CARLSBAD, Calif., Feb. 6, 2012 /PRNewswire/ -- ViaSat Inc. (NASDAQ: VSAT), an innovator in satellite and other wireless networking systems and services, announced financial results for the fiscal third quarter ended December 30, 2011 including new contract awards of $211.9 million, revenues of $205.0 million, Adjusted EBITDA of $36.9 million, and non-GAAP diluted net income attributable to ViaSat common stockholders of $0.26 per share, or $0.12 per share on a diluted GAAP basis. Year-to-date, ViaSat reported new contract awards of $711.2 million, revenues of $623.1 million, Adjusted EBITDA of $112.1 million, and non-GAAP diluted net income attributable to ViaSat common stockholders of $0.74 per share, or $0.34 per share on a diluted GAAP basis.

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"Our third quarter financial results were generally in line with our expectations," said Mark Dankberg, ViaSat CEO and chairman. "New orders, revenue and backlog are growing compared to last fiscal year, but costs associated with the ViaSat-1 launch delay weigh on earnings. Now, with the successful launch of the groundbreaking ViaSat-1 satellite in October and the subsequent introduction of our new high-speed Exede(SM) broadband service early in 2012, we can really grow our broadband subscriber base for the first time since the WildBlue acquisition two years ago."

Government Systems Segment

The Government Systems segment posted quarterly revenues of $94.9 million, a slight decrease of 2.8% from the third quarter of fiscal year 2011. The decrease was due to lower sales of information assurance and tactical data link products, offset partly by an increase in broadband networking service revenues for military customers. Adjusted EBITDA for the Government Systems segment was $19.8 million in the third quarter of fiscal year 2012, compared to $14.4 million in the same period of the prior fiscal year. New contract awards in our Government Systems segment for the third quarter of fiscal year 2012 were $114.3 million. Year to date, Government Systems revenue was $284.4 million, an increase of 1.1% from the same period of last fiscal year.

Commercial Networks Segment

In the Commercial Networks segment, revenues were $54.4 million for the third quarter of fiscal year 2012, a 39.4% increase from the third quarter of fiscal year 2011. The revenue increase was primarily due to increased sales of antenna systems products, satellite payload technology development programs, consumer broadband products, and mobile broadband satellite communication systems, offset by decreased sales of enterprise VSAT networks and products. Adjusted EBITDA for the Commercial Networks segment shows a loss of $0.1 million in the third quarter of fiscal year 2012, compared to a loss of $1.0 million in the same period of the prior fiscal year. New contract awards in our Commercial Networks segment for the third quarter of fiscal year 2012 were $41.9 million. Year to date, Commercial Networks revenues were $170.7 million, an increase of 32.4% from the same period of last fiscal year.

Satellite Services Segment

Our Satellite Services segment contributed revenues of $55.7 million for the third quarter of fiscal year 2012, a 6.2% decrease compared to the third quarter of fiscal year 2011, primarily from a decrease in WildBlue® services due to the lower number of wholesale subscribers as our sales channels provisioned fewer customers with existing service plans in anticipation of the commencement of our new Exede service offerings in January 2012. Adjusted EBITDA for the Satellite Services segment was $17.3 million in the third quarter of fiscal year 2012, compared to $24.0 million in the same period of the prior fiscal year. New contract awards in our Satellite Services segment for the third quarter of fiscal year 2012 were $55.7 million. Year to date, Satellite Services revenues were $167.9 million, a decrease of 4.3% from the same period of last fiscal year.

Selected Fiscal Third Quarter Business Highlights

• Completed major milestones in our high-capacity satellite system project:
  • Successfully launched ViaSat-1 into geosynchronous orbit;
  • Completed all in-orbit testing, including initial data transmissions over the satellite using our next-generation SurfBeam® 2 gateways and terminals;
  • Subsequent to quarter end, announced the new Exede by ViaSat residential services at the International Consumer Electronics Show, which is expected to offer unprecedented satellite broadband services with data download speeds at up to 12 Mbps with prices beginning at $50 per month;
  • Subsequent to quarter end, commenced commercial service and began adding satellite broadband service subscribers and turned on service through 75% of the gateways and service beams, remaining on schedule to complete full commissioning of our next-generation broadband network later this month; and
  • Signed distribution agreements with the National Rural Telecommunications Cooperative and DISH Network to sell customer premises equipment and wholesale broadband services.
• Received over $44 million in follow-on orders to provide equipment and broadband services to the U.S. military supporting various airborne operations
• Conducted a demonstration of our airborne mobile broadband system for members of the U.S. armed services, transmitting full-motion, encrypted HD video at industry-leading speeds up to 8 Mbps using an ultra-small aperture 12-inch Ka-band satellite tracking antenna
• Received TechAmerica Foundation's 2011 American Technology Award in the telecommunications field for the ViaSat-1 satellite

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 growth in subscriber base, new orders, revenue and backlog. 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: our ability to successfully implement ViaSat-1 broadband satellite services on our anticipated timeline or at all; negative audits by the U.S. government; continued turmoil in global financial markets and economies; delays in approving U.S. government budgets; our reliance on U.S. government contracts, and 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 and defense industries generally; the effect of adverse regulatory changes on our ability to sell products; our level of indebtedness and ability to comply with applicable debt covenants; and our dependence on a limited number of key employees. In addition, please refer to the risk factors contained in our SEC filings available at www.sec.gov, including our 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. We undertake 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 2012 third quarter results at 5:00 p.m. Eastern Time on Monday, February 6, 2012. The dial-in number is (877) 640-9809 in the U.S. and (914) 495-8528 internationally. A replay of the conference call will be available from 8:00 p.m. Eastern Time on Monday, February 6 until midnight on Tuesday, February 7 by dialing (855) 859-2056 for U.S. callers and (404) 537-3406 for international callers, and entering the conference ID 48592680. 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 delivers fast, secure communications, Internet, and remote network access to fixed sites or on-the-move. 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. and allied governments; is the primary technology partner for gateway and customer-premises equipment for consumer and mobile satellite broadband services; and offers high-speed Ka-band satellite broadband, featuring ViaSat-1, the world's highest capacity satellite. 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. Based in Carlsbad, California, ViaSat has established a number of worldwide locations for customer service, network operations, and technology development.

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. 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 expenses and acquisition related expenses. We also use Adjusted EBITDA to evaluate operating performance of our segments, to allocate resources and capital to such segments, to measure performance for incentive compensation programs and to evaluate future growth opportunities. 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 GAAP. A reconciliation of specific adjustments to GAAP results is provided in the tables titled "An Itemized Reconciliation Between Net Income Attributable to ViaSat Inc. on a GAAP Basis and Non-GAAP Basis," "An Itemized Reconciliation Between Net Income Attributable to ViaSat Inc. and Adjusted EBITDA" and "An Itemized Reconciliation Between Segment Operating Profit (Loss) Before Corporate and Amortization of Acquired Intangible Assets and Adjusted EBITDA" contained in this release.

Exede(SM) is a service mark of ViaSat Inc.

WildBlue®, and SurfBeam® are registered trademarks of ViaSat Inc.

SOURCE ViaSat Inc.