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EFFICIENT CHANNEL CODING > Press Center >
December 1, 2005 |
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december 1, 2005
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Carlsbad, CA – ViaSat Inc. (Nasdaq: VSAT), a
satellite and wireless communication technology
provider to government and commercial markets, has
completed the acquisition of privately-held
Efficient Channel Coding Inc. (ECC), a producer of
broadband communication integrated circuits and
satellite communication systems. Terms of the deal
include initial consideration of approximately $16.5
million and the assumption of certain stock options
as well as $9.0 million of additional consideration
to be paid in cash and/or stock based on ECC meeting
certain financial performance targets over the next
two years.
With the purchase, announced November 21, ViaSat
increases its depth in the new S2 version of the
DVB-RCS satellite broadband standard and becomes the
supplier of modem chips for the Asian IPSTAR
spot-beam satellite system. The acquisition is
expected to be immediately non-dilutive to pro forma
or non-GAAP earnings for ViaSat. However, the
Company has not completed its valuation analysis
and, accordingly, has not determined the impact to
GAAP earnings.
About Efficient Channel Coding (www.efficientchannelcoding.com)
Founded in 1996, Efficient Channel Coding (ECC) is
an innovator in satellite communication components
and systems and provides real world digital
communication systems for some of the world’s most
advanced communication networks. ECC products are
designed to increase the efficiency of today’s
advanced satellite, wireless and wire-line
communication systems. With 55 employees based in
Cleveland, Ohio, ECC was formed by two local Ohio
engineers out of Case Western University and
Cleveland State University.
Safe Harbor Statement
Portions of this release may contain forward-looking
statements regarding future events and are subject
to risks and uncertainties. ViaSat wishes to caution
you that there are some factors that could cause
actual results to differ materially, including but
not limited to: difficulty in integrating the ECC
businesses and operations in an efficient and
effective manner; challenges in achieving strategic
objectives, cost savings and other benefits expected
from the acquisition; the risk our markets do not
evolve as anticipated and the technologies acquired
do not prove to be those needed to be successful in
those markets; the potential loss of key employees
of the acquired businesses; the risk of diverting
the attention of senior management from the
operations of our business; the risks of potential
disputes concerning indemnities and other
obligations that could result in substantial costs
and further divert management’s attention and
resources; contractual problems; regulatory issues;
manufacturing issues; problems with suppliers and
subcontractors; and technologies not being developed
according to anticipated schedules, or that do not
perform according to expectations. The Company
refers you to the documents it 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 Form
10-K, which 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.
Comsat Labs and Comsat Laboratories are trade
names of ViaSat Inc. Neither Comsat Labs nor Comsat
Laboratories is affiliated with COMSAT Corporation.
“Comsat” is a registered trademark of COMSAT
Corporation. |
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© Copyright 2003, 2004, 2005, Efficient Channel Coding, Inc. All Rights Reserved
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