KVH Industries Reports Second Quarter 2020 Results
***Highlights and quotes from Martin Kits van Heyningen only here
MIDDLETOWN, RI, July 31, 2020
Second Quarter 2020 Highlights
• Total revenues from continuing operations were $36.9 million compared to $39.7 million in the second quarter of 2019, a 7% decline.
• Revenues for AgilePlans, our Connectivity as a Service program for the commercial maritime sector, were up more than 72% compared to the second quarter of 2019.
• AgilePlans, amounted to 72% of total commercial maritime mini-VSAT Broadband shipments, and 60% of the total mini-VSAT Broadband shipments for the quarter. AgilePlans now represent 32% of our mini-VSAT Broadband subscriber base.
• Our mini-VSAT Broadband airtime revenue increased $1.1 million, to $20.2 million, or 6%, in the second quarter of 2020 compared to the second quarter of 2019, driven primarily by a 6% increase in subscribers and the continuing success of our AgilePlans and HTS airtime services.
• TACNAV product sales increased $0.8 million in the second quarter of 2020 compared to the second quarter of 2019 while fiber optic gyro (FOG) product and OEM sales decreased $0.2 million, or 3% in the second quarter of 2020.
• Net loss from continuing operations in the second quarter of 2020 was $3.6 million, or $0.20 per share, compared to a net loss of $3.3 million, or $0.19 per share, in the second quarter of 2019.
• Non-GAAP net loss from continuing operations in the second quarter of 2020 was $1.6 million, or $0.09 per share, compared to $1.7 million, or $0.10 per share, in the second quarter of 2019.
• Non-GAAP adjusted EBITDA from continuing operations in the second quarter of 2020 was break even, compared to a loss of $0.9 million in the second quarter of 2019.
Commenting on the quarter, Martin Kits van Heyningen, KVH’s chief executive officer, said “We made very good progress on both our core business and strategic initiatives, despite the ongoing financial and other challenges presented by COVID-19. We recently introduced and began shipping the P-1775 inertial measurement unit (IMU), the first of our inertial systems featuring KVH’s new photonic integrated chip (PIC) technology. We also announced that we received a new international military order with a net value of more than $10 million for our TACNAV tactical navigation systems, with all hardware deliveries for the order scheduled to take place in 2020. Our mobile connectivity subscriber base and AgilePlans revenues continued to expand, and our airtime margins improved significantly. In addition, we launched the new Remote Expert Intervention service as part of KVH Watch target the growing demand for IoT solutions.
“As was the case for most companies, we entered the second quarter with significant uncertainty resulting from the unprecedented global pandemic. We are happy to say, however, that while we anticipated and prepared for a range of scenarios, both of our business segments held up well in the face of the global health and economic challenges. Our mini-VSAT Broadband shipments remained strong, our airtime revenue continued to grow, our FOG and TACNAV sales were healthy, our gross margins expanded, and our operating expenses decreased. As a result, we were able to improve our adjusted earnings before interest, taxes, depreciation and amortization. However, the impact of the pandemic on the global economy remains uncertain. Therefore, we continue to proceed very cautiously, monitor the overall health of our business closely, and maintain the cost discipline that we implemented at the end of the first quarter. At the same time, we continue to execute on the strategic initiatives that we expect will be the foundation for our revenue and earnings growth in 2021 and beyond.” |
