ViaSat First Quarter FY 2008 Results

“First quarter earnings were below plan due primarily to the shift of certain planned information assurance products from our fiscal first quarter into our fiscal second quarter. But ViaSat’s outlook for the fiscal year remains intact and underlying business fundamentals are strong,” said Mark Dankberg, chairman and CEO of ViaSat. “Results also reflected planned increased discretionary investments in R&D and proposal preparation to pursue a number of attractive near term opportunities. New orders in the second quarter are anticipated to be very good, consistent with plans for earnings to be skewed to the second half of the year. MIDS, MIDS JTRS, information assurance, and consumer broadband continue to show significant momentum.”

Financial Results
For the first quarter ended June 29, 2007¹, ViaSat reported the following financial results:
(In millions, except share data) Q1 2008 Q1 2007
Revenues $128.6 $128.7
Net income $4.2 $5.4
Diluted per share net income $0.13 $0.18
Non-GAAP net income² $6.8 $7.6
Diluted per share non-GAAP net income² $0.21 $0.26
Fully diluted weighted average shares 32.2 29.7

New orders/Contract awards $136.0 $134.0
Sales backlog $396.1 $380.1

¹ViaSat uses a 52- or 53-week fiscal year which ends on the Friday closest to March 31. ViaSat's quarters for fiscal year 2008 end on June 29, 2007, September 28, 2007, December 28, 2007 and March 28, 2008.
² All non-GAAP numbers have been adjusted to exclude the effects of acquisition charges (amortization of intangible assets) and employee stock-based related compensation expense. A reconciliation of specific adjustments to GAAP results for these periods is included in the “Reconciliation Between GAAP Net Income and Non-GAAP Net Income” table contained in this release. A description of our use of non-GAAP information is provided under “Use of Non-GAAP Financial Information.”

Government Segment
The Government segment had quarterly revenues of $70.6 million, a 9% increase over the first quarter of fiscal year 2007. The revenue growth was primarily related to higher government satellite communications and data link product sales. New contract awards for the first quarter of fiscal year 2008 were $72 million.

Commercial Segment
Revenues from our Commercial segment were $58.0 million for the first quarter, which was a 9.5% decrease from the first quarter of fiscal year 2007. The revenue decrease was primarily in our enterprise VSAT products partially offset by higher sales of consumer broadband products. New contract awards for the first quarter of fiscal year 2008 were $64 million.

Selected First Quarter 2008 Business Highlights

Awarded contracts for the Multifunctional Information Distribution System Joint Tactical Radio System (MIDS JTRS) for non-recurring terminal engineering, terminals to support government air worthiness testing, and the first lot of MIDS JTRS production transition terminals.
Received certification from the National Security Agency for its fully compliant Foreign Interoperability feature set for the programmable KG-250 network encryptor. The KG-250 Release 1.4 is the first product to be in full compliance with the HAIPE® Interoperability Specification, Foreign Interoperability (HAIPE IS-FI) standard.
Initiated a five-year, $90 million Indefinite Delivery Indefinite Quantity contract under the General Services Administration Federal Technology Service to provide the full range of ViaSat satellite communication (satcom) products and services to government agencies.
Reached new milestones on our MD-1366 Enhanced Bandwidth Efficient Modem (EBEM) including full certification for operation over the Defense Satellite Communications System Network by the Defense Information Systems Agency (DISA) and demonstration of its industry leading data throughput. The product’s advanced modulation and Turbo codes enabled it to achieve 205 Mbps total capacity on a single XTAR transponder, the highest capacity ever achieved on a 72 MHz X-band transponder.
Received a $3.7 million award from the DISA to develop new MILSATCOM technology, including implementing a new enhanced Military UHF satellite communications waveform, called the Integrated Waveform (IW).
On August 2, 2007, completed the previously announced acquisition of JAST, SA. JAST develops microwave circuits and antennas for terrestrial and satellite applications, specializing in small, low-profile antennas for mobile satellite communications. Terms of the transaction include an initial purchase price of approximately $2.0 million and additional consideration of up to $4.5 million to be paid in cash and/or stock based on JAST meeting certain financial performance and technology development targets over the next two years.
Safe Harbor Statement
Portions of this release, particularly ViaSat’s financial prospects for fiscal year 2008 and beyond, and the “Selected First Quarter 2008 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: product design flaws or defects; ViaSat’s ability to successfully integrate acquired companies; 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 or end user 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 Risk Factors in ViaSat’s most recent Form 10-K and 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.-ViaSat