ViaSat’s First-Quarter Earnings Fall Flat
ViaSat Inc., a producer of satellites and digital communication products, reported that its fiscal first-quarter profit fell on flat revenues and higher expenses, the company announced Aug. 8.
The Carlsbad, Calif.-based company reported net income of $4.2 million, down more than 22 percent compared with its net income of $5.4 million last year. Revenue meanwhile dipped slightly, to $128.6 million from $128.7 million.
The company’s chairman and CEO, Mark Dankberg, attributed the below-plan numbers to a shift of certain planned information assurance products from the first quarter to the second quarter of fiscal 2008. Nevertheless, the company maintained that its outlook and underlying business fundamentals for the fiscal year remain strong, adding that its results also reflect a planned increase in discretionary investments for research and development and proposal preparation to pursue a number of unspecified but positive near-term opportunities.
Selected highlights of the first quarter included initiation of a five-year, $90 million indefinite delivery/indefinite quantity contract from the General Services Administration Federal Technology Service for a full range of ViaSat satellite communication (satcom) products and services to government agencies; certification of ViaSat’s MD-1366 Enhanced Bandwidth Efficient Modem (EBEM) for operation over the Defense Satellite Communications System Network by the Defense Information Systems Agency (DISA); receipt of a $3.7 million award from DISA to develop MilSatCom technology including implementing a new enhanced Military UHF satellite communications waveform known as integrated waveform (IW).
On Aug. 2, the company also completed its previously announced acquisition of Jast Antenna Systems for an initial purchase price of approximately $2.0 million with additional consideration of up to $4.5 million to be paid in cash and/or stock based on certain financial performance and technological development targets throughout the next two years.