KVH Announces 1999 Financial Results; Record TracVision Sales Drive Revenue Increase for 4Q and Year|
February 14, 2000 07:34 AM
MIDDLETOWN, R.I.--(BUSINESS WIRE)--Feb. 14, 2000--KVH Industries, Inc. KVHI today announced financial results for the company's fourth quarter and fiscal year ending December 31, 1999. An increase in revenues for both the quarter and the year was attributable to significant sales of the company's mobile satellite television systems for land vehicles and marine vessels.
"TracVision(R) LM, the land mobile system we introduced in 1999, created a strong consumer demand throughout the year," said Martin Kits van Heyningen, president and CEO. "The land mobile and marine mobile systems together helped us achieve new record revenues for the entire TracVision line."
Revenues for the 1999 fourth quarter increased 17% to $5.5 million from $4.7 million in the comparable 1998 quarter. Communications sales grew more than 83% during the quarter to nearly $3.0 million from $1.6 million in 1998 due to strong sales of the new land mobile satellite television system and to the company's latest marine television system. Strength in communications orders helped offset a decline in navigation sales of 16 percent. Navigation sales declined due to the slow pace of finalizing military orders for tactical systems. A net loss for the 1999 quarter of $1.2 million or $.17 compares to a net loss in 1998 of $1.4 million or $.19 a share.
Revenues for fiscal 1999 totaled $22.8 million, an increase of more than 10% over $20.6 million in 1998. Total annual communications sales increased nearly 73% in 1999 to $11.4 million from $6.6 million in 1998. Navigation sales decreased 18% in 1999 to $11.4 million from $14.0 million in 1998 due to slow sales during the first half of the year and some delays during the second half in finalizing certain military contracts that had been awarded. A net loss of $2.7 million or $.37 a share in 1999 compares to a net loss in 1998 of $2.3 million or $.32 a share.
Quarterly operating expenses increased 17% to $3.4 million in 1999 from $2.9 million in the 1998 quarter. The increase was due to higher research and development costs and the marketing expenses for establishing a presence in the new land mobile market and introducing other new products. Operating losses declined 27% during the 1999 fourth quarter to $1.5 million from $2.0 million in 1998.
Operating expenses for fiscal 1999 increased 11% to $11.8 million from $10.7 million in 1998. The increase is due in large part to marketing expenses for fiber optic products and the new land mobile satellite television system, and to research and development costs related to new-generation navigation and communications products. The 1999 operating loss declined nearly 5% to $4.0 million from $4.2 million in 1998.
KVH is webcasting its 1999 fourth quarter and year-end conference call at 11:30 a.m. Eastern time today through the company's website at kvh.com (select "Company"). The audio also will be archived at the company website shortly after the call is completed.