MIDDLETOWN, R.I., May 05, 2021 (GLOBE NEWSWIRE) -- KVH Industries, Inc., (Nasdaq: KVHI), reported financial results for the quarter ended March 31, 2021 today. The company will hold a conference call to discuss these results at 9:00 a.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.
First Quarter 2021 Highlights
Total revenues increased by 16% in the first quarter of 2021 to $42.3 million from $36.6 million in the first quarter of 2020.
Revenues for AgilePlans, our Connectivity as a Service program for the commercial maritime sector, were up more than 48% compared to the first quarter of 2020.
AgilePlans amounted to 84% of total commercial maritime mini-VSAT Broadband shipments, and 67% of the total mini-VSAT Broadband shipments for the quarter. AgilePlans now represent 41% of our mini-VSAT Broadband subscriber base.
Our mini-VSAT Broadband airtime revenue increased $2.2 million, to $21.4 million, or 11%, in the first quarter of 2021 compared to the first quarter of 2020, driven primarily by a 7% increase in subscribers.
TACNAV product sales increased $4.2 million in the first quarter of 2021 compared to the first quarter of 2020, and fiber optic gyro (FOG) product and OEM product sales increased $0.9 million, or 16%, in the first quarter of 2021 compared to the first quarter of 2020.
Net loss in the first quarter of 2021 was $4.0 million, or $0.22 per share, compared to a net loss of $6.2 million, or $0.35 per share, in the first quarter of 2020.
Non-GAAP net loss in the first quarter of 2021 was $0.9 million, or $0.05 per share, compared to a non-GAAP net loss of $4.3 million, or $0.25 per share, in the first quarter of 2020.
Non-GAAP adjusted EBITDA in the first quarter of 2021 was $1.1 million, compared to a negative $3.7 million in the first quarter of 2020.
Commenting on the quarter, Martin Kits van Heyningen, KVH’s chief executive officer, said, “Despite continuing pandemic-related headwinds, KVH recorded a strong first quarter, with total revenue up 16% over the first quarter of 2020, net loss improved by $2.2 million and adjusted EBITDA was up $4.8 million over the first quarter of 2020. We continued to make progress against our strategic priorities, with shipments for our AgilePlans subscription offering up almost 50%. While AgilePlans shipments do not immediately show up in revenue, they drive future top-line growth and are an important indicator of the robust health of our mobile connectivity business. Airtime revenue, a function of prior shipments, grew at double-digit rates over last year, and gross margin improved as well. We recently introduced the TracPhone V30, an ultra-compact VSAT antenna that is easy to install and will deliver high-performance, affordable Internet at sea, and we believe it will further strengthen our position in this market and drive future growth and profitability. Within the mobile connectivity segment as a whole, revenue was up compared to a year ago, and on the cost side we continue to migrate VSAT customers onto our HTS network as we progress towards an exit of our legacy network by year end.”
“In the inertial navigation segment, we successfully completed a large tactical navigation order that we had announced in the second quarter of last year, which increased TACNAV revenue in the first quarter by $4.2 million over a year ago. Even without the growth in TACNAV, inertial navigation product sales increased by more than 15%, and we made substantial progress in our transition to production of our photonic integrated chip (PIC)-based inertial systems. While uncertainty in our markets continues to complicate any forecasting, we maintain our view that if customer activity returns to a more normal level early in the third quarter we can anticipate full-year revenues to increase by mid-to-high single digits over 2020 revenues and adjusted EBITDA to grow at a faster rate than revenue for the full year.”
The company operates in two segments, mobile connectivity and inertial navigation. In the first quarter of 2021, net sales for the mobile connectivity segment increased by $1.6 million compared to the first quarter of 2020. mini-VSAT Broadband airtime revenue increased by $2.2 million. The increase was offset primarily due to a $0.9 million decrease in our content service sales. In the first quarter of 2021, net sales for our inertial navigation segment increased by $4.1 million, or 54%, compared to the first quarter of 2020. Inertial navigation sales increased primarily due to a $4.2 million increase in the volume of TACNAV product sales and a $0.9 million increase in our FOG and OEM product sales. |
