KVH Industries reports net loss despite marine biz growth

MIDDLETOWN, R.I. – KVH Industries’ business in the marine and RV markets grew 50 percent in the year ended December 31, the company reported in a statement today.

Overall, the company’s satellite products generated year-over-year revenue growth of 106 percent for the fourth quarter, with revenue of $12.0 million.

“In addition to 50 percent growth in the marine and RV markets, we also experienced a very positive introduction of the TracVision A5 into the automotive marketplace as we shipped approximately 1,700 units by the end of the year,” Kits van Heyningen said. “I remain confident in our overall business plan and in KVH’s position within the marketplace. Looking ahead, I believe that 2004 will be a strong year for KVH with anticipated revenue growth of approximately 30 percent to 50 percent, an expected return to profitability in the first quarter, and strengthened profitability over the course of the year.”

Company-wide revenue up

On a company-wide basis, KVH Industries’ revenue for the fourth quarter ended Dec. 31 rose 21 percent to $15.7 million, compared to $13.0 million for the fourth quarter of 2002, the company reported.

But the company’s net loss for the period was ($1.6) million, or ($0.14) per share compared to net income of $0.3 million, or $0.03 per share, during the same period last year.

KVH said the results for the fourth quarter ended Dec. 31, 2003, were in line with the preliminary quarterly results provided by the company on Jan. 6, 2004.

For the fiscal year ended Dec. 31, 2003, revenue increased 19 percent to $56.7 million versus $47.7 million for the fiscal year ended Dec. 31, 2002, according to the company’s statement. KVH reported a net loss of ($1.5) million, or ($0.13) per share, for the fiscal year ended Dec. 31, 2003, equal to a net loss of ($1.5) million, or ($0.13) per share, in the prior year.

“While both the fourth quarter and full-year revenues were record highs, they were lower than we had expected primarily as a result of the absence of an anticipated large order from an existing U.S. military customer,” Martin Kits van Heyningen, KVH’s president and CEO said. “The absence of this order also contributed significantly to the loss incurred during the fourth quarter.

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