Financial

First Quarter Results – Record Awards and Revenues

viasat — Tue, 05 Aug 2008 05:46:24 -0700

ViaSat, Inc. (NASDAQ: VSAT) announced financial results for the first quarter of fiscal year 2009. The fiscal first quarter results include record net new contract awards of $205.9 million, record revenues of $153.0 million and non-GAAP diluted net income per share of $0.29 or $0.20 per share on a diluted GAAP basis.

“Our results for the first quarter were consistent with our plans – and new orders exceeded our expectations,” said Mark Dankberg, CEO and chairman of ViaSat. “While GAAP and non-GAAP earnings per share increased 54% and 38% respectively, compared to last year, our first quarter earnings were adversely impacted by several cents per share due to a higher tax rate resulting from the expiration of the federal R&D tax credit, which we anticipate will be retroactively extended sometime this year. We are especially pleased with growth in new orders and the corresponding strength of our core businesses. We also see opportunities for continued favorable order flow in our second quarter which would, combined with the strong first quarter awards, position us quite well for the current fiscal year.”

Financial Results¹

(In millions, except per share data)	Q1 2009	Q1 2008
Revenues	$153.0	$128.6
Net income	$6.3	$4.2
Diluted per share net income	$0.20	$0.13
Non-GAAP net income ²	$9.1	$6.8
Non-GAAP diluted net income per share²	$0.29	$0.21
Fully diluted weighted average shares	31.6	32.2

New orders/Contract awards	$205.9	$136.0
Sales backlog	$427.4	$396.1

¹ ViaSat uses a 52 or 53-week fiscal year which ends on the Friday closest to March 31. ViaSat's quarters for fiscal year 2009 end on June 27, 2008, October 3, 2008, January 2, 2009 and April 3, 2009. Fiscal year 2009 is a 53-week year, compared with a 52-week year in fiscal year 2008. The second quarter of fiscal year 2009 will consist of one additional week for a total of 14 weeks. ViaSat does not believe the extra week results in any material impact on its financial results.

² All non-GAAP numbers have been adjusted to exclude the effects of acquisition charges (amortization of intangible assets) and non-cash stock-based compensation expenses. A reconciliation of specific adjustments to GAAP results for these periods is included in the “Reconciliation Between GAAP Net Income and Non-GAAP Net Income” table contained in this release. A description of our use of non-GAAP information is provided below under “Use of Non-GAAP Financial Information.”

In our fourth quarter of fiscal year ended March 28, 2008, the company made management and organizational structure changes to better align the organization with our recent strategic changes, which resulted in a new segment presentation. We have recast the data for the prior fiscal year periods presented to conform to the current period presentation. Our Satellite Services segment is primarily comprised of our expanding maritime and airline broadband and enterprise VSAT services plus our ViaSat-1 satellite. OurCommercial Networks segment comprises our former Satellite Networks and Antenna Systems segments, except for the Satellite Services segment.

Government Systems Segment

The Government Systems segment recorded quarterly revenues of $88.6 million, a 25.5% increase over the first quarter of fiscal year 2008. The revenue growth was primarily related to higher sales of certain information assurance products, next generation military satellite communication systems, and video data link systems partially offset by a decrease in development sales of next generation tactical data link products. New contract awards in our Government Systems segment for the first quarter of fiscal year 2009 were $149.9 million.

Commercial Networks Segment

For the Commercial Networks segment, revenues were $62.9 million for the first quarter, which was a 12.0% increase from the first quarter of fiscal year 2008. The revenue increase was primarily derived from higher revenues related to the development of mobile satellite systems, satellite antenna system products, and our enterprise satellite network product sales, partially offset by a decrease in sales of our consumer broadband products. New contract awards in our Commercial Networks segment for the first quarter of fiscal year 2009 were $54.3 million.

Satellite Services Segment

Our Satellite Services segment contributed revenues of $1.4 million for the first quarter, which was essentially flat with last year. New contract awards in our Satellite Services segment for the first quarter were $1.7 million.

Selected First Quarter 2009 Business Highlights

Won a delivery order valued at approximately $52 million for Multifunctional Information Distribution System (MIDS) terminals from The Space and Naval Warfare Systems Command (SPAWAR), San Diego.
Signed a new 10 year agreement with KVH Industries Inc. to establish a global Ku-band mobile broadband network using ViaSat-patented ArcLight^® technology. The agreement includes an initial purchase by KVH of three ArcLight hubs and builds on the already successful satellite networks serving business jets, maritime vessels, and ground vehicles in North America, the Caribbean, the North Atlantic and Europe.
Received a $12 million award from Lockheed Martin Aeronautics Co. for the manufacture, integration, test, and delivery of a Communication, Navigation, and Identification (CNI) Function Stimulator (CFS) for avionics testing of F-35 Lightning II aircraft, also known as the Joint Strike Fighter.
Received a $3.97 million Task Order (TO) for modification of the Joint Communication Simulator (JCS) under an Indefinite Delivery/Indefinite Quantity (ID/IQ) contract from the U.S. Air Force. The JCS enables accurate analysis of communication system performance that reduces the expense of in-flight testing.
Introduced the EnerLinks III™ product, an advanced new Command and Control (C2) and Intelligence, Surveillance, and Reconnaissance (ISR) digital data link for Tactical Unmanned Aerial Systems (TUAS).
Obtained first OEM sales of subsidiary ICT Accelenet® Wide Area Networking (WAN) Optimization software – including both commercial and government applications.
AcceleNet® was selected as the best WAN Optimization software product by Network Products Guide. The AcceleNet product was also selected as a finalist for the 2008 SoftwareCEO/CompTIA Software Innovation Awards in the "Most Innovative Enterprise Software" category.
ViaSat subsidiary, US Monolithics, surpassed 650,000 units shipped for its Ka-band transceivers for consumer broadband, and also launched its own line of commercial C- and Ku-band satellite transmit and receive products in June.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements that refer to future R&D tax credits, favorable order flow in the second quarter and our fiscal year 2009 prospects. In some cases, forward-looking statements can be identified by terminology such as “believes,” “expects,” “may,” “will,” “should,” “could, “anticipates” or “intends” or the negative of such terms or other comparable terminology. ViaSat wishes to caution you that actual results could differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ include: product design flaws or defects; ViaSat’s ability to develop new products that gain market acceptance; changes in product supply, pricing and customer or end user demand; changes in relationships with, or the financial condition of, key customers or suppliers; changes in government regulations; changes in economic conditions globally and in the communications markets in particular; increased competition; potential product liability, infringement and other claims; and other factors affecting the communications industry generally. In addition, ViaSat refers you to the risk factors contained in ViaSat SEC filings available at www.sec.gov, including without limitation, the most recent ViaSat Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statements for any reason.

Conference Call

ViaSat Inc. will host a conference call to discuss these fiscal year 2009 first quarter results at 11:00 A.M. Eastern Time on Tuesday, August 5, 2008. The dial in number is (877) 397 0300 and (719) 325 4849 internationally. A replay will be available beginning at 2:00 P.M. Eastern through midnight, Wednesday, August 6. The passcode is 4080048. You can also access our conference call webcast and other material financial information discussed on our conference call (including any information required by Regulation G) on the Investor Relations Events Calendar page of our corporate website. The call will be archived and available on that site for at least twelve months immediately following the conference call.

Use of Non-GAAP Financial Information

To supplement ViaSat’s consolidated financial statements presented in accordance with GAAP, ViaSat uses non-GAAP net income, a measure ViaSat believes is appropriate to enhance an overall understanding of ViaSat past financial performance and prospects for the future. Non-GAAP net income excludes the effects of acquisition charges (amortization of intangible assets) and non-cash stock-based compensation expenses. We believe the non-GAAP results provide useful information to both management and investors by excluding specific expenses that we believe are not indicative of our core operating results. In addition, since we have historically reported non-GAAP results to the investment community, we believe the inclusion of non-GAAP numbers provides consistency in our financial reporting and facilitates comparisons to the company's historical operating results. Further, these adjusted non-GAAP results are among the primary indicators that management uses as a basis for planning and forecasting in future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for measures of financial performance prepared in accordance with generally accepted accounting principles. A reconciliation of specific adjustments to GAAP results is provided in the “Reconciliation Between GAAP Net Income and Non-GAAP Net Income” table contained in this release.

Enerlinks III is a trademark of Enerdyne Technologies, Inc. AcceleNet is a registered trademark of Intelligent Compression Technologies, Inc. Arclight is a registered trademark of ViaSat, Inc.

Record Fiscal Year 2008 Results

viasat — Tue, 13 May 2008 09:35:02 -0700

ViaSat Inc. (NASDAQ: VSAT), a producer of innovative satellite and other wireless communications and networking systems, today announced financial results for the fourth quarter and fiscal year 2008. The fiscal fourth quarter results include revenues of $147.4 million, net income of $0.41 per share on a diluted non-GAAP basis or $0.33 per share on a diluted GAAP basis and cash flows from operations of $2.2 million. Financial highlights for the fiscal year include record new contract awards of $560.0 million, revenues of $574.7 million, net income of $1.36 per share on a diluted non-GAAP basis or $1.04 per share on a diluted GAAP basis and cash flows from operations of $48.3 million.

“ViaSat completed another growth year in fiscal year 2008, with new records in earnings, revenues and orders,” said Mark Dankberg, CEO and chairman of ViaSat. “Pre-tax earnings rose an exceptional 37% over last year’s fourth quarter and 29% for the fiscal year as a whole, though the expiration of the federal R&D tax credit at the end of our third fiscal quarter constrained our EPS growth for both the fourth quarter and the fiscal year. Pre-tax earnings were driven by strong product revenues, which improved operating margins, and supported a 50% increase in discretionary R&D investments. New orders in the fourth quarter were lower than planned, attributable to timing of specific defense programs; however, the Company’s award volume in early fiscal year 2009 has been excellent and puts us on track to overcome the shortfall.”

Financial Results¹

(In millions, except per share data)	Q4 2008	Q4 2007	FY 2008	FY 2007
Revenues	$147.4	$132.0	$574.7	$516.6
Net income	$10.5	$8.6	$33.5	$30.2
Diluted per share net income	$0.33	$0.27	$1.04	$0.98
Non-GAAP net income ²	$12.9	$10.8	$43.8	$39.1
Diluted per share non-GAAP net income ²	$0.41	$0.34	$1.36	$1.27
Fully diluted weighted average shares	31.6	31.8	32.2	30.9

New orders/Contract awards	$98.3	$125.6	$560.0	$525.0
Sales backlog	$374.4	$388.7	$374.4	$388.7

¹ ViaSat uses a 52- or 53-week fiscal year which ends on the Friday closest to March 31. ViaSat's quarters for fiscal year 2008 ended on June 29, 2007, September 28, 2007, December 28, 2007 and March 28, 2008.

Effective for the fiscal year ended March 28, 2008, the Company made management and organizational structure changes to better align the organization with our recent strategic changes, which resulted in a new segment presentation. We have recast the data for the prior fiscal year periods to conform to the current period presentation. Our Satellite Services segment is primarily comprised of our ViaSat-1 satellite, mobile broadband, and enterprise VSAT service businesses. Our Commercial Networks segment comprises our former Satellite Networks and Antenna Systems segments, except for the Satellite Services segment.

Government Systems Segment

The Government Systems segment recorded quarterly and annual revenues of $84.1 million and $319.5 million, respectively, an 18.4% increase over the fourth quarter of fiscal year 2007 and a 14.8% increase over the prior year. The fourth quarter year-over-year increase in revenue resulted primarily from higher sales of government satellite communications and information assurance products. New contract awards in our Government Systems segment for the fourth quarter and fiscal year 2008 were $57.7 million and $306.2 million, respectively.

Commercial Networks Segment

For the Commercial Networks segment, revenues were $61.6 million for the fourth quarter, a 3.2% increase over the fourth quarter of fiscal year 2007. Year-to-date Commercial Networks segment revenues were $248.3 million, a 7.2% increase over the prior year. The revenue growth for the fourth quarter of fiscal year 2008 compared to 2007 was primarily related to higher sales of consumer broadband products and antenna system products, partially offset by a decrease in our enterprise VSAT products sales. New contract awards in our Commercial Networks segment for the fourth quarter and fiscal year 2008 were $38.6 million and $249.7 million, respectively.

Satellite Services Segment

Our newly established Satellite Services segment contributed revenues of $1.7 million for the fourth quarter, a 25.4% increase over the fourth quarter of fiscal year 2007. Year-to-date Satellite Services segment revenues were $6.8 million, a 1.9% increase over the prior year. The revenue growth for the fourth quarter of fiscal year 2008 compared to 2007 was primarily related to higher revenues in mobile satellite and managed broadband service. New contract awards in our Satellite Services segment for the fourth quarter and fiscal year 2008 were $2.0 million and $4.1 million, respectively.

Selected Fiscal Year 2008 and Recent Business Highlights

Entered into an agreement with WildBlue Communications to supply at least their next 500,000 Ka-band satellite terminals for the WildBlue satellite broadband service. ViaSat also delivered network infrastructure and software upgrades to WildBlue during the year, enabling them to resume selling services in previously sold-out regions.
Extended our relationship and collaboration with Eutelsat, including the launch of the Tooway™ consumer broadband satellite service in Europe, and mobile broadband system on high-speed trains operated by the French SNCF railway. ViaSat is the exclusive provider of broadband networking equipment for the Tooway service, which is a forerunner to services that will be provided by Eutelsat’s new high capacity Ka-Sat satellite (scheduled for launch in 2010). The ViaSat-1 satellite in North America and the Ka-Sat satellite in Europe are expected to be the highest capacity and most cost-efficient broadband satellites in the world at launch.
Shipped over 250,000 SurfBeam® modems and US Monolithics Ka-band transceivers in support of the WildBlue and Telesat services in North America.
Received awards totaling $124 million for Multifunctional Information Distribution System (MIDS) Low Volume Terminal (LVT) products, accessory equipment, and next generation data link development programs. ViaSat also shipped over 430 LVT systems during the year.
Commenced work on a military satellite communication product called the Joint Internet Protocol Modem (JIPM) through a subcontract with Globecomm Systems Inc. The new modem is designed to integrate advanced commercial satellite networking, information assurance technologies, and open standard networking for joint military forces.
Signed new distribution agreements and received new orders worth $26 million for airborne broadband terminals and satellite services for ARINC SKYLink^SM and Rockwell Collins eXchange™ services.
Generated strong growth in antenna systems product sales for government, remote sensing, and service. Also positioned the business for future growth with several new products, primarily in the mobile satellite broadband market, through new product development initiatives and completing the acquisition of JAST, a specialist in small, low-profile antennas.
Introduced the KG-250 Release 1.4, the first product to be in full compliance with the HAIPE® Interoperability Specification, Foreign Interoperability (HAIPE IS-FI) standard, following certification from the National Security Agency.
Began shipments of LinkStar® VSAT system with Adaptive Coding and Modulation (ACM), plus exclusive ViaSat Dynamic Link Adaptation (DLA) and AcceleNet software. LinkStar_S2A^™ terminals are already installed and operating in South America, Europe, Africa, the U.S, Australia, and all regions of Asia.
ICT AcceleNet® WAN optimization and application acceleration software product was selected as a finalist for the 2008 Software CEO/CompTIA Software Innovation Awards in the "Most Innovative Enterprise Software" category.
Achieved a listing on the Forbes magazine “200 Best Small Companies” for the sixth time. The list is a compilation of the best small, but growing, businesses in America.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements that refer to new orders, award volumes, broadband initiatives in North America and Europe, the ViaSat-1 satellite and the KaSat satellite. In some cases, forward-looking statements can be identified by terminology such as “believes,” “expects,” “may,” “will,” “should,” “could, “anticipates” or “intends” or the negative of such terms or other comparable terminology. ViaSat wishes to caution you that actual results could differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ include: product design flaws or defects; ViaSat’s ability to successfully have manufactured and launch the ViaSat-1 satellite system and implement its satellite service business; ViaSat’s ability to successfully integrate acquired companies; ViaSat’s ability to perform under existing contracts and obtain additional contracts; ViaSat’s ability to develop new products that gain market acceptance; ViaSat’s ability to reach agreement on definitive contracts; changes in product supply, pricing and customer or end user demand; changes in relationships with, or the financial condition of, key customers or suppliers; changes in government regulations; changes in economic conditions globally and in the communications markets in particular; increased competition; potential product liability, infringement and other claims; and other factors affecting the communications industry generally. In addition, ViaSat refers you to the risk factors contained in ViaSat SEC filings available at www.sec.gov, including without limitation, the most recent ViaSat Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statements for any reason.

Conference Call

ViaSat Inc. will host a conference call on Tuesday, May 13, 2008, at 5:00 p.m. Eastern Time, to discuss the results for the fourth quarter and fiscal year 2008. The dial-in number is (877) 675-4752 in the U.S. and (719) 325-4882 internationally. A replay of the conference call will be available for approximately 24 hours after the original call by dialing (888) 203-1112 for U.S. callers and (719) 457-0820 for international callers, and entering the passcode 3825648. You can also access our conference call webcast and other material financial information discussed on our conference call (including any information required by Regulation G on the Investor Relations section of our website at investors.viasat.com/events.cfm. The call will be archived and available on that site for approximately one month immediately following the conference call.

About ViaSat

ViaSat produces innovative satellite and other digital communication products that enable fast, secure, and efficient communications to any location. The company provides networking products and managed network services for enterprise IP applications; is a key supplier of network-centric military communications and encryption technologies to the U.S. government; and is the primary technology partner for gateway and customer-premises equipment for consumer and mobile satellite broadband services. The company has five subsidiaries: US Monolithics, Efficient Channel Coding, Enerdyne Technologies, Intelligent Compression Technologies and JAST. These companies design and produce complementary products such as monolithic microwave integrated circuits, DVB-S2 satellite communication components, video data link systems, data acceleration and compression products, and mobile satellite antenna systems. ViaSat has locations in Carlsbad, CA, and Duluth, GA, along with its Comsat Laboratories division in Germantown, MD. Additional field offices are located in Boston, MA, Baltimore, MD, Washington DC, Australia, China, India, Italy, and Spain.

Use of Non-GAAP Financial Information

To supplement ViaSat consolidated financial statements presented in accordance with GAAP, ViaSat uses non-GAAP net income, a measure ViaSat believes is appropriate to enhance an overall understanding of ViaSat past financial performance and prospects for the future. Non-GAAP net income excludes the effects of acquisition charges (amortization of intangible assets) and non-cash stock-based compensation expenses. The non-GAAP numbers for fiscal year 2007 also exclude a cumulative one time adjustment to compensation expense to correct certain historical stock option grants. We believe the non-GAAP results provide useful information to both management and investors by excluding specific expenses that we believe are not indicative of our core operating results. In addition, since we have historically reported non-GAAP results to the investment community, we believe the inclusion of non-GAAP numbers provides consistency in our financial reporting and facilitates comparisons to the company's historical operating results. Further, these adjusted non-GAAP results are among the primary indicators that management uses as a basis for planning and forecasting in future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for measures of financial performance prepared in accordance with generally accepted accounting principles. A reconciliation of specific adjustments to GAAP results is provided in the “Reconciliation Between GAAP Net Income and Non-GAAP Net Income” table contained in this release.

Tooway is a trademark of Eutelsat S.A.

HAIPE is a registered trademark of the National Security Agency.

SKYLink is a service mark of ARINC Incorporated.

eXchange is a trademark of Rockwell Collins.

AcceleNet is a registered trademark of Intelligent Compression Technologies.

SurfBeam and LinkStar are registered trademarks of ViaSat. Linkstar_S2ais a trademark of ViaSat.

Record Revenues and Profitability for Fiscal Third Quarter FY08

Tue, 05 Feb 2008 00:00:00 -0800

Pre-tax earnings up 83% for the quarter and 26% year-to-date

Carlsbad, CA - ViaSat Inc. (NASDAQ: VSAT), a producer of innovative satellite and other wireless communications and networking systems, announced financial results for the third quarter ended December 28, 2007. Highlights include record quarterly and year-to-date revenues of $152.1 million and $427.2 million, respectively. For the third quarter, the company also reported net income of $0.40 per share on a diluted non-GAAP basis or $0.32 per share on a diluted GAAP basis, both quarterly records. Year-to-date, the company reported net income of $0.96 per share on a diluted non-GAAP basis or $0.71 per share on a diluted GAAP basis.

“Third quarter earnings reflect significant margin improvement in both government and commercial products,” noted Mark Dankberg, ViaSat CEO. “Compared to the same period last year, pre-tax income grew over 80%, even while we invested over 50% more in R&D. Quarterly and year-to-date earnings and revenues are at record levels. While year-to-date orders are solid, third quarter awards reflect timing delays of anticipated extensions to on-going government development contracts.”

Financial Results¹

(In millions, except per share data)	Q3 2007	Q3 2006	First 9 Mos. FY07	First 9 Mos. FY06
Revenues	$152.1	$124.3	$427.2	$384.5
Net income	$10.2	$9.7	$23.0	$21.6
Diluted per share net income	$0.32	$0.31	$0.71	$0.71
Non-GAAP net income²	$12.9	$12.2	$30.9	$28.3
Diluted per share non-GAAP net income²	$0.40	$0.40	$0.96	$0.93
Fully diluted weighted average shares	32.5	30.8	32.3	30.4
New orders/Contract awards	$136.0	$124.0	$461.5	$399.3
Sales backlog	$422.9	$394.9	$422.9	$394.9

¹ - ViaSat uses a 52 or 53 week fiscal year which ends on the Friday closest to March 31. ViaSat's quarters for fiscal year 2008 end on June 29, 2007, September 28, 2007, December 28, 2007 and March 28, 2008.

² - All non-GAAP numbers have been adjusted to exclude the effects of acquisition charges (amortization of intangible assets) and non-cash stock-based compensation expenses. A reconciliation of specific adjustments to GAAP results for these periods is included in the “Reconciliation Between GAAP Net Income and Non-GAAP Net Income” table contained in this release. A description of our use of non-GAAP information provided below under “Use of Non-GAAP Financial Information.”

Government Segment³
The Government segment recorded quarterly and nine-month revenues of $84.9 million and $235.4 million, respectively, a 23.0% increase over the third quarter of fiscal year 2007 and a 13.5% increase over the prior year nine-month period. The third quarter year-over-year increase in revenues resulted primarily from higher sales of government satellite communications and information assurance products. New contract awards in our Government segment for the third quarter of fiscal year 2008 were $54.4 million.

Commercial Segment³
For the Commercial segment, revenues were $67.1 million for the third quarter, a 21.4% increase over the third quarter of fiscal year 2007. Year-to-date Commercial segment revenues were $191.8 million, an 8.2% increase over the prior year. The revenue growth for the third quarter of fiscal year 2008 compared to 2007 was primarily related to higher sales of consumer broadband products and antenna systems products, partially offset by a decrease in our enterprise VSAT products. New contract awards in our Commercial segment for the third quarter of fiscal year 2008 were $81.6 million.

³ - During the third quarter of fiscal year 2008, the company made management and organizational structure changes due to a shift in product marketing and development strategies. We have changed the data for the prior fiscal year periods presented to conform to the current period presentation.

Selected Third Quarter 2008 Business Highlights

In collaboration with Eutelsat and Loral, announced establishment of new Ka-band broadband initiatives in North America and Europe. ViaSat has contracted with Space Systems/Loral to construct ViaSat-1, expected to be the world’s most cost-efficient broadband satellite. ViaSat will be the exclusive provider of broadband networking equipment for ViaSat-1 in the U.S., the Canadian portion of ViaSat-1 which is anticipated to augment Telesat’s ANIK F-2 and ANIK F-3 Ka-band coverage, and for Eutelsat’s KA-SAT, Europe’s highest capacity satellite. ViaSat and Eutelsat are also working on a broader strategic relationship which will include extending existing services to Ka-band at substantially more attractive pricing, including regional video, multi-media, enterprise, defense and mobile broadband services currently operating over Ku-band satellites.
Commenced work on a military satellite communication terminal called the Joint Internet Protocol Modem (JIPM) through a subcontract with Globecomm Systems Inc. The new modem is designed to integrate advanced commercial satellite networking and information assurance technologies into an integrated IP network for joint, interoperable communications.
Signed new distribution agreements and received new orders worth $26 million for airborne broadband terminals and satellite services from ARINC SKYLinkSM and Rockwell Collins eXchange.TM
Received orders from Eutelsat to provide a Ka-band consumer broadband system in Europe based on the company’s SurfBeam® DOCSIS® based system in support of Eutelsat’s recently launched Tooway™ service in Europe. Initial customer applications will be for Swisscom in Switzerland.
Received our first order for AN/PSC-14s portable broadband military terminals from the U.S. Air Force. The terminal combines Inmarsat IP-based Broadband Global Area Network (BGAN) technology with ViaSat AltaSec® IP inline encryption equipment.
Named as the only “Excellence VSAT Equipment Providing Enterprise" and voted number one of five “Foreign Excellence Brand Enterprises” in the 2007 Excellence Brand Enterprises in Chinese Application Industry awards program.

Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements that refer to broadband initiatives in North America and Europe, collaborations, strategic relationships, exclusivity arrangements and the ViaSat-1 satellite system. ViaSat wishes to caution you that actual results could differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ include: product design flaws or defects; ViaSat ability to successfully integrate acquired companies; ViaSat ability to perform under existing contracts and obtain additional contracts; ViaSat ability to develop new products that gain market acceptance; ViaSat’s ability to reach agreement on definitive contracts; changes in product supply, pricing and customer or end user demand; changes in relationships with, or the financial condition of, key customers or suppliers; changes in government regulations; changes in economic conditions globally and in the communications markets in particular; increased competition; potential product liability, infringement and other claims; and other factors affecting the communications industry generally. In addition, ViaSat refers you to the risk factors contained in ViaSat’s SEC filings available at www.sec.gov, including without limitation, ViaSat’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statements for any reason.

Conference Call
ViaSat Inc. will host a conference call on Tuesday, February 5, 2008, at 10:00 a.m. Eastern Time, to discuss the results for the third quarter of fiscal year 2008. The dial-in number is (877) 397-0250 in the U.S. and (719) 325-4854 internationally. A replay of the conference call will be available for approximately 24 hours after the original call by dialing (888) 203-1112 for U.S. callers and (719) 457-0820 for international callers, and entering the passcode 2614298. You can also access our conference call webcast and other material financial information discussed on our conference call (including any information required by Regulation G) on the Investor Relations section of our website at www.viasat.com. The call will be archived and available on that site for approximately one month immediately following the conference call.

About ViaSat
ViaSat produces innovative satellite and other digital communication products that enable fast, secure, and efficient communications to any location. The company provides networking products and managed network services for enterprise IP applications; is a key supplier of network-centric military communications and encryption technologies to the U.S. government; and is the primary technology partner for gateway and customer-premises equipment for consumer and mobile satellite broadband services. The company has five subsidiaries: US Monolithics, Efficient Channel Coding, Enerdyne Technologies, Intelligent Compression Technologies and JAST. These companies design and produce complementary products such as monolithic microwave integrated circuits, DVB-S2 satellite communication components, video data link systems, data acceleration and compression products, and mobile satellite antenna systems. ViaSat has locations in Carlsbad, CA, and Duluth, GA, along with its Comsat Laboratories division in Germantown, MD. Additional field offices are located in Boston, MA, Baltimore, MD, Washington DC, Australia, China, India, Italy, and Spain.

Use of Pro Forma Financial Information
To supplement ViaSat's consolidated financial statements presented in accordance with GAAP, ViaSat uses non-GAAP net income, a measure ViaSat believes is appropriate to enhance an overall understanding of ViaSat's past financial performance and prospects for the future. Non-GAAP net income excludes the effects of acquisition charges (amortization of intangible assets), and non-cash stock-based compensation expenses. The non-GAAP numbers for year-to-date fiscal year 2007 also exclude a cumulative one time adjustment to compensation expense to correct certain historical stock option grants. We believe the non-GAAP results provide useful information to both management and investors by excluding specific expenses that we believe are not indicative of our core operating results. In addition, since we have historically reported non-GAAP results to the investment community, we believe the inclusion of non-GAAP numbers provides consistency in our financial reporting and facilitates comparisons to the company's historical operating results. Further, these adjusted non-GAAP results are among the primary indicators that management uses as a basis for planning and forecasting in future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for measures of financial performance prepared in accordance with generally accepted accounting principles. A reconciliation of specific adjustments to GAAP results is provided in the “Reconciliation Between GAAP Net Income and Non-GAAP Net Income” table linked to this release.

SKYLink is a service mark of ARINC. eXchange is a trademark of Rockwell Collins.
SurfBeam and AltaSec are registered trademarks of ViaSat, Inc.
DOCSIS is a registered trademark of Cable Television Laboratories Inc.
Tooway is a trademark of Eutelsat S.A.
Comsat Labs and Comsat Laboratories are tradenames of ViaSat Inc. Neither Comsat Labs nor Comsat Laboratories is affiliated with COMSAT Corporation. “Comsat” is a registered trademark of COMSAT Corporation.

Find a PDF of our Q3 FY08 financials on viasat.com.

Strong Fiscal 2008 Second Quarter Results: Record Awards, Revenues and Earnings

Thu, 01 Nov 2007 00:00:00 -0700

Carlsbad, CA - ViaSat Inc. (NASDAQ: VSAT), a producer of innovative satellite and other wireless communications and networking systems, today announced results for its fiscal year 2008 second quarter, including record revenues of $146.6 million and new net contract awards of $189.5 million for the quarter ended September 28, 20071. ViaSat reported net income of $0.35 per share on a diluted non-GAAP2 basis or $0.27 per share on a diluted GAAP basis. Year-to-date, ViaSat reported total revenues of $275.2 million, net new contract awards of $325.5 million, and net income of $0.56 per share on a diluted non-GAAP2 basis or $0.40 per share on a diluted GAAP basis.

“Our results for the quarter were very good and consistent with our expectations,” said Mark Dankberg, chairman and CEO of ViaSat. “Our orders were particularly strong and broadly distributed across our market segments, adding visible support to our growth outlook.”

Financial Results
For the second quarter ended September 28, 2007¹, the company reported the following

(In millions, except share data)	Q2 2008	Q2 2007	First 6 Mos. FY08	First 6 Mos. FY07
Revenues	$146.6	$131.5	$275.2	$260.2
Net income	$8.6	$6.5	$12.8	$11.9
Diluted per share net income	$0.27	$0.21	$0.40	$0.39
Non-GAAP net income²	$11.2	$8.5	$18.0	$16.1
Diluted per share non-GAAP net income²	$0.35	$0.28	$0.56	$0.53
Fully diluted weighted average shares	32.2	30.5	32.2	30.2
New orders/Contract awards	$189.5	$141.4	$325.5	$275.3
Sales backlog	$439.0	$395.2	$439.0	$395.2

¹ViaSat uses a 52- or 53-week fiscal year which ends on the Friday closest to March 31. ViaSat's quarters for fiscal year 2008 end on June 29, 2007, September 28, 2007, December 28, 2007 and March 28, 2008.

Government Segment
Our Government segment had quarterly revenues of $79.8 million, a 14% increase over the second quarter of fiscal year 2007. The revenue growth from the second quarter of fiscal year 2007 to the second quarter of fiscal year 2008 was primarily related to higher government satellite communications and certain information assurance products sales. New contract awards in our Government segment for the second quarter of fiscal year 2008 were $122.3 million.

Commercial Segment
Revenues from our Commercial segment were $66.8 million for the second quarter, a 9% increase over the second quarter of fiscal year 2007. The revenue growth from the second quarter of fiscal year 2007 to the second quarter of fiscal year 2008 was primarily related to higher sales of consumer broadband products and Antenna Systems products partially offset by a decrease in our enterprise VSAT products. New contract awards in our Commercial segment for the second quarter of fiscal year 2008 were $67.2 million.

Selected Second Quarter 2008 Business Highlights

Safe Harbor Statement

Portions of this release, particularly ViaSat’s financial prospects for fiscal year 2008 and beyond, and the “Selected Second Quarter 2008 Business Highlights” section, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. ViaSat wishes to caution you that there are some factors that could cause actual results to differ materially from historical results or from any results expressed or implied by such forward-looking statements, including but not limited to: product design flaws or defects; ViaSat’s ability to successfully integrate acquired companies; ViaSat’s ability to perform under existing contracts and obtain additional contracts; ViaSat’s ability to develop new products that gain market acceptance; changes in product supply, pricing and customer or end user demand; changes in relationships with, or the financial condition of, key customers or suppliers; changes in government regulations; changes in economic conditions globally and in the communications markets in particular; increased competition; potential product liability, infringement and other claims; and other factors affecting the communications industry generally. ViaSat refers you to the documents it files from time to time with the Securities and Exchange Commission, specifically the section titled Risk Factors in ViaSat’s most recent Annual Report Form 10-K and Quarterly Reports on Form 10-Q. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statements.

Conference Call

ViaSat Inc. will host a conference call to discuss these fiscal year 2008 second quarter results at 5:00 PM Eastern Time on Thursday, November 1, 2007. The dial-in number is (877) 397-0291 and (719) 325-4857 internationally. The passcode is 1293947. A replay will be available for 24 hours beginning at 7:30 PM ET November 1 at (888) 203-1112 and (719) 457-0820 internationally. The passcode is 1293947. You can also access our conference call webcast and other material financial information discussed on our conference call (including any information required by Regulation G) on the Investor Relations Events Calendar page of our corporate Web site (www.viasat.com). The call will be archived and available on that site for at least twelve months immediately following the conference call.

About ViaSat

Use of Non-GAAP Financial Information

Non-GAAP net income excludes the effects of acquisition charges (amortization of intangible assets), and non-cash stock-based compensation expenses. The non-GAAP numbers for the first quarter of fiscal year 2007 also exclude a cumulative one time adjustment to compensation expense to correct certain historical stock option grants. Non-GAAP net income is provided to enhance the overall understanding of our current financial performance and our prospects for the future. Specifically, we believe the non-GAAP results provide useful information to both management and investors by excluding specific expenses that we believe are not indicative of our core operating results. In addition, since we have historically reported non-GAAP results to the investment community, we believe the inclusion of non-GAAP numbers provides consistency in our financial reporting. Further, these adjusted non-GAAP results are one of the primary indicators management uses for planning and forecasting in future periods. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles. See the “Reconciliation Between GAAP Net Income and Non-GAAP Net Income” table for a reconciliation of net income to non-GAAP net income. Non-GAAP information as presented in this press release may not be comparable to similarly titled measures reported by other companies.

Find a PDF of our Q2 FY08 financial tables on viasat.com.

Comsat Labs and Comsat Laboratories are tradenames of ViaSat Inc. Neither Comsat Labs nor Comsat Laboratories is affiliated with COMSAT Corporation. “Comsat” is a registered trademark of COMSAT Corporation.
DOCSIS is a registered trademark of Cable Television Laboratories Inc.
SurfBeam is a registered trademark of ViaSat, Inc.

First Quarter FY 2008 Results

admin — Wed, 08 Aug 2007 00:00:00 -0700

Carlsbad, CA - ViaSat, Inc. (NASDAQ: VSAT), a producer of innovative satellite and other wireless communications and networking systems, today announced revenues of $128.6 million and new net contract awards of $136.0 million for the quarter ended June 29, 2007. ViaSat reported net income of $0.21 per share on a diluted non-GAAP basis or $0.13 per share on a diluted GAAP basis.

“First quarter earnings were below plan due primarily to the shift of certain planned information assurance products from our fiscal first quarter into our fiscal second quarter. But ViaSat’s outlook for the fiscal year remains intact and underlying business fundamentals are strong,” said Mark Dankberg, chairman and CEO of ViaSat. “Results also reflected planned increased discretionary investments in R&D and proposal preparation to pursue a number of attractive near term opportunities. New orders in the second quarter are anticipated to be very good, consistent with plans for earnings to be skewed to the second half of the year. MIDS, MIDS JTRS, information assurance, and consumer broadband continue to show significant momentum.”

Financial Results
For the first quarter ended June 29, 2007¹, ViaSat reported the following financial results:

(In millions, except share data)	Q1 2008	Q1 2007
Revenues	$128.6	$128.7
Net income	$4.2	$5.4
Diluted per share net income	$0.13	$0.18
Non-GAAP net income²	$6.8	$7.6
Diluted per share non-GAAP net income²	$0.21	$0.26
Fully diluted weighted average shares	32.2	29.7
New orders/Contract awards	$136.0	$134.0
Sales backlog	$396.1	$380.1

² All non-GAAP numbers have been adjusted to exclude the effects of acquisition charges (amortization of intangible assets) and employee stock-based related compensation expense. A reconciliation of specific adjustments to GAAP results for these periods is included in the “Reconciliation Between GAAP Net Income and Non-GAAP Net Income” table contained in this release. A description of our use of non-GAAP information is provided under “Use of Non-GAAP Financial Information.”

Government Segment
The Government segment had quarterly revenues of $70.6 million, a 9% increase over the first quarter of fiscal year 2007. The revenue growth was primarily related to higher government satellite communications and data link product sales. New contract awards for the first quarter of fiscal year 2008 were $72 million.

Commercial Segment
Revenues from our Commercial segment were $58.0 million for the first quarter, which was a 9.5% decrease from the first quarter of fiscal year 2007. The revenue decrease was primarily in our enterprise VSAT products partially offset by higher sales of consumer broadband products. New contract awards for the first quarter of fiscal year 2008 were $64 million.

Selected First Quarter 2008 Business Highlights

Safe Harbor Statement

Portions of this release, particularly ViaSat’s financial prospects for fiscal year 2008 and beyond, and the “Selected First Quarter 2008 Business Highlights” section, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. ViaSat wishes to caution you that there are some factors that could cause actual results to differ materially from historical results or from any results expressed or implied by such forward-looking statements, including but not limited to: product design flaws or defects; ViaSat’s ability to successfully integrate acquired companies; ViaSat’s ability to perform under existing contracts and obtain additional contracts; ViaSat’s ability to develop new products that gain market acceptance; changes in product supply, pricing and customer or end user demand; changes in relationships with, or the financial condition of, key customers or suppliers; changes in government regulations; changes in economic conditions globally and in the communications markets in particular; increased competition; potential product liability, infringement and other claims; and other factors affecting the communications industry generally. ViaSat refers you to the documents it files from time to time with the Securities and Exchange Commission, specifically the section titled Risk Factors in ViaSat’s most recent Form 10-K and Form 10-Qs. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statements.

Conference Call

ViaSat Inc. will host a conference call to discuss these fiscal year 2008 first quarter results at 5:00 P.M. Eastern Time on Wednesday, August 8, 2007. The dial-in number is (800) 638-4817 and (617) 614-3943 internationally. The passcode is 82872979. A replay will be available for 24 hours beginning at 7:00 P.M. ET, August 8 at (888) 286-8010 and (617) 801-6888 internationally. The passcode is 54774691. You can also access our conference call webcast and other material financial information discussed on our conference call (including any information required by Regulation G) on the Investor Relations Events Calendar page of our corporate web site (www.viasat.com). The call will be archived and available on that site for at least twelve months immediately following the conference call.

About ViaSat

ViaSat produces innovative satellite and other digital communication products that enable fast, secure, and efficient communications to any location. The company provides networking products and managed network services for enterprise IP applications; is a key supplier of network-centric military communications and encryption technologies to the U.S. government; and is the primary technology partner for gateway and customer-premises equipment for consumer and mobile satellite broadband services. The company owns five subsidiaries: US Monolithics, Efficient Channel Coding, Enerdyne Technologies, Intelligent Compression Technologies and JAST Antenna Technologies. These companies design and produce complementary products such as monolithic microwave integrated circuits, DVB-S2 satellite communication components, video data link systems, data acceleration and compression products, and mobile satellite antenna systems. ViaSat has locations in Carlsbad, CA, and Duluth, GA, along with its Comsat Laboratories division in Germantown, MD. Additional field offices are located in Boston, MA, Baltimore, MD, Washington DC, Australia, China, India, Italy, and Spain.

Use of Non-GAAP Financial Information

Non-GAAP net income excludes the effects of acquisition charges (amortization of intangible assets), and non-cash stock-based compensation expenses. The non-GAAP numbers for the first quarter of fiscal year 2007 also exclude a cumulative one time adjustment to compensation expense to correct certain historical stock option grants. Non-GAAP net income is provided to enhance the overall understanding of our current financial performance and our prospects for the future. Specifically, we believe the non-GAAP results provide useful information to both management and investors by excluding specific expenses that we believe are not indicative of our core operating results. In addition, since we have historically reported non-GAAP results to the investment community, we believe the inclusion of non-GAAP numbers provides consistency in our financial reporting. Further, these adjusted non-GAAP results are one of the primary indicators management uses for planning and forecasting in future periods. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles. See the “Non-GAAP Condensed Consolidated Statement of Operations” table for a reconciliation of net income to non-GAAP net income. Non-GAAP information as presented in this press release may not be comparable to similarly titled measures reported by other companies.

Find a PDF of our Q1 FY08 financial tableson viasat.com.

HAIPE is a registered trademark of the National Security Agency.
Comsat Labs and Comsat Laboratories are tradenames of ViaSat Inc. Neither Comsat Labs nor Comsat Laboratories is affiliated with COMSAT Corporation. “Comsat” is a registered trademark of COMSAT Corporation.

New Records for Fiscal 2007 Results

Mon, 14 May 2007 00:00:00 -0700

Carlsbad, CA - ViaSat Inc. (NASDAQ: VSAT), a producer of innovative satellite and other wireless communications and networking systems, today announced financial results for the fourth quarter and fiscal year 2007. The fiscal fourth quarter results include revenues of $132.0 million, net income of $0.34 per share on a diluted non-GAAP basis or $0.27 per share on a diluted GAAP basis and cash flows from operations of $24.4 million.

Financial highlights for the fiscal year include record new contract awards of $525.0 million, revenues of $516.6 million, net income of $1.27 per share on a diluted non-GAAP basis or $0.98 per share on a diluted GAAP basis and cash flows from operations of $66.7 million.

“Fiscal year 2007 was another outstanding year for us,” said Mark Dankberg, chairman and CEO of ViaSat. “We exceeded our goals for revenues, earnings and cash flows and continued to strengthen our competitive position in key markets. Fiscal year 2008 should be an exciting year for us too, as we aim to increase sales of recently completed systems and products, while embarking on a series of new and expanded development projects that can set the stage for sustained growth in the next several years.”

Financial Results
For the fourth quarter and fiscal year ended December 30, 2007¹ the company reported the following:

(In millions, except per share data)	Q4 2007	Q4 2006	FY 2007	FY 2006
Revenues	$132.0	$118.1	$516.6	$433.8
Net income	$8.6	$5.8	$30.2	$23.5
Diluted per share net income	$0.27	$0.20	$0.98	$0.81
Non-GAAP net income²	$10.8	$8.2	$39.1	$28.8
Diluted per share non-GAAP net income²	$0.34	$0.28	$1.27	$1.00
Fully diluted weighted average shares	31.8	29.5	30.9	28.9
New orders/Contract awards	$125.6	$133.3	$525.0	$443.7
Sales backlog	$388.7	$374.9	$388.7	$374.9

¹ ViaSat uses a 52- or 53-week fiscal year which ends on the Friday closest to March 31. ViaSat's quarters for fiscal year 2007 ended on June 30, 2006, September 29, 2006, December 29, 2006 and March 30, 2007.

² All non-GAAP numbers have been adjusted to exclude the effects of acquisition charges (amortization of intangible assets) and employee equity related compensation expense, including a cumulative one time adjustment to compensation expense to correct certain historical stock option grants. A reconciliation of specific adjustments to GAAP results for these periods is included in the “Non-GAAP Condensed Consolidated Statement of Operations” table contained in this release. A description of our use of non-GAAP information is provided under “Use of Non-GAAP Financial Information.”

Government Segment
The Government segment quarterly revenues of $68.8 million and record annual revenues of $270.0 million represent a 26.4% increase over the fourth quarter of fiscal year 2006 and a 28.5% increase over the prior fiscal year. The increase in revenues is primarily from information assurance products and development programs.

Commercial Segment
For the Commercial segment, revenues were $63.2 million for the fourth quarter and a record $245.8 million for the fiscal year. These figures represent a 2.4% decrease over the fourth quarter of fiscal year 2006 and an increase of 7.1% over the prior fiscal year. The decrease in commercial revenues in the fourth quarter year over year is primarily due to lower sales in our antenna systems business offset mainly by increased sales in our consumer broadband business. The increase in fiscal year revenues year over year is primarily from increased sales in our consumer broadband area offset by reductions in our antenna systems business.

Selected Fiscal Year 2007 and Recent Business Highlights

Entered into a new agreement with WildBlue Communications in May 2007 to supply at least their next 500,000 Ka-band satellite terminals for the WildBlue satellite broadband service. Under the agreement, ViaSat will also provide WildBlue with network infrastructure upgrades and software support services.
Received record orders for our Multifunctional Information Distribution System (MIDS) terminals and for MIDS Joint Tactical Radio System (MIDS JTRS) engineering development of $140 million, including increasing foreign military sales led by orders from the Turkish Air Force and the Taiwan Ministry of National Defense.
Won a multi-year development project to implement Version 3 of the High Assurance Internet Protocol Encryptor Interoperability Specification (HAIPE IS) on ViaSat AltaSec® inline network encryptors. The Maryland Procurement Office (MPO) award adds software features designed to enable military communicators to establish highly secure encrypted links accessible by future HAIPE devices as the DoD transitions to Internet Protocol version 6 (IP v6).
Introduced the AN/PSC-14, the first ruggedized Broadband Global Area Network (BGAN) satellite terminal for secure military voice and broadband IP data communications. The terminal also integrates a ViaSat AltaSec® High Assurance Internet Protocol Encryptor (HAIPE™) Type 1 security device.
Received strategic funded development subcontracts for the follow-on Force XXI Battle Command Brigade and Below − Blue Force Tracking (FBCB2-BFT) satellite network upgrade and additional work-scope for the Family of Advanced Beyond-line-of-sight Terminals (FAB-T) program.
Received further support of our leadership in on-the-move access to the Global Information Grid (GIG) with interoperability certification by the Department of Defense (DoD) Joint Interoperability Test Command (JITC) of a Command and Control On-the-Move (C2OTM) satellite communication system that features our ArcLight® satellite networking and AltaSec KG-250 information assurance products.
Received incremental orders now totaling 2,000 modems for our MD-1366 Enhanced Bandwidth Efficient Modem (EBEM). The modem is the new DoD standard for high-speed satellite communications at fixed sites, on Navy ships, and for the future Wideband Global Satcom System (formerly Wideband Gapfiller).
Increased sales of our LinkWay® 2100 VSATs and network management systems to the DoD for federal communication missions, including defense, disaster relief, and homeland security. The LinkWay 2100 modem was designated a “Current Force Modem” as a key component of the DoD push for new technology to enable more modular, mobile forces.
Initiated a partnership with Eutelsat Communications to jointly offer affordable, high-quality satellite consumer broadband in unserved markets in Europe. Scheduled to begin operation in June 2007, the service will use Ka-band capacity on the Eutelsat HOT BIRD™ 6 satellite and the ViaSat SurfBeam® DOCSIS® two-way broadband satellite ground system to provide both mobile and fixed broadband access services.
Received additional orders from ARINC for SKYLinkSM Airborne Integrated Satellite Communication Terminals for in-flight broadband, as ARINC announced the sale of the 50th set of avionics to its SKYLink launch customer Gulfstream Aerospace.
Increased VSAT (Very Small Aperture Terminals) market penetration in Latin America and Asia Pacific with key sales in Ecuador, Chile, Mexico, Papua New Guinea, Australia, China and India, including a follow-on order for another LinkStar® hub and 1,200 VSATs for the Phase 4 expansion of the e-Mexico national network for broadband access to the general population of Mexico via Digital Community Centers (DCCs) and schools.
Added technologies to complement our data links and satellite communications businesses with the acquisitions of Intelligent Compression Technologies (ICT) and Enerdyne Technologies. ICT adds leading edge compression and acceleration technologies, while Enerdyne video data links expand ViaSat offerings into growing DoD markets for persistent video surveillance.

Safe Harbor Statement

Portions of this release, particularly ViaSat’s financial prospects for fiscal year 2008 and beyond, and the “Selected Fiscal Year 2007 Business Highlights” section, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. ViaSat wishes to caution you that there are some factors that could cause actual results to differ materially from historical results or from any results expressed or implied by such forward-looking statements, including but not limited to: product design flaws or defects; ViaSat’s ability to successfully integrate acquired companies; ViaSat’s ability to perform under existing contracts and obtain additional contracts; ViaSat’s ability to develop new products that gain market acceptance; changes in product supply, pricing and customer or end user demand; changes in relationships with, or the financial condition of, key customers or suppliers; changes in government regulations; changes in economic conditions globally and in the communications markets in particular; increased competition; potential product liability, infringement and other claims; and other factors affecting the communications industry generally. ViaSat refers you to the documents it files from time to time with the Securities and Exchange Commission, specifically the section titled Risk Factors in ViaSat’s most recent Form 10-K and Form 10-Qs. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statements.

Conference Call
ViaSat Inc. will host a conference call to discuss these fiscal year 2007 fourth quarter results at 5:00 PM Eastern Time (ET) on Monday, May 14, 2007. The dial-in number is (800) 573-4840 and (617) 224-4326 internationally. The pass code is 84084044. A replay will be available for 24 hours beginning at 7:00 PM ET on May 14 at (888) 286-8010 and (617) 801-6888 internationally. The pass code is 98870309. You can also access our conference call webcast and other material financial information discussed on our conference call (including any information required by Regulation G) on the Investor Relations Events Calendar page of our corporate Web site (www.viasat.com). The call will be archived and available on that site for at least twelve months immediately following the conference call.

About ViaSat
ViaSat produces innovative satellite and other communication products that enable fast, secure, and efficient communications to any location. The company provides networking products and managed network services for enterprise IP applications; is a key supplier of network-centric military communications and encryption technologies to the U.S. government; and is the primary technology partner for gateway and customer-premises equipment for consumer and mobile satellite broadband services. The company’s four wholly owned subsidiaries, US Monolithics, Efficient Channel Coding, Enerdyne Technologies, and Intelligent Compression Technologies, design and produce complementary products such as monolithic microwave integrated circuits, DVB-S2 satellite communication components, video data link systems, and data acceleration and compression products. ViaSat has locations in Carlsbad, CA, and Duluth, GA, along with its Comsat Laboratories division in Germantown, MD. Additional field offices are located in Boston, MA, Baltimore, MD, Washington DC, Australia, China, India, Italy, and Spain.

Use of Non-GAAP Financial Information
Non-GAAP net income excludes the effects of acquisition charges (amortization of intangible assets), and the non-GAAP numbers for the fourth quarter and fiscal year 2007 also exclude the effects of employee equity related compensation expense, including a cumulative one time adjustment to compensation expense to correct certain historical stock option grants. Non-GAAP net income is provided to enhance the overall understanding of our current financial performance and our prospects for the future. Specifically, we believe the non-GAAP results provide useful information to both management and investors by excluding specific expenses that we believe are not indicative of our core operating results. In addition, since we have historically reported non-GAAP results to the investment community, we believe the inclusion of non-GAAP numbers provides consistency in our financial reporting. Further, these adjusted non-GAAP results are one of the primary indicators management uses for planning and forecasting in future periods. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles. See the “Non-GAAP Condensed Consolidated Statement of Operations” table for a reconciliation of net income to non-GAAP net income. Non-GAAP information as presented in this press release may not be comparable to similarly titled measures reported by other companies.

DOCSIS is a registered trademark of Cable Television Laboratories Inc.
Comsat Labs and Comsat Laboratories are tradenames of ViaSat Inc. Neither Comsat Labs nor Comsat Laboratories is affiliated with COMSAT Corporation. “Comsat” is a registered trademark of COMSAT Corporation.
HAIPE is a registered trademark of the National Security Agency.

Find a PDF of our Q4 and year end FY07 financials on viasat.com.

Strong Profitability and Cash Flow in Fiscal 3rd Quarter

admin — Thu, 01 Feb 2007 00:00:00 -0800

Carlsbad, CA - ViaSat Inc. (NASDAQ: VSAT), a producer of innovative satellite and other wireless communication products that enable fast, secure, and efficient communications to any location, today announced financial results for the third quarter of fiscal year 2007. Highlights include quarterly and year-to-date revenues of $124.3 million and $384.5 million, respectively. For the third quarter, the company also reported net income of $0.40 per share on a diluted non-GAAP basis or $0.31 per share on a diluted GAAP basis, both quarterly records. Year-to-date, the company reported net income of $0.93 per share on a diluted non-GAAP basis or $0.71 per share on a diluted GAAP basis. Results also include record quarterly cash flows from operations of over $28 million.

“Our results for the quarter include record earnings and EPS, solid margins, and outstanding cash flow,” said Mark Dankberg, chairman and CEO of ViaSat. “The passage of the R&D tax credit puts our expected tax rate for the year at plan, but effectively concentrates about 10 cents per share of our year-to-date earnings into the third quarter. Combined with good year-to-date revenues, improving margins due to a greater proportion of product sales, and key contract wins, we can anticipate better than planned earnings for our full fiscal year 2007 and sustained growth in our fiscal year 2008.”

Financial Results
For the third quarter ended December 29, 2006¹ the company reported the following:

(In millions, except per share data)	Q3 2007	Q3 2006	First 9 Mos. FY07	First 9 Mos. FY06
Revenues	$124.3	$111.6	$384.5	$315.7
Net income	$9.7	$6.6	$21.6	$17.8
Diluted per share net income	$0.31	$0.23	$0.71	$0.62
Non-GAAP net income²	$12.2	$7.6	$28.3	$20.6
Diluted per share non-GAAP net income²	$0.40	$0.26	$0.93	$0.72
Fully diluted weighted average shares	30.8	29.2	30.4	28.6
New orders/Contract awards	$124.0	$78.2	$399.3	$310.4
Sales backlog	$394.9	$359.7	$394.9	$359.7

¹ - ViaSat uses a 52- or 53-week fiscal year which ends on the Friday closest to March 31. ViaSat's quarters for fiscal year 2007 end on June 30, 2006, September 29, 2006, December 29, 2006 and March 30, 2007.

² - All non-GAAP numbers have been adjusted to exclude the effects of acquisition charges (amortization of intangible assets) and the non-GAAP numbers for the third quarter and year-to-date of fiscal year 2007 also exclude the effects of compensation expense from employee stock options and restricted stock units (RSUs) under FAS123(R) and a cumulative one time adjustment to compensation expense related to the review of historical stock option grant procedures. A reconciliation of specific adjustments to GAAP results for these periods is included in the “Non-GAAP Condensed Consolidated Statement of Operations” table contained in this release. A description of our use of non-GAAP information is provided under “Use of Non-GAAP Financial Information.”

Government Segment

The Government segment recorded quarterly and nine-month revenues of $67.3 million and $201.9 million, respectively, a 26.5% increase over the third quarter of fiscal year 2006 and a 29.3% increase over the prior year nine-month period. The third quarter year-over-year increase in revenues resulted primarily from an increase in sales from next generation data link development and information assurance products.

Commercial Segment
For the Commercial segment, revenues were $57.0 million for the third quarter, a 5.4% decrease over the third quarter of fiscal year 2006. The decrease in year-over-year third quarter revenues was due to the timing of consumer broadband related shipments at quarter end. Year-to-date Commercial segment revenues were $182.6 million, a 10.9% increase over the prior year. The revenue growth year-to-date of fiscal year 2006 to third quarter of fiscal year 2007 was primarily related to sales of consumer broadband systems and equipment.

Selected Third Quarter 2007 Business Highlights

Gained entry to the U.S. Navy Mobile User Objective System (MUOS) program, a new global satellite communications network for the Department of Defense, by supplying communications modeling and simulation systems for the first MUOS terminal test sets.
Awarded additional orders for our LinkWay® mesh-connection VSATs from General Dynamics C4 Systems and TeleCommunication Systems, Inc. in support of the $5 billion World-Wide Satellite Systems (WWSS) contract. The LinkWay terminal has been designated a “Current Force Modem,” part of the military’s push to accelerate the adoption of new technology to enable more modular, mobile forces and provide quick-deploy communications for all federal missions, including disaster relief and homeland security.
Made initial shipments of Enerlinks II, our first commercial, non-classified video link product. The Enerlinks II data link system addresses the need to transmit growing volumes of intelligence, surveillance, and reconnaissance information from manned and unmanned tactical mobile vehicles and aircraft.

Safe Harbor Statement

Portions of this release, particularly ViaSat’s financial prospects for fiscal year 2007 and beyond and the “Selected Third Quarter 2007 Business Highlights” section, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. ViaSat wishes to caution you that there are some factors that could cause actual results to differ materially from historical results or from any results expressed or implied by such forward-looking statements, including but not limited to: product design flaws or defects; ViaSat’s ability to successfully integrate acquired companies; ViaSat’s ability to perform under existing contracts and obtain additional contracts; ViaSat’s ability to develop new products that gain market acceptance; changes in product supply, pricing and customer demand; changes in relationships with, or the financial condition of, key customers or suppliers; changes in government regulations; changes in economic conditions globally and in the communications markets in particular; increased competition; potential product liability, infringement and other claims; and other factors affecting the communications industry generally. ViaSat refers you to the documents it files from time to time with the Securities and Exchange Commission, specifically the section titled Risk Factors in ViaSat’s most recent Form 10-K and Form 10-Qs. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statements.

Conference Call
ViaSat Inc. will host a conference call to discuss these fiscal year 2007 third quarter results at 5:00 PM Eastern Time (ET) on Thursday, February 1, 2007. The dial-in number is (866) 356-4279 and (617) 597-5394 internationally. The pass code is 59951539. A replay will be available for 24 hours beginning at 7:00 PM ET on February 1 at (888) 286-8010 and (617) 801-6888 internationally. The pass code is 76626702. You can also access our conference call webcast and other material financial information discussed on our conference call (including any information required by Regulation G) on the Investor Relations Events Calendar page of our corporate Web site (www.viasat.com). The call will be archived and available on that site for at least twelve months immediately following the conference call.

About ViaSat
ViaSat produces innovative satellite and other communication products that enable fast, secure, and efficient communications to any location. The company provides networking products and managed network services for enterprise IP applications; is a key supplier of network-centric military communications and encryption technologies to the U.S. government; and is the primary technology partner for gateway and customer-premises equipment for consumer and mobile satellite broadband services. The company’s three wholly owned subsidiaries, US Monolithics, Efficient Channel Coding, and Enerdyne Technologies, design and produce complimentary products such as monolithic microwave integrated circuits, DVB-S2 satellite communication components, and video data link systems. ViaSat has locations in Carlsbad, CA, and Duluth, GA, along with its Comsat Laboratories division in Germantown, MD. Additional field offices are located in Boston, MA, Baltimore, MD, Washington DC, Australia, China, India, Italy, and Spain.

Use of Pro Forma Financial Information
Non-GAAP net income excludes the effects of acquisition charges (amortization of intangible assets), and the non-GAAP numbers for the third quarter and year-to-date of fiscal year 2007 also exclude the effects of compensation expense from employee stock options and restricted stock units (RSUs) under FAS123(R) and a cumulative one time adjustment to compensation expense related to the review of historical stock option grant procedures. Non-GAAP net income is provided to enhance the overall understanding of our current financial performance and our prospects for the future. Specifically, we believe the non-GAAP results provide useful information to both management and investors by excluding specific expenses that we believe are not indicative of our core operating results. In addition, since we have historically reported non-GAAP results to the investment community, we believe the inclusion of non-GAAP numbers provides consistency in our financial reporting. Further, these adjusted non-GAAP results are one of the primary indicators management uses for planning and forecasting in future periods. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles. See the “Non-GAAP Condensed Consolidated Statement of Operations” table for a reconciliation of net income to non-GAAP net income. Non-GAAP information as presented in this press release may not be comparable to similarly titled measures reported by other companies.

Find a PDF of our Q3 FY07 financials on viasat.com.

Fiscal 2007 Second Quarter Results: Record Awards, Revenues and Earnings

Thu, 02 Nov 2006 00:00:00 -0800

Carlsbad, CA - ViaSat, Inc. (NASDAQ: VSAT), a producer of innovative satellite and other wireless communication products that enable fast, secure, and efficient communications to any location, announced results for its fiscal year 2007 second quarter, including record revenues of $131.5 million, new net contract awards of $141.4 million, and net income of $0.28 per share on a diluted non-GAAP basis or $0.21 per share on a diluted GAAP basis. Year-to-date, the company reported total revenues of $260.2 million, net new contract awards of $275.3 million, and net income of $0.53 per share on a diluted non-GAAP basis or $0.39 per share on a diluted GAAP basis.

“We are especially pleased with our earnings performance this quarter,” said Mark Dankberg, chairman and CEO of ViaSat. “We achieved our objectives without the previously expected approval of R&D tax credit legislation. Overall business remains robust, our commercial business contributed to earnings, and we continue to see promising growth opportunities.”

Financial Results
For the second quarter ended September 29, 2006¹, the company reported the following:

(In millions, except share data)	Q2 2007	Q2 2006	First 6 Mos. FY07	First 6 Mos. FY06
Revenues	$131.5	$104.1	$260.2	$204.1
Net income	$6.5	$6.0	$11.9	$11.1
Diluted per share net income	$0.21	$0.21	$0.39	$0.39
Non-GAAP net income²	$8.5	$6.9	$16.1	$12.9
Diluted per share non-GAAP net income²	$0.28	$0.24	$0.53	$0.46
Fully diluted weighted average shares	30.5	28.6	30.2	28.4
New orders/Contract awards	$141.4	$102.8	$275.3	$232.2
Sales backlog	$395.2	$389.9	$395.2	$389.9

¹ViaSat uses a 52- or 53-week fiscal year which ends on the Friday closest to March 31. ViaSat's quarters for fiscal year 2007 end on June 30, 2006, September 29, 2006, December 29, 2006 and March 30, 2007.

² All non-GAAP numbers have been adjusted to exclude the effects of acquisition charges (amortization of intangible assets), compensation expense from employee stock options under FAS123(R) and a cumulative one time adjustment to compensation expense related to review of stock option grant procedures. A reconciliation of specific adjustments to GAAP results for these periods is included in the “Non-GAAP Condensed Consolidated Statement of Operations” table contained in this release. A description of our use of non-GAAP information is provided under “Use of Non-GAAP Financial Information.”

Government Segment
The Government segment had quarterly revenues of $70.0 million, a 41.5% increase over the second quarter of fiscal year 2006. New contract awards for the quarter were $68.2 million. The revenue growth from second quarter of fiscal year 2006 to second quarter of fiscal year 2007 was primarily related to tactical data link product sales.

Commercial Segment
Revenues from our Commercial segment were $61.5 million for the second quarter, an 8.1% increase over the second quarter of fiscal year 2006. New contract awards for the quarter were $73.2 million. The revenue growth from the second quarter of fiscal year 2006 to second quarter of fiscal year 2007 was primarily related to consumer broadband sales.

Selected Second Quarter 2007 Business Highlights

Safe Harbor Statement

Portions of this release, particularly ViaSat’s financial prospects for fiscal year 2007 and beyond and the “Selected Second Quarter 2007 Business Highlights” section, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. ViaSat wishes to caution you that there are some factors that could cause actual results to differ materially from historical results or from any results expressed or implied by such forward-looking statements, including but not limited to: product design flaws or defects; ViaSat’s ability to successfully integrate acquired companies; ViaSat’s ability to perform under existing contracts and obtain additional contracts; ViaSat’s ability to develop new products that gain market acceptance; changes in product supply, pricing and customer demand; changes in relationships with, or the financial condition of, key customers or suppliers; changes in government regulations; changes in economic conditions globally and in the communications markets in particular; increased competition; potential product liability, infringement and other claims; and other factors affecting the communications industry generally. ViaSat refers you to the documents it files from time to time with the Securities and Exchange Commission, specifically the section titled Risk Factors in ViaSat’s most recent Form 10-K and Form 10-Qs. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statements.

Conference Call

ViaSat Inc. will host a conference call to discuss these fiscal year 2007 second quarter results at 5:00 PM Eastern Time on Thursday, November 2, 2006. The dial-in number is (866) 831-6270 and (617) 213-8858 internationally. The passcode is 10752815. A replay will be available for 24 hours beginning at 7:30 PM ET November 2 at (888) 286-8010 and (617) 801-6888 internationally. The passcode is 19489449. You can also access our conference call webcast and other material financial information discussed on our conference call (including any information required by Regulation G) on the Investor Relations Events Calendar page of our corporate Web site (www.viasat.com). The call will be archived and available on that site for at least twelve months immediately following the conference call.

About ViaSat

ViaSat produces innovative satellite and other communication products that enable fast, secure, and efficient communications to any location. The Company provides networking products and managed network services for enterprise IP applications; is a key supplier of network-centric military communications and encryption technologies to the U.S. government; and is the primary technology partner for gateway and customer-premises equipment for consumer and mobile satellite broadband services. The company’s three wholly owned subsidiaries, US Monolithics, Efficient Channel Coding, and Enerdyne Technologies Inc., design and produce complimentary products such as monolithic microwave integrated circuits, DVB-S2 satellite communication components, and video data link systems. ViaSat has locations in Carlsbad, CA, and Duluth, GA, along with its Comsat Laboratories division in Germantown, MD. Additional field offices are located in Boston, MA, Baltimore, MD, Washington DC, Australia, China, India, Italy, and Spain.

Use of Non-GAAP Financial Information

Non-GAAP net income excludes the effects of acquisition charges (amortization of intangible assets), compensation expense from employee stock options under FAS 123(R) and a cumulative one time adjustment to compensation expense related to review of stock option grant procedures. Non-GAAP net income is provided to enhance the overall understanding of our current financial performance and our prospects for the future. Specifically, we believe the non-GAAP results provide useful information to both management and investors by excluding specific expenses that we believe are not indicative of our core operating results. In addition, since we have historically reported non-GAAP results to the investment community, we believe the inclusion of non-GAAP numbers provides consistency in our financial reporting. Further, these adjusted non-GAAP results are one of the primary indicators management uses for planning and forecasting in future periods. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles. See the “Non-GAAP Condensed Consolidated Statement of Operations” table for a reconciliation of net income to non-GAAP net income. Non-GAAP information as presented in this press release may not be comparable to similarly titled measures reported by other companies.

Find a PDF of our Q2 FY07 financial tables on viasat.com.

Comsat Labs and Comsat Laboratories are tradenames of ViaSat Inc. Neither Comsat Labs nor Comsat Laboratories is affiliated with COMSAT Corporation. “Comsat” is a registered trademark of COMSAT Corporation.
SKYLink is a service mark of ARINC.
DOCSIS is a registered trademark of Cable Television Laboratories Inc.

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