MIDDLETOWN – KVH Industries Inc. said yesterday, in an after-market announcement, that its preliminary, unaudited results indicate the company had revenue of about $17.2 million to $17.4 million and roughly break-even earnings for the quarter ended Dec. 31. The projected earnings include about 2 cents per in stock-option expenses.
KVH cited slower-than-expected fourth-quarter growth in sales of marine satellite systems and unexpected scheduling changes in confirmed military orders that are now expected to ship in 2007.
“These results are below our original expectations for the quarter,” said Martin Kits van Heyningen, KVH’s president and CEO. “However, we do not believe the factors involved are representative of any long-term trends.
“While we were affected by an unexpected softness in the marine market, marine sales in the fourth quarter were still up compared to last year, and we believe that we are continuing to gain market share with our new products.
“In fact, our overall mobile communications sales were up more than 15 percent for the quarter, compared to last year, reflecting some growth in marine sales as well as a strong increase in sales to the land market, compared to the same period last year. Within our defense business, the schedule changes added to an already large, anticipated year-over-year decline for defense sales, which resulted in a larger-than-expected decline in spite of positive growth in fiber-optic gyro-product sales.
“Looking ahead to 2007, we anticipate that revenue will be approximately $87 to $92 million, or approximately 10 percent to 17 percent above our expected 2006 full-year revenue,” he said. “We expect that GAAP earnings will be between $0.40 to $0.48 per diluted share, up approximately 67 percent to 100 percent over fiscal year 2006, which we project to be approximately $0.24 per diluted share. These expectations include a more cautious outlook for the next few quarters in the marine business. We also expect to see strengthening military sales and year-over-year growth compared to 2006, especially in the second half of the year.”
KVH’s fourth-quarter and full-year 2006 results are subject to the completion of the year-end audit. The company expects to release the audited results by mid-February.
KVH Industries Inc. (Nasdaq: KVHI) is an ISO 9001-certified maker of live mobile media systems, including satellite TV to telephone and high-speed Internet for vehicles and vessels, and a leading source of navigation, pointing and guidance solutions for maritime, defense, and commercial applications. Its products are based on its proprietary mobile satellite antenna and fiber optic technologies. Additional information is available at www.kvh.com.