ViaSat, Inc.
May 14, 2010

ViaSat Announces Fiscal Year 2010 Results

CARLSBAD, Calif., May 14, 2010 /PRNewswire via COMTEX News Network/ -- ViaSat Inc. (Nasdaq: VSAT), a producer of innovative satellite and other wireless communications and networking systems, announced financial results for the fourth quarter and fiscal year 2010. The fiscal fourth quarter results include new contract awards of $262.8 million, revenues of $212.6 million, Adjusted EBITDA of $48.0 million, net income attributable to ViaSat common stockholders of $0.43 per share on a diluted non-GAAP basis or $0.27 per share on a diluted GAAP basis and cash flows from operations of $54.7 million. Financial highlights for the fiscal year include new contract awards of $766.2 million, revenues of $688.1 million, Adjusted EBITDA of $113.8 million, net income attributable to ViaSat common stockholders of $1.55 per share on a diluted non-GAAP basis or $0.89 per share on a diluted GAAP basis, and cash flows from operations of $112.5 million.

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

"ViaSat accomplished several important strategic objectives in fiscal year 2010, while still achieving solid financial results," said Mark Dankberg, ViaSat CEO and chairman. "We acquired and integrated WildBlue Communications under favorable terms - and established a strong financial, operational, and distribution framework for attaining the growth opportunities ViaSat-1 creates upon launch. Our initiatives have been well received in the marketplace, resulting in over $100 million in global orders for Ka-band satellite broadband ground infrastructure and services that are indicative of prospects for sustained growth ahead. The macro competitive landscape continues to afford a meaningful and exciting opportunity for high-quality satellite-delivered broadband services. And we have a number of significant program opportunities in both government and commercial markets that we anticipate will be decided during this next fiscal year."

Financial Results(1)



    (In millions, except per share
     data)                            Q4 FY10  Q4 FY09   FY 2010   FY 2009
    Revenues                            $212.6    $165.6    $688.1    $628.2
    Net income attributable to ViaSat
     Inc.                                $10.4     $12.1     $31.1     $38.3
    Diluted per share net income
     attributable to ViaSat Inc.
     common stockholders                 $0.27     $0.38     $0.89     $1.20
    Non-GAAP net income attributable
     to ViaSat Inc.(2)                   $16.6     $14.6     $54.0     $49.9
    Non-GAAP diluted net income per
     share attributable to ViaSat
     Inc. common stockholders (2)        $0.43     $0.46     $1.55     $1.57
    Fully diluted weighted average
     shares                               38.4      31.9      34.8      31.9
    Adjusted EBITDA(3)                   $48.0     $23.2    $113.8     $82.6

    New orders/Contract awards          $262.8    $123.9    $766.2    $728.4
    Sales backlog                       $528.8    $474.6    $528.8    $474.6


(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 ended on July 3, 2009, October 2, 2009, January 1, 2010, and April 2, 2010. Fiscal year 2010 was 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 net income 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."

(3) Adjusted EBITDA represents net income (loss) attributable to ViaSat Inc. before interest, taxes, depreciation and amortization, adjusted to exclude the effects of non-cash stock-based compensation expense and acquisition-related expenses. A reconciliation of specific adjustments to GAAP results for these periods is included in the "Reconciliation Between Net Income Attributable to ViaSat Inc. and Adjusted EBITDA" 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 and annual revenues of $100.7 million and $385.2 million, respectively, a 7.6% decrease over the fourth quarter of fiscal year 2009 and a 0.9% decrease over the prior year. The decrease was primarily related to lower sales of information assurance and tactical data link products, offset by higher sales in government satellite communication systems. New contract awards in the Government Systems segment for the fourth quarter and fiscal year 2010 were $111.0 million and $377.3 million, respectively.

Commercial Networks Segment

For the Commercial Networks segment, revenues were $54.4 million for the fourth quarter, basically flat over the fourth quarter of fiscal year 2009. For fiscal year 2010, Commercial Networks segment revenues were $227.1 million, a 1.6% decrease over the prior year. The revenue decrease was primarily due to a reduction in consumer broadband product sales, which was partly due to ViaSat no longer selling equipment to WildBlue following our acquisition of WildBlue, and sales of mobile satellite communication systems, offset by increased sales related to enterprise VSAT networks and antenna systems products. New contract awards in the Commercial Networks segment for the fourth quarter and fiscal year 2010 were $95.6 million and $295.9 million, respectively.

Satellite Services Segment

The Satellite Services segment contributed revenues of $57.5 million for the fourth quarter, a $55.4 million increase over the same period last year, and $75.8 million for fiscal year 2010, a $67.1 million increase from fiscal year 2009. The revenue increase was primarily related to the acquisition of WildBlue in the third quarter of fiscal year 2010, as well as growth in our mobile broadband satellite services. New contract awards in the Satellite Services segment for the fourth quarter and fiscal year 2010 were $56.2 million and $93.0 million, respectively.

For the fourth quarter of fiscal year 2010, WildBlue subscriber metrics included:

Selected Fiscal Year 2010 and Recent 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 the WildBlue acquisition and related integration, operation and growth prospects, sustained growth for Ka-band satellite ground equipment, and our government, commercial and satellite opportunities. 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 on Friday, May 14, 2010 at 11:00 a.m. Eastern Time to discuss the results for the fourth quarter and fiscal year 2010. The dial-in number is (877) 723-9520 in the U.S. and (719) 325-4934 internationally. A replay of the conference call will be available from 2:00 p.m. Eastern Time on Friday, May 14 through midnight Saturday, May 15 by dialing (888) 203-1112 for U.S. callers and (719) 457-0820 for international callers, and entering the passcode 7797646. You can also access our conference call webcast and other material financial information discussed on the conference call (including any information required by Regulation G) on the Investor Relations section of ViaSat's 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 (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 is based in Carlsbad, CA and has major locations in 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 generally accepted accounting principles (GAAP), ViaSat uses non-GAAP net income attributable to ViaSat Inc. and Adjusted EBITDA, measures ViaSat believes are 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.

Adjusted EBITDA represents net income (loss) attributable to ViaSat, Inc. before interest, taxes, depreciation and amortization, adjusted to exclude the effects of non-cash stock-based compensation expense and acquisition-related expenses. We believe Adjusted EBITDA facilitates company-to-company operating performance comparisons by backing out potential differences caused by variations in capital structures (affecting net interest expense), taxation and the age and book depreciation of property, plant and equipment (affecting relative depreciation expense), which may vary for different companies for reasons unrelated to operating performance. In addition, we believe that Adjusted EBITDA is frequently used by securities analysts, investors and other interested parties in their evaluation of companies, many of which present an Adjusted EBITDA measure when reporting their results. Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered as an alternative to net income as a measure of performance or to net cash flows provided by (used in) operations as a measure of liquidity. In addition, other companies may define Adjusted EBITDA differently and, as a result, our measure of Adjusted EBITDA may not be directly comparable to Adjusted EBITDA of other companies. Furthermore, Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

SurfBeam is a registered trademark of ViaSat.

Comsat Labs and Comsat Laboratories are trade names of ViaSat Inc. Neither Comsat Labs nor Comsat Laboratories is affiliated with COMSAT Corporation. "Comsat" is a registered trademark of COMSAT Corporation.



    Contact:
    Heather Ferrante
    ViaSat Inc.
    760-476-2633
    www.viasat.com




     Condensed Consolidated Statement of Operations
                       (Unaudited)
          (In thousands, except per share data)



                                   Three months ended   Twelve months ended
                                   ------------------   -------------------
                                  April 2,   April 3,    April 2,   April 3,
                                    2010      2009        2010       2009


    Revenues:
    Product revenues              $146,185  $158,370  $584,074  $595,342
    Service revenues                66,457     7,206   104,006    32,837
                                    ------     -----   -------    ------
    Total Revenues                 212,642   165,576   688,080   628,179

    Operating expenses:
    Cost of product revenues        99,421   111,945   408,526   424,620
    Cost of service revenues        42,245     5,779    66,830    22,204
    Selling, general &
     administrative                 42,636    25,638   132,895    98,624
    Independent research and
     development                     5,766     6,141    27,325    29,622
    Amortization of intangible
     assets                          4,726     1,805     9,494     8,822
    Income from operations          17,848    14,268    43,010    44,287
    Interest, net                   (4,783)     (120)   (6,733)      954
                                    ------      ----    ------       ---
    Income before income taxes      13,065    14,148    36,277    45,241
    Provision for income taxes       2,673     1,972     5,438     6,794
                                     -----     -----     -----     -----
    Net income                      10,392    12,176    30,839    38,447
    Less: Net (loss) income
     attributable to the
     noncontrolling interest, net
     of tax                            (54)       60      (297)      116
    Net income attributable to
     ViaSat, Inc.                  $10,446   $12,116   $31,136   $38,331
                                   =======   =======   =======   =======
    Diluted net income per share
     attributable to ViaSat, Inc.
     common stockholders             $0.27     $0.38     $0.89     $1.20
                                     =====     =====     =====     =====
    Diluted common equivalent
     shares                         38,438    31,879    34,839    31,884




    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.               $10,446   $12,116   $31,136   $38,331
    Amortization of intangible
     assets                          4,726     1,805     9,494     8,822
    Acquisition related expenses     1,612         -    11,374         -
    Stock-based compensation
     expense                         3,800     2,256    12,212     9,837
    Income tax effect               (4,010)   (1,538)  (10,180)   (7,047)
    Non-GAAP net income
     attributable to ViaSat, Inc.  $16,574   $14,639   $54,036   $49,943
                                   -------   -------   -------   -------
    Non-GAAP diluted net income
     per share attrib. to ViaSat,
     Inc. common stockholders        $0.43     $0.46     $1.55     $1.57
                                     =====     =====     =====     =====
    Diluted common equivalent
     shares                         38,438    31,879    34,839    31,884


    AN ITEMIZED RECONCILIATION
     BETWEEN NET INCOME
     ATTRIBUTABLE TO VIASAT, INC.
    AND ADJUSTED EBITDA IS AS
     FOLLOWS:

    GAAP net income attributable
     to ViaSat, Inc.               $10,446   $12,116   $31,136   $38,331
    Provision for income taxes       2,673     1,972     5,438     6,794
    Interest expense (income),
     net                             4,783       120     6,733      (954)
    Depreciation and amortization   24,703     6,723    46,955    28,610
    Stock-based compensation
     expense                         3,800     2,256    12,212     9,837
    Acquisition related expenses     1,612         -    11,374         -
    Adjusted EBITDA                $48,017   $23,187  $113,848   $82,618
                                   =======   =======  ========   =======


                          Condensed Consolidated Balance Sheet
                                      (Unaudited)
                                     (In thousands)

    Assets                                   April 2, 2010       April 3, 2009


    Current assets:
    Cash and cash equivalents                       $89,631           $63,491
    Accounts receivable, net                        176,351           164,106
    Inventories                                      82,962            65,562
    Deferred income taxes                            17,346            26,724
    Prepaid expenses and other
     current assets                                  28,857            18,941
    Total current assets                            395,147           338,824
                                                    -------           -------
    Property, equipment and
     satellites, net                                651,493           170,225
    Other intangible assets, net                     89,389            16,655
    Goodwill                                         75,024            65,429
    Other assets                                     82,499            31,809
    Total assets                                 $1,293,552          $622,942
                                                 ==========          ========


    Liabilities and                         April 2, 2010   April 3, 2009
    Stockholders' Equity

     Current liabilities:
     Accounts payable                             $78,355         $63,397
     Accrued liabilities                          102,251          72,037
                                                  -------          ------
     Total current liabilities                    180,606         135,434
     Line of credit                                60,000               -
     Long-term debt                               271,801               -
     Other liabilities                             24,395          24,718
                                                   ------          ------
     Total liabilities                            536,802         160,152
     Total ViaSat, Inc. stockholders'
      equity                                      753,005         458,748
     Noncontrolling interest in
      subsidiary                                    3,745           4,042
                                                    -----           -----
     Total stockholders' equity                   756,750         462,790
                                                  -------         -------
     Total liabilities and
      stockholders' equity                     $1,293,552        $622,942
                                               ==========        ========


SOURCE ViaSat

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