KVH… Financially Speaking…

[SatNews] KVH Industries, Inc., (Nasdaq:KVHI) today reported financial results for the quarter ended March 31, 2011.



Revenue for the first quarter of 2011 was $24.4 million, down 13 percent from the quarter ended March 31, 2010. Net loss for the period was $1.5 million or $0.10 per share. During the same period last year the company reported net income of $2.1 million or $0.14 per diluted share, on revenues of $28.0 million.



“The first quarter was marked by solid progress in our VSAT and fiber optic gyro (FOG) businesses as well as some greater-than-anticipated challenges in our leisure markets,” said Martin Kits van Heyningen, KVH‘s chief executive officer. “As expected, sales of our mini-VSAT Broadbandsm-compatible hardware and airtime activations increased significantly on both a year-over-year and sequential basis. Commercial sales of our FOGs increased as expected for the quarter and we also received new defense-related orders. However, satellite TV system sales to the leisure marine and recreational vehicle (RV) markets were far weaker than expected due to rising fuel prices and a decline in new boat sales.



“We were very pleased with our VSAT sales for the quarter which grew approximately 59 percent year over year for product and service revenue, including the benefit of CommBox™ sales by our new Norway subsidiary. In addition, we won our largest-ever commercial marine contract to provide our fully integrated, mini-VSAT Broadband satellite communication solution for the more than 125 vessels in the Vroon B.V. fleet. We also expanded our affordable broadband service offerings to a wider audience of vessels with the announcement of the TracPhone® V3, the world’s smallest maritime VSAT system. This exciting new product just received full license authority from the FCC and began shipping this week. It offers commercial fleets and leisure boaters an outstanding new option for an ultra-compact satellite communication solution that is far more affordable and faster than L-band services.”

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In the first quarter of 2011, mobile communications revenue was $15.7 million, down 2 percent on a year-over-year basis. Unlike the first quarter of 2010, there were no production shipments of KVH’s aeronautical TV antenna to LiveTV in the first quarter of 2011. Excluding the LiveTV year-over-year impact, mobile communications revenue from marine and land products and services was up 20 percent on a year-over-year basis on the strength of KVH’s mini-VSAT Broadband hardware, airtime, and network management products. To read the entire financial report, access this direct link.