By PBN Staff
By PBN Staff
MIDDLETOWN – KVH Industries Inc., a provider of guidance and Internet systems for the maritime and defense industries, reported second-quarter net income of $55,000, or zero cents per share, an improvement over the first-quarter net loss of $1.1 million but a 96.4 percent decline compared with net income of $1.5 million, or 10 cents per share, for the second quarter of 2013.
Excluding costs related to the $48.9 million acquisition of Videotel, the company’s net income totaled $800,000, or 5 cents per diluted share, for the second quarter.
Revenue also declined during the three months ended June 30, dropping 5.3 percent to $40.9 million from $43.2 million for the same period last year.
Year to date, KVH has posted a net loss of $1.1 million, reversing net income of $3.5 million recorded for the first six months of 2013. Revenue declined 6.3 percent on a year-to-date basis, dropping to $77.9 million compared with $83.1 million a year earlier.
“Overall, we continue to be pleased with the growth in our maritime VSAT airtime revenues, which in the second quarter increased 24 percent compared to the same period last year,” said Martin Kits van Heyningen, CEO of KVH. “During the quarter, we successfully launched our global IP-MobileCast content delivery system. … We believe this exciting new capability will prove popular with our customers and initial feedback has been highly positive.”
KVH’s mobile communications segment, including the company’s mini-VSAT and TracPhone products and KVH Media Group’s operations, saw $29.7 million in total revenue for the second quarter of 2014, an increase of 9 percent year over year.
Revenue from KVH’s guidance and stabilization division, which includes military navigation systems and related services, dropped 30 percent year over year to $11.2 million due primarily to lower military sales to U.S. defense customers. However, KVH tactical navigation system sales alone totaled $5.7 million, an improvement of 15 percent over the second quarter of 2013.
Peter Rendall, chief financial officer of KVH, said that although the company is confident about some large tactical navigation orders being announced in the coming weeks, KVH will continue to be conservative in its forecasts for segment sales.
For the third quarter, KVH projected revenue in the range of $43 million to $47 million, with net income between 3 cents and 8 cents per diluted share, reflecting the impact of the Videotel acquisition.