Exhibit 99.1
(VIASAT (R) LOGO) News August 3, 2004
Contact:
Bruce Rowe
ViaSat Inc.
760-476-2505
www.viasat.com
VIASAT REPORTS RECORD REVENUES, EARNINGS GROWTH AND
CONTINUED STRONG NEW ORDER FLOW
CARLSBAD, CA -- ViaSat, Inc. (NASDAQ: VSAT), a provider of communication
systems for government and commercial customers, today announced financial and
operating results for the first quarter of fiscal year 2005. Highlights included
record revenues in the first quarter of $84.2 million, near record orders for
new business in a single quarter of $101.9 million, and earnings growth for the
company.
"ViaSat is off to a strong start in fiscal 2005 from both the financial
performance and business environment perspectives," said Mark Dankberg, chairman
and CEO of ViaSat. "We set new records for revenue and backlog while almost
tripling pro forma earnings compared with the same period last year, and we also
launched important new commercial and defense products that we anticipate to
contribute to our results in the years ahead."
FINANCIAL RESULTS
For the first quarter ended July 2, 2004*, the company reported the
following:
(In millions, except per share data) Q1 2005 Q1 2004
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Revenues $ 84.2 $ 59.3
Actual net income (loss) $ 3.6 $ 0.5
Per share net income (loss) $ 0.13 $ 0.02
Pro forma net income (loss)** $ 4.7 $ 1.6
Per share pro forma net income (loss)** $ 0.17 $ 0.06
Fully diluted weighted average shares 28.3 26.9
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New orders/Contract awards $ 101.9 $ 102.2
Sales backlog $ 299.3 $ 256.6
* ViaSat uses a 52- or 53-week fiscal year which ends on the Friday closest to
March 31. ViaSat's quarters for fiscal year 2005 end on July 2, 2004, October 1,
2004, December 31, 2004 and April 1, 2005.
** 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.
--more--
VIASAT News 2
GOVERNMENT SEGMENT
The Government segment had quarterly revenues of $38.1 million, a 39%
increase over the first quarter of fiscal year 2004. New contract awards
exceeded $63 million. The revenue growth was primarily attributable to
increases in our tactical data links, information assurance and government
broadband business areas.
COMMERCIAL SEGMENT
Revenue increased to $47.4 million for the first quarter, a 46% increase
over the first quarter of fiscal year 2004. Revenue increases resulted from
growth in our consumer broadband, enterprise VSAT networks and large antenna
systems businesses. The commercial segment posted nearly $39 million in new
contract awards during the quarter.
SELECT FIRST QUARTER 2005 BUSINESS HIGHLIGHTS
- - Received our largest single award for Multifunctional Information
Distribution System (MIDS) terminals of $47.2 million, including both
LVT(1) airborne and LVT(2) ground-based terminals.
- - Order for 225 Tactical EBEMs (Enhanced Bandwidth Efficient Modem) for the
Navy. This is the first order for tactical units and brings our total
backlog to 956 units (including 36 test units).
- - Follow-on award from Cubic Corporation (AMEX: CUB) of approximately $4.7
million, including both antenna systems and information security products,
for the Communications Data Link System (CDLS). The order resulted from
exercised options under a five-year contract between ViaSat and Cubic, and
added 14 more antenna systems to the initial order.
- - Continued to build backlog for our SurfBeam consumer broadband system,
including a new contract with Telesat Canada. Telesat's plan to offer
broadband service throughout Canada took a big step forward with the
recent successful launch of the Anik F2 satellite with Ka-band spot beams.
- - Our LinkStar(R) broadband VSAT continued its strong sales with a record
5,800 units shipped for the quarter, including major new network
installations for distance learning in Honduras and Malaysia, along with
travel center Wi-Fi hot spots and retail furniture stores in the U.S. In
addition, the LinkStar system completed a series of tests, which showed
compliance with the international DVB-RCS (Digital Video Broadcast -
Return Channel Satellite) open standard. The joint testing with European
partner Eutelsat S.A. was based on a test plan authored by SatLabs, a
forum comprising several equipment manufacturers chartered by the European
Space Agency (ESA) to promote DVB-RCS interoperability.
--more--
VIASAT News 3
CONFERENCE CALL
ViaSat Inc. will host a conference call to discuss these fiscal year 2005
first quarter results at 5:00 P.M. Eastern Time on Tuesday, August 3, 2004. The
dial-in number is (800) 510-0146 and the reservation code is 52251350. A replay
will be available until 7:00 P.M. August 5 at (888) 286-8010, reservation code
71523338. 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 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).
--more--
VIASAT News 4
SAFE HARBOR STATEMENT
Portions of this release, particularly ViaSat's financial prospects for
fiscal year 2005 and beyond and the "Select First Quarter 2005 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 per share data)
THREE MONTHS ENDED
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JULY 2, 2004 JULY 4, 2003
------------ ------------
Revenues $ 84,170 $ 59,264
Cost of revenues 62,776 43,325
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Gross Profit 21,394 15,939
Operating expenses:
Selling, general & administrative 12,213 10,324
Independent research and development 1,844 3,718
Amortization of intangible assets 1,958 1,960
-------- --------
Income (loss) from operations 5,379 (63)
Interest and other (45) (214)
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Income (loss) before income taxes 5,334 (277)
-------- --------
Net Income $ 3,563 $ 463
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Diluted net income per share $ 0.13 $ 0.02
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Diluted common equivalent shares 28,276 26,858
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
THREE MONTHS ENDED
---------------------------
JULY 2, 2004 JULY 4, 2003
------------ ------------
Revenues $ 84,170 $ 59,264
Cost of revenues 62,776 43,325
-------- --------
Gross Profit 21,394 15,939
Operating expenses:
Selling, general & administrative 12,213 10,324
Independent research and development 1,844 3,718
-------- --------
Pro forma income from operations 7,337 1,897
Interest and other (45) (214)
-------- --------
Pro forma income before income taxes 7,292 1,683
-------- --------
Pro forma net income $ 4,738 $ 1,639
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Pro forma diluted net income per share $ 0.17 $ 0.06
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Diluted common equivalent shares 28,276 26,858
AN ITEMIZED RECONCILIATION BETWEEN NET INCOME
ON A GAAP BASIS AND NON-GAAP BASIS IS AS FOLLOWS:
GAAP net income $ 3,563 $ 463
Amortization of intangible assets 1,958 1,960
Income tax effect (783) (784)
-------- --------
Non-GAAP net income $ 4,738 $ 1,639
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CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
(In thousands)
ASSETS JULY 2, 2004 APRIL 2, 2004
- ------ ------------ -------------
Current Assets:
Cash and S-T investments $ 19,560 $ 18,670
Accounts receivable, net 112,940 110,766
Inventory 30,215 30,357
Deferred income taxes 5,487 5,487
Other current assets 10,242 9,251
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Total current assets 178,444 174,531
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Goodwill, net 19,492 19,492
Other intangible assets, net 25,674 27,632
Property and equip, net 31,584 32,052
Other assets 18,405 18,975
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$273,599 $272,682
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LIABILITIES AND
STOCKHOLDERS' EQUITY JULY 2, 2004 APRIL 2, 2004
- -------------------- ------------ -------------
Current liabilities:
Accounts payable $ 34,629 $ 32,635
Accrued liabilities 25,957 34,050
Line of credit -- --
-------- --------
Total current liabilities 60,586 66,685
Other liabilities 3,487 2,944
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Total liabilities 64,073 69,629
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Total stockholders' equity 209,526 203,053
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$273,599 $272,682
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