KVH Industries Reports Second Quarter 2014 Results
Middletown, RI, July 30, 2014 -- KVH Industries, Inc. today reported financial results for the second quarter ended June 30, 2014. The company reported second quarter revenue of US$ 40.9 million, net income on a generally accepted accounting principles (GAAP) basis of US$ 0.1 million or $0.00 per diluted share, and non-GAAP net income of US$ 0.8 million or US$ 0.05 per diluted share.
The non-GAAP net income excludes one-time costs, net of tax benefit, associated with the acquisition of Videotel, which closed on July 2, 2014, and a discrete tax event. During the same period last year the company reported GAAP net income of US$ 1.5 million, or US$ 0.10 per diluted share, on revenues of US$ 43.2 million.
“Overall, we continue to be pleased with the growth in our maritime VSAT airtime revenues, which in the second quarter increased 24% compared to the same period last year,” said Martin Kits van Heyningen, KVH’s chief executive officer. “During the quarter, we successfully launched our global IP-MobileCast™ content delivery system. We are now delivering to ships at sea a wide range of operational and entertainment content that was never before possible over satellite Internet connections. We believe this exciting new capability will prove popular with our customers and initial feedback has been highly positive. Some have even called it a fundamental change in the quality of life at sea,” he added.
For the six months ended June 30, 2014, revenue was US$ 77.9 million, down 6% compared to US$ 83.1 million for the six months ended June 30, 2013. KVH reported a GAAP net loss of US$ 1.1 million for the first six months of 2014, or $0.07 per share. Excluding the Videotel acquisition-related costs, net of tax benefit, and the discrete tax event, the company recorded a non-GAAP net loss of $0.3 million or $0.02 per share. During the same period last year, the company reported GAAP net income of US$ 3.5 million, or $0.23 per diluted share.
KVH’s mobile communications revenue was US$ 29.7 million for the second quarter of 2014, a 9% year-over-year increase. Combined, mini-VSAT Broadband airtime and TracPhone® product revenues in the second quarter amounted to US$ 18.6 million, up 8% compared to the same period last year. Maritime satellite TV sales of $4.1 million were approximately flat with the prior year, in part because the launch of an entirely new TracVision® satellite TV line towards the end of the quarter resulted in backlog being carried into the third quarter, all of which is expected to be shipped in the third quarter.
KVH’s guidance and stabilization revenue, which relates to FOG solutions, TACNAV military navigation systems, and related services, was US$ 11.2 million in the second quarter of 2014, down 30% year-over-year. TACNAV product revenues were $5.7 million, up 15% from the same quarter last year. During the second quarter, sales of the company’s FOG solutions were down 44%, at $4.5 million, compared to the same period last year. A significant contributor to this year-over-year decrease is attributed to lower military FOG sales to U.S. defense customers.
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