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ViaSat Announces Fiscal Year 2012 Third Quarter Results

 

Feb. 6, 2012

 

 ViaSat Inc. 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.

 

"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."

 

Financial Results(1)

(In millions, except per share data)

Q3 FY12

Q3 FY11

First 9 Mos. FY12

First 9 Mos. FY11

Revenues

$205.0

$195.9

$623.1

$585.8

Adjusted EBITDA(2)

$36.9

$37.3

$112.1

$118.0

Net income(3)

$5.1

$12.9

$14.9

$24.0

Diluted per share net income (3)

$0.12

$0.30

$0.34

$0.56

Non-GAAP net income (3,4)

$11.6

$18.6

$32.7

$41.9

Non-GAAP diluted per share net income (3,4)

$0.26

$0.43

$0.74

$0.98

Fully diluted weighted average shares

44.3

43.4

44.0

42.8






New contract awards

$211.9

$175.9

$711.2

$582.5

Sales backlog(5)

$575.3

$523.5

$575.3

$523.5


(1) ViaSat uses a 52 or 53 week fiscal year which ends on the Friday closest to March 31. ViaSat quarters for fiscal year 2012 end on July 1, 2011, September 30, 2011, December 30, 2011, and March 30, 2012.

 

(2) 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 table titled "An Itemized Reconciliation Between Net Income Attributable to ViaSat Inc. and Adjusted EBITDA" contained in this release. A description of our use of non-GAAP information is provided below under "Use of Non-GAAP Financial Information."

 

(3) Attributable to ViaSat Inc. common stockholders.

 

(4) 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 table titled "An Itemized Reconciliation Between Net Income Attributable to ViaSat Inc. on a GAAP Basis and Non-GAAP Basis" contained in this release. A description of our use of non-GAAP information is provided below under "Use of Non-GAAP Financial Information."

 

(5) Amounts include certain backlog adjustments due to contract changes and amendments.

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.