MIDDLETOWN, R.I. – KVH Industries, Inc. (Nasdaq: KVHI) experienced strong marine product sales in both North America and Europe during 2004, it reported in a recent statement. However, this growth was offset by a year-over-year decline in the company’s land mobile sales, according to the company.
KVH, which is a provider of mobile satellite communications products for the marine and RV markets and a provider of defense-related navigation and guidance systems, reported revenue for the fourth quarter ended December 31, 2004 was $16.0 million, up 2 percent from $15.7 million for the fourth quarter of 2003. Net income for the period was $0.3 million, or $0.02 per share compared to a net loss of ($1.6) million, or ($0.14) per share, during the same period last year. The company's quarterly net income includes the beneficial impact of a favorable $0.8 million net deferred tax asset revaluation.
For the fiscal year ended December 31, 2004, revenue increased 10 percent to $62.3 million versus $56.7 million for the fiscal year ended December 31, 2003. KVH reported a net loss of ($6.1) million, or ($0.44) per share, for the fiscal year ended December 31, 2004, compared to a net loss of ($1.5) million, or ($0.13) per share, in the prior year.
"We were extremely pleased with our results for the fourth quarter as we increased our revenues and generated a very positive improvement in operating margin both sequentially and year over year," said Martin Kits van Heyningen, KVH's president and chief executive officer.
Fourth quarter sales of the company's mobile satellite communications products increased compared to the third quarter of 2004 but were down 10 percent versus the fourth quarter of last year. For the year as a whole, satellite revenues were up 24 percent compared to fiscal year 2003.
"I expect that our marine satellite communications products will continue to perform well and that our RV sales will strengthen as the year progresses," concluded Kits van Heyningen. "We are also aggressively pursuing new initiatives for the TracVision A5, including expanding our aftermarket network, working towards potential sales through one or more OEMs, and building on our relationship with DIRECTV. Our ability to capitalize on these opportunities will help us achieve our goals of improving profitability for the year and growing annual revenue in the 10 to 20 percent range."
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