VSAT - Viasat flags potential impact to Americas satellite performance stock -10% after hours

2023-07-12 17:02:41 ET

Viasat ( NASDAQ: VSAT ) on Wednesday flagged a potential impact to the performance of its flagship satellite system that provides high-speed internet, adding that there was no disruption to customers from the event.

Shares of the satellite internet services provider slumped 10.4% to $38.50 in extended trading.

The company said that an unexpected event had occurred during reflector deployment of its ViaSat-3 Americas satellite.

According to VSAT's website, the ViaSat-3 network consists of three high-capacity Ka-band satellites, with the first two focusing on the Americas and the EMEA regions, respectively. The Americas satellite was launched earlier this year in May.

"We're working closely with the reflector's manufacturer to try to resolve the issue," VSAT CEO Mark Dankberg said in a statement .

VSAT added that it was working on contingency plans to "minimize the economic effect to the company."

The potential options include redeploying satellites from the company's fleet and/or reallocating a subsequent ViaSat-3 class satellite to provide additional bandwidth to the Americas region.

The ViaSat-3 update from the company comes over a month after VSAT closed a difficult and tumultuous acquisition of Inmarsat, with the deal seeing heavy regulatory scrutiny overseas.

More on Viasat

• SES And Viasat: 2 Mergers To Challenge Elon Musk's Starlink
• Viasat: Large Satellite Player Still In Growth Mode

For further details see: