ViaSat, Inc.
Nov 5, 2009

ViaSat Reports Fiscal 2010 Second Quarter Results

CARLSBAD, Calif., Nov 05, 2009 (BUSINESS WIRE) -- ViaSat Inc. (NASDAQ: VSAT), a provider of advanced satellite and wireless networking systems and services, announced that financial results for the second quarter of fiscal year 2010 include new contract awards of $225.7 million, revenues of $160.7 million and non-GAAP diluted net income per share of $0.40, or $0.28 per share on a diluted GAAP basis. Year-to-date, ViaSat reported new contract awards of $346.3 million, total revenues of $319.1 million and non-GAAP diluted net income per share of $0.73, or $0.53 per share on a diluted GAAP basis.

"Our fiscal second quarter featured very good operating earnings from our government and commercial equipment businesses and exceptionally strong new business orders - especially in strategically important markets including defense mobile broadband, information assurance, and Ka-band broadband," said Mark Dankberg, chairman and CEO. "We also reached a major strategic milestone through a definitive agreement to acquire WildBlue Communications. The planned acquisition enables us to integrate the compelling bandwidth capacity of the upcoming ViaSat-1 satellite into WildBlue's existing distribution and fulfillment resources."

Financial Results1

(In millions, except per share data)

Q2 FY10

Q2 FY09

First 6 Mos.
FY10

First 6 Mos.
FY09

Revenues $160.7 $159.3 $319.1 $312.2
Net income attributable to ViaSat, Inc. $9.2 $9.3 $17.4 $15.5

Diluted per share net income attributable to ViaSat, Inc. common stockholders

$0.28 $0.29 $0.53 $0.49

Non-GAAP net income attributable to ViaSat, Inc.2

$13.1 $12.5 $24.0 $21.6

Non-GAAP diluted net income per share attributable to ViaSat, Inc.

$0.40

$0.39

$0.73

$0.68

Fully diluted weighted average shares 33.0 32.1 32.9 31.9
New orders/Contract awards $225.7 $255.5 $346.3 $461.4
Sales backlog $501.9 $523.6 $501.9 $523.6

1 ViaSat uses a 52 or 53 week fiscal year which ends on the Friday closest to March 31. ViaSat quarters for fiscal year 2010 end on July 3, 2009, October 2, 2009, January 1, 2010 and April 2, 2010. Fiscal year 2010 is a 52 week year, compared with a 53 week year in fiscal year 2009. As a result of the shift in the fiscal calendar, the second quarter of fiscal year 2009 included an additional week.

2 All non-GAAP numbers have been adjusted to exclude the effects of amortization of acquired intangible assets, acquisition related transaction expenses and non-cash stock-based compensation expenses, net of tax. A reconciliation of specific adjustments to GAAP results for these periods is included in the "Reconciliation Between Net Income Attributable to ViaSat, Inc. on a GAAP Basis and Non-GAAP Basis" table contained in this release. A description of our use of non-GAAP information is provided below under "Use of Non-GAAP Financial Information."

Government Systems Segment

The Government Systems segment posted quarterly revenues of $102.8 million, a 5.6% increase over the second quarter of fiscal year 2009. The growth was primarily related to higher revenues from next generation military satellite communication systems and video data link systems, offset by lower revenues from information assurance products and development programs and next generation tactical data link development. New contract awards in our Government Systems segment for the second quarter of fiscal year 2010 were $118.1 million.

Commercial Networks Segment

For the Commercial Networks segment, revenues were $54.4 million for the second quarter, an 8.2% decrease from the second quarter of fiscal year 2009. The revenue decrease was primarily due to lower sales of our consumer satellite broadband products and mobile satellite communication systems, offset by increased sales of antenna systems and enterprise VSAT products. New contract awards in our Commercial Networks segment for the second quarter of fiscal year 2010 were $93.5 million.

Satellite Services Segment

Our Satellite Services segment contributed revenues of $3.5 million for the second quarter, which was a 26.3% increase from the second quarter of fiscal year 2009. The revenue increase was primarily due to increased sales of our mobile broadband and managed broadband services. New contract awards in our Satellite Services segment for the second quarter were $14.1 million.

Selected Second Quarter 2010 Business Highlights

Safe Harbor Statement

This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements include, among others, statements that refer to our pending acquisition of WildBlue, the integration of ViaSat-1 into WildBlue's distribution and fulfillment resources, accelerated growth and expansion of the WildBlue service, and the progress of and expectations associated with our ViaSat-1 satellite project. Readers are cautioned that actual results could differ materially from those expressed in any forward-looking statements. Factors that could cause actual results to differ include: difficulties and uncertainties relating to the pending WildBlue acquisition, which include difficulties and uncertainties relating to the satisfaction or waiver of conditions to closing, integration risks and costs, and uncertainties associated with the performance of the WildBlue business; our ability to have manufactured or successfully launch ViaSat-1 or implement the related broadband satellite services on our anticipated timeline or at all; continued turmoil in global financial markets and economies; the availability and cost of credit; reliance on U.S. government contracts and our reliance on a small number of contracts which account for a significant percentage of our revenues; our ability to successfully develop, introduce and sell new technologies, products and enhancements; reduced demand for products as a result of continued constraints on capital spending by customers; changes in relationships with, or the financial condition of, key customers or suppliers; reliance on a limited number of third parties to manufacture and supply our products; increased competition and other factors affecting the communications industry generally; the effect of adverse regulatory changes on our ability to sell products; our ability to comply with the covenants in any credit agreement, indenture or similar instrument governing any of our existing or future indebtedness; and other factors affecting the communications industry generally. In addition, please refer to the risk factors contained in ViaSat's SEC filings available at www.sec.gov, including ViaSat's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. ViaSat undertakes no obligation to update or revise any forward-looking statements for any reason.

Conference Call

ViaSat Inc. will host a conference call to discuss these fiscal year 2010 second quarter results at 12:00 noon Eastern Time on Thursday, November 5, 2009. The dial-in number is (866) 261-7280 and (703) 639-1228 internationally. The conference ID is 1409861.A replay will be available for 24 hours beginning at 3:00 PM Eastern Time November 5 at (888) 266-2081 and (703) 925-2533 internationally. The access code is 1409861. 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 one month immediately following the conference call.

About ViaSat(www.viasat.com)

ViaSat is a provider of advanced satellite and wireless communications and secure networking systems, products and services. ViaSat has leveraged its success developing complex satellite communication systems and equipment for the U.S. government and select commercial customers to develop end-to-end satellite network solutions for a wide array of applications and customers. ViaSat's product and systems offerings are often linked through common underlying technologies, customer applications and market relationships. ViaSat believes that its portfolio of products, combined with its ability to effectively cross-deploy technologies between government and commercial segments and across different geographic markets, provides it a strong foundation to sustain and enhance its leadership in advanced communications and networking technologies. ViaSat's customers, including the U.S. government, leading aerospace and defense prime contractors, network integrators and communications service providers, rely on ViaSat's solutions to meet their complex communications and networking requirements. ViaSat is based in Carlsbad, CA, has major locations in Duluth, GA and Germantown, MD (Comsat Laboratories division), and additional field offices and service centers worldwide.

Use of Non-GAAP Financial Information

To supplement ViaSat's consolidated financial statements presented in accordance with GAAP, ViaSat uses non-GAAP net income attributable to ViaSat, Inc., 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 attributable to ViaSat, Inc. excludes the effects of amortization of acquired intangible assets, acquisition related transaction expenses and non-cash stock-based compensation expenses, net of tax. 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 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 Net Income Attributable to ViaSat, Inc. on a GAAP Basis and Non-GAAP Basis" table contained in this release.

WildBlue is a registered trademark of WildBlue Communications.

SurfBeam is a registered trademark of ViaSat, Inc.

EnerLinksIII is a trademark of Enerdyne Technologies, Inc., a wholly owned subsidiary of ViaSat, 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.

Condensed Consolidated Statement of Operations
(Unaudited)
(In thousands, except per share data)
Three months endedSix months ended

October 2, 2009

October 3, 2008

October 2, 2009

October 3, 2008

Revenues $ 160,666 $ 159,280 $ 319,074 $ 312,241
Operating expenses:
Cost of revenues 111,656 115,551 223,369 223,571
Selling, general & administrative 28,927 25,430 55,843 49,034
Independent research and development 6,692 6,656 13,695 16,496
Amortization of intangible assets 1,362 2,340 2,867 4,680
Income from operations 12,029 9,303 23,300 18,460
Interest, net (129 ) 477 (211 ) 1,093
Income before income taxes 11,900 9,780 23,089 19,553
Provision for income taxes 2,808 505 5,705 3,908
Net income 9,092 9,275 17,384 15,645
Less: Net (loss) income attributable to the noncontrolling interest, net of tax (83 ) 17 (60 ) 96
Net income attributable to ViaSat, Inc. $ 9,175 $ 9,258 $ 17,444 $ 15,549
Diluted net income per share attributable to ViaSat, Inc. common stockholders 0.28 0.29 0.53 0.49
Diluted common equivalent shares 33,047 32,138 32,916 31,890

AN ITEMIZED RECONCILIATION BETWEEN NET INCOME ATTRIBUTABLE TO VIASAT, INC. ON A GAAP BASIS AND NON-GAAP BASIS IS AS FOLLOWS:

GAAP net income attributable to ViaSat, Inc. $ 9,175 $ 9,258 $ 17,444 $ 15,549
Amortization of intangible assets 1,362 2,340 2,867 4,680
Acquisition related transaction expenses 2,496 - 2,496 -
Stock-based compensation expense: 2,532 2,860 5,094 5,049
Income tax effect (2,420 ) (1,946 ) (3,917 ) (3,657 )
Non-GAAP net income attributable to ViaSat, Inc. $ 13,145 $ 12,512 $ 23,984 $ 21,621

Non-GAAP diluted net income per share attributable to ViaSat, Inc. common stockholders

$ 0.40 $ 0.39 $ 0.73 $ 0.68
Diluted common equivalent shares 33,047 32,138 32,916 31,890
Condensed Consolidated Balance Sheet
(Unaudited)
(In thousands)
Assets October 2, 2009April 3, 2009

Liabilities and
Stockholders' Equity

October 2, 2009April 3, 2009
Current Assets: Current liabilities:
Cash and cash equivalents $ 83,884 $ 63,491 Accounts payable $ 58,223 $ 63,397
Accounts receivable, net 206,816 164,106 Accrued liabilities 81,126 72,037
Inventories 67,364 65,562 Total current liabilities 139,349 135,434
Deferred income taxes 26,724 26,724 Line of credit 80,000 -

Prepaid expenses and other current assets

23,159 18,941 Other liabilities 24,443 24,718
Total current assets 407,947 338,824 Total liabilities 243,792 160,152
Property, equipment and satellite, net 214,527 170,225
Other intangible assets, net 13,788 16,655 Total ViaSat, Inc. stockholders' equity 490,744 458,748
Goodwill 65,429 65,429 Noncontrolling interest in subsidiary 3,982 4,042
Other assets 36,827 31,809 Total stockholders' equity 494,726 462,790
Total assets $ 738,518 $ 622,942 Total liabilities and stockholders' equity $ 738,518 $ 622,942

SOURCE: ViaSat Inc.

ViaSat Inc.
Investor Relations
760-476-2633
www.viasat.com

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