As executive chairman, Dankberg will continue to focus on advancing the strategic technology and business direction of the cCompany, and continue to influence the national and global space and broadband regulatory environments critical to Viasat’s global strategy. As CEO, Baldridge will focus on building and growing a customer-centric organization that will continue to deliver compelling global services and products.
Dankberg will continue as chairman of Viasat’s board of directors, with Baldridge also on the board.
Viasat said the leadership move is part of the company’s long-term succession plan, creating a foundation for the development of future generations of executive leadership. The company added that the transition comes at an important time in its growth, where the demands for innovation, leadership and operational execution are paramount as Viasat prepares for the impending launch of its ViaSat-3 global constellation.
Viasat stages recovery from lower Q1
Viasat brought its net profit close to breakeven in its fiscal second quarter, despite continuing pressure from the continuing coronavirus pandemic. Revenues went higher sequentially while the adjusted EBITDA lifted on both an annual and sequential basis. Viasat also recorded an improved liquidity and leverage profile, all helped by its diverse business model and disciplined expense management.
Revenues fell 6 percent year-on-year to USD 554 million, mainly due to the sharp fall in US commercial airline traffic. Compared to the previous quarter however, revenues went up 4.5 percent, helped by “exceptionally good” Government Systems awards and continued gains at the company’s fixed broadband business giving a boost to Satellite Services. The net profit reached USD 2.0 million, off from last year’s 3.2 million but better than Q2’s loss of 12.4 million. The same pattern could be seen for the adjusted net profit of USD 20.5 million, lower than the 21.0 million posted last year but improved from the 4.8 recorded in Q2. The adjusted EBITDA meanwhile advanced to USD 130 million from 118 million the year before. The company ended the quarter with USD 350 million in cash, with liquidity at over USD 1 billion.
Looking ahead, the company said it has good revenue visibility, with nearly USD 1.5 billion in total new awards for the first of 2021, after two quarters of USD 700 million. Viasat et a new record for backlog at USD 2.3 billion, not including some newly received awards at Government Systems, and again said it is making solid progress on its ViaSat 3-global constellation amid the productivity challenges caused by the pandemic.
At Satellite Services, the company’s US fixed broadband business, revenues increased to USD 216 million from 206 million, with the adjusted EBITDA rising to USD 85 million from 71 million. The company added 5,000 net subscribers, ending the quarter with a total of 603,000 US subscribers.
Commercial Networks saw awards lift 3 percent to USD 64 million driven by demand for full-motion antennas, partially offset by the pandemic effect on product orders from the commercial air business. Revenues decreased 10 percent, mainly on the back of lower IFC terminal product shipments, partially offset by higher sales of fixed broadband terminal products. The adjusted loss narrowed to USD 27 million from a loss of 32 million year-on-year.
Revenues at Government Systems dipped lower to USD 260 million from 299 million while the adjusted EBITA declined to USD 72 million from 79 million.
For next year and beyond, the company sees the potential for good adjusted EBITDA growth for fiscal 2021 and 2022.
