 2013 compared to the first quarter of fiscal year 2012, primarily due to an increase in product revenues of approximately $23.5 million, comprising a $20.1 million increase in consumer broadband products, a $1.5 million increase in satellite payload technology development programs and a $1.3 million increase in satellite networking development programs.

Total revenues in our government systems segment increased approximately $20.1 million in the first quarter of fiscal year 2013 compared to the same period last fiscal year due to an increase in service revenues of $18.3 million and an increase in product revenues of $1.8 million. The increase in service revenues was primarily due to a revenue increase of $17.5 million in government satellite communication systems services (mainly attributable to broadband networking services revenues for military customers). The increase in product revenues was primarily due to revenue increases of $4.1 million in government satellite communication systems and $1.0 million in tactical data link products, offset by a revenue decrease of $4.2 million in information assurance products.

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