Revenues Up 10% in Second Quarter 2015 for KVH
Middletown, R.I., August 4, 2015--KVH Industries, Inc., (Nasdaq: KVHI) reported financial results for the second quarter ended June 30, 2015 today. Overall revenues grew 10% to US$ 44.9 million (consensus $44.0 million), reflecting service growth of 35% (organic growth of 6%) and a 14.5% decline in hardware revenues (largely defense-related).
Highlights of the report include:
- Continued growth in mini-VSAT Broadband airtime revenue, up 11% yearover-year
- 14% year-over-year growth in mobile broadband product revenues
- Including the impact of Videotel™, strong year-over-year growth in subscriptionbased service revenue, which represented 56% of total revenue in Q2, up from 45% a year ago
- Non-GAAP adjusted EBITDA in the second quarter of $4.6 million up from $3.7 million in the comparable quarter last year
“Overall we are very pleased with our financial results in the second quarter, beating our guidance for both EPS and adjusted EBITDA and recording revenue at the high end of our guidance range,” said Martin Kits van Heyningen, KVH’s chief executive officer. “In our maritime VSAT market, we continue to see solid demand in commercial shipping and leisure offsetting the slowdown in offshore oil and gas vessels. After a slow start in the first quarter, FOG sales rebounded nicely this quarter and we were particularly pleased with sales of our new IMU product line,” he added.
For the second quarter, net income on a GAAP basis was $0.0 million, or $0.00 per share, while non-GAAP net income was US$ 2.1 million or $0.13 per diluted share. During the same period last year, the company reported a GAAP net profit of US$ 0.1 million, or US$ 0.00 per diluted share, and a non-GAAP net profit of US $1.9 million, or $0.12 per diluted share. Non-GAAP adjusted EBITDA was US$ 4.6 million for the second quarter of 2015 compared to US$ 3.7 million in the prior year quarter. Included in non-GAAP adjusted EBITDA was US$ 1.3 million and $0.5 million related to the amortization of intangible assets for the three months ended June 30, 2015 and 2014, respectively.
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