ViaSat Inc F4Q08 (Qtr End 03/28/08) Earnings Call Transcript

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2008-06-23 09:41:12.0

Tags: ViaSat Inc.

Question-and-Answer Session

Operator

(Operator Instructions) We will take our first question from Chris Quilty with Raymond James.

Chris Quilty - Raymond James

Question for you; the fourth quarter SG&A was down below levels I would have expected. Was there anything in particular that you would attribute that to and what should we look for in terms of on a go forward basis, either the SG&A on a growth basis or on an absolute percentage of sales?

Mark Dankberg

Well, I think what we do Chris is we make trades with those discretionary accounts to the extent that we can within the period, we will make investment in those areas and throttle back where we think we need the performance, so what we don’t like to do is isolate any one element of that and I think we expect just normal growth in SG&A year-over-year Ron, on the other percentage next year that we are targeting. Now, we've got that model I think you guys do to and I don’t think you ought to change what I have seen out there, right.

Chris Quilty - Raymond James

Okay, fair enough and just for the next year, I mean your overall revenue guidance is down by about $20 million. Is it fair to assume that it's all in the consumer broadband business?

Mark Dankberg

Yes I think if you look in our commercial business basically consumer broadband revenue will certainly be down, but we think on an earnings basis due to the effects that we describe because of the earnings growth and decreased investments in enterprise VSAT and ICT that will achieve pretty much the targeted earning with lower revenue.

Chris Quilty - Raymond James

Okay and on your discussion on ViaSat-1 program, when you say $400 million through launch that is including in the launch I assume?

Mark Dankberg

Yes.

Chris Quilty - Raymond James

Okay and you obviously haven’t started to target any of those launch providers at this point in time?

Mark Dankberg

I would say no we are engaged in launch provider discussions.

Chris Quilty - Raymond James

Okay fair enough and in terms of the order for the Lot 9 on the MIDS, what time is it realistic to assume that. I mean is that a first half of the year event or a back half and what should be driving the timing decision there?

Mark Dankberg

We would say it’s eminent. It would be a good way to discuss it. We expect it in the next couple of weeks I would say.

 

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