Satellite and wireless networking systems provider ViaSat Inc. (VSAT), Thursday reported a swing to profit in the fourth quarter, aided by an income tax benefit and a revenue growth of 28 percent on new contracts. This was somewhat offset by higher operating costs and interest expense.
Nonetheless, results came in ahead of Wall Street estimates, as the company made gains in Exede satellite broadband subscribers, with decent contract awards.
All segments performed well, including Government Systems, despite budgetary constraints, said CEO Mark Dankberg.
Carlsbad, California-based ViaSat posted quarterly net earnings of $2 million or $0.04 per share, compared with net loss of $7 million or $0.17 per share last year.
Excluding stock-based compensation expense and other items, adjusted earnings for the quarter were $9 million or $0.19 per share, compared with an adjusted loss of $0.6 million or $0.01 per share a year ago.
On average, 9 analysts polled by Thomson Reuters expected earnings of $0.02 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter totaled $309 million, compared with $241 million in the prior year. Analysts had consensus revenue estimate of $285.17 million for the quarter.
Satellite Services segment revenue jumped 44 percent, while its key Commercial Networks segment edged up 3 percent. Government Systems segment revenue was up 40 percent.
Results were offset by operating expenses that escalated to $315 million from $245 million a year ago, with interest expense higher by $2 million. That led to a loss before income taxes of $17 million for the quarter, but was more than offset by an income tax benefit of $19 million.
ViaSat's stock closed Thursday at $59.81, up 0.17%, on a volume of 534 thousand shares. In after hours, the stock gained $0.93 or 1.55%.
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