Good day, everyone and welcome to the ViaSat FY2008 fourth quarter earnings conference call. Today’s conference is being recorded. Your host for today’s call is Mark Dankberg, Chairman and CEO. You may proceed Mr. Dankberg.

Okay thanks. Good afternoon everyone and welcome to the ViaSat's earnings conference call for our fourth quarter and fiscal year ending March 28, 2007. I'm Mark Dankberg, Chairman and CEO and I have got with me Rick Baldridge, our President and Chief Operating Officer; Ron Wangerin, our Vice President and Chief Financial Officer and Keven Lippert, General Counsel. Before we start, Kevin will provide our Safe Harbor disclosures.

Thanks Mark. As you know during the course of the discussion today we will make forward-looking statements including those relating to the anticipated benefits and strategic relationships, expected future business, projections of financial performance growth and trends in our business or key markets, the anticipated performance of products or service, and plans, objectives and strategies for future operations. We would like to caution you that the actual results could differ materially from those contemplated by our forward-looking statements. We refer you to the risk factors contained in our SEC filings available at the SEC’s website including our annual reports on Form 10-K and our quarterly reports on Form 10-Q. We would like to caution you not to place undue reliance on any forward-looking statements which speak only as of the date which they are made and we undertake no obligation to update any forward-looking statements.

Okay thanks Kevin. So as usual, we will be referring to slides that are available over the web. Before we start I would like to make a quick strategic point regarding our business. So, right now we are undertaking two pronged task. First is to continue to grow our core business and earnings at an attractive and sustainable rate and second is to construct a satellite asset that we believe can accelerate our growth in multiple dimensions when it’s launched in 2011. We think it’s an exciting challenge and that we’re off to a good start. So, today we’ll focus on the financials and the growth prospects for our core business first, but also give a brief update on the status of the satellite assets and we will start with our fiscal year ’08 fourth quarter and fiscal year 2008 financial results for year end, our business overview prospective and some highlights. After that Ron Wangerin will discuss our financial results in more detail. Then we will update our outlook for fiscal year ’09 and give a quick summary and take questions. So, turning to the slide on Q4 financials summary, as you can see our fourth quarter results were very good especially when compared to last year. We earned $0.41 a share on a non-GAAP diluted basis up 21% compared to $0.34 last year. GAAP net income was $0.33 a share, about 24% higher than last year’s $0.27. Income before tax was up 37% over the same period last year which we think is very, very good. Revenue is at $147 million; we’re up 12% over last year meaning we improved margin significantly. New orders for the quarter were a bit of a challenge at about $98 million. We had several contact awards spillover into the current quarter. Total…

Thanks Mark. We will start with the P&L and segment results and then cover the balance sheet and cash flows and provide an update on ViaSat-1 cash needs. As Mark mentioned for the fourth quarter operating results were good relative to the sales level. Revenues were $147.4 million, a 12% increase when compared to the last year. The cost of revenue percentage reflects the mix of products where margins were slightly lower quarter-over-quarter particularly in the government segment. SG&A expenses for the quarter were lower year-over-year included higher selling and support costs from increased business activity when compared to last fiscal year, which is offset by a cumulative adjustment to lower discretionary cash compensation in fiscal year 2008, when compared to cash compensation that grows from last year. R&D was similar to the other quarters of this fiscal year, but up significantly in the fourth quarter year-over-year due to the development of next generation information assurance, unmanned aerial vehicles, global antenna and broadband technologies and this is inline with our expectations. Quarterly amortization of intangibles is basically flat year-over-year. Income from operations for the fourth quarter fiscal year 2008 includes non-cash stock-based compensation expenses of $1.6 million and it was $1.4 million for fiscal year 2007 fourth quarter. The increase in other income represents primarily interest income earned from higher invested cash balances year-over-year. Our income tax provision for the fourth quarter reflects an effective tax rate of about 28% versus 18% for last fiscal year. The higher year-over-year effective tax rate is due to the timing of Federal R&D credits. In fiscal year 2007 the effective rate included five quarters of Federal R&D benefit due to the timing of the credits renewal and in fiscal year 2008, the effective rate only includes three quarters of benefit reflecting an expiration…

Okay, thanks Ron. At this point I will review our current outlook and then give a quick summary. So, turning to our fiscal year '09 outlook, we expect pretty good revenue growth and our earnings to grow a little faster on a relative basis. The key drivers of revenue growth coming from information assurance, government satellite communications and mobile broadband. Earnings growth is anticipated to be primarily attributable to our government business and decreased investments in the AcceleNet and enterprise VSAT, which we believe will significantly improve the profitability of our non Ka-band commercial business overall. Our outlook does include a significant reduction in US Ka-band consumer sales and earnings due to satellite capacity constraints. Our fiscal year '09 plan aims at non-GAAP earnings per share of between $1.55 and $1.65 and GAAP earning per share of between $1.19 to $1.29. These ranges assume the R&D tax credit will be extended and retroactive to the beginning of this calendar year. Also we do expect earnings for fiscal year '09 to be shaped similarly to this current fiscal year or past fiscal year '08 with the second half being stronger than the first half though not to quite the same extent as this current year. So in summary our overall earnings per performance for fiscal year '08 was pretty consistent with the low-end of our range when adjusted for the higher tax rate due to only three quarters worth of R&D tax credits and the additional R&D and startup expenses associated with the ViaSat-1 satellite initiative. The second half of the year was quite strong with earnings of about $0.81 a share on a non-GAAP basis. So returning to our two-pronged task, we believe our current outlook for fiscal year '09 in the $1.55 to $1.65 range on a non-GAAP basis…

(Operator Instructions) We will take our first question from Chris Quilty with 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?

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.

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?

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.

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

Yes.

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

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

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?

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.

Okay and in terms of development on both MID-J and BlueForce tracking, can you give us an update?

On MIDS-J as I mentioned there was an increase in the funding commitment that we received right at the very beginning of this fiscal year and that covers the program as described. There are other potential increases to MIDS JTRS. The one that we’ve identified in the past and that we think is sort of enabled as we look at the sequence of events and the extension, the funding commitment that they just gave us is intended to support this airborne networking waveform. That’s kind of 10s, low 10s, mid 10s of millions of dollars kind of range for that. Then there are a couple of other things that are sort of also in the works, but are not yet as mature as the airborne network from waveform for MIDS-J. On BlueForce tracking, the kind of the next steps would be limited or what they call lower rate initial production, kind of a small number of initial terminals and probably enhancements to the prototypes types that we have done already and that’s what’s in the works now and we will be able to talk about that I would say munch more in the next quarter. Chris Quilty – Raymond James: Okay, I think last year at the time the contract was originally announced you were talking about possible [Inaudible] within a year and it sounds like that’s within a little bit but certainly it’s something you would expect before the end of the year?

Its, yes I mean based on the discussions that we are having now and the timing that the government customers says that they want, that’s what seems likely. Chris Quilty – Raymond James: Okay and final question, your maritime product that you are doing with the -- sorry I got a background phone here. I’ll pull it out of the wall. If you could give us an update on the maritime products and the ArcLight modem?

Well, we’ve been going after maritime business. We have got a partnership that we have been developing with KVH. I think KVH reports on that as well. We are pretty pleased with how that’s done and we are looking to expand it. They have had good demand for the product and I would say pretty robust use by those that have bought it and so that’s when I referred to expanding the geographic coverage areas for maritime, airborne that’s an important part of our plans for that area. Does that answer your question there? Chris Quilty – Raymond James: Yes it does, but you are really dependent on the rate at which FDS builds out those ground earth stations correct?

I wouldn’t say that. I would say that is one of the things that we talked about. We talked about kind of relationship with a set of regional satellite operator partners. I think what’s going on is that the products and without say kind of our view is; one of the things about our network is the ability to support multiple products. Multiple products meaning things like business aviation or commercial aviation, maritime, other ground, mobile, even defense applications on a single platform and so the fact that we’ve had good growth in the uptake of platforms and that some of those platforms just will either fly or just sail from one place to another makes it pretty attractive to other regional partners to just say, “hey, oh yeah, I’d like some revenue” if those platforms come into my area and so that we are working on with our expansion plans and it goes beyond any single individual satellite operator.

(Operator Instructions). Will move to Rich Valera with Needham Richard Valera - Needham & Company: Mark in your prepared remarks you talked about a potential North American reseller partner a year away. Just wondering what would limit it to not being closer? Is it just conservatism on your part or could that happen sort of sooner, but you just don’t want to promise that?

Definitely don’t want to promise. I am trying not to over promise, that’s in one practice. I would say there’s like two considerations that go into this when we talk to people about our satellite. Number one is we are happy with the response and interest that we’ve got for sure okay, pretty much everyone we talked to, but one camp will say “well okay, three years is pretty far away. I’m really, really interested, but when we get closer maybe we can discuss in more detail.” So, that’s an understandable response. We are also getting others you say, “oh okay I know its far away, but if I am really interested in having satellite capacity like that, it will never be closer than three year from anyone and if I really want to use it or use a lot of it then I should engage in discussions now” and so we’ve actually had both favors of responses and we don’t know if the second ones will really -- how those will play out. It’s still a little early in the process and that’s kind of a snapshot of what’s going on there. Does that make sense? Richard Valera - Needham & Company: Yes that’s helpful. I just wondered if you have any sort of commentary on the progress with Cisco with the AcceleNet products. It seems like those are pretty key to, improving the profitability and offsetting some of the lower WildBlue sales. Is there any commentary you can give us on how that’s going or visibility sort of ramp there?

Yes, we’d say it’s early in the process. They did a global rollout just a weak or two or actually it’s the end of January when they announced it and we think overall Cisco, their response to the wireless product seems to have been good. We are seeing a lot of increased pipeline activity the way I’d describe it with some early result. It’s a little too soon to call it either way, but I would say that we are pretty happy so far, that way we really need to see that turn into other results most likely in the second and third quarter. Richard Valera - Needham & Company: Okay and so, just try to gauge I mean how risky this ramp is since it seems like from a profitability perspective that’s pretty important in sort of making it up. I mean is there -- just trying to get any sense of how conservative or aggressive I guess you’ve been in terms of that ramp expectation?

Well, we would say we have been reasonable. There is two components to the improvement; one is less spending, so we have a lot of control over that one and the other one is improved sales and where we are now is if you just go through the sales cycle on this, one of the things that the sale cycle included is trials. That, I think it’s a product that’s well suited for trails where what you do is you bring your customer into a trail program, give them a server and have them put clients in the field and one of the things that we are seeing is it is a lot more activity at the front end to the pipeline and that’s kind of all you could want at the very beginning of a process. So, as far as we’re -- I think we feel like we serve a reasonable position, put it in the middle. Richard Valera - Needham & Company : Okay, just one final one. To say you hit the midpoint of your revenue guidance, can you give us a sense of the relative growth rates expected in the government and commercial businesses?

I think when you look at the growth and profitability, I think what we said is a lot of the growth is going to come in the government side, some on the commercial side. Within the commercial side we expected within our antennas, systems area, some of our mobile satellite services and mobile broadband and there will be some reduction we expect in the consumer broadband side. From a profitability standpoint, some of our activities that we’ve done in our enterprise VSAT as well as in our ICT side, with a little bit of activity we can see a much higher earnings turnaround in those areas. So, profitability wise we see the offset of those items against the consumer broadband, those are lower sales we expect from the consumer broadband.

I mean what we are saying is if you look at it on a dollar basis, most of the growth in absolute dollar earnings will be in government.

In government correct. Is that the point… Richard Valera - Needham & Company : I was getting just to the revenue, sort of absolute revenue growth in the respective categories.

That would be a higher rate of growth in the government system side versus the commercial sides… Richard Valera - Needham & Company: Do you still expect growth in the commercial side?

It’s fairly moderate this year because of the decline in consumer broadband. Now we’ve got really good growth in both Government SATCOM and information security. In both those we are expecting above 20% growth rate and so given an overall growth rate that will be given you around 15%. The commercial side of business we are expecting very nominal growth.

And we will move onto Tom Watts with Cowen & Company. Thomas Watts – Cowen & Company: You mentioned the order more than $100 million you gotten in tactical Data Links alone early this quarter. Can you comment overall how orders are coming so far in the quarter and could we see a quarter over a $160 million or $170 million in orders?

Yes, absolute. Just to be clear we said we are targeting over a 100, that’s kind of what we think is achievable for that particular area and yes definitely we could see doing better than 160 and 170 and what we would like to see as I said before is the combination of the two quarter when you look at Q4 plus Q1 that someone would look at those and say “yes, that’s consistent with the kind of growth that we are looking at” which should get us in the 640’s range in the revenue next year.

Okay and then on the consumer broadband terminals, did I understand that the inventory increase was primarily related to those and how much of that is in consumer broadband and are you holding inventory that is to be shipped under contract to some of those customers?

Okay and then on the consumer broadband terminals, did I understand that the inventory increase was primarily related to those and how much of that is in consumer broadband and are you holding inventory that is to be shipped under contract to some of those customers?

Okay and then on the consumer broadband terminals, did I understand that the inventory increase was primarily related to those and how much of that is in consumer broadband and are you holding inventory that is to be shipped under contract to some of those customers?

On the inventory side there’s really two components for some of the growth. The first is in some of our government products areas where we were building to a product forecast and with some of the new contract towards being delayed kind of it’s a timing issue and we believe that will be worked out over the next quarter or two. .

Mainly KB 250.

The other primary cause is from the consumer broadband equipment and we are working with both demand on the manufacturing side as well as our customer side to get that back down to more normalized levels.

Okay, then on the consumer broadband you mentioned some software success that could increase capacity and some of the sold out beams; is this a 5% or 10% and also what has the WildBlue said recently about -- what are your installed rates running? Are they below 10,000 at this point per month?

Okay, then on the consumer broadband you mentioned some software success that could increase capacity and some of the sold out beams; is this a 5% or 10% and also what has the WildBlue said recently about -- what are your installed rates running? Are they below 10,000 at this point per month?

Okay, then on the consumer broadband you mentioned some software success that could increase capacity and some of the sold out beams; is this a 5% or 10% and also what has the WildBlue said recently about -- what are your installed rates running? Are they below 10,000 at this point per month?

As far as this is they are just planned product evolutions that we and WildBlue both were planning to deploy. So, those are being rolled out and I think we said once of course the actual amount of capacity increase of debt we will depend a little bit and how they manage the service, but you could expect something in the 25%, 30%, 35% range and those are our estimates. I really don’t think it would be less than 25%, its really up to them how they manage their network, could be in a 30%, 35% plus percent range in terms of capacity increases. So, that will open up meaningful amounts of capacity in all there sold out beams and WildBlue has made public statements that said that they expect that they -- not they expect that they have reopened all of their beams, but they expect to be able to add new subscribers to all other beams throughout this year, so that also sort of calibrate that and I think that their add rate should actually have been a little more robust in what they thought. I will think that in some of the segments they have made in conferences that is over 10,000 a month so far. Thomas Watts – Cowen & Company: Okay and just a final question on that the KaSat, could you update us where -- at some point do you anticipate orders starting to accelerate there and what are they doing on the distribution side to make that happen?

Well KaSat in one way, what you will find about this is a kind of a continuation of Tooway service that they have launched now on their Hot Bird Satellites and they’ve had lots of demand there. The main issue is they just don’t have sufficient capacity at bandwidth pricing that’s consistent with the offer they want to make. So, that’s what’s going to broad all terminal orders in the next two years and what we would expect to see with KaSat is probably sometime this year an infrastructure order that would just be a repayable. What we had installed with Intel software you’ll see an infrastructure order ahead of the satellite launch and some nominal amounts of terminals that would be ordered as well and then ramps once the satellite is launched. So, kind of the near term targets in Ka-band for Europe would be -- and we’ve kind of talk about these numbers before on a low 10’s of thousands of total terminals that could be deployed on Hot Bird. I would say kind of low 10’s of million of dollars in infrastructure orders that would go along with the satellite at some point. Thomas Watts – Cowen & Company : Could that be the current year?

Yes it could.

And we will move on to Jim McIlree with Collins Stewart.

On the tax rate you say that 28% for the year, so how are you going to accrue for that? Are you assuming a higher tax rate in the June quarter and then going down to 28% or taking a catch up when it gets, should it be reinstated?

Well, to the extent that it’s not reinstated at the end of the fiscal first quarter we would have to exclude it from our overall effective rate calculation. So, we would be using a higher rate earlier in the year. Then should it be reinstated depending upon what the terms of the reinstatement are we would have adjusted our rate accordingly.

Right, so if it’s retroactive then you will take a -- you will catch up in whatever quarter that’s implemented?

Correct.

Okay, great and on the R&D spending Ron I think you’re suggesting flat year-over-year, but you also mentioned that ICT and Enterprise VSAT consumed $7 million of spending. I am assuming that spending goes down but it doesn’t go down to zero is that correct?

Well, the spending in those two areas was not just -- I think what I said was relate it to the ViaSat-1 was $3 million and we invested $4 million in ICT, not all of which is R&D for the ICT piece. The significant portion provides that one less R&D, so when we look at the overall again we view R&D as another discretionary component and for fiscal year ’09 we see it flat to slightly lower year-over-year. So, depending it will be a mix of between the areas, the other parts of the business.

Okay and so what would get the attention for R&D spending in fiscal ’09?

We have some continued investments in our information Next Generation Information Assurance products as well as in the first part of the year continuing for our unmanned aerial vehicle products, we do have and throughout the year some planned investments for ViaSat-1 on the next generation SurfBeam system. Those will be the three primary areas and then there will be normal levels of spending in other products areas, some for data links and some for SATCOM area.

Right, so I am assuming now that the ViaSat-1 investment goes up substantially versus the $3 million that you spent in fiscal ’08.

Yeah.

Okay that $3 million it can’t be a good run rate for the year, can it?

Well, I think what we said when we talked about the launch of the project back in early January that those are primarily over the second half of the year. So, it depends on the timing and nature of some of the potential manufacturing/development and manufacturing contracts that we get as well, but it’s a relatively constant rate throughout the year but a obviously higher year-over-year since most of the spending for the ViaSat-1 next generation system occurred in the latter of the year.

It’s probably on a quarter-by-quarter basis the piece that we’ll put in R&D is probably a little less than that, but not a lot. We kind of gave you an idea of what we thought would be an expense in the current year in our Q3 conference call.

Okay and the MIDS order that you are hoping for eminently, would there be a deliveries on that this quarter, the June quarter?

No. The normal [Inaudible]

Hoping for isn’t that a good way to characterize, I would say we have sort of been notified.

Right, right I am just trying to differentiate between it hasn’t actually been awarded in.

Okay that’s fine.

And then usually the June quarter is kind of flattish down sequential from the March quarter but the March quarter was kind of weak, so is it reasonable to think of that same seasonal pattern or a little bit different this year.

Yeah, I think we do expect that and I think as made in the statement, it may not be as severe as last year, if you remember last year’s Q1 was way off, but I think, Jim I think all of your guys have models out there; we don’t generally comment on analysts things, but in general I think people understand the locality of it and have a pretty good idea where it’s going to be.

Okay, so I think that’s it for all the questions and that’s all for our conference call for today. Thank you all very much for listening and we will look forward to speaking with you again next quarter.

That does conclude our conference call for today and we do thank you everyone for their participation.