Viasat (NASDAQ:VSAT) shares fell eleven% on Wednesday after the satellite communications company reported third-quarter results that were negatively affected by weakness in its Link-16 TDL business.
Third-quarter revenue was down slightly year-over-year to $714 million, while income from continuing operations increased 4% year-over-year to $651 million.
Government Systems revenue from continuing operations grew 3% year-over-year driven by 10% year-over-year growth in service revenue despite continued certification delays and supply chain issues.
Satellite service revenues were down slightly compared to the prior-year quarter, with fewer US residential subscribers.
The company incurred a net loss of $42M in the quarter, primarily due to a lower adjustment. EBITDA and higher income tax and interest expense. Losses were up $36 million from the prior-year quarter. adj. EBITDA decreased 15% year-on-year to $139 million.
Viasat (VSAT) generated $89 million in operating cash flow during the quarter, down 44% year-over-year and 53% sequentially. Net debt also increased $220 million sequentially to $2.8 billion.
Looking ahead, the company expects the full year FY23 adj. EBITDA continues to be broadly flat year-on-year, with ViaSat-3 terrestrial network operating expenses increasing in the fourth quarter in preparation for the ViaSat-3 Americas service launch and some IFC terminal deliveries shifting to right due to delays in deliveries of new aircraft to our airline customers.
