KVH widens loss in 1Q

KVH Industries widened its first-quarter loss to $2.8 million, or 18 cents per diluted share, compared with the loss it reported in the first quarter of 2015 of $1.4 million, or 9 cents per share. / COURTESY KVH INDUSTRIES
KVH Industries widened its first-quarter loss to $2.8 million, or 18 cents per diluted share, compared with the loss it reported in the first quarter of 2015 of $1.4 million, or 9 cents per share. / COURTESY KVH INDUSTRIES

MIDDLETOWN – KVH Industries Inc. widened its first-quarter loss to $2.8 million, or 18 cents per diluted share, compared with the loss it reported in the first quarter of 2015 of $1.4 million, or 9 cents per share. Revenue also decreased, by 2.2 percent to $40.4 million from $41.3 million in first quarter of last year.
The provider of guidance, communication and Internet systems for the maritime, retail, leisure and defense industries released its earnings report for the first quarter Thursday.

It said that on a non-GAAP basis, a method that companies use that reverses out restructuring, financing, hedging, changes in the fair value of fixed and intangible assets, deferred income tax and other tax expense and amortization of financing costs, the company posted a loss of $600,000, or 4 cents per share, compared with non-GAAP profit of $900,000, or 6 cents per share, a year ago.

Martin Kits van Heyningen, KVH’s CEO, said the company is pleased with its first-quarter results, despite “headwinds” in the commercial maritime sector.

“We had a solid quarter for both VSAT and marine TV hardware sales, and are confident that we continue to gain market share. We did see a small decline in the average revenue per user for our VSAT airtime subscribers, particularly those operating in the offshore oil and gas sector, which resulted in VSAT airtime being down 1 percent year-over-year,” he said in a statement.

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The company said a portion of its revenue is denominated in pounds sterling, and there have recently been “significant fluctuations in currency movement relative to the U.S. dollar.”
Looking ahead, KVH said it is projecting full-year revenue in the range of $190 million to $210 million, and net income between $2 million and $6.7 million, or 12 cents to 42 cents per diluted share.

KVH noted recent highlights, such as an order for tactical navigation systems to support prototype vehicles for a program to produce a new fleet of U.S. Army armored multi-purpose vehicles led by BAE Systems, along with plans for a low-cost inertial sensor for self-driving cars.

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