VSAT-http://biz.yahoo.com/prnews/000210/ca_viasat__1.html
Thursday February 10, 4:30 pm Eastern Time
Company Press Release
SOURCE: ViaSat Inc.
ViaSat Third Quarter Results Show Record Earnings
CARLSBAD, Calif., Feb. 10 /PRNewswire/ -- ViaSat Inc. (Nasdaq: VSAT - news) is reporting record earnings for the third quarter of its fiscal year 2000 ended December 31, 1999. Sales for the quarter were $18.0 million, down 4.7% from $18.9 million for the comparable quarter last year. The Company's net income increased 21.1% to $2.0 million for the third quarter of FY00 compared to net income of $1.7 million for the same quarter last year. Diluted net income per share for the quarter increased to $0.23 based on a weighted average 8.7 million shares compared to a net of $0.20 per share for the third quarter of the prior year on 8.2 million shares. Net income benefited from greater than anticipated R&D tax credits in prior years.
For the nine months ended December 31, 1999 sales totaled $52.1 million, down 2.2% from $53.3 million in sales during the first nine months of FY99. Net income for the nine months ending December 31, 1999 increased 27.0% to $5.6 million, compared to $4.4 million for the first nine months of the prior fiscal year. Diluted net income per share of $0.66 is based on common equivalent shares outstanding of 8.5 million for the nine months ended December 31, 1999 compared to diluted net income per share of $0.54 based on common equivalent shares of 8.2 million for the same period last year.
``The third quarter continued an exciting year for ViaSat,' said ViaSat chairman and CEO Mark Dankberg. ``Although sales lagged somewhat relative to our plans, we're very pleased with our 27% net earnings growth for the year to date. Commercial satellite network sales have grown significantly this year, contributing over 20% of total revenues. We're earning new contract awards at a record pace this year, including recent wins on MIDS and UHF DAMA modems that we anticipate will boost defense sales in the coming year. Total orders for the year to date are up over 100% compared to FY99.'
Backlog
At the close of Q3 the company's backlog of firm orders grew to $77.2 million, compared to $58 million as of December 31, 1998. The total backlog, including options and IDIQ contracts, reached $132.5 million. Current year-to-date firm awards are in excess of $84.5 million. This compares to a total of $38.7 million in firm orders for the first three quarters 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.
Recent Highlights
Key highlights occurring during the 3rd quarter included:
Earned our single largest award to date -- a five-year contract valued
at $36.3 million with Science Applications International Corp. (SAIC)
for broadband Internet Protocol(IP) StarWire equipment and satellite
network services for an energy services application.
Received a letter contract initiating work on a multi-year $13M program for UHF DAMA modem modules and licensed software for Raytheon Systems Company.
Won additional StarWire business with Star Cruises and a new contract with Dyncorp for a National Weather Service Weather Wire application.
Completed the move into our new 180,000 square foot campus in Carlsbad, CA.
ViaSat also recently announced, subsequent to the close of the 3rd
quarter:
-- A definitive agreement to acquire the Satellite Networks division of
Scientific Atlanta for $75 million in cash.
-- Initial authorization of $11.7 million in funding from the US Navy for
long lead material and non-recurring engineering under a $30+ million
contract for MIDS production. This is the beginning of a planned
multi-year "continuous competition" for MIDS production units.
Portions of this release, particularly the ``Q3 Highlights' section, may contain forward-looking statements regarding future events and are subject to risks and uncertainties. We wish to caution you that there are some factors that could cause actual results to differ materially, including but not limited to: technologies not being developed according to anticipated schedules, or that do not perform according to expectations; and increased competition and other factors affecting the telecommunications industry generally. We refer you to the documents the Company files from time to time with the Securities and Exchange Commission, specifically the section titled Risk Factors in the Company's Form 10-K, which contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements.
ViaSat Inc. designs, produces, and markets advanced digital satellite telecommunications and wireless signal processing equipment for commercial and government markets. Other products include information security devices, tactical communication radios, and communication simulators. Corporate headquarters are located in Carlsbad, California in northern San Diego County, with a branch office located in Boston, MA.
Condensed Statement of Income (Unaudited)
Three Months Ended Nine Months Ended
December 31 December 31
1999 1998 1999 1998
Revenues $18,041,000 $18,928,000 $52,093,000 $53,269,000
Cost of revenues 10,493,000 12,401,000 29,760,000 33,461,000
Gross profit 7,548,000 6,527,000 22,333,000 19,808,000
Operating expenses:
Selling, general,
& admin. 2,845,000 2,371,000 8,226,000 7,246,000
Independent
Research and
Development 2,087,000 1,671,000 5,967,000 5,773,000
Income from
operations 2,616,000 2,485,000 8,140,000 6,789,000
Income before
income taxes 2,862,000 2,607,000 8,776,000 7,183,000
Net income 2,007,000 1,657,000 5,616,000 4,423,000
Basic net income
per share $.25 $.21 $.69 $.56
Diluted net
income per share $ .23 $ .20 $ .66 $ .54
Basic common
equivalent shares 8,113,466 7,987,508 8,094,281 7,960,529
Diluted common
equivalent shares 8,706,955 8,153,782 8,490,786 8,190,970
Condensed Balance Sheet
Assets December 31, March 31,
1999 1999
(unaudited)
Current assets:
Cash and S-T Investments $ 19,159,000 $20,793,000
Accounts receivable 22,331,000 16,176,000
Inventory 3,189,000 2,525,000
Deferred income taxes 2,143,000 2,358,000
Other current assets 457,000 446,000
Total current assets 47,279,000 42,298,000
Property and equip, net 7,011,000 6,630,000
Other assets 883,000 1,088,000
$55,173,000 $50,016,000
Liabilities and
Stockholders' Equity December 31, March 31,
1999 1999
(unaudited)
Current liabilities:
Accounts payable $4,119,000 $3,754,000
Accrued liabilities 5,334,000 6,027,000
Current notes payable 997,000 1,219,000
Total current liabilities 10,450,000 11,000,000
Notes payable 504,000 1,243,000
Other liabilities 1,126,000 926,000
Total long-term liabilities 1,630,000 2,169,000
Total stockholders' equity 43,093,000 36,847,000
$55,173,000 $50,016,000
SOURCE: ViaSat Inc. |
