Carlsbad, CA - ViaSat Inc. (NASDAQ: VSAT), a provider of networking and communication equipment for government and commercial customers, today announced financial results for the fourth quarter and fiscal year 2005. Highlights include fiscal year records for revenues of $345.9 million, net income of $0.83 per share on a pro forma basis or $0.68 per share on a GAAP basis, and new business orders totaling $426.2 million. In addition, the fiscal fourth quarter results include record quarter totals for revenues of $90.9 million, new orders of $129.5 million, and net income of $0.27 per share on a pro forma basis or $0.24 per share on a GAAP basis.

"Sustained strength in new orders continues to drive record financial performance," said Mark Dankberg, chairman and CEO of ViaSat. "Earnings, earnings per share, and new orders all met or exceeded our targets, while product mix and non-recurring events somewhat restricted operating margins. Year over year pre-tax earnings growth outpaced revenue growth for the fourth quarter and for all of fiscal year 2005  - despite a substantial one-time benefit in the third quarter of fiscal year 2004. The company also generated $8 million in operating cash flow this quarter. Given our substantial backlog and new product positions, the outlook for sustained and record growth in revenues, earnings, and orders and strong cash flow in fiscal year 2006 seems very favorable."

Financial Results
For the fourth quarter ended April 1, 2005 1, the company reported the following:

1 - 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 ended on July 2, 2004, October 1, 2004, December 31, 2004 and April 1, 2005.

2 - 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 contained in this release. A description of our use of non-GAAP information is provided under "Use of Pro Forma Financial Information" below.

3 - In the third quarter of fiscal year 2004, the Company reached a legal settlement related to the purchase of the Satellite Networks businesses of Scientific- Atlanta. The results reflect an after-tax gain of $3.8 million or $0.14 per share on a GAAP and pro forma basis, related to this settlement.

Government Segment

The Government segment recorded quarterly revenues of $47.7 million and record annual revenues of $175.4 million, a 20.4% increase over the fourth quarter of fiscal year 2004 and a 36.9% increase over the prior fiscal year. The increase in revenues is primarily from our tactical data links and networking and information assurance systems and products.

Commercial Segment
For the Commercial segment, revenue increased to $46.0 million for the fourth quarter and a record $177.4 million for the fiscal year. These figures represent a 0.9% increase over the fourth quarter of fiscal year 2004 and an increase of 14.9% over fiscal year 2004. The increase in commercial segment revenues is primarily from our enterprise VSAT networks and broadband product areas.

Selected Fiscal Year 2005 Business Highlights

• Earned record new orders of $117 million for tactical data link products, including Multi-functional Information Distribution System (MIDS) terminal production and development of the next generation Joint Tactical Radio System version of MIDS.
• Completed National Security Agency (NSA) certification and began shipments of the KG-250 Inline Network Encryptor. This is our first programmable product based on the DoD HAIPIS (High Assurance IP Interoperability Specification) standard and ViaSat PSIAM (Programmable, Scalable Information Assurance Model) architecture. Our HAIPIS and PSIAM achievements provide a strong position for continued growth in the emerging Crypto Modernization market.
• Received awards for 6,500 second generation UHF satellite modems from Raytheon. These modems are used in AN/PSC-5C and AN/PSC-5D portable satellite terminals, the Tactical Tomahawk cruise missile, and other multi-band terminals.
• Won a significantly growing share of the VSAT IP networking market including sales to service providers and enterprise users. Cumulative shipments of LinkStar VSAT terminals surpassed 50,000 during FY05.
• Achieved major milestones in product development and initial deployments for our Ka-band DOCSIS®-based consumer broadband networks. Cumulative orders for Ka- and Ku-band DOCSIS satellite broadband terminals have reached approximately 200,000 units.

In the third quarter of fiscal year 2005, the Company disclosed a material weakness related to significant and non-routine transactions. Please see related disclosures in the third quarter Form 10-Q filed with the Securities and Exchange Commission. ViaSat has implemented the remediation steps outlined in its third quarter Form 10-Q disclosure including hiring additional finance and accounting personnel, establishing certain policies and procedures and conducting training. However, as of this release, the Company has not concluded its fiscal year-end assessment of internal controls, including testing of the remediated policies and procedures.

Use of Pro Forma Financial Information
Pro forma net income 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 to pro forma net income. Pro forma as presented in this press release may not be comparable to similarly titled measures reported by other companies.

Safe Harbor Statement
Portions of this release, particularly ViaSat financial prospects for fiscal year 2006 and beyond and the "Selected Fiscal Year 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: the possibility that, in finalizing year-end processes, ViaSat may determine the material weakness related to significant and non-routine transactions, which was previously disclosed in its Form 10-Q for the third quarter of fiscal year 2005, has not been remediated, or that other material weaknesses exist, such that its internal control over financial reporting was not effective at fiscal year-end; ViaSat's ability to perform under existing contracts and obtain additional contracts; ViaSat 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 Form 10-Ks and subsequent Form 10-Qs. 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.
DOCSIS is a registered trademark of Cable Television Laboratories Inc.

Find a PDF of our Q4 FY05 financialson viasat.com.

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