EXHIBIT 99.1
VIASAT UPDATES OUTLOOK FOR FISCAL YEAR 2003 FOURTH QUARTER
CARLSBAD, CA -- ViaSat, Inc. (Nasdaq: VSAT) announced today that revenues and
earnings for its fourth quarter ended March 31, 2003 would be below previous
expectations.
Revenue for the fourth quarter is now expected to be approximately $54 million
and pro forma earnings are expected to be approximately breakeven. The
adjustment to pro forma earnings for amortization of goodwill and intangibles is
expected to result in an after tax net loss of approximately $1.6 million. These
estimates are preliminary and remain subject to final revisions and audit. Key
factors impacting our expected results include:
- Delays in contract awards. Contracts for an expected defense
information security program and for DOCSIS consumer satellite
broadband systems did not generate significant amounts of revenue
for the period and consumed discretionary research and development
expenses. The company is confident these programs will contribute
meaningful revenues in the first quarter of fiscal year 2004.
- Higher than anticipated new business development expenses. Firm new
orders for the quarter were over $60 million, giving the company a
record $260 million in new orders (excluding options) for the fiscal
year. There are additional programs estimated to have an initial
value in excess of $60 million for which the company has been
selected for award in the fourth quarter, and authorized to begin
work, but has not yet negotiated a definitive contract for the final
value. Consequently, these additional programs are not included in
fourth quarter backlog or contract awards. These additional programs
were begun either prior to or immediately following the close of the
quarter. This totals to over $120 million in recent contract wins.
The amount of new business exceeded expectations, as did the
associated costs to propose, capture and negotiate these programs
and other potential new contracts.
- Higher than anticipated expenses in the VSAT business area. There
were higher than anticipated new business expenses, inventory and
repair charges and research and development costs.
"Though revenues for the fourth quarter were close to expectations, we are
disappointed with the earnings results. However, based on new order activity and
current tone of business, we do not believe these fourth quarter results
indicate any reduction in our fiscal year 2004 revenue or earnings outlook,"
said Mark Dankberg, ViaSat chairman and CEO. "This has been a record year for
our defense business in terms of revenues and new contract awards and near
record earnings, but our company-wide results have been depressed due to the
lagging effects of last year's decline in the commercial business. Recent events
indicate a return to substantive revenues from the commercial broadband
satellite networks business beginning in the first quarter of fiscal year 2004.
In addition, we generated approximately $6 million in operating cash flow during
the quarter and reduced debt under our credit facility to less than $10
million."
ViaSat will conduct a conference call today at 11:00 A.M. Eastern time. The
dial-in number is (800) 633-8540 and the reservation code is 21142903. A replay
will be available for 48 hours after the conference call at (800) 633-8284, code
21142903. ViaSat is scheduled to report actual financial results for the fourth
quarter ended March 31, 2003 on May 22, 2003.
ViaSat produces advanced digital satellite telecommunications and wireless
signal processing equipment for commercial and government markets. ViaSat has a
full line of VSAT products for data and voice applications. ViaSat is a market
leader in Ka-band satellite systems, from user terminals to large gateways.
Other products include network security devices, tactical data radios, and
communication simulators. ViaSat has locations in Carlsbad, CA, and Norcross,
GA, along with its Comsat Laboratories division based in Clarksburg, MD.
Additional field offices are located in Boston, MA, Italy, Australia, China, and
India.
In addition, ViaSat's wholly-owned subsidiary, U.S. Monolithics, designs and
produces monolithic microwave integrated circuits (MMICs) and modules for use in
broadband communications. USM is based in Chandler, Arizona.
USE OF PRO FORMA FINANCIAL INFORMATION
Pro form net income (loss) excludes amortization of goodwill and other
intangibles. Pro forma net income is provided to enhance the overall
understanding of our current financial performance and our prospects for the
future. Specifically, we believe the pro forma 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 pro
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forma results to the investment community, we believe the inclusion of pro forma
numbers provides consistency in our financial reporting. Further, these adjusted
pro forma results are one of the primary indicators management uses for planning
and forecasting in future periods. The presentation of this additional
information should not be considered in isolation or as a substitute for results
prepared in accordance with generally accepted accounting principles.
SAFE HARBOR STATEMENT
Portions of this release, particularly references to expected contractual
awards, may contain forward-looking statements regarding future events and are
subject to risks and uncertainties. ViaSat wishes to caution you that there are
some factors that could cause actual results to differ materially, including but
not limited to: ViaSat's ability to obtain final contractual awards from
customers, ViaSat's ability to perform under existing contracts and obtain
additional follow-on contracts, changes in product supply, changes in
relationships with, or the financial condition of, key customers or suppliers,
changes in government regulations, changes in economic conditions globally and
in the communications markets in particular, potential product liability,
infringement and other claims, and other factors affecting the communications
industry generally. ViaSat refers you to the documents it files from time to
time with the Securities and Exchange Commission, specifically the section
titled Factors That May Affect Future Performance in ViaSat's 2002 Form 10-K and
subsequent 10-Q's. These documents contain and identify other important factors
that could cause actual results to differ materially from those contained in our
projections or forward-looking statements. Stockholders and other readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date on which they are made. We undertake no obligation to
update publicly or revise any forward-looking statements.
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