KVH Industries Reports First Quarter 2018 Results

KVH Industries Inc (NASDAQ:KVHI), a global leader in mobile connectivity and inertial navigation systems reported financial results for the quarter ended March 31, 2018.

The company announced record total unit shipments of VSAT products, including 62 percent compared to the first quarter of 2017 and 50 percent compared to fourth quarter of 2017.

Total revenue of the company declined to $40.1 million in the fist quarter of 2018 as compared to $40.2 million year-over-year.

As quoted in the press release:

First Quarter 2018 Highlights

• AgilePlans, our new Connectivity as a Service Program for the commercial maritime sector, increased to 67% of total commercial maritime VSAT shipments, and 51% of the total VSAT shipments for the quarter.

• Our fiber optic gyro (FOG) product sales were 25% higher compared to the first quarter of 2017, the fifth consecutive quarter of double-digit growth across a range of applications.

• Our mini-VSAT Broadband airtime revenue grew $0.6 million or 4%, compared to the first quarter of 2017, driven by a 6% increase in subscribers, partially as a result of the introduction of AgilePlans.

• Net loss in the first quarter of 2018 was $3.9 million, or $0.23 per share, compared to a net loss of $4.9 million, or $0.30 per share in the first quarter of 2017.

• Non-GAAP net loss in the first quarter of 2018 was $1.0 million, or $0.06 per share, compared to $1.3 million, or $0.08 per share in the first quarter of 2017.

• Non-GAAP adjusted EBITDA in the first quarter of 2018 was $0.9 million, compared to a loss of $0.7 million in the first quarter of 2017.

“2017 was an investment year for KVH as we set in motion a number of strategic initiatives that we believed had the potential to increase our long-term growth across all of our markets. Our first quarter results illustrate that these investments are enabling us to make the transformation to growth in 2018. The AgilePlans Connectivity as a Service Program that we launched a year ago helped drive record quarterly mini-VSAT Broadband product shipments, and this positive momentum has carried into our second quarter,” Martin Kits van Heyningen, KVH’s chief executive officer said. “Our airtime revenue grew again in the first quarter as the AgilePlans program, together with our new global HTS network, helped to increase our subscriber base by more than 6%. In our inertial navigation segment, our FOG business continued to grow significantly, with a better than 25% year-over-year increase in the first quarter. At the same time, our development of a photonic chip-based FOG remains on track, and we expect to have a working prototype available for testing by key driverless vehicle developers by the end of this year.”

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