MIDDLETOWN – KVH Industries Inc.’s profit rose 71.9 percent during the fourth quarter of 2012 and 316 percent for the year as a whole, the company reported Tuesday.
KVH reported fourth-quarter net income of $2.76 million, or 18 cents per diluted share, versus $1.6 million, or 11 cents per diluted share, during the fourth quarter of 2011. The company had reported an income tax benefit of $399,000 in the 2011 fourth quarter, compared with an income tax expense of $1.2 million during the quarter just ended.
For 2012 as a whole, KVH saw profit skyrocket 316.3 percent to $3.58 million, or 24 cents per diluted share, versus $860,000, or 6 cents per diluted share, during 2011. The company’s earnings were boosted in 2011 by an income tax benefit of $484,000, while it recorded income tax expense of $3.3 million during 2012.
KVH saw its top line increase during both the quarter and the fiscal year. Net sales rose 23.8 percent to $39.5 million from $31.9 million during the fourth quarter, which contributed to a 21.8 percent revenue increase for the year to $137.1 million.
“Our record results this quarter reflect continued growth from both our broadband communications, and guidance and stabilization businesses,” KVH CEO Martin Kits van Heyningen said in prepared remarks.
“We continue to see solid momentum in our business both in terms of short-term sales success and an expanding pipeline of future opportunities,” added Kits van Heyningen. “With VSAT airtime revenues in the fourth quarter increasing 53 percent compared to the same quarter last year, we expect to have a higher degree of predictability over a significant element of our revenues goes forward.”
The company’s mobile communications revenue, including satellite television products, increased 23 percent to $21.5 million during the fourth quarter. The company also reported a 25 percent fourth-quarter increase in guidance and stabilization revenue, which related to its fiber optic gyro solutions, TACNAV military navigation systems and other related services.
“With back-to-back record revenue quarters, we are pleased with the second half of financial performance of both the mobile communications, and guidance and stabilization businesses,” Peter Rendall, KVH’s chief financial officer, said in a statement. “Our gross margin for the fourth quarter was 43 percent, which showed an improvement of 330 basis points over the third quarter. This was largely the result of very strong shipments of our military tactical navigation products and also reflects ongoing improvements in our overall manufacturing.”
The company said that it expected first-quarter 2013 revenue to be in the range of $37 million to $40 million, an increase of 38 to 50 percent. KVH added that it expected net income in the range of 10 to 15 cents per diluted share, versus a net loss of 9 cents per diluted share during the first quarter of 2011.