KVH Industries reported an expected loss of approximately 34- to 37-cents per share, with revenue estimates for the second quarter of this year expected to be a little more than $14 million.
“Preliminary financial results indicate that our overall second quarter revenues will be between $14.2 million and $14.5 million, well below our original expectations for the quarter,” said Pat Spratt, KVH’s chief financial officer, in a release. “This was primarily due to lower than expected sales for our military navigation products and land mobile satellite systems.”
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Spratt did offer news that the company’s manufacturing cost reduction efforts for the TracVision A5 would enable the company to drop the satellite television system’s retail price by $1,200 – to $2,295 – and hopefully broaden their market. With approximately $2.5 million inventory valuation reserves, he estimated the new less would amount to between $4.9 million to $5.3 million for the quarter.
Martin Kits van Heyningen, KVH’s president and chief executive officer, said in a release he expects to see “modest profitability” in the fourth quarter due to a national advertising campaign and the new pricing. KVH Industries, Inc., designs and manufactures products that enable mobile communication, navigation, and precision pointing through the use of its proprietary mobile satellite antenna and fiber optic technologies.
