|KVH Industries Reports Second Quarter 2017 Results |
MIDDLETOWN, RI, August 2, 2017 — KVH Industries, Inc., (Nasdaq: KVHI) reported financial results for the quarter ended June 30, 2017 today. The company will hold a conference call to discuss these results at 10:30a.m. ET today, which can be accessed at investors.kvh.com. Following the call, a replay of the webcast will be available through the company’s website.
Second Quarter 2017 Highlights
• Revenue for the second quarter of 2017 was $40.5 million, a decrease of 12%, from $46.0 million in the second quarter of 2016. On a constant currency basis, revenue decreased 10%.
• In the second quarter of 2017, mini-VSAT Broadband Airtime revenue grew $1.0 million, or 6%, compared to the second quarter of 2016. Likewise, the number of airtime subscribers also increased 6% for this period. Usage-based airtime plans grew to 60% for all airtime plans, helping increase airtime gross margin to a record 39%.
• AgilePlans, our new Connectivity as a Service Program, for the commercial maritime sector, launched successfully in the quarter, representing 20% of all mini-VSAT Broadband shipments. The revenue recognized from AgilePlans was not significant due to the time between shipments and activation.
• Strong inertial measurement unit (IMU) sales drove fiber optic gyro (FOG) product revenue higher by 11% and contracted engineering service revenue almost doubled in the second quarter of 2017 compared to the second quarter of 2016.
• Net loss in the second quarter of 2017 was $2.0 million, or $0.12 per share, compared to net loss of $0.8 million, or $0.05 per share, in the second quarter of 2016.
• Non-GAAP net income in the second quarter of 2017 was $0.5 million, or $0.03 per share, compared to $1.2 million, or $0.08 per share in the second quarter of 2016.
• Non-GAAP adjusted EBITDA in the second quarter of 2017 was $2.1 million compared to $3.5 million in the second quarter of 2016.
Commenting on the quarter, Martin Kits van Heyningen, KVH’s Chief Executive Officer, said, “We continue to be pleased with the growth in our Airtime service revenues and margins. We recorded another quarter of solid airtime and subscriber growth, and achieved record airtime gross margins of 39%. In addition, we launched our new subscription-based Connectivity as a Service Program, AgilePlans, this quarter and the feedback we have received so far continues to be very positive. AgilePlans represented over 38% of TracPhone V7-IP and V11-IP maritime shipments in the second quarter.”
The company operates in two segments, mobile connectivity and inertial navigation. Net sales for the mobile connectivity segment in the second quarter of 2017 decreased $2.8 million, or 8%, as compared to the second quarter of 2016 due to lower mini-VSAT Broadband product sales due in part to the fact that, under our AgilePlans program, we do not recognize revenue from products delivered to customers, and lower content and training revenues driven primarily by the weakness in the British Pound, partially offset by higher airtime revenues. Net sales for our inertial navigation segment in the second quarter of 2017 decreased $2.7 million, or 30%, compared to the second quarter of 2016, driven by a $3.5 million decrease in TACNAV sales, due to a large order that occurred in the second quarter of 2016. This decrease was partially offset by an increase in FOG product sales and contracted engineering services.
Full PDF of the quarterly report at: