Introduction to ViaSat Mark Dankberg CEO ViaSat, Inc.
Safe Harbor Disclosure Forward-Looking Statements Portions of this presentation contain projections or other forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding future events or the future financial performance of the Company. We wish to caution you that these statements are only predictions and may differ materially from actual events or results. We refer you to the documents the Company files from time to time with the Securities and Exchange Commission, specifically the section titled Factors That May Affect Future Performance in the Company s Forms 10-K and 10-Q. These documents contain and identify important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and others are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update publicly or revise any forward-looking statements. GAAP Reconciliation During this presentation, references to financial measures will include references to non-gaap financial information. We will provide a reconciliation between GAAP and non- GAAP financial information later in this briefing. For more information regarding our use of non-gaap financial information, please see our most recent earnings press release on our website at www.viasat.com in the investor relations section.
ViaSat Background Founded 1986, IPO 1996 ~1,500 employees worldwide Best strategic partner for satellite networks
Recognition Top 50 Space Companies
Revenue Trends $600 $500 $ million $400 $300 $200 $100 $0 FY03 FY04 FY05 FY06 FY07 Q1 FY End Mar 31 Defense Commercial Projected
New Orders Trends 600 500 $ million 400 300 200 Annualized 100 0 FY03 FY04 FY05 FY06 FY07 Q1
Business Mix Antenna Systems Commercial Satellite Networks Government Systems
Government Segment Network Centric Warfare Tactical Data Links Information Assurance Government SATCOM Systems
Tactical Data Links 2 primary sources, ~$2B LVT market Competition: DLS MIDS JTRS expands market Co-opetition: DLS (Rockwell Collins + BAE) Growing role in overall JTRS framework Opportunities US and international production Increased JTRS addressable market Enerdyne - UAVs Hostiles Friendlies
Information Assurance Significant market opportunity Encrypt classified data for IP networks US & allies In-line Network Encryption (INE) products Embedded encryption modules (e.g. FAB-T) New technology & applications Competition: General Dynamics, L3 High entry barriers KG-250 KG-255
Government SATCOM Systems DoD fixed & mobile networks UHF band Commercial VSAT for DoD Comm On The Move (COTM) Ka Band, EHF, commercial bands Competition: Raytheon, Rockwell, GD, Harris, L3
Commercial Segment Antenna Systems Satellite Networks Subsidiaries
Antenna Systems Government Satellite imagery Telemetry Large Antennas
VSAT Networks Equipment & Services International & Domestic
Mobile Satellite Networks Multiple live services Business jets Other potential Trains, Maritime, Autos Defense Boeing IDS, SES, ARINC
Direct To Home Broadband Big Opportunity $49 / month satellite broadband Wildblue launched Jun 05 Telesat Canada launched Jun 05 Fastest growing consumer broadband ever More international networks
WildBlue News User Satisfaction Additional Capacity WildBlue 1 Broader Distribution
www.attwb.net
Mobile Satellite Systems GEO MSS Operator FCC Ancillary Terrestrial Component Ground Based Beam Forming
Financial Performance
Revenues 29% Increase $150 $128.7 Millions $120 $90 $60 $100.0 $30 $0 FY 06 FY07 Q1
Q1 Non-GAAP Earnings Earnings EPS 25% Increase 18% Increase $9 $6 $6.1 $7.6 $0.30 $0.20 $0.22 $0.26 Millions $3 $0.10 $0 $0.00 FY 06 FY 07 FY 06 FY 07
Q1 Net Earnings Earnings EPS 17% Increase 11% Increase $8 $6 $5.2 $6.1 $0.24 $0.18 $0.18 $0.20 Millions $4 $0.12 $2 $0.06 $0 $0.00 FY 06 FY 07 FY 06 FY 07
Key Financial Points Record quarterly revenues & awards Very strong operating cash flow Solid balance sheet Good growth in backlog No R&D Tax credit
Summary Strong financial results Strong cash flow Good new orders pipeline Anticipate FY07 Revenues >$500M MIDS & MIDS-JTRS Information Assurance Satellite broadband Satellite mobility Promising market opportunities