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ViaSat Inc. announced financial results for the third quarter of fiscal year 2013. The fiscal third quarter results included new contract awards of $265.7 million and another record revenues quarter of $286.4 million. Operating performance grew quarter over quarter reflecting Adjusted EBITDA of $48.4 million and net income attributable to ViaSat common stockholders of $0.04 per share on a non-GAAP diluted basis. On a diluted GAAP basis, ViaSat reported a net loss attributable to ViaSat common stockholders of $0.47 per share, which, as discussed below, reflects a one-time debt extinguishment expense of $26.5 million or $0.36 per share on a net of tax basis.

Results for the past nine months include new contract awards of over $1.1 billion and revenues totaling $811.0 million. On a year-to-date basis, ViaSat reported Adjusted EBITDA of $122.5 million and a net loss attributable to ViaSat common stockholders of $0.18 per share on a non-GAAP diluted basis, or $0.99 per share on a diluted GAAP basis inclusive of the debt extinguishment expense.

"Our fiscal third quarter delivered strong growth in key metrics for all our business segments. We gained more momentum in our Exede® satellite broadband service, growing net adds over 50% sequentially to almost 38,000 for the quarter, while yielding continued sequential growth in Adjusted EBITDA," said Mark Dankberg, chairman and CEO of ViaSat. "Our Government Systems segment posted record revenues and over 70% Adjusted EBITDA growth, along with solid orders. Our Commercial Networks segment revenues are up over 25%, driven by Ka-band network systems. We are very pleased with these results that reflect the strong backlog and competitive positions that we are continuing to build throughout the company."

Financial Results¹

(In millions, except per share data)	Q3 FY13	Q3 FY12	First 9 Mos. FY13	First 9 Mos. FY12
Revenues	$286.4	$205.0	$811.0	$623.1
Adjusted EBITDA²	$48.4	$36.9	$122.5	$112.1
Net (loss) income³	($20.8)	$5.1	($43.1)	$14.9
Diluted per share net (loss) income ³	($0.47)	$0.12	($0.99)	$0.34
Non-GAAP net income (loss) ^3,4	$1.8	$11.6	($7.9)	$32.7
Non-GAAP diluted per share net income (loss) ^3,4	$0.04	$0.26	($0.18)	$0.74
Fully diluted weighted average shares ⁵	44.2	44.3	43.7	44.0

New contract awards	$265.7	$211.9	$1,146.3	$711.2
Sales backlog⁶	$939.0	$575.3	$939.0	$575.3


¹ViaSat uses a 52 or 53 week fiscal year which ends on the Friday closest to March 31. ViaSat quarters for fiscal year 2013 end on June 29, 2012, September 28, 2012, December 28, 2012, and March 29, 2013.

²Adjusted 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, acquisition related expenses and loss on extinguishment of debt. A reconciliation of specific adjustments to GAAP results for these periods is included in the tables below.

³Attributable to ViaSat Inc. common stockholders.

⁴All non-GAAP net income (loss) numbers have been adjusted to exclude the effects of amortization of acquired intangible assets, acquisition related expenses, non-cash stock-based compensation expenses and loss on extinguishment of debt, net of tax. A reconciliation of specific adjustments to GAAP results for these periods is included in the tables below.

⁵As the third quarter and first nine months of fiscal year 2013 financial information results in a net loss, the weighted average number of shares used to calculate basic and diluted net loss per share is the same, as diluted shares would be anti-dilutive.

⁶Amounts include certain backlog adjustments due to contract changes and amendments.

Segment Results

(In millions)	Q3 FY13	Q3 FY12	First 9 Mos. FY13	First 9 Mos. FY12
Satellite Services
New contract awards	$71.4	$55.7	$212.5	$167.5
Revenues	$71.8	$55.7	$198.4	$167.9
Adjusted EBITDA	$11.0	$17.3	$24.1	$54.8

Commercial Networks
New contract awards	$45.8	$41.9	$417.7	$207.7
Revenues	$68.7	$54.4	$231.3	$170.7
Adjusted EBITDA	$2.4	($0.1)	$10.9	$3.2

Government Systems
New contract awards	$148.5	$114.3	$516.1	$336.0
Revenues	$146.0	$94.9	$381.3	$284.4
Adjusted EBITDA	$35.1	$19.8	$87.7	$54.0

Satellite Services

Our Satellite Service segment revenues increased 28.9% for the quarter and 18.1% year-to-date as our total subscriber base expanded to 467,000. We completed approximately 77,500 installations during the quarter, which delivered 62,000 gross adds to the network, primarily through retail channels. ARPU increased to $49.07 for the third quarter. Adjusted EBITDA declined for the quarter and year-to-date compared to last year primarily due to the fixed costs of the ViaSat-1 network expansion and higher subscriber acquisition costs relative to the incremental subscriber margin gains. However, quarter over quarter Adjusted EBITDA improved for the second consecutive quarter.

Our third quarter consumer Internet service reported other key metrics as follows:
- Ending subscribers: 467,000 (46.4% on ViaSat-1)
- Migrations from WildBlue® to Exede service: 15,600 (77,500 installs, less 62,000 gross adds)
- Average monthly churn: 1.9%

Commercial Networks

Our Commercial Networks segment third quarter revenues of $68.7 million grew by 26.1% compared to last year, driving Adjusted EBITDA up to $2.4 million versus the $0.1 million Adjusted EBITDA loss reported in our fiscal 2012 third quarter results. Year-to-date revenues and Adjusted EBITDA also grew compared to last year, reflecting the continued success we have experienced in the global Ka-band satellite networking market. In the third quarter, we received another $19.9 million in awards for SurfBeam® 2 Ka-band terminals and recently reached a significant milestone as we shipped our 500,000^th SurfBeam 2 consumer terminal.

Government Systems

Our Government Systems segment reported another quarter of record revenues and Adjusted EBITDA improving year over year by 53.9% and 77.4%, respectively. On a year-to-date basis, our government segment has experienced nearly $100 million in revenue growth driving Adjusted EBITDA up 62.5% compared to the same period last year. These results have been driven by growth in our government mobile broadband, command and control, and tactical satellite networks products and services. In December 2012, we received a $52 million contract renewal to continue providing broadband airborne satcom services for a U.S. government customer and were selected by the U.S. Marine Corps Systems Command to engineer our advanced information security into common, off-the-shelf mobile devices, such as smartphones and tablets.