ViaSat (VSAT)

 

During the fiscal years 2007 and 2006, the Company settled certain foreign exchange contracts, recognizing a loss of $136,000 and $347,000, respectively, recorded as cost of revenues based on the nature of the underlying transaction. During the fiscal year 2007, the Company also entered into foreign currency exchange contract intended to reduce the foreign currency risk for amounts payable to vendors in Euros which have a maturity of less than six months. There were no outstanding foreign currency contracts as of March 30, 2007. We had $4.1 million of notional value of foreign currency forward contracts outstanding at March 31, 2006.

 

 

We enter into foreign currency forward and option contracts to hedge certain forecasted foreign currency transactions. Gains and losses arising from foreign currency forward and option contracts not designated as hedging instruments are recorded in interest income (expense) as gains (losses) on derivative instruments. Gains and losses arising from the effective portion of foreign currency forward and option contracts that are designated as cash-flow hedging instruments are recorded in accumulated other comprehensive income (loss) as gains (losses) on derivative instruments until the underlying transaction affects our earnings. In fiscal year 2006, the Company recorded $347,000 in realized loss related to derivatives. There were no realized gains or losses recorded for fiscal year 2005 and 2004. The fair value of our foreign currency forward contracts was a liability of $183,000 and a liability of $54,000 at March 31, 2006 and April 1, 2005, respectively. We had $4.1 million and $2.7 million of notional value of foreign currency forward contracts outstanding at March 31, 2006 and April 1, 2005, respectively. We had no foreign currency forward or option contracts outstanding at April 2, 2004.