Numbers for the quarter. EPS was as forecast. I want to look over it carefully before I comment.
"KVH Industries' Growth Continues in Second Quarter With 13% Revenue, 26% Net Income Increases
July 22, 1997 04:12 PM
MIDDLETOWN, R.I., July 22 /PRNewswire/ -- KVH Industries, Inc. KVHI , a leading manufacturer of communication and navigation systems for commercial, marine and military markets, announced today that revenues for the second quarter ended June 30, 1997, grew 13% to $5.8 million from $5.1 million for the same period last year.
Net income rose 26% to $402,167 in the 1997 second quarter compared to $320,099 in the comparable 1996 quarter. Earnings per share for the three months ended June 30, 1997, were $0.05 per share compared to $0.04 per share in the 1996 second quarter.
For the first six months of 1997, revenues grew 18% to $11.7 million from $9.9 million in the first six months of 1996. Net income for the 1997 six months was $1 million compared to $507,666 for the 1996 comparable six-month period. Earnings per share for the first six months of 1997 were $0.13 per share compared to $0.08 per share for the comparable 1996 period.
"We are pleased with our second quarter results, particularly as the net income increase was achieved during a period of significant facility, personnel and product expansion," said Chief Executive Officer and President Martin Kits van Heyningen. "The considerable interest customers expressed in TracVision II during the quarter is very encouraging, and a final testing phase is underway to ensure that the new product meets the standards set by our initial unit. Both KVH and Station 12 made notable strides during the quarter in implementing various terms of our Memorandum of Understanding, and we also progressed in formalizing certain aspects of this venture to jointly market and sell KVH's Tracphone 50 and Station 12's Inmarsat satellite services."
Revenue growth during the second quarter was attributable primarily to AMSC sales gains, which completed that company's $10 million order for KVH Tracphones. As compared to sales distribution in the second quarter of 1996, total commercial shipments comprised a greater percentage and military sales a smaller percentage of overall revenues in the 1997 second quarter.
Gross profit for the 1997 second quarter increased 10% over the 1996 comparable quarter, to $2.5 million from $2.3 million. Due to recent manufacturing capacity enhancements and warranty changes, gross profit as a percentage of net sales for the 1997 second quarter was 44%, a slight decline from 45% in the 1996 second quarter.
Gross profit for the six months ended June 30, 1997, increased 20% to $5.3 million as compared to $4.4 million in the 1996 first half, and as a percentage of sales, gross profit in the 1997 six-month period increased 1% over the same 1996 period.
KVH Industries develops, manufactures and markets digital navigation systems and mobile satellite communications systems for use in commercial, military and marine applications. The company was founded in 1982, and has headquarters in Middletown, RI, USA, and an international office in Hoersholm, Denmark.
This press release may contain certain forward looking statements that involve risks and uncertainties. The actual results realized by the Company could differ materially from the statements made herein. Factors that might cause such differences include, but are not limited to, those discussed in the Company's Annual Report on Form 10K filed with the Securities and Exchange Commission on March 27, 1997. Copies are available from the Company's Investor Relations Department.
KVH INDUSTRIES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
1997 1996
(Unaudited) (Audited)
Assets:
Current assets:
Cash and cash equivalents $8,881,872 $7,005,682
Accounts receivable, net 1,699,060 6,130,567
Contract receivables 88,745 29,226
Costs and estimated earnings in excess
of billings on uncompleted contracts 1,090,983 835,720
Inventories 3,383,054 3,242,270
Prepaid expenses and other deposits 232,338 179,705
Deferred income taxes 134,552 134,552
Total current assets 15,510,604 17,557,722
Property and equipment, net 4,462,729 3,881,088
Other assets, less accumulated
amortization 6,495 25,978
Deferred income taxes 88,862 88,862
Total assets $20,068,690 $21,553,650
Liabilities and stockholders' equity:
Current liabilities:
Current lease obligation $32,747 $57,676
Borrowings under bank line of credit 500,000 0
Accounts payable 1,361,034 1,031,309
Accrued expenses 569,797 1,371,193
Customer deposits 0 2,527,500
Total current liabilities 2,463,578 4,987,678
Obligations under capital leases,
excluding current installments 0 3,341
Total liabilities 2,463,578 4,991,019
Stockholders' equity:
Common stock 70,457 69,932
Additional paid-in capital 14,920,602 14,884,806
Accumulated earnings 2,614,053 1,607,893
Total stockholders' equity 17,605,112 16,562,631
Total liabilities and stockholders'
equity $20,068,690 $21,553,650
KVH INDUSTRIES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Six months ended
June 30, June 30,
1997 1996 1997 1996
Net sales $5,770,505 $5,113,602 $11,686,838 $9,894,261
Cost of sales 3,250,743 2,829,248 6,429,773 5,521,637
Gross profit 2,519,762 2,284,354 5,257,065 4,372,624
Operating
expenses:
Research and
development 635,275 674,297 1,241,221 1,284,018
Sales and
marketing 950,641 785,701 1,729,740 1,643,923
Administration 369,672 394,284 846,223 710,419
Income from
operations 564,174 430,072 1,439,881 734,264
Other income
(expense):
Other income
(expense) (3,080) 8,975 (10,119) 10,226
Interest income,
net 99,789 102,660 186,275 102,660
Foreign currency
gain (loss) 10,335 (29,612) 6,461 (22,446)
Income before
income taxes 671,218 512,095 1,622,498 824,704
Income tax expense 269,051 191,996 616,338 317,038
Net income $402,167 $320,099 $1,006,160 $507,666
Per share
information:
Income per share $ 0.05 $0.04 $0.13 $0.08
Number of shares
used in per share
calculation 7,489,837 7,404,464 7,490,228 6,470,208
SOURCE KVH Industries, Inc. " |
