KVH reports $806K loss in 2Q

KVH Industries Inc. reported a 2.4 increase in revenue in the second quarter that ended June 30, but an $800,000 loss during the same period.
KVH Industries Inc. reported a 2.4 increase in revenue in the second quarter that ended June 30, but an $800,000 loss during the same period.

MIDDLETOWN – KVH Industries Inc. reported a loss of $806,000, but an increase in revenue in the second quarter that ended June 30.
The manufacturer of technology that provides global high-speed internet, television and voice services via satellite to mobile users at sea and on land, as well as high-performance sensors for defense and commercial applications reported a loss of 5 cents per diluted share, compared with profit of $37,000 in the year-ago period and no loss or gain per diluted share.
Revenue increased 2.4 percent, to $46 million, from $44.9 million.
“Overall, given the continued headwinds in the commercial maritime markets, we are pleased with our financial results in the second quarter, approaching the high end of the range of our guidance for EPS and adjusted EBITDA and the midpoint for revenue,” Martin Kits van Heyningen, KVH’s CEO, said in a statement.
Non-GAAP net income fell nearly 43 percent, to $1.2 million, or 8 cents per diluted share, in the second quarter, compared with non-GAAP net income of $2.1 million, or 13 cents per diluted share.
KVH said non-GAAP financial measures are “useful to investors because they allow for greater transparency with respect to key financial metrics used in operating decisions and because its investors and analysts use them to help assess the health of its business.”
The company noted several highlights in its earnings report, saying it was selected to provide mini-VSAT Broadband hardware, airtime and services to a maritime fleet for a minimum of 100 vessels, and that Thome Ship Management selected KVH Media Group’s MOVIElink service for 41 vessels. It also noted the promotion of Brent C. Bruun as chief operating officer, and John McCarthy as interim financial officer after the resignation of Peter Rendall.
KVH said revenue increased despite weakness in the British pound that negatively affected the content- and service-revenue segment by $400,000.
Product revenue of $20.1 million was 12.3 percent higher than the previous year’s quarter thanks to a 40.4 percent year-over-year increase in guidance and stabilization product revenue. The company said that was partially offset by a 2.6 percent decrease in sales of mobile communications products.
Service revenue fell 3.7 percent, to $25.9 million in the second quarter. Airtime service revenue slipped 1 percent over the year to $16 million; that includes mini-VSAT Broadband airtime revenue. Content and services revenue, including entertainment, e-Learning and safety content, dropped 7.3 percent in the second quarter of 2016 compared to the second quarter of 2015.
KVH said it expects growth and profitability to improve during the second half of the year. Full-year revenue is expected to range from $190 million to $210 million, with net income between $2 million and $6.7 million, or 12 cents to 42 cents per diluted share.

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