ViaSat, Inc.
Feb 8, 2010

ViaSat Announces Fiscal Third Quarter and Year-to-Date Results

CARLSBAD, Calif., Feb 08, 2010 /PRNewswire via COMTEX News Network/ -- ViaSat Inc. (Nasdaq: VSAT), a provider of advanced satellite and wireless networking systems and services, announced financial results for the third quarter ended January 1, 2010(1). The fiscal third quarter results include new contract awards of $157.1 million and revenues of $156.4 million. Fiscal year-to-date, ViaSat reported new contract awards of $503.4 million and revenues of $475.4 million. For the third quarter, the company also reported net income attributable to ViaSat common stockholders of $0.39 per share on a diluted non-GAAP basis or $0.09 per share on a diluted GAAP basis. Fiscal year-to-date, the company reported net income attributable to ViaSat common stockholders of $1.12 per share on a diluted non-GAAP basis or $0.62 per share on a diluted GAAP basis.

(Logo: http://www.newscom.com/cgi-bin/prnh/20091216/VIASATLOGO)

"This quarter concludes a whirlwind period for ViaSat, as we completed the WildBlue acquisition and the associated financing activities well ahead of schedule. Excluding non-recurring acquisition expenses, WildBlue is generating incremental earnings - contributing to solid earnings and cash flow for the quarter. The accelerated close yields significantly lower acquisition expenses and cash tax savings relative to our plans, and helps our preparations for introducing the ViaSat-1 satellite," said Mark Dankberg, ViaSat CEO and chairman. "Meanwhile, product margins this quarter were very good, but federal budget issues led to a December quarter contraction in sector-wide defense procurement and R&D spending - delaying orders for us and restraining revenue growth in the quarter. We believe our defense satellite, tactical data link, and cyber security offerings remain well-positioned for growth as Department of Defense spending commitments align with budget plans and program priorities. Combined with our strategic entry into Ka-band satellite services, we see opportunities for significant growth in fiscal 2011 and beyond."



    Financial Results(1)

    (In millions, except per share                        First 9    First 9
     data)                          Q3 FY10   Q3 FY09    Mos. FY10  Mos. FY09
    ------------------------------  -------   -------    ---------  ---------

    Revenues                         $156.4    $150.4     $475.4     $462.6
    --------                         ------    ------     ------     ------
    Net income attributable to
     ViaSat Inc.                       $3.2     $10.7      $20.7      $26.2
    --------------------------         ----     -----      -----      -----
    Diluted per share net income
     attributable to ViaSat Inc.
     common stockholders
    -----------------------------
                                      $0.09     $0.34      $0.62      $0.82
                                      -----     -----      -----      -----
    Non-GAAP net income
     attributable to ViaSat Inc.
     (2)                              $13.5     $13.7      $37.5      $35.3
    -----------------------------     -----     -----      -----      -----
    Non-GAAP diluted
     net income per share
     attributable to ViaSat Inc.
     common stockholders (2)          $0.39     $0.43      $1.12      $1.11
     ------------------------------   -----     -----      -----      -----
    Fully diluted weighted average
     shares                            34.7      31.7       33.6       31.8
    ------------------------------     ----      ----       ----       ----


    New orders/Contract awards       $157.1    $143.1     $503.4     $604.5
    --------------------------       ------    ------     ------     ------
    Sales backlog                    $478.7    $516.4     $478.7     $516.4
    -------------                    ------    ------     ------     ------

    (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 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 $89.1 million for the third quarter of fiscal 2010, a 5.0% decrease over the third quarter of fiscal year 2009. The decrease was primarily related to lower sales of next-generation tactical data link development and video data link systems, offset by higher sales in military satellite communication systems. New contract awards in our Government Systems segment for the third quarter of fiscal year 2010 were $70.2 million.

Commercial Networks Segment

For the Commercial Networks segment, revenues were $55.0 million for the third quarter of fiscal 2010, a 1.5% increase from the third quarter of fiscal year 2009. The revenue increase was primarily due to higher sales of enterprise VSAT and our antenna systems products, offset by a reduction in sales of mobile satellite communication systems and consumer broadband products. New contract awards in our Commercial Networks segment for the third quarter of fiscal year 2010 were $67.7 million.

Satellite Services Segment

Our Satellite Services segment contributed revenues of $12.3 million for the third quarter of fiscal 2010, which was a 412.2% increase from the same period last year. The revenue increase was primarily due to the acquisition of WildBlue Holdings, Inc. (WildBlue) in the third quarter of fiscal year 2010, as well as growth in our mobile satellite services. New contract awards in our Satellite Services segment for the fiscal third quarter of 2010 were $19.2 million.

At the end of our fiscal third quarter 2010, WildBlue subscriber metrics included:

Selected Third 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 WildBlue contributions to positive earnings and cash flow, order growth, opportunities for significant growth and prospects for 2011 and beyond. 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: uncertainties associated with the performance, integration and costs associated with 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 networking and communications industries generally; the effect of adverse regulatory changes on our ability to sell products; and our ability to comply with the covenants in any credit agreement, indenture or similar instrument governing any of our existing or future indebtedness. 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 third quarter results at 5:00 pm Eastern Time on Monday, February 8, 2010. The dial-in number is (877) 640-9809 and (914) 495-8528 internationally. The conference ID is 54965585. A replay will be available for approximately 24 hours beginning at 6:00 PM Eastern Time February 8 at (800) 642-1687 and (706) 645-9291 internationally. The access code is 54965585. 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. The call will be archived and available on that site for approximately one month immediately following the conference call.

About ViaSat (www.viasat.com)

ViaSat produces innovative satellite and other digital communication products that enable fast, secure, and efficient communications to virtually 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 and products to the U.S. government; is the primary technology partner for gateway and customer-premises equipment for consumer and mobile satellite broadband services; and owns WildBlue, the premier Ka-band satellite broadband service provider. ViaSat also offers design capabilities and a number of complementary products including monolithic microwave integrated circuits and modules, DVB-S2 satellite communication components, video data link systems, data acceleration and compression, and mobile satellite antenna systems. ViaSat, with annual revenues over $600 million, is based in Carlsbad, CA. Major locations include Duluth, GA, Germantown, MD (Comsat Laboratories), and Greenwood Village, CO (WildBlue), along with 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 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.

SurfBeam is a registered trademark 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 ended       Nine months ended
                               ----------------------  ----------------------
                               January 1,  January 2,  January 1,  January 2,
                                  2010        2009        2010        2009

    Revenues:
    Product revenues             $137,146    $141,157    $437,889    $436,972
    Service revenues               19,218       9,205      37,549      25,631
                                  -------     -------     -------     -------
    Total Revenues                156,364     150,362     475,438     462,603

    Operating expenses:
    Cost of product revenues       98,708     100,786     309,105     312,675
    Cost of service revenues       11,613       4,743      24,585      16,425
    Selling, general &
     administrative                34,416      23,952      90,259      72,986
    Independent research and
     development                    7,864       6,985      21,559      23,481
    Amortization of intangible
     assets                         1,901       2,337       4,768       7,017
                                  -------     -------     -------     -------
    Income from operations          1,862      11,559      25,162      30,019
    Interest, net                  (1,739)        (19)     (1,950)      1,074
                                  -------     -------     -------     -------
    Income before income taxes        123      11,540      23,212      31,093
    (Benefit) provision for
     income taxes                  (2,940)        914       2,765       4,822
                                  -------     -------     -------     -------
    Net income                      3,063      10,626      20,447      26,271
    Less: Net (loss) income
     attributable to the
     noncontrolling interest,
     net of tax                      (183)        (40)       (243)         56
                                  -------     -------     -------     -------
    Net income attributable to
     ViaSat Inc.                  $3,246     $10,666     $20,690     $26,215
                                  =======     =======     =======     =======
    Diluted net income per
     share attributable to
     ViaSat Inc. common
     stockholders                   $0.09       $0.34       $0.62       $0.82
                                  =======     =======     =======     =======
    Diluted common equivalent
     shares                        34,725      31,699      33,591      31,826


    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.                   $3,246     $10,666     $20,690     $26,215
    Amortization of intangible
     assets                         1,901       2,337       4,768       7,017
    Acquisition related
     expenses                       7,266           -       9,762           -
    Stock-based compensation
     expense                        3,318       2,532       8,412       7,581
    Income tax effect              (2,253)     (1,852)     (6,170)     (5,509)
                                  -------     -------     -------     -------
    Non-GAAP net income
     attributable to
     ViaSat Inc.                  $13,478     $13,683     $37,462     $35,304
                                  =======     =======     =======     =======
    Non-GAAP diluted net
     income per share
     attributable to
     ViaSat Inc. common
     stockholders                   $0.39       $0.43       $1.12       $1.11
                                  =======     =======     =======     =======
    Diluted common equivalent
     shares                        34,725      31,699      33,591      31,826



                   Condensed Consolidated Balance Sheet
                               (Unaudited)
                              (In thousands)

    Assets                                           January 1,      April 3,
                                                        2010           2009

    Current Assets:
    Cash and cash equivalents                          $67,116       $63,491
    Restricted cash                                      2,148             -
    Accounts receivable, net                           185,601       164,106
    Inventories                                         80,173        65,562
    Deferred income taxes                               38,218        26,724
    Prepaid expenses and other current assets           21,532        18,941
                                                    ----------      --------
    Total current assets                               394,788       338,824
                                                    ----------      --------
    Property, equipment and satellites, net            612,331       170,225
    Other intangible assets, net                        93,957        16,655
    Goodwill                                            74,062        65,429
    Other assets                                        78,893        31,809
                                                    ----------      --------
    Total assets                                    $1,254,031      $622,942
                                                    ==========      ========


    Liabilities and                                  January 1,     April 3,
     Stockholders' Equity                               2010          2009

    Current liabilities:
    Accounts payable                                   $67,022       $63,397
    Accrued liabilities                                100,221        72,037
                                                    ----------      --------
    Total current liabilities                          167,243       135,434
    Line of credit                                     140,000             -
    Long-term debt                                     271,677             -
    Other liabilities                                   31,251        24,718
                                                    ----------      --------
    Total liabilities                                  610,171       160,152

    Total ViaSat Inc. stockholders' equity             640,062       458,748
    Noncontrolling interest in subsidiary                3,798         4,042
                                                    ----------      --------
    Total stockholders' equity                         643,860       462,790
                                                    ----------      --------
    Total liabilities and stockholders' equity      $1,254,031      $622,942
                                                    ==========      ========




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