8 February 2010

 

ViaSat Inc. announced financial results for the third quarter ended January 1, 2010. 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.

 

“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 Results¹

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

 

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.

 

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.