Unedited news and product information from vendors.
ViaSat Announces Fiscal Year 2011 Results
May 17, 2011 (04:05 PM EDT)
CARLSBAD, Calif., May 17, 2011 /PRNewswire/ -- ViaSat Inc. (NASDAQ: VSAT), an innovator in satellite and other wireless networking systems and services, announced financial results for the fourth quarter and fiscal year 2011. The fiscal fourth quarter results include new contract awards of $271.0 million, revenues of $216.4 million, Adjusted EBITDA of $42.8 million, net income attributable to ViaSat common stockholders of $0.41 per share on a diluted non-GAAP basis or $0.28 per share on a diluted GAAP basis, and cash flows from operations of $46.3 million. Financial highlights for the fiscal year include new contract awards of $853.5 million, revenues of $802.2 million, Adjusted EBITDA of $160.8 million, net income attributable to ViaSat common stockholders of $1.39 per share on a diluted non-GAAP basis or $0.84 per share on a diluted GAAP basis, and cash flows from operations of $169.6 million.
“While fiscal year 2011 was a challenging year, the company set new records in several key financial metrics including new contract awards, revenues, operating income, and EBITDA,” said Mark Dankberg, ViaSat CEO and chairman. “Despite significant headwinds due to a difficult defense budget environment, and anticipated capacity constraints for broadband network services – we ended the year on a strong note. Defense backlog is at a record high, driven by significant wins in satellite networks for airborne broadband ISR and situational awareness. We’ve won strategic new commercial satellite network projects – including in-flight WiFi broadband for JetBlue Airways and its LiveTV subsidiary. And, of course, the upcoming launch of ViaSat-1 represents the culmination of over three years of investments and preparation to capitalize on industry leading breakthroughs in satellite bandwidth efficiency. We believe these factors set the stage for sustained growth in each of our business segments.”
Government Systems Segment
The Government Systems segment posted quarterly and annual revenues of $102.8 million and $384.1 million, respectively, a 2.1% increase over the fourth quarter of fiscal year 2010 and a 0.3% decrease over the prior fiscal year. The increase in revenues during the fourth quarter of fiscal year 2011 compared to the same period of the prior fiscal year resulted from higher sales of our government satellite communication systems which was offset by lower sales of tactical data link products and services. The slight decrease in revenues during fiscal year 2011 over the prior fiscal year was primarily due to lower sales of information assurance products and tactical data link products and services, offset by higher sales of our government satellite communication systems. Adjusted EBITDA for the Government Systems segment was $13.4 million and $54.4 million in the fourth quarter of fiscal year 2011 and fiscal year 2011, respectively, compared to $23.6 million and $74.5 million for the same periods of the prior fiscal year. New contract awards in the Government Systems segment for the fourth quarter and fiscal year 2011 were $132.9 million and $460.9 million, respectively.
Commercial Networks Segment
For the Commercial Networks segment, quarterly and annual revenues were $54.2 million and $183.1 million, respectively, a 0.5% decrease over the fourth quarter of fiscal year 2010 and a 19.4% decrease over the prior fiscal year. The revenue decrease was primarily from lower sales of consumer broadband products as a result of ViaSat no longer recognizing equipment sales to its WildBlue service following our acquisition of WildBlue in December 2009, as well as reduced equipment sales to the distributors of the WildBlue service, pending additional satellite capacity. Revenues were also lower due to lower revenues in our enterprise VSAT networks products and services. These decreases were offset by increased sales of antenna systems products and services and next-generation broadband equipment. Adjusted EBITDA for the Commercial Networks segment was $1.8 million and $3.7 million in the fourth quarter of fiscal year 2011 and fiscal year 2011, respectively, compared to $6.3 million and $18.1 million for the same periods of the prior fiscal year. New contract awards in the Commercial Networks segment for the fourth quarter and fiscal year 2011 were $70.9 million and $153.4 million, respectively.
Satellite Services Segment
The Satellite Services segment contributed revenues of $59.4 million for the fourth quarter of fiscal year 2011, a $1.9 million increase over the same period last fiscal year, and $235.0 million for fiscal year 2011, a $159.1 million increase from fiscal year 2010. The revenue increase was attributable primarily to our acquisition of WildBlue in the third quarter of fiscal year 2010, as well as growth in our mobile broadband satellite services. Adjusted EBITDA for the Satellite Services segment was $27.8 million and $103.0 million in the fourth quarter of fiscal year 2011 and fiscal year 2011, respectively, compared to $18.1 million and $20.9 million in the same periods of the prior fiscal year. New contract awards in the Satellite Services segment for the fourth quarter and fiscal year 2011 were $67.2 million and $239.2 million, respectively.
Selected Fiscal Year 2011 and Recent Business Highlights
Safe Harbor Statement
This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements include, among others, statements that refer to the upcoming launch of ViaSat-1, our growth prospects, and the creation of multi-party agreements to add Eutelsat KA-SAT. Readers are cautioned that actual results could differ materially from those expressed in any forward-looking statements. Factors that could cause actual results to differ include: negative audits by the U.S. government; our ability to have manufactured or successfully launch ViaSat-1 or implement the related broadband satellite services on our anticipated timeline or at all; continued turmoil in global financial markets and economies; future delays in approving U.S. government budgets and ViaSat reliance on U.S. government contracts and our reliance on a small number of contracts which account for a significant percentage of our revenues; our ability to successfully develop, introduce and sell new technologies, products and enhancements; reduced demand for products as a result of continued constraints on capital spending by customers; changes in relationships with, or the financial condition of, key customers or suppliers; reliance on a limited number of third parties to manufacture and supply our products; increased competition and other factors affecting the satellite and wireless communications and secure networking industries generally; the effect of adverse regulatory changes on our ability to sell products; our ability to comply with the covenants in any credit agreement, indenture or similar instrument governing any of our existing or future indebtedness. In addition, please refer to the risk factors contained in ViaSat’s SEC filings available at www.sec.gov, including ViaSat’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. ViaSat undertakes no obligation to update or revise any forward-looking statements for any reason.
ViaSat Inc. will host a conference call to discuss the fiscal year 2011 fourth quarter and year-end results at 5:00 p.m. Eastern Time on Tuesday, May 17, 2011. The dial-in number is (877) 638-9577 in the U.S. and (914) 495-8531 internationally. The conference call webcast and other material financial information discussed on our conference call can also be accessed on the Investor Relations section of the ViaSat website at investors.viasat.com. The call will be archived and available on that site for approximately one month immediately following the conference call. A replay of the conference call will be available from 8:00 p.m. Eastern Time on Tuesday, May 17 until midnight Wednesday, May 18 by dialing (800) 642-1687 for U.S. callers and (706) 645-9291 for international callers, and entering the conference ID 67986130.
About ViaSat (www.viasat.com)
ViaSat produces innovative satellite and other digital communication products that enable fast, secure, and efficient communications to virtually any location. The company provides networking products and managed network services for enterprise IP applications; is a key supplier of network-centric military communications and encryption technologies and products to the U.S. and allied governments; is the primary technology partner for gateway and customer-premises equipment for consumer and mobile satellite broadband services; and owns WildBlue, the premier Ka-band satellite broadband service provider. ViaSat also offers design capabilities and a number of complementary products including monolithic microwave integrated circuits and modules, DVB-S2 satellite communication components, video data link systems, data acceleration and compression, and mobile satellite antenna systems. Based in Carlsbad, California, ViaSat has established a number of worldwide locations for customer service, network operations, and technology development.
Use of Non-GAAP Financial Information
To supplement ViaSat’s consolidated financial statements presented in accordance with generally accepted accounting principles (GAAP), ViaSat uses non-GAAP net income attributable to ViaSat Inc. and Adjusted EBITDA, measures ViaSat believes are appropriate to enhance an overall understanding of ViaSat’s past financial performance and prospects for the future. Non-GAAP net income attributable to ViaSat Inc. excludes the effects of amortization of acquired intangible assets, acquisition related expenses, and non-cash stock-based compensation expenses, net of tax. Adjusted EBITDA represents net income (loss) attributable to ViaSat, Inc. before interest, taxes, depreciation and amortization, adjusted to exclude the effects of non-cash stock-based compensation expenses and acquisition-related expenses. We also use Adjusted EBITDA to evaluate operating performance of our segments, to allocate resources and capital to such segments, to measure performance for incentive compensation programs and to evaluate future growth opportunities. We believe the non-GAAP 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 non-GAAP results to the investment community, we believe the inclusion of non-GAAP numbers provides consistency in our financial reporting and facilitates comparisons to the company’s historical operating results. Further, these non-GAAP results are among the primary indicators that management uses as a basis for planning and forecasting in future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for measures of financial performance prepared in accordance with GAAP. A reconciliation of specific adjustments to GAAP results is provided in the tables titled “An Itemized Reconciliation Between Net Income Attributable to ViaSat Inc. on a GAAP Basis and Non-GAAP Basis,” “An Itemized Reconciliation Between Net Income Attributable to ViaSat Inc. and Adjusted EBITDA” and “An Itemized Reconciliation Between Segment Operating Profit (Loss) Before Corporate and Amortization and Adjusted EBITDA” contained in this release.
AltaSec, SurfBeam, and Yonder are registered trademarks of ViaSat Inc.
SKYLink is a service mark of ViaSat, Inc.
WildBlue is a registered trademark of WildBlue Communications Inc.
HAIPE is a registered trademark of the National Security Agency.
SOURCE ViaSat Inc.