KVH reports revenue growth

MIDDLETOWN, R.I. – KVH Industries, Inc.’s (Nasdaq: KVHI) revenue for the fourth quarter of 2009 ended Dec. 31 was $26.3 million, up 24 percent from the quarter ended Dec. 31, 2008, the company reported in a statement today. Net income for the period was $1.8 million, or $0.13 per diluted share. During the same period last year, the company reported net income of $0.3 million or $0.02 per diluted share.

For the year ended Dec. 31, revenue was $89.1 million, up 8 percent compared to $82.4 million for the year ended Dec. 31, 2008. KVH reported a net loss of $0.1 million or $0.01 per share for 2009. During the same period last year, the company reported net income of $3.1 million or $0.21 per diluted share.

“We are very pleased with our strong finish to what has been a challenging year for most companies,” said Martin Kits van Heyningen, KVH’s chief executive officer. “Our market and product diversity enabled us to grow the top line for the company in 2009 and we believe we have positioned the company appropriately to be successful as the economy improves.”

In the fourth quarter of 2009, mobile communications revenue from marine, land, and aeronautical products and services was $14.0 million, up 26 percent on a year-over-year basis.

“The economic challenges remain in our mobile satellite communications business, especially in our leisure satellite TV markets,” said Kits van Heyningen. “However, our aeronautical satellite TV shipments and strong contributions from mini-VSAT Broadband airtime subscriptions offset the declines in other areas during the fourth quarter.”

Speaking about the company’s financial results, Patrick Spratt, KVH’s chief financial officer, said, “We are pleased with our performance in the fourth quarter and the year as a whole, especially in light of the economic challenges. We continue to enjoy the benefits of a diverse revenue model with an almost even split between mobile satellite and guidance and stabilization sales. The strong sales of the relatively higher margin guidance and stabilization products helped us meet our target on the top line while they, along with some tax credits, contributed to our better-than-anticipated bottom line results. The balance sheet remained strong and we were able to maintain our strong cash, cash equivalents, and marketable securities position while continuing the steady pace of investments for our strategic growth initiatives.

“While we do have slightly better visibility in some areas and industry observers see some scattered signs of recovery in the leisure markets, we are still cautious with regard to our expectations for 2010. In the first quarter, we expect revenues to grow by 40 percent or more compared to the first quarter last year, to roughly $26 million. Bottom line results are expected to be in the range of $0.03 to $0.07 per share, reflecting continued investments as we enter the final phase of building out the global VSAT network infrastructure.

“Given the continuing state of economic uncertainty, we do not think it would be prudent to provide specific full year financial guidance at this time. However, we do believe that we are positioned well to take advantage of any strengthening of the economy. We expect 2010 to be a year of strong top line growth and progressively improving bottom line performance within the context of normal leisure market seasonality.”

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