Exhibit 99.1
VIASAT REPORTS PROFITABLE QUARTER, RECORD REVENUES AND
CONTINUED STRONG NEW ORDER FLOW
CARLSBAD, CA -- ViaSat, Inc. (NASDAQ: VSAT), a provider of communication
equipment for government and commercial customers, today announced financial and
operating results for the first quarter of fiscal year 2004. Highlights included
record revenues in the first quarter of $59.3 million, near record orders for
new business in a single quarter of $102.2 million, and a profitable quarter for
the company.
"ViaSat returned to profitability in the fiscal first quarter, driven by a
well balanced backlog of defense and commercial contracts," said Mark Dankberg,
chairman and CEO of ViaSat. "Converting orders to sales, cash and ultimately
earnings remains our top priority, and this quarter was evidence the Company is
executing on that front. This quarter's results also help illustrate sustained
momentum in orders, revenues, cash flows and profitability, which should
continue throughout the year. Further, we believe we have an excellent
opportunity to increase earnings at an even faster pace than sales over the next
several quarters."
FINANCIAL RESULTS
For the first quarter ended July 4, 2003*, the company reported the
following:
(In millions, except per share data) Q1 2004 Q1 2003
Revenues $ 59.3 $ 42.9
Actual net income (loss) $0.5 $ (1.6)
Per share net income (loss) $ 0.02 $(0.06)
Pro forma net income (loss)** $1.6 $ (0.3)
Per share pro forma net income (loss)** $ 0.06 $(0.01)
Fully diluted weighted average shares 26.9 25.9
New orders/Contract awards $ 102.2 $ 79.7
Sales backlog $ 256.6 $176.2
* ViaSat adopted a 52- or 53-week fiscal year beginning with its fiscal
year 2004, which ends on the Friday closest to March 31. ViaSat's quarters
for fiscal year 2004 end on July 4, 2003, October 3, 2003, January 2, 2004
and April 2, 2004.
** All non-GAAP pro forma numbers have been adjusted to exclude the
effects of acquisition charges (amortization of intangible assets). 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.
GOVERNMENT SEGMENT
Government Systems recorded record quarterly revenues in the quarter of
$27.5 million, a 36% increase over the first quarter of fiscal year 2003. The
revenue increase occurred across its tactical data links, information security
and networking, UHF satcom and government broadband businesses, which resulted
from record orders in fiscal 2003. New business awards continued to outpace
revenue, resulting in a backlog increase of $8 million in the quarter.
COMMERCIAL SEGMENT
Revenue increased to $31.7 million for the first quarter, a 41% increase
over the first quarter of fiscal year 2003. Sales increases were achieved in our
consumer broadband, mobile broadband (specifically business jets), and VSAT
products businesses. New orders in excess of $65 million were received in the
quarter, resulting in a backlog increase of over $33 million.
SELECT FIRST QUARTER 2004 BUSINESS HIGHLIGHTS
- - Application of key commercial broadband satellite technologies to defense
products via an eight-year, delivery order contract from the U.S. Army
Communications Electronics Command (CECOM) to design and produce the
Enhanced Bandwidth Efficient Modem (EBEM), including an initial purchase
valued at $7.8 million. EBEM is intended to be the new military standard
for high-speed satellite communications. The new modem supports a
comprehensive set of legacy equipment, as well as advanced technologies,
such as turbo coding and higher order modulation, to increase efficiency
and throughput.
- - Total bookings in excess of $18 million for Satellite Ground Systems,
including strong follow-on sales to existing customers. The business
continued its solid performance in the telemetry market and also landed a
significant order for tactical military terminals, signaling a return to
this market.
- - Continuing growth opportunities for our new line of software programmable
military satcom terminals, including an order from the Defense
Information Systems Agency (DISA) for Phase I of the UHF teleport
project. DISA serves the needs of the President, Vice President,
Secretary of Defense, Joint Chiefs of Staff, Combatant Commanders, and
the other Department of Defense (DOD) components.
- - A firm multi-year order of over $30 million for a Ku band version of our
DOCSIS-based consumer broadband satellite network for an international
satellite operator.
- - Completed final customer acceptance testing on Comsat Labs' development
of the Skyplex broadband multimedia terminal for Eutelsat, a Ka-band
version of our DVB-RCS compatible LinkStar(R) broadband VSAT, with
production of the first 100 units to follow.
- - VSAT products sales and orders continued above expectations. Our LinkStar
TDMA VSAT system received customer acceptance certificates on 11 new
LinkStar network installations during the quarter, including the
3,200-terminal e-Mexico project.
- - Two significant new contracts embedding our tactical information
assurance products, as well as definitization of previously announced
subcontracts with Boeing and Harris on FAB-T and JTRS.
ViaSat produces innovative satellite and other network communication
products that enable fast, easy, and efficient communications, especially to
remote locations. Products include network security devices, tactical data
radios, and communication simulators. ViaSat also has a full line of VSAT
products for data and voice applications, and is a market leader in Ka-band
satellite systems, from user terminals to large gateways. 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 Marlborough,
MA, Washington DC/Baltimore, Australia, China, India, and Italy.
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. U.S. Monolithics is based in Chandler, Arizona.
USE OF PRO FORMA FINANCIAL INFORMATION
Pro forma net income (loss) excludes the effects of acquisition charges
(amortization of intangible assets). 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
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 "Select First Quarter 2004 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.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE DATA)
THREE MONTHS ENDED
----------------------------
JUNE 30, 2002 JULY 4, 2003
------------- ------------
Revenues $42,863 $59,264
Cost of revenues 29,364 43,293
------- -------
Gross Profit 13,499 15,971
Operating expenses:
Selling, general & administrative 8,738 10,324
Independent research and development 5,698 3,718
Amortization of intangible assets 2,111 1,960
------- -------
Income (loss) from operations (3,048) (31)
Equity in loss of joint venture (529) (32)
Interest and other (115) (214)
------- -------
Income (loss) before income taxes (3,692) (277)
------- -------
Net Income (loss) $(1,582) $ 463
======= =======
Diluted net income (loss) per share $ (0.06) $ 0.02
======= =======
Diluted common equivalent shares 25,912 26,858
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE DATA)
THREE MONTHS ENDED
---------------------------
JUNE 30, 2002 JULY 4, 2003
------------- ------------
Revenues $42,863 $59,264
Cost of revenues 29,364 43,293
------- -------
Gross Profit 13,499 15,971
Operating expenses:
Selling, general & administrative 8,738 10,324
Independent research and development 5,698 3,718
------- -------
Pro forma income (loss) from operations (937) 1,929
Equity in loss of joint venture (529) (32)
Interest and other (115) (214)
------- -------
Pro forma income (loss) before income taxes (1,581) 1,683
------- -------
Pro forma net income (loss) $ (315) $ 1,639
======= =======
Pro forma diluted net income (loss) per share $ (0.01) $ 0.06
======= =======
Diluted common equivalent shares 25,912 26,858
THE ABOVE PRO FORMA AMOUNTS HAVE BEEN ADJUSTED
TO EXCLUDE THE FOLLOWING:
Amortization of intangible assets 2,111 1,960
Income tax effect (844) (784)
------- -------
Net effect of pro forma adjustment $ 1,267 $ 1,176
------- -------
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
(IN THOUSANDS)
ASSETS MARCH 31, 2003 JULY 4, 2003
Current Assets:
Cash and S-T investments $ 4,269 $ 6,009
Accounts receivable, net 80,962 85,770
Inventory 29,758 31,610
Deferred income taxes 4,241 4,847
Other current assets 6,015 9,617
--------- ----------
Total current assets 125,245 137,853
--------- ----------
Goodwill, net 19,492 19,492
Other intangible assets, net 35,474 33,515
Property and equip, net 33,609 32,317
Other assets 23,335 22,991
--------- ----------
$ 237,155 $ 246,168
--------- ----------
LIABILITIES AND
STOCKHOLDERS' EQUITY MARCH 31, 2003 JULY 4, 2003
Current liabilities:
Accounts payable $ 21,983 $ 24,368
Accrued liabilities 19,036 26,103
Line of credit 9,950 7,950
--------- -----------
Total current liabilities 50,969 58,421
Other liabilities 1,847 2,239
--------- -----------
Total liabilities 52,816 60,660
--------- -----------
Total stockholders' equity 184,339 185,508
--------- -----------
$ 237,155 $ 246,168
--------- -----------
NOTE: ViaSat Inc. will host a conference call to discuss these FY2004 First
Quarter Earnings at 5:00 P.M. Eastern Time on Wednesday, August 13, 2003. The
dial-in number is (800) 600-7715 in the U.S. and 212-346-6423 internationally.
The reservation code is 21157586. An audio replay will be available until 7:00
P.M. EST August 14 at (800) 633-8284 and the reservation code is the same. You
can also access our conference call webcast, conference call materials and other
material financial information discussed on our conference call (including any
information required by Regulation G) on the Investor Relations Events Calendar
page of our corporate web site (www.viasat.com). The call and associated
conference call materials will be archived and available on that site for at
least 12 months immediately following the conference call.
###