EXHIBIT 99.1
(VIASAT NEWS)
May 12, 2004
Contact:
Bruce Rowe
ViaSat Inc.
760-476-2505
www.viasat.com
VIASAT REPORTS RECORD NEW BUSINESS ORDERS, REVENUES AND NET INCOME FOR FISCAL
YEAR 2004
CARLSBAD, CA -- ViaSat Inc. (NASDAQ: VSAT), a provider of communication
equipment for government and commercial customers, today announced financial and
operating results for the fourth quarter and fiscal year 2004. ViaSat concludes
its fiscal year 2004 with a number of company records including fourth quarter
revenues of $83.2 million, annual revenues of $278.6 million, annual new orders
of $346.6 million, annual net income of $13.2 million, and annual cash flow from
operations of over $28 million.
"Fiscal 2004 was very satisfying for ViaSat as we achieved or exceeded all
of the ambitious objectives we set out at the beginning of the year," said Mark
Dankberg, chairman and CEO of ViaSat. "But, we believe our year ending
competitive position is even more important than the financial accomplishments.
Our substantial backlog, continued strong order flow in both commercial and
government markets, wealth of funded R&D, strong balance sheet, and roster of
new products all contribute to our confidence in achieving another record year
in fiscal 2005."
The Company also announced that it is revising the presentation of costs
incurred for its Immeon joint venture for fiscal years 2003 through 2001. The
restatement will have no impact at all on previously reported revenues, net
income, earnings per share, assets, liabilities or stockholders' equity for the
periods presented. Subsequently, the Company intends to file an amendment to
extend its universal shelf registration statement on Form S-3 with the
Securities and Exchange Commission. Additional details on these two topics are
provided later in this release.
FINANCIAL RESULTS
For the fourth quarter and fiscal year ended April 2, 2004*, the Company
reported the following:
(In millions, except share data) Q4 2004 Q4 2003 FY 2004 FY 2003
- -------------------------------- ------- ------- ------- -------
Revenues $ 83.2 $ 53.7 $ 278.6 $ 185.0
Actual net income (loss) $ 3.8 ($ 1.3) $ 13.2 ($ 9.6)
Per share net income (loss) $ 0.13 ($ 0.05) $ 0.48 ($ 0.37)
Pro forma net income (loss)** $ 5.0 ($ 0.0) $ 17.9 ($ 4.6)
Per share pro forma net income (loss)** $ 0.18 ($ 0.00) $ 0.65 ($ 0.18)
Weighted average shares 28.4 26.1 27.6 26.0
New orders / Contract awards $ 73.2 $ 59.7 $ 346.6 $ 259.2
Sales backlog $ 281.6 $ 213.6 $ 281.6 $ 213.6
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* 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 ended 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 6 of this release. A description of our use of
non-GAAP information is provided under "Use of Pro Forma Financial
Information" below.
Note: In the third quarter of fiscal year 2004, ViaSat recorded an after-tax
gain of approximately $3.8 million as a result of its settlement of litigation
with Scientific-Atlanta relating to the acquisition of the Scientific-Atlanta
satellite networks business in April 2000, which is net of specific assets
claimed and legal costs. This one-time gain added approximately $0.14 per share
to the results on a fully diluted and pro forma basis.
GOVERNMENT SEGMENT
Government Systems recorded quarterly revenues of $39.6 million and fiscal
year revenues of $128.1 million. These amounts represent a 77% increase over the
fourth quarter revenues of fiscal year 2003 and a 56% increase over fiscal year
2003 revenues and were in large part a result of the $170.5 million in
government segment awards received during the fiscal year. Record revenues were
achieved in fiscal year 2004 in the Tactical Data Links, Information and Network
Security, Mobile Satellite Systems and Government Broadband business areas. With
a strong mix of customer funded development and production orders in backlog of
$142.4 million as of year end, we believe the Government Systems segment is well
positioned for continued growth into next fiscal year.
COMMERCIAL SEGMENT
The Commercial segment recorded record quarterly revenues of $43.6 million
and fiscal year revenues of $150.5 million. These figures represent a 39%
increase over revenues for the fourth quarter of fiscal year 2003 and a 47%
increase over fiscal year 2003 revenues. Record revenues were achieved in fiscal
year 2004 in the VSAT Networks and Satellite Ground Systems businesses. The
strong revenue growth in the commercial segment reflects improved competitive
positioning, more favorable market conditions in the commercial
telecommunication market for our VSAT Networks systems, record awards in our
large antenna systems business, and the further development and deployment of
our in-flight and consumer satellite broadband internet systems.
SELECT FISCAL YEAR 2004 BUSINESS HIGHLIGHTS
- - New contract awards for the year of approximately $83 million for our
Tactical Data Link products, including a $30 million contract for
Multifunctional Information Distribution System (MIDS) LVT(1)
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terminals for the Royal Netherlands Air Force representing our largest
order to date for the international market.
- - Continued progress in our Broadband Systems group, including over $17
million in fourth quarter orders for airborne, consumer, and enterprise
broadband systems from key customers Connexion by Boeing, Telesat and
ARINC, and a year-end backlog of more than 115,000 terminals for our
DOCSIS(R) based satellite products.
- - Year over year VSAT (Very Small Aperture Terminal) sales growth of better
than 25%, led by our LinkStar broadband VSAT with shipments now totaling
over 20,000 units. Continued progress in the North American VSAT market,
the world's largest, highlighted by our first award for the U.S. lottery
market from Intralot.
- - US Monolithics earned its first positive operating margin in the fourth
quarter as a result of a combination of new business from both defense and
commercial customers.
- - Significant increase in new business orders for the Comsat Laboratories
business in the fourth quarter due to U.S. Department of Defense
development contracts from major defense prime contractors for
transformational communication systems.
- - Continued success in winning new orders for our Government Broadband
business, led by development and follow-on orders for the Enhanced
Bandwidth Efficient Modem (EBEM), and success in migrating our commercial
IP, bandwidth-on-demand VSAT products into networks for joint coalition
operations in Iraq.
- - Our large antenna systems business posted fiscal year 2004 orders close to
$50 million and earned strategic positions in the large range upgrade,
telemetry and missile defense markets.
- - ViaSat's recognition by several sources for its outstanding performance
during the year, both in terms of financial performance and growing
industry stature. Two highlights were BUSINESS 2.0 magazine ranking the
Company No. 8 on its list of the "100 Fastest Growing Tech Companies" and
CEO Mark Dankberg's selection as "Satellite Executive of the Year" for
2003 by VIA SATELLITE magazine, the VSAT industry's leading trade
publication.
REVISING PRIOR PRESENTATION OF COSTS INCURRED FOR JOINT VENTURE
As indicated above, the Company announced that it will file an amended
Form 10-K for its fiscal year ended March 31, 2003 to revise the previous
presentation of costs incurred for its Immeon Networks, LLC joint venture.
ViaSat will restate amounts in fiscal years 2003, 2002, and 2001 previously
recorded as "Equity in loss of joint venture" to "Cost of revenues" in the
Statement of Operations and also reflect the related impact in the Statement of
Cash Flows. These revisions will not affect ViaSat's previously reported
revenues, net income, earnings per share, assets, liabilities or stockholders'
equity for the periods presented. A summary of the financial information related
to this restatement is provided at the end of this release.
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PLANNED SHELF AMENDMENT
The Company intends to file an amendment to extend its universal shelf
registration statement on Form S-3 with the Securities and Exchange Commission
during the next fiscal quarter. Once declared effective by the SEC, the amended
universal shelf on Form S-3 will permit ViaSat, from time to time, to sell
securities for proceeds in an aggregate amount of up to $200 million. This press
release shall not constitute an offer to sell or the solicitation of an offer to
buy any securities.
CONFERENCE CALL
ViaSat Inc. will host a conference call to discuss these fiscal year 2004
fourth quarter and year end results at 5:00 P.M. Eastern Time on Wednesday, May
12, 2004. The dial-in number is (888) 793-1728 and the reservation code is
21195032. A replay will be available until 7:00 P.M. May 13 at (800) 633-8284,
reservation code 21195032. You can also access our conference call webcast 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 will be
archived and available on that site for at least twelve months immediately
following the conference call.
ABOUT VIASAT
ViaSat produces innovative satellite and other wireless communication
products that enable fast, secure, 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,
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 effect of acquisition related
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.
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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. Pro forma net income (loss) as presented herein may not be
comparable to similarly titled measures reported by other companies. 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 2005 and beyond and the "Select Fiscal Year 2004 Business
Highlights," "Revising Prior Presentation of Costs Incurred for Joint Venture"
and "Planned Shelf Amendment" sections 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
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED YEAR ENDED
------------------------------------- ---------------------------------
APRIL 2, 2004 MARCH 31, 2003 APRIL 2, 2004 MARCH 31, 2003
RESTATED RESTATED
------------- -------------- ------------- --------------
Revenues $ 83,221 $ 53,700 $ 278,579 $ 185,022
Cost of revenues 63,641 40,290 206,327 142,908
--------- --------- --------- ---------
Gross Profit 19,580 13,410 72,252 42,114
Operating expenses:
Selling, general & administrative 11,228 11,130 38,800 37,858
Independent research and development 2,064 4,344 9,960 16,048
Amortization of intangible assets 1,963 2,113 7,841 8,448
--------- --------- --------- ---------
Income (loss) from operations 4,325 (4,177) 15,651 (20,240)
Interest and other (77) (199) (552) (825)
--------- --------- --------- ---------
Income (loss) before income taxes 4,248 (4,376) 15,099 (21,065)
--------- --------- --------- ---------
Net Income (loss) $ 3,814 $ (1,283) $ 13,168 $ (9,632)
========= ========= ========= =========
Diluted net income (loss) per share $ 0.13 $ (0.05) $ 0.48 $ (0.37)
========= ========= ========= =========
Diluted common equivalent shares 28,356 26,125 27,558 26,016
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED YEAR ENDED
----------------------------------- ----------------------------------
APRIL 2, 2004 MARCH 31, 2003 APRIL 2, 2004 MARCH 31, 2003
RESTATED RESTATED
------------- -------------- ------------- --------------
Revenues $ 83,221 $ 53,700 $ 278,579 $ 185,022
Cost of revenues 63,641 40,290 206,327 142,908
--------- --------- --------- ---------
Gross Profit 19,580 13,410 72,252 42,114
Operating expenses:
Selling, general & administrative 11,228 11,130 38,800 37,858
Independent research and development 2,064 4,344 9,960 16,048
--------- --------- --------- ---------
Pro forma income (loss) from operations 6,288 (2,064) 23,492 (11,792)
Interest and other (77) (199) (552) (825)
--------- --------- --------- ---------
Pro forma income (loss) before
income taxes 6,211 (2,263) 22,940 (12,617)
--------- --------- --------- ---------
Pro forma net income (loss) $ 4,992 $ (15) $ 17,873 $ (4,563)
========= ========= ========= =========
Pro forma diluted net income (loss)
per share $ 0.18 $ (0.00) $ 0.65 $ (0.18)
========= ========= ========= =========
Diluted common equivalent shares 28,356 26,125 27,558 26,016
AN ITEMIZED RECONCILIATION BETWEEN NET INCOME (LOSS) ON A GAAP BASIS AND
NON-GAAP BASIS IS AS FOLLOWS:
GAAP net income (loss) $ 3,814 $ (1,283) $ 13,168 $ (9,632)
Amortization of intangible assets 1,963 2,113 7,841 8,448
Income tax effect (785) (845) (3,136) (3,379)
-------- -------- -------- --------
Non-GAAP net income (loss) $ 4,992 $ (15) $ 17,873 $ (4,563)
-------- -------- -------- --------
RECONCILIATION OF RESTATEMENT-GAAP BASIS
THE ADJUSTMENTS BELOW REPRESENT THE REVISIONS TO PREVIOUSLY REPORTED EQUITY IN
LOSS OF JOINT VENTURE WHICH HAVE BEEN RECLASSIFIED TO COST OF REVENUES. ALL
OTHER LINE ITEMS REMAIN UNCHANGED, INCLUDING REVENUES, NET INCOME AND EARNINGS
PER SHARE.
THREE MONTHS ENDED YEAR ENDED
MARCH 31, 2003 MARCH 31, 2003
RESTATED RESTATED
-------------- --------------
Gross Profit, previously reported $ 13,488 $ 43,814
Restatement adjustment (78) (1,700)
-------- --------
Gross Profit, as restated $ 13,410 $ 42,114
======== ========
Income (loss) from operations, previously
reported $ (4,099) $(18,540)
Restatement adjustment (78) (1,700)
-------- --------
Income (loss) from operations, as
restated $ (4,177) $(20,240)
======== ========
Equity in loss of joint venture,
previously reported $ (78) $ (1,700)
Restatement adjustment 78 1,700
-------- --------
Equity in loss of joint venture, as
restated $ -- $ --
======== ========
SIMILAR ADJUSTMENTS WILL BE MADE FOR FISCAL YEARS ENDED MARCH 31, 2002 AND 2001
IN THE AMOUNT OF $2,787 AND $558, RESPECTIVELY.
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CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
(IN THOUSANDS)
ASSETS APRIL 2, 2004 MARCH 31, 2003 LIABILITIES AND APRIL 2, 2004 MARCH 31, 2003
STOCKHOLDERS' EQUITY
Current Assets: Current liabilities:
Cash and S-T investments $ 18,670 $ 4,269 Accounts payable $ 32,635 $ 21,983
Accounts receivable, net 110,766 80,962 Accrued liabilities 34,050 19,036
Inventory 30,357 29,758 Line of credit -- 9,950
Deferred income taxes 5,487 4,241 -------- --------
Other current assets 9,251 6,015 Total current liabilities 66,685 50,969
-------- -------- Other liabilities 2,944 1,847
Total current assets 174,531 125,245 -------- --------
-------- -------- Total liabilities 69,629 52,816
Goodwill, net 19,492 19,492 -------- --------
Other intangible assets, 27,632 35,474 Total stockholders'equity 203,053 184,339
net -------- --------
Property and equip, net 32,052 33,609 $272,682 $237,155
Other assets 18,975 23,335 -------- --------
-------- --------
$272,682 $237,155
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