KVH reports profit jump, revenue increase, in 2015

KVH Industries Inc. reported a 5,395 percent jump in profit in 2015, to $2.3 million, or 14 cents per diluted share, compared with profit of $41,000, and 0 cents per diluted share, a year ago.
KVH Industries Inc. reported a 5,395 percent jump in profit in 2015, to $2.3 million, or 14 cents per diluted share, compared with profit of $41,000, and 0 cents per diluted share, a year ago.

MIDDLETOWN – KVH Industries Inc. reported a significant increase in profit in 2015, to $2.3 million, or 14 cents per diluted share, compared with profit of $41,000, and 0 cents per diluted share, a year ago.
KVH, a provider of guidance, communication and Internet systems for the maritime, retail, leisure and defense industries, released its earnings report for the year and fourth quarter Thursday.
It also reported a 7 percent increase in revenue last year, to $184.6 million from $172.6 million in 2014.
For the fourth quarter that ended Dec. 31, profit rose 328 percent to $4.1 million, or 26 cents per diluted share, compared with $958,000, or 6 cents per diluted share, during the year-ago period. Fourth-quarter revenue also climbed 7 percent to $54 million from $50.4 million a year ago.

CEO Martin Kits van Heyningen said he was pleased to report “another record revenue quarter.”
“With a strong contribution from TACNAV and solid VSAT unit shipments, we had a very strong quarter for product shipments. I’m also pleased with the positive reaction from customers of our new mini-VSAT Broadband 2.0 service, which we launched at the beginning of the fourth quarter,” he said.
However, he said the quarter was not without challenges. He noted that last year, they saw “a steady stream of offshore oil and gas services vessels being laid up, and that trend continued into the fourth quarter.”
“While other sectors, like commercial shipping and leisure, remained strong during the quarter, the reduction in vessel count from the oil and gas sector resulted in lower than expected year-over-year growth for VSAT airtime,” Kits van Heyningen said.
The company said in a news release that it expects continued revenue growth and improving profitability in 2016, as growth in both the marine VSAT and defense businesses are anticipated. Revenue is expected to range from $190 million to $210 million for the year, and net income is expected to range from $2 million to $6.7 million, or 12 cents to 42 cents a share.
KVH noted recent company highlights, saying its Videotel training systems are used on more than 12,000 vessels worldwide, and that it also shipped its 200,000th mobile satellite antenna, “setting a milestone in the mobile satellite marketplace.”

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