KVH reports double digit marine sales growth
MIDDLETOWN, R.I. – Second quarter marine sales were up significantly for KVH Industries, Inc. (Nasdaq: KVHI), the company reported in a recent statement.
“The recent introduction of our new TracVision M-series satellite TV systems helped drive our marine sales up 12 percent over the same quarter last year,” commented Martin Kits van Heyningen, KVH’s president and chief executive officer. “Within our mobile communications business, last week’s launch of our TracPhone V7 satellite communications system and the mini-VSAT Broadband service is one of the more important strategic announcements we’ve made in recent years. Our effort to bring broadband, affordable Internet access to mariners has been a large and complex project that involved establishing new relationships with both ViaSat and satellite owner-operator SES AMERICOM. For sales to our customers, KVH will serve as the sole point of contact for hardware and airtime sales, activations, billing, and technical support for this new product and service. In addition, we will receive revenue from hardware sales as well as from the recurring monthly airtime generated by leisure boaters, commercial maritime operations, and government vessels using this unique end-to-end maritime communications solution.”
Total company revenue for the second quarter ended June 30 was $23.2 million, a 6-percent increase over the second quarter of 2006. Net income for the quarter was $1.5 million, or $0.10 on a per-diluted share basis. During the same period last year the company reported net income of $1.7 million, or $0.11 on a per-diluted share basis.
For the six months ended June 30, revenue increased 3 percent to $43.6 million from $42.3 million for the same six months of 2006. KVH reported net income of $1.6 million or $0.10 on a per-diluted share basis for the 2007 period, versus net income of $2.9 million or $0.20 on a per-diluted share basis in the year-ago period.
“Overall, we had a good second quarter that was in line with our expectations. We set a record for quarterly revenue and continued to build our long-term military business. We also made great strides in strengthening our positions in both the marine and land mobile markets through the development and introduction of several new products and services,” said KVH’s top executive.
The company said it expects third quarter revenue to be in the range of $18 to $19 million and losses to range from $0.04 to $0.08 cents per share.
“We are confident that our mobile communications business will remain strong and in line with our previous expectations for the remainder of the year,” commented Patrick Spratt, KVH’s chief financial officer. “Given this outlook, and assuming that the CROWS contract award is made by the end of September and is favorable for us, we anticipate that our fourth quarter revenue will grow approximately 30 percent on a year-over-year basis to roughly $22 to $23 million while earnings will be in the range of $0.10 to $0.14 cents per share.”
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