The problem with the ViaSat-3 Americas communications satellite was identified last month, according to the corporation, which announced fiscal 2024 first-quarter data, which “creates unanticipated challenges that we are already addressing.”
Mark Dankberg, CEO and Chairman of Viasat, and K. Guru Gowrappan, president of the firm, wrote in a letter that “We are currently working closely with our antenna supplier to assess the status of the antenna.”
On the company’s results call, Dankberg also stated that Viasat plans to nurture an update on “corrective actions” for the satellite at the end of the second quarter.
Moreover, Viasat has acquired approximately $420 million in insurance on the malfunctioning satellite, “which is nearly half of the net book value” of ViaSat-3 Americas, estimating its value at about $750 million.
In after-hours trading, Viasat stock rose about 3% from its close at $28.20 a share.
Furthermore, Viasat purchased $780 million in revenue during the quarter, a 36% increase over the same period the previous year.
It recorded a net loss of $77 million for the quarter, which is up from a net loss of $21.6 million in comparison to the previous year. It also highlighted rising interest costs as well as costs associated with the acquisition of Inmarsat.
Viasat typically reported $5.5 billion in net debt at the end of the final quarter, with around $2 billion in cash and equivalents.
Also, Viasat said it is investigating the incitement of the ViaSat-3 Americas problem to influence how to elude the problem on its upcoming ViaSat-3 EMEA (Europe, the Middle East, and Africa) satellite.
Aside from a faulty reflector, which appears to be manufactured by Northrop Grumman, Viasat stated that the Americas satellite’s other systems “are performing as expected, or better.”
The firm also stated that it expects “to gain additional bandwidth from the existing in-orbit fleet” through an alteration to its ground network. After its acquisition of Inmarsat (a satellite telecommunications company), Viasat has 22 satellites in space.
“We believe these augmentations will allow us to provide the high-quality experience our mobility customers have come to expect and allow us to support our near- and intermediate-term growth objectives,” Viasat said.
While broadband service to U.S. residential customers makes up about 13% of Viasat’s current revenue, the firm anticipates “that percentage will decline” after the satellite disruption.
However, part of Viasat’s mitigation strategy is to “assure service” to high demand and key customers, as development in Viasat’s fixed broadband business is expected to be postponed.
Overall, despite all the problems, Viasat evaluated that the revenue rate might grow further in 2025’s fiscal year.
- Published By Team Genuine Reporter