ViaSat Inc. (NASDAQ:VSAT) Q4 2018 Earnings Conference Call - Final Transcript
May 24, 2018 • 05:00 pm ET
Welcome to ViaSat's Fiscal Year 2018 Fourth Quarter Earnings Conference Call. Your host for today's call is Mark Dankberg, Chairman and CEO. You may proceed, Mr. Dankberg.
Mark D. Dankberg
Yes, thanks. Good afternoon everybody, and welcome to our earnings call for our year end fiscal 2018. I'm Mark Dankberg, Chairman and CEO, and I've got with me Rick Baldridge, our President and Chief Operating Officer; Shawn Duffy, our CFO; Robert Blair, our General Counsel; Bruce Dirks, our Treasurer; and Paul Froelich from Corporate Development.
And before we start, Robert will provide our Safe Harbor disclosure.
Thanks Mark. As you know, this discussion will contain forward-looking statements. This is a reminder that factors could cause actual results to differ materially. Additional information concerning these factors is contained in our SEC filings including our most recent reports on Form 10-K and Form 10-Q. Copies are available from the SEC or from our website.
That said, back to you, Mark.
Mark D. Dankberg
Great, thanks. So we'll be referring to slides that are available over the web, and I'll start with an overview, and Shawn will discuss the consolidated and segment of our financial results. Then I'll get some additional color or review our outlook and then we'll take questions.
So the main thing is that while fiscal 2018 was impacted by launch delays and the antenna issue in ViaSat-2, as well as the substantial investments we made in space and ground network and in-flight connectivity infrastructure, we did achieve the milestones we intended, so that we can enable significant growth in fiscal 2019 and beyond. So beside this, top level accomplishments that set the stage for that growth. And after several launch delays, we've got ViaSat-2 in service even with the antenna issue, we believe it's the most capable broadband satellite ever, it's kind of powerful combination of speed, bandwidth, broad geographic coverage and real time operational flexibility. The ground network state-of-the-art with much smaller fiber gateways and it's highly virtualized.
We deployed our second generation of in-flight connectivity terminals on new airlines and now we can rapidly scale in-flight connectivity services through our existing orders. We market tested new consumer plans and features that we intend to scale in this fiscal year 2019 and beyond. We added to geographic and vertical markets for broadband Satellite Services. Government Systems had a fabulous year with 13% year-over-year growth in revenues, 27% in adjusted EBITDA, and 42% in operating earnings, all driven by new products and services and expanded applications and customer organizations. And finally, we successfully completed the pre-flight hardware and testing on ViaSat-3, that enables flight hardware production. So our mission for fiscal 2018 is to capitalize on all this with strong growth in revenue and earnings. The growth drivers are on the side and they're already underway. First is to rapidly scale our in-flight connectivity aircraft in service. That started in the fourth quarter and it's moving fast.
Next is continued growth in market expansion in Government Systems. That's largely driven by product services applications and user