KVH Industries Reports First Quarter 2018 Results
MIDDLETOWN, RI, May 4, 2018 — KVH Industries, Inc., (Nasdaq: KVHI) reported financial results for the quarter ended March 31, 2018 today. The company will hold a conference call to discuss these results at 10:30 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 2018 Highlights
• Record total unit shipments of VSAT products, increasing 62% compared to the first quarter of 2017 and 50% compared to the fourth quarter of 2017.
• 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.
• Total revenue declined slightly in the first quarter of 2018 to $40.1 million from $40.2 million in the first quarter of 2017, driven in part by the continuing shift in our business model from hardware sales to a recurring revenue model, as well as the new revenue recognition standard. The application of the new revenue recognition standard, Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers, reduced our total revenue in the first quarter of 2018 by $0.4 million, or 1%, from the revenue we would have recognized under the prior standard.
• 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.
Commenting on the quarter, Martin Kits van Heyningen, KVH’s chief executive officer, said “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. 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.”
The company operates in two segments, mobile connectivity and inertial navigation. Net sales for the mobile connectivity segment decreased $1.5 million, or 4%, as compared to the first quarter of 2017 due to lower mini-VSAT Broadband product sales as a result of the implementation of the new ASC 606 revenue recognition standard as well as the impact of the AgilePlans subscription service. Partially offsetting this decrease was an increase in our mini-VSAT Broadband airtime revenue. Net sales for our inertial navigation segment increased $1.4 million, or 24%, compared to the first quarter of 2017, due to an increase in FOG sales and contracted engineering services. |
