EXHIBIT 99.1
VIASAT REPORTS FISCAL 2003 YEAR END RESULTS
ACHIEVES RECORD ORDER YEAR
CARLSBAD, CA -- ViaSat, Inc (NASDAQ: VSAT), a leading developer of
communication equipment for government and commercial customers, today announced
financial and operating results for the fourth quarter and fiscal year 2003.
Results were in line with the updated outlook provided by the company on April
28, 2003. Highlights included record revenues in the fourth quarter of $53.7
million, record orders for new business of $259.5 million and cash flow from
operations of over $15 million for the fiscal year.
"Despite a challenging year overall , we are entering fiscal 2004 having
generated record new orders and a 54% increase in our backlog from the end of
the prior fiscal year," said Mark Dankberg, chairman, president and CEO of
ViaSat. "With a healthy backlog and positive demand indicators in key defense
segments such as information security and military satcom, as well as commercial
broadband, we are optimistic about our growth prospects as we convert new orders
into revenues, earnings and cash. These factors give us confidence that ViaSat
is poised to return to profitability and grow top-line revenues in excess of 20%
annually."
FINANCIAL RESULTS
For the fourth quarter and fiscal year ended March 31, 2003, the company
reported the following:
(In millions, except share data) Q4 2003 Q4 2002 FY 2003 FY 2002
- -------------------------------------- -------- --------- --------- -------
Revenues $ 53.7 $ 47.2 $ 185.0 $ 195.6
Actual net income (loss) ($ 1.3) ($ 3.4) ($ 9.6) $ 2.2
Per share net income (loss) ($ 0.05) ($ 0.13) ($ 0.37) $ 0.09
Pro forma net income (loss)* ($ 0.0) ($ 1.9) ($ 4.6) $ 7.9
Per share Pro forma net income (loss)* ($ 0.00) ($ 0.07) ($ 0.18) $ 0.33
Weighted average shares 26.1 25.7 26.0 24.0
New orders/Contract awards $ 60.0 $ 24.1 $ 259.5 $ 192
Sales backlog $ 214 $ 139 $ 214 $ 139
* All non-GAAP pro forma numbers have been adjusted to exclude the effects
of acquisition charges (amortization of goodwill, intangible assets and a
charge for in-process research and development). A reconciliation of
specific adjustments to GAAP results for these periods is included in the
"Pro Forma Condensed Consolidated Statement of Operations" table on page 5
of this release. A description of our use of non-GAAP information is
provided under "Use of Pro Forma Financial Information" below.
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SELECT FISCAL YEAR 2003 BUSINESS HIGHLIGHTS
- - Over $35 million in new contract awards for our defense information security
business making it the highest growth area for our defense business. Key
contracts in this area were Gigabit Ethernet, Secure Gateway (SEGATE)/Trusted
Filters for US Army's Communications Electronics Command (CECOM), plus JTRS and
FAB-T subcontracts on Boeing-led teams.
- - Completion of government qualification testing for both the airborne LVT(1)
and ground-based LVT (2) Multifunctional Information Distribution System (MIDS)
terminals. We were awarded delivery orders valued at over $39 million for the
year and MIDS unit production recorded its highest levels during the fourth
quarter.
- - Backlog in our government UHF satcom business grew by over 45% with over $37
million in new orders during the year, including awards for the Second
Generation Modem used in the US Army MANPAC radio.
- - Launch of an extensive business development effort in our new Government
Broadband business area, aimed at expanding the market for our commercial VSAT
products into government applications. Just after year-end, this effort resulted
in an eight-year, delivery order contract from CECOM for design and production
of the Enhanced Bandwidth Efficient Modem (EBEM).
- - Successful migration of commercial antenna technology to Department of Defense
applications by our Satellite Ground Systems division. A total of $21 million in
new orders for government applications during fiscal year 2003 included antenna
systems for the Wideband Gapfiller Satellite and Space Lift Range Systems
telemetry upgrade from ITT Industries, the Geostationary Operational
Environmental Satellite for NOAA, and Phase II for the Ballistic Missile Range
Safety System from Honeywell Space Systems.
- - Record bookings and shipments of our LinkStar broadband VSAT by our VSAT
Networks group, including over $24 million in orders during the third quarter,
led by deals with INTERDirec for the e-Mexico National System, and Shoppers Drug
Mart for an upgrade of its retail network in Canada.
- - Completed development of a Federal Aviation Administration (FAA) fully
flight-qualified airborne receive and transmit subsystems (ARTS) for Connexion
by Boeing, delivered the first production order of 70 units, and received a
follow-on production order from Connexion for continued development and delivery
of more than 100 units in support of the scheduled service launch in 2004.
- - Approximately $10 million in development and initial production orders from
ARINC Incorporated for the Airborne Integrated Satellite Communications Terminal
for the SKYLink two-way broadband in-flight communication system for business
jets. SKYLink builds on CDMA technology developed for the ArcLight Broadband
VSAT product.
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- - First contract award from Eutelsat for consumer broadband trials using
SurfBeam(R), our consumer/SOHO broadband system that leverages DOCSIS (Data Over
Cable Service Interface Specification) technology. SurfBeam is the first two-way
satellite system expressly developed with the complete set of features and
infrastructure to support service for the high volume, consumer market at prices
competitive with terrestrial alternatives.
- - Growth in revenues for US Monolithics through RF subsystem and product
development for both defense and commercial programs. Current programs include
next generation Ka-band MMICs, Ka-band transceivers for Eutelsat's Skyplex
system, Ku-band block upconverters for internal and external customers, and UHF
power amplifiers and phased array antenna multiple-chip modules for defense
applications.
ViaSat produces innovative satellite and other wireless communication
products that enable fast, easy, and efficient communications to any location.
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, Washington DC/Baltimore,
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 forma net income (loss) excludes the effect of acquisition charges
(amortization of goodwill, intangible assets and a charge for in-process
research and development). 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 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
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with generally accepted accounting principles. See the "Pro Forma Condensed
Consolidated Statement of Operations" table for a reconciliation of net income
(loss) to pro forma net income (loss).
SAFE HARBOR STATEMENT
Portions of this release, particularly ViaSat's financial prospects for
fiscal year 2004 and beyond and the "Fiscal Year 2003 Business Highlights"
section, may contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. ViaSat wishes to caution you
that there are some factors that could cause actual results to differ materially
from historical results or from any results expressed or implied by such
forward-looking statements, including but not limited to: ViaSat's ability to
perform under existing contracts and obtain additional contracts, ViaSat's
ability to develop new products that gain market acceptance, changes in product
supply, pricing and customer demand, 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, increased competition, 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 Form 10-K. 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.
Comsat Labs and Comsat Laboratories are tradenames of ViaSat, Inc. Neither
Comsat Labs nor Comsat Laboratories is affiliated with COMSAT Corporation.
"Comsat" is a registered trademark of COMSAT Corporation.
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CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE DATA)
THREE MONTHS ENDED MARCH 31, YEAR ENDED MARCH 31,
(UNAUDITED) (UNAUDITED)
------------------------------- -------------------------------
2002 2003 2002 2003
------------- ------------- ------------- -------------
Revenues $ 47,181 $ 53,700 $ 195,628 $ 185,022
Cost of revenues 34,607 40,212 136,567 141,208
------------ ------------ ------------ ------------
Gross Profit 12,574 13,488 59,061 43,814
Operating expenses:
Selling, general & administrative 7,752 11,130 33,389 37,858
ORBCOMM 4,764 -- 4,764 --
Independent research and development 3,772 4,344 9,415 16,048
Acquired in-process research and development 50 -- 2,550
Amortization of intangible assets 2,122 2,113 5,216 8,448
Amortization of goodwill 436 -- 1,743 --
------------ ------------ ------------ ------------
Income (loss) from operations (6,322) (4,099) 1,984 (18,540)
Equity in loss of joint venture (627) (78) (2,877) (1,700)
Interest and other (97) (199) 91 (825)
------------ ------------ ------------ ------------
Income (loss) before income taxes (7,046) (4,376) (802) (21,065)
------------ ------------ ------------ ------------
Net Income (loss) $ (3,433) $ (1,283) $ 2,157 $ (9,632)
============ ============ ============ ============
Diluted net income (loss) per share $ (0.13) $ (0.05) $ 0.09 $ (0.37)
============ ============ ============ ============
Diluted common equivalent shares 25,658,486 26,124,711 23,953,664 26,015,702
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE DATA)
THREE MONTHS ENDED MARCH 31, YEAR ENDED MARCH 31,
(UNAUDITED) (UNAUDITED)
------------------------------- -------------------------------
2002 2003 2002 2003
------------- ------------- ------------- -------------
Revenues $ 47,181 $ 53,700 $ 195,628 $ 185,022
Cost of revenues 34,607 40,212 136,567 141,208
------------ ------------ ------------ ------------
Gross Profit 12,574 13,488 59,061 43,814
Operating expenses:
Selling, general & administrative 7,752 11,130 33,389 37,858
ORBCOMM 4,764 -- 4,764 --
Independent research and development 3,772 4,344 9,415 16,048
------------ ------------ ------------ ------------
Pro forma income (loss) from operations (3,714) (1,986) 11,493 (10,092)
Equity in loss of joint venture (627) (78) (2,877) (1,700)
Interest and other (97) (199) 91 (825)
------------ ------------ ------------ ------------
Pro forma income (loss) before income taxes (4,438) (2,263) 8,707 (12,617)
------------ ------------ ------------ ------------
Pro forma net income (loss) $ (1,868) $ (15) $ 7,862 $ (4,563)
============ ============ ============ ============
Pro forma diluted net income (loss) per share $ (0.07) $ (0.00) $ 0.33 $ (0.18)
============ ============ ============ ============
Diluted common equivalent shares 25,658,486 26,124,711 23,953,664 26,015,702
AN ITEMIZED RECONCILIATION BETWEEN NET INCOME (LOSS)
ON A GAAP BASIS AND NON-GAAP BASIS IS AS FOLLOWS:
GAAP net income (loss) (3,433) (1,283) 2,157 (9,632)
Acquired in-process research and development 50 -- 2,550 --
Amortization of intangible assets 2,122 2,113 5,216 8,448
Amortization of goodwill 436 -- 1,743 --
Income tax effect (1,043) (845) (3,804) (3,379)
------------ ------------ ------------ ------------
Non-GAAP net income (loss) $ (1,868) $ (15) $ 7,862 $ (4,563)
------------ ------------ ------------ ------------
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CONDENSED CONSOLIDATED BALANCE SHEET
(IN THOUSANDS)
ASSETS MARCH 31, 2002 MARCH 31, 2003
(UNAUDITED)
Current Assets:
Cash and S-T investments $ 6,620 $ 4,269
Accounts receivable, net 80,170 80,962
Inventory 30,116 29,758
Deferred income taxes 2,974 858
Other current assets 7,343 6,014
-------- --------
Total current assets 127,223 121,861
-------- --------
Goodwill, net 19,456 19,493
Other intangible assets, net 43,922 35,575
Property and equip, net 31,117 33,609
Other assets 16,949 26,678
-------- --------
$238,667 $237,216
-------- --------
LIABILITIES AND MARCH 31, 2002 MARCH 31, 2003
STOCKHOLDERS' EQUITY (UNAUDITED)
Current liabilities:
Accounts payable $ 16,069 $ 21,983
Accrued liabilities 17,796 19,036
Line of credit 9,900 9,950
-------- --------
Total current liabilities 43,765 50,969
Other liabilities 2,549 1,907
-------- --------
Total liabilities 46,314 52,876
-------- --------
Total stockholders' equity 192,353 184,340
-------- --------
$238,667 $237,216
-------- --------
NOTE: ViaSat, Inc. will be host a conference call to discuss these FY2003 Fourth
Quarter and Year End Earnings at 5:00 P.M. Eastern Time on Thursday, May 22,
2003. The dial-in number is (800) 833-9564 and the reservation code is 21144400.
A replay will be available until 7:00 P.M. May 23 at (800) 633-8284, reservation
code 21144400. You can also access our conference call web cast and other
material financial information discussed on our conference call (including any
non-GAAP information required by Regulation G) on the Investor Relations Events
Calendar web page of our corporate web site (www.viasat.com). The call will be
archived and available on that site for at least 3 months immediately following
the conference call.
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