Shares for wireless and satellite communications provider ViaSat (VSAT) jumped early on Friday, holding to an increase of nearly 16 percent and hitting an all-time high of $71.64, fueled by a strong earnings report released in late trading the previous day.
The San Diego, California company on Thursday reported net profits for the first quarter of 2013 of $1.9 million, or $0.04 per share on revenue of $308.7 million, compared to the prior year period during which it lost $7.4 million, or $0.17 per share on revenue of $240.5 million. Analysts had expected earnings of $0.02 per share on revenue of $286 million.
ViaSat cited strong sales growth across in satellites and commercial networks. Sales in the government systems division were also up, even in the face of drastic cuts to the federal budget that has affected other companies who rely on government contracts for their income.
The company said that its Satellite Services segment was up 44 percent for the quarter, and 24 percent for the year, on the strength of some 98,000 new installations, while the Commercial Networks segment was up 40 percent on the prior year period with great success in the the global Ka-band satellite networking market. The Government Systems segment was also up 40 percent on the prior year period, propelled largely by sales growth in military broadband services, as well as tactical satellite and mobile products and services for government clients.
The company also announced that they had concluded a contract with aerospace and defense leader Boeing (BA) to build the ViaSat-2 satellite, which the company touts as “the world’s highest capacity satellite at the time of launch,” and which will greatly increase the speed of its broadband services in North and Central as well as portions of South America.
ViaSat-2 resulted from collaboration between ViaSat and Boeing’s Space & Intelligence Systems division, and is expected to facilitate the provision of broadband satellite services not only on land, but also for commercial, government, and military airplanes and ships.