2000-08-18 - Financial 

ViaSat, Inc. reports record results for its first quarter of fiscal year 2001, ending June 30, 2000. Sales for the quarter were $36.6 million, up 115% from $17.0 million for the comparable quarter last year.

Income prior to goodwill amortization and charges related to the acquisition of Scientific Atlanta's satellite networks business increased 109% to $3.8 million for the first quarter of FY01 compared to net income of $1.8 million for the same quarter last year. Diluted income per share prior to goodwill amortization and acquisition related charges for the quarter increased 59% to $0.35 based on a weighted average 10.6 million shares compared to $0.22 per share for the prior year based on 8.2 million weighted average shares.

Including the effects of goodwill amortization associated with the acquisition, income for the first quarter of FY01 increased 88% to $3.4 million, and by 45% to $0.32 per share, compared to $1.8 million and $0.22 per share for the prior year.

Backlog

At the close of first quarter FY01 the company's backlog of firm orders grew to $165.0 million, compared to $39.5 million as of June 30, 1999. The total backlog, including options and IDIQ contracts, reached $219.3 million. New orders for the first quarter totaled $43.7 million. This compares to a total of $12.0 million in firm orders for the first quarter of the prior fiscal year. Neither figure includes contract options. The sales backlog includes multi-year contracts, some of which extend into the company's fiscal year 2003 or beyond.

Other Highlights

ViaSat was selected by the MIDS (Multi-function Information Distribution System) IPO (International Program Office) for development, qualification and production of the LVT(2) version of the MIDS radio. The initial contract, valued at $7.3 million, was executed just after the close of the quarter and is not included in the first quarter FY01 awards or backlog. LVT(2) is a variant of the MIDS radio primarily used by the Army. The contract was awarded competitively. ViaSat also received MIDS LVT(1) development and production orders valued at $13.3 million during the first quarter FY01. These orders are follow-ons to the initial contract award received in the fourth quarter of FY 2000. The National Security Agency (NSA) certified the ViaSat Internet Protocol Crypto (VIP Crypto) network encryption product. VIP Crypto, now designated KIV-21, is a Type 1 inline network encryptor that builds secure virtual private networks using public infrastructure for network traffic classified up to Secret (Top Secret with NSA approval).

Link to a summary of financial results. Safe Harbor Statement This release, particularly the "Other Highlights" section, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which reflect our current views of future events and financial performance, involve known and unknown risks and uncertainties which could cause actual results or facts to differ materially from these statements for a variety of reasons including, but not limited to: the ability to successfully integrate the operations of recent acquisitions, industry conditions, changes in product supply, pricing, and customer demand, competition, other vagaries in the communication markets, changes in relationships with key suppliers and the other risks described from time to time in our reports to the Securities and Exchange Commission (including our Annual Report on Form 10-K). Investors should take these risks into account when making investment decisions. 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.

The company also recognized a one-time charge for in process R&D associated with the acquisition in the amount of $2.2 million. Based on generally accepted accounting principles, including the effects of this charge and the goodwill amortization the results for the first quarter of FY01 are $2.0 million net income or $0.18 per share.

First quarter sales and earnings were favorably affected by milestones achieved on a contract with Scientific Atlanta to study and evaluate the application of ViaSat's patented Paired Carrier Multiple Access (PCMA) technology to Direct To Home interactive satellite television broadcast. In addition, there are benefits from additional R&D tax credits resulting in a lower effective tax rate.

This is the first reporting period to include the results of the recently acquired satellite networks business from Scientific Atlanta. The acquisition closed on April 25, 2000. The stated results do not comprise a complete quarter of operations including the acquired business. The fiscal second quarter, ending September 30th will be the first complete quarter to fully include those results.

"We're pleased with our first quarter results," said ViaSat Chairman and CEO Mark Dankberg. "We believe we're off to a positive start in integrating our new people in Atlanta with our Carlsbad organization. So far, we're on a course to achieve the objectives we envisioned for this year. I'm also pleased to announce several key organizational changes and additions that we made during the past quarter that significantly strengthen our management team."

Rick Baldridge, who has served as Vice President and Chief Financial Officer of ViaSat since March, 1999 has been promoted to Executive Vice President and has taken on the additional role of Chief Operating Officer. John Restivo joins ViaSat in Atlanta as Vice President and General Manager of our VSAT terminals division. John's prior experience includes Executive Vice President & General Manager of Radyne ComStream, corporate Chief Technical Officer of TriPoint Global, and a Director of Systems Engineering at Scientific Atlanta. Claude Hashem joins ViaSat as Vice President and General Manager of our Communications Systems Group, which includes all of our defense business in Carlsbad, CA. Claude has over 20 years of experience in defense communications business including Vice President & Program Director of the Global Hawk for Teledyne Ryan and Northrop Grumman, Director of UAV programs and a number of other positions at L3 Communications. Claude replaces Tom Carter, who has become President and CEO of a new ViaSat subsidiary called TrellisWare Technologies, described in more detail in a separate announcement. All these changes are already in effect.

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