KVH Industries Reports First Quarter 2020 Results
MIDDLETOWN, RI, May 1, 2020 — KVH Industries, Inc., (Nasdaq: KVHI) reported financial results for the quarter ended March 31, 2020 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 2020 Highlights
• Total revenue from continuing operations increased by 1% in the first quarter of 2020 to $36.6 million compared to $36.4 million in the first quarter of 2019.
• AgilePlans, our Connectivity as a Service program for the commercial maritime sector, amounted to 78% of total commercial maritime mini-VSAT Broadband shipments, and 63% of the total mini-VSAT Broadband shipments for the quarter.
• AgilePlans revenues were up more than 85% compared to the first quarter of 2019 and now represent 29% of subscribers.
• Overall, total mini-VSAT Broadband product shipments for the first quarter were up 12% over the prior year period.
• Our mini-VSAT Broadband airtime revenue increased $0.9 million or 5%, in the first quarter of 2020 compared to the first quarter of 2019, driven primarily by a 10% increase in subscribers and continuing success of our AgilePlans and HTS airtime services.
• Fiber optic gyro (FOG) product sales increased $0.4 million, or 9% in the first quarter of 2020, and TACNAV product sales increased $0.4 million or 46% in the first quarter of 2020 compared to the first quarter of 2019.
• Net loss from continuing operations in the first quarter of 2020 was $6.2 million, or $0.35 per share, compared to a net loss of $6.5 million, or $0.38 per share in the first quarter of 2019.
• Non-GAAP net loss from continuing operations in the first quarter of 2020 was $4.3 million, or $0.25 per share, compared to $3.8 million, or $0.22 per share in the first quarter of 2019.
• Non-GAAP adjusted EBITDA from continuing operations in the first quarter of 2020 was a loss of $3.7 million, compared to a loss of $2.8 million in the first quarter of 2019.
Commenting on the quarter, Martin Kits van Heyningen, KVH’s chief executive officer, said “Despite the impact of the COVID-19 global pandemic at the end of the quarter, we are pleased that we delivered first quarter results largely in line with our expectations. We made good progress on all our key strategic initiatives this quarter, particularly with respect to our new PIC-based FOG, and we shipped our first PIC product at the end of March. We continue to expect that all our FOG products will include the PIC technology by the end of 2020. Shipments of our AgilePlans grew substantially, almost 20% compared to the 2019 first quarter, and our AgilePlans revenue grew more than 85%. We continue to pursue our IoT initiative and are receiving positive feedback from customers and the overall market, supporting our confidence in the potential of this business.
“While we got off to a very good start this year, our business now faces unprecedented and unforeseen challenges as a result of the COVID-19 pandemic. At this point, it is simply not possible to estimate how extensively or for how long this global health care crisis will continue, but we have seen enough to know that we can no longer be confident in our previous 2020 revenue and earnings guidance. Accordingly, we are withdrawing our previous guidance and refraining from providing updated guidance until we have a clearer picture of how significantly the pandemic will affect us. That said, we ended our first quarter with more than $41 million in cash, and we are taking multiple steps to align our costs with the business economics to ensure that we have ample cash and other liquidity as the pandemic continues. These steps include reducing compensation and cutting costs. We will continue to monitor our financial situation on an ongoing basis and may find it necessary to take additional measures to weather the pandemic as best we can, while executing on the strategic initiatives that we expect to drive our growth in the years to come.”
The company continues to classify the results of the Videotel business as a discontinued operation and therefore Videotel is excluded from the segment information below.
The company operates in two segments, mobile connectivity and inertial navigation. In the first quarter of 2020, net sales for the mobile connectivity segment was flat compared to the first quarter of 2019. Mobile connectivity sales were flat, primarily due to a $0.9 million increase in mini-VSAT Broadband airtime revenue, offset by a $0.7 million decrease in marine mobile product revenue and a $0.2 million decrease in land mobile product revenue. In the first quarter of 2020, net sales for our inertial navigation segment increased $0.2 million, or 3%, compared to the first quarter of 2019. Inertial navigation sales increased due to a $0.4 million increase in TACNAV sales and a $0.4 million increase in FOG sales, partially offset by a $0.5 million decrease in contracting engineering sales.
**Check KVH site for full financials report. |
