ViaSat
Announces
First
Quarter
Results
Aug.
9
ViaSat
Inc.
announced
financial
results
for
the
first
quarter
of
fiscal
year
2011.
The
fiscal
first
quarter
results
include
new
contract
awards
of
$152.9
million,
revenues
of
$192.0
million,
Adjusted
EBITDA
of
$37.6
million
and
non-GAAP
diluted
net
income
attributable
to
ViaSat
common
stockholders
of
$0.23
per
share,
or
$0.08
per
share
on a
diluted
GAAP
basis.
Included
in
these
first
quarter
results
was
a
pre-tax
expense
of
$8.5
million,
or
$0.12
per
share,
resulting
from
an
increase
in
estimated
costs
on a
government
satellite
communications
development
program.
"ViaSat
generated
healthy
year-over-year
growth
in
revenue,
Adjusted
EBITDA,
orders
and
contract
awards,
and
sales
backlog,
but
results
were
impacted
by
the
program
expense
as
well
as
delays
in
contract
award
decisions
on a
number
of
government
follow-on
and
competitive
contracts,"
said
Mark
Dankberg,
Chairman
and
CEO
of
ViaSat.
"We
anticipate
that
several
potentially
significant
awards
will
be
decided
within
the
current
quarter.
The
defense
budget
is
clearly
under
increasing
pressure,
leading
to
ordering
delays
throughout
the
defense
procurement
market,
but
we
believe
that
pressure
also
creates
a
more
receptive
market
for
ViaSat's
lower
cost
systems.
Our
strong
competitive
positions
in
expected
growth
segments
such
as
airborne
intelligence,
situational
awareness,
data
links,
and
cyber
security
afford
an
opportunity
to
accelerate
and
build
on
the
momentum
from
our
recent
Blue
Force
Tracking-2
contract
award.
The
Blue
Force
Tracking
initial
contract
ceiling
value
is
our
second
largest
ever
and
was
awarded
shortly
after
the
end
of
the
first
quarter."
|
Financial Results (1)
|
|
|
(In millions, except per share data)
|
Q1 FY11
|
Q1 FY10
|
|
|
Revenues
|
$192.0
|
$158.4
|
|
|
Net income attributable to ViaSat Inc.
|
$3.3
|
$8.3
|
|
|
Diluted per share net income attributable to ViaSat Inc. common stockholders
|
$0.08
|
$0.25
|
|
|
Non-GAAP net income attributable to ViaSat Inc. (2)
|
$9.6
|
$10.8
|
|
|
Non-GAAP diluted net income per share attributable to ViaSat Inc. common stockholders (2)
|
$0.23
|
$0.33
|
|
|
Fully diluted weighted average shares
|
42.1
|
32.7
|
|
|
Adjusted EBITDA (3)
|
$37.6
|
$20.2
|
|
|
|
|
|
|
New orders/Contract awards
|
$152.9
|
$120.6
|
|
|
Sales backlog
|
$489.8
|
$436.8
|
|
|
(
1) ViaSat uses a 52 or 53 week fiscal year which ends on the Friday closest to March 31. ViaSat quarters for fiscal year 2011 end on July 2, 2010, October 1, 2010, December 31, 2010, and April 1, 2011.
(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
recorded
quarterly
revenues
of
$88.8
million,
a 4%
decrease
over
the
first
quarter
of
fiscal
year
2010.
The
decrease
was
primarily
related
to
lower
sales
of
information
assurance
and
tactical
data
link
products,
offset
by
higher
sales
of
government
satellite
communication
systems.
New
contract
awards
in
our
Government
Systems
segment
for
the
first
quarter
of
fiscal
year
2011
were
$72.6
million.
In
June
2010,
as a
result
of
certain
systems
integration
testing,
we
determined
that
significant
additional
rework
was
required
in
order
to
complete
a
government
satellite
communication
program.
Following
the
testing
and
subsequent
internal
reviews
and
analyses,
we
recorded
an
additional
forward
loss
of
$8.5
million
in
the
first
quarter
of
fiscal
year
2011
for
estimated
additional
labor
and
materials
required
to
complete
the
program.
Commercial
Networks
Segment
For
the
Commercial
Networks
segment,
revenues
were
$45.6
million
for
the
first
quarter,
which
was
a
28%
decrease
from
the
first
quarter
of
fiscal
year
2010.
The
revenue
decrease
was
primarily
due
to a
reduction
in
sales
of
enterprise
VSAT
products,
consumer
broadband
products,
which
was
partly
due
to
ViaSat
no
longer
recognizing
revenue
for
equipment
sales
to
WildBlue
following
our
acquisition
of
WildBlue
in
December
2009,
and
satellite
networking
technology
development
programs,
offset
by
increased
revenue
in
our
antenna
systems
product
group.
New
contract
awards
in
our
Commercial
Networks
segment
for
the
first
quarter
of
fiscal
year
2011
were
$24.5
million.
Satellite
Services
Segment
Our
Satellite
Services
segment
contributed
revenues
of
$57.5
million
for
the
first
quarter,
which
was
a
$55.0
million
increase
compared
to
the
first
quarter
of
fiscal
year
2010.
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
services.
New
contract
awards
in
our
Satellite
Services
segment
for
the
first
quarter
were
$55.8
million.
Selected
First
Quarter
2011
Business
Highlights
- ViaSat mobile broadband installations reached a total of 800 systems serving a mix of general aviation, communications-on-the-move (COTM), maritime, and high-speed rail customers.
- Announced our acquisition of privately-held Stonewood Group Limited, a maker of encrypted hard drives and other data-at-rest encryption products. This acquisition was completed in July 2010.
- Awarded a $5.75 million Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract for tactical data link and satellite communications equipment and engineering support services from SPAWAR Charleston, S.C. for the U.S. Navy and through the Foreign Military Sales program for the Republic of Turkey.
- Upgraded transmission rates on our airborne broadband network to improve performance for Intelligence, Surveillance, and Reconnaissance (ISR) network missions being flown by nearly 100 U.S. airborne military satellite communication systems.
- After quarter close, awarded $37.7 million of first article and initial production terminals for the U.S. Army next generation high-capacity low-latency Blue Force Tracking (BFT) equipment as part of the Force XXI Battle Command Brigade and Below (FBCB2) program. The total value of the IDIQ contract vehicle ordering agreement is $477 million.
