KVH reverses loss in 3Q, reports increases in profit, revenue

KVH Industries Inc. reported profit of $2.9 million in the third quarter, or 18 cents per diluted share, reversing a loss during the 2015 third quarter of $500,000, or 3 cents per diluted share. / COURTESY KVH
KVH Industries Inc. reported profit of $2.9 million in the third quarter, or 18 cents per diluted share, reversing a loss during the 2015 third quarter of $500,000, or 3 cents per diluted share. / COURTESY KVH

MIDDLETOWN – KVH Industries Inc. reported profit of $2.9 million in the third quarter, or 18 cents per diluted share, reversing a loss during the 2015 third quarter of $500,000, or 3 cents per diluted share, the company said Wednesday.
KVH, which makes technology that provides global high-speed internet, television and voice services via satellite to mobile users at sea and on land, as well as high-performance sensors for defense and commercial applications, also reported a 2.9 percent increase in revenue in the third quarter that ended Sept. 30, to $45.8 million from $44.5 million a year ago.
The company said revenue was boosted by a 66 percent year-over-year increase in guidance and stabilization product revenue, which was offset partially by a 2 percent dip in sales of mobile communication products.
Martin Kits van Heyningen, KVH’s CEO, said the company is pleased overall with its third quarter results, as revenue came in at the high end of its guidance range and net income and earnings per share exceeded expectations.
“Our TACNAV products provided KVH with a strong revenue stream during the quarter and helped to offset the negative impact on revenues of our U.K. operations, which were adversely affected by the weakness of the British pound,” he said in a statement. “Given that we don’t have the anticipated TACNAV orders for Q4 in backlog yet, we are removing them from our Q4 guidance. We still expect these to be awarded and we continue to do work so that we can deliver promptly when we receive the orders.”
The company’s TACNAV tactical navigation systems offer military vehicles and crews precision navigation, far target location and GPS backup.
KVH lowered its projection for 2016 revenue, to $174 million to $176 million from an earlier estimate of $190 million to $210 million because it does not have the TACNAV orders yet. If the orders are shipped and received in the fourth quarter, they would add at least $15 million in revenue, the company said. KVH also is expecting a loss of 6 cents to 1 cent in the fourth quarter, and revenue between $42 million and $44 million.
The company noted that V.Group recently renewed its NEWSlink subscription, which is KVH Media Group’s daily service supplying more than 500 vessels.

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