ViaSat Inc. (VSAT) has reported 123.24 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $11.02 million, or $0.22 a share in the quarter, compared with $4.94 million, or $0.10 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $20.32 million, or $0.40 a share compared with $14.86 million or $0.30 a share, a year ago.
Revenue during the quarter grew 12.97 percent to $399.16 million from $353.33 million in the previous year period. Gross margin for the quarter expanded 23 basis points over the previous year period to 32.09 percent. Total expenses were 95.39 percent of quarterly revenues, down from 96.09 percent for the same period last year. This has led to an improvement of 70 basis points in operating margin to 4.61 percent.
Operating income for the quarter was $18.41 million, compared with $13.83 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $93.17 million compared with $86.53 million in the prior year period. At the same time, adjusted EBITDA margin contracted 115 basis points in the quarter to 23.34 percent from 24.49 percent in the last year period.
"We had a very strong second fiscal quarter. Our government business showed exceptional growth, satellite services continued to steadily increase earnings and revenues driven by ARPU gains and growth in in-flight Wi-Fi services and our record new contract awards are indicative of sustained demand for both our products and services," said Mark Dankberg, ViaSat chairman and chief executive officer.
Working capital drops significantly
ViaSat Inc. has witnessed a decline in the working capital over the last year. It stood at $244.52 million as at Sep. 30, 2016, down 26.29 percent or $87.23 million from $331.74 million on Sep. 30, 2015. Current ratio was at 1.86 as on Sep. 30, 2016, down from 2.31 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 62 days for the quarter from 96 days for the last year period. Days sales outstanding went down to 66 days for the quarter compared with 78 days for the same period last year.
Days inventory outstanding has decreased to 26 days for the quarter compared with 48 days for the previous year period. At the same time, days payable outstanding was almost stable at 29 days for the quarter, when compared with the previous year period.
Debt moves up
ViaSat Inc. has witnessed an increase in total debt over the last one year. It stood at $1,060.48 million as on Sep. 30, 2016, up 23.44 percent or $201.38 million from $859.10 million on Sep. 30, 2015. Viasat has witnessed an increase in long-term debt over the last one year. It stood at $1,060.48 million as on Sep. 30, 2016, up 23.44 percent or $201.38 million from $859.10 million on Sep. 30, 2015. Total debt was 41.05 percent of total assets as on Sep. 30, 2016, compared with 38.25 percent on Sep. 30, 2015. Debt to equity ratio was at 0.88 as on Sep. 30, 2016, up from 0.78 as on Sep. 30, 2015. Interest coverage ratio improved to 4.51 for the quarter from 2.27 for the same period last year.
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