Hi All,
One has to wonder if VectorNav is one of the companies which is helping KVH with the autonomous FOG.
globenewswire.com
Also, indications from Intelsat and Inmarsat CCs suggest positive momentum for KVH HTS plans. When comparing KVH and Inmarsat’s modelled approaches, it’s difficult to see a scenario in which KVH doesn’t outperform Inmarsat’s strong 2017 Vsat growth pattern. 2017 was the first full year of the FX offering. Excluding XpressLink migrations, Inmarsat added 460 new Vsats in Q1 2018. They lost 2,300 FBB users in 2017 but 40% appear to have moved to FX. New VSAT customers accelerated throughout 2017, but slowed in Q1. My thoughts are that KVHs new HTS offering slowed their new customer adds considerably. The KVH agile plan offering is extremely competitive, relative to FX.
Although, I’m not expecting much, in terms of revenue impact in Q1, we should see the first solid signs of success taking root in guidance. Considering we are still only talking about a V7HTS impact of $1-2 million in Q2, I’m thinking we are likely to hear about positive to potentially record Vsat backlog as indications of success. Looking at the Inmarsat unit growth trajectory, the 30-40% unit growth numbers suggested from the last KVH call could go up. One caveat to that is that the legacy vip series is likely depressed from a significant move to V7HTS. Another positive from this shift is that the weighted average ARPU is likely to start moving up in tandem with unit growth. This combination, of ARPU and unit growth, could be the spark we need, short of the revenue growth numbers we aren’t likely to see until q3. ARPUs and unit trends have been negative for several years. That trend is likely over.
Aw |
