Company: VSAT
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0000950170-25-016993
Chunk: 84

Company: VIASAT INC
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 1
Chunk 84
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 greater proportion of our bandwidth to our IFC business in preference to our U.S. fixed services business due to bandwidth constraints. The IFC service revenue increase was driven primarily by the increase in the number of commercial aircraft and business jets receiving our in-flight services through our IFC systems, with our IFC systems installed and in service on approximately 4,030 commercial aircraft (of which approximately 80 were inactive at quarter end, mostly due to standard aircraft maintenance) and approximately 2,000 business jets as of December 31, 2024, compared to approximately 3,540 commercial aircraft (of which approximately 40 were inactive at quarter end mostly due to standard aircraft maintenance) and approximately 1,700 business jets as of December 31, 2023. The decrease in segment product revenues was primarily driven by a $41.6 million decrease in aviation products due to accelerated IFC terminal deliveries in the prior year period and a $14.2 million decrease in government satcom products, partially offset by a $10.6 million increase in fixed and other products, mainly driven by enterprise and energy.

Segment operating profit (loss)

    Nine Months Ended

    Dollar

    Percentage

    (In millions, except percentages)
     
    December 31,2024

    December 31,2023

    Increase(Decrease)

    Increase(Decrease)

    Segment operating profit (loss)
     
    $
    85.8

    $
    (805.1
    )
     
    $
    890.9

    111
    %

    Percentage of segment revenues

    3
    %

    (35
    )%

The change in our communication services segment operating loss to an operating profit was primarily due to the recording of satellite impairment and related charges, net of estimated insurance claim receivables of approximately $905.5 million in the prior year period, as described above, as well as higher earnings contributions of $16.6 million, mainly due to increased service revenues as a result of the Inmarsat Acquisition. The change in our communication services segment operating loss to an operating profit was also attributable to lower IR&D expenses of $4.3 million (primarily related to next-generation consumer broadband integrated networking technologies), partially offset by an increase of $35.5 million in SG&A expenses (reflecting the inclusion of three full quarters of Inmarsat SG&A costs in the current year period compared to only seven months of SG&A costs in the prior year period