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KVH Industries – Overall results were right in line with expectations for the quarter

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KVH Industries, Inc., (Nasdaq:KVHI) today reported financial results for the fourth quarter ended December 31, 2011. Revenue for the fourth quarter of 2011 was $31.9 million, up 18% from the quarter ended December 31, 2010. Diluted earnings per share for the quarter totaled $0.11 on net income of $1.6 million. During the same period last year the company reported net income of $0.2 million or $0.02 per diluted share on revenues of $27.0 million.

For the year ended December 31, 2011, revenue was $112.5 million, compared to $112.2 million for the year ended December 31, 2010. KVH reported net income of $0.9 million or $0.06 on a per diluted share basis for the full year 2011. For the year ended December 31, 2010, the company reported net income of $8.3 million or $0.56 on a per diluted share basis. Excluding transaction costs associated with the acquisition of Virtek Communication and changes to the deferred income tax valuation allowance, 2010 full year adjusted net income was $5.3 million, and adjusted diluted EPS was $0.36.

“Overall results were right in line with our expectations for the quarter,” said Martin Kits van Heyningen, KVH’s chief executive officer. “Unit sales of our mini-VSAT Broadband TracPhone(R) systems in the fourth quarter were up 94% compared to the same quarter last year. Revenue from our TACNAV(R) line of military vehicle navigation systems was very strong, due primarily to acceleration in certain customer programs, which offset a decline in our FOG business.”


In the fourth quarter of 2011, our mobile communications business, including our satellite television products, had revenue of $17.5 million, a 21% increase on a year-over-year basis.

KVH’s guidance and stabilization revenue from our fiber optic gyro (FOG) solutions, TACNAV military navigation systems, and related services was $14.5 million in the fourth quarter of 2011, up 15% on a year-over-year basis.

“We are seeing continued momentum in our mini-VSAT business. With our recently announced TracPhone V11 and C-band airtime service, we believe we are on a path to further disrupt the maritime communications market while also expanding our addressable market,” explained Mr. Kits van Heyningen. “During 2011, the acceleration of some TACNAV business offset delays in the U.S. Army CROWS program. Our FOG and TACNAV businesses continue to have significant potential and we are making additions to those product lines as well. Our TACNAV business could have some additional upside in the coming quarters, but given that these are foreign military sales, we are being cautious due to potential timing issues.”

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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