Viasat (NASDAQ: VSAT) shares fell 11% on Wednesday after the satellite communications company reported third-quarter results that were negatively impacted by weakness in its Link-16 TDL business.
Third-quarter revenue was down slightly year-over-year to $714 million, while revenue 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 ongoing certification delays and supply chain issues.
Satellite service revenue fell slightly compared to the year-ago quarter, with fewer residential subscribers in the US
The company incurred a net loss of $42 million in the quarter, primarily due to lower adj. EBITDA and higher income tax and interest expenses. Losses increased by $36 million compared to the prior-year quarter. adj. EBITDA fell by 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 down 53% sequentially. Net debt also increased by $220 million to $2.8 billion.
Looking ahead, the company expects an adjustment for full FY23. EBITDA as it continued to be roughly flat year-over-year, with the fourth quarter bearing increased ViaSat-3 ground network operating costs in preparation for the launch of ViaSat-3 Americas service and some IFC terminal deliveries shifted to the right due to delays in new aircraft deliveries to our customer airline.