KVH Industries, Inc., (Nasdaq: KVHI), reported financial results
for the quarter ended June 30, 2021 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.
Second Quarter 2021 Highlights
- Total revenues increased by 17% in the second quarter of 2021
to $43.4 million from $36.9 million in the second quarter of
2020.
- Revenues for AgilePlans, our Connectivity as a Service program
for the commercial maritime sector, were up more than 54% compared
to the second quarter of 2020. AgilePlans now represent 44% of our
mini-VSAT Broadband subscriber base.
- Our mini-VSAT Broadband airtime revenue increased
$2.9 million, to $23.1 million, or 14%, in the second
quarter of 2021 compared to the second quarter of 2020, driven
primarily by a 13% increase in active subscribers. Unit shipments
were up 87% for another record quarter.
- Fiber optic gyro (FOG) product and OEM product sales
increased $1.5 million, or 23%, in the second quarter of
2021 compared to the second quarter of 2020, and TACNAV product
sales increased $0.5 million in the second quarter of 2021
compared to the second quarter of 2020.
- Net loss in the second quarter of 2021 was $5.7 million,
or $0.31 per share, compared to a net loss of $3.6 million, or
$0.20 per share, in the second quarter of 2020.
- Non-GAAP net loss in the second quarter of 2021 was $0.8
million, or $0.05 per share, compared to a non-GAAP net loss of
$1.6 million, or $0.09 per share, in the second quarter of 2020.
- Non-GAAP adjusted EBITDA in the second quarter of 2021 was
$1.5 million, compared to break even in the second quarter of
2020.
Commenting on the quarter, Martin Kits van
Heyningen, KVH’s chief executive officer, said, “KVH recorded
another strong quarter, reflecting our success in implementing our
strategic priorities. We achieved record mini-VSAT Broadband
shipments for the third consecutive quarter, driven largely by new
AgilePlans subscriptions. While AgilePlans shipments do not
immediately show up in revenue, they drive future top-line growth
and are an important indicator of the robust health of our mobile
connectivity business. Airtime revenue, a function of prior
shipments, grew at double-digit rates over last year, and gross
margin remained stable as we added network capacity to our
expanding mini-VSAT Broadband HTS network. Our TracPhone V30, an
ultra-compact VSAT antenna introduced at the end of March 2021,
made up 26% of the total mini-VSAT Broadband shipments for the
second quarter. For the mobile connectivity segment as a whole,
revenue was up compared to a year ago. On the cost side, we
continue to migrate VSAT customers onto our HTS network as we
progress towards an exit of our legacy network by year-end. We are
working hard to transition the remaining 26% of our airtime
subscribers to our HTS network, which is important for maintaining
the growth rate of our mini-VSAT Broadband service sales in
2022.
“In the inertial navigation segment, product
sales increased by more than 27%, and we made substantial progress
in integrating the photonic integrated chip (PIC) across our
product portfolio. With respect to our outlook for the full year,
we maintain our view that our full year revenues will increase by
mid to high single digits over 2020 revenue and adjusted EBITDA to
grow at a faster rate than revenue for the full year.”
The company operates in two segments, mobile
connectivity and inertial navigation. In the second quarter of
2021, net sales for the mobile connectivity segment increased by
$4.6 million compared to the second quarter of 2020. mini-VSAT
Broadband airtime revenue increased by $2.9 million and
TracVision product sales increased by $0.8 million. In the second
quarter of 2021, net sales for our inertial navigation segment
increased by $1.9 million, or 24%, compared to the second quarter
of 2020. Inertial navigation sales increased primarily due to a
$1.5 million increase in FOG and OEM product sales and a
$0.5 million increase in TACNAV product sales. These increases
were offset in part by a $0.3 million decrease in contracted
engineering revenue.
Financial Highlights (in millions, except per
share data)
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
GAAP
Results |
|
|
|
|
|
|
|
Revenue |
$ |
43.4 |
|
|
$ |
36.9 |
|
|
$ |
85.7 |
|
|
$ |
73.5 |
|
Net loss |
$ |
(5.7 |
) |
|
$ |
(3.6 |
) |
|
$ |
(9.7 |
) |
|
$ |
(9.8 |
) |
Net loss per share |
$ |
(0.31 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.54 |
) |
|
$ |
(0.56 |
) |
|
|
|
|
|
|
|
|
Non-GAAP
Results |
|
|
|
|
|
|
|
Net loss |
$ |
(0.8 |
) |
|
$ |
(1.6 |
) |
|
$ |
(1.8 |
) |
|
$ |
(5.9 |
) |
Net loss per share |
$ |
(0.05 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.34 |
) |
Adjusted EBITDA |
$ |
1.5 |
|
|
$ |
0.0 |
|
|
$ |
2.6 |
|
|
$ |
(3.8 |
) |
For more information regarding our non-GAAP
financial measures, see the tables at the end of this release.
Second Quarter Financial Summary
Revenue was $43.4 million for the second
quarter of 2021, an increase of 17% compared to $36.9 million
in the second quarter of 2020.
Product revenues for the second quarter of 2021
were $17.3 million, an increase of 24% compared to the prior
year quarter due to a $2.0 million increase in inertial
navigation product sales and a $1.3 million increase in mobile
connectivity product sales. Inertial navigation product sales
increased primarily as a result of a $1.5 million increase in
FOG and OEM product sales and a $0.5 million increase in
TACNAV product sales. The increase in mobile connectivity product
sales was primarily due to a $0.8 million increase in TracVision
product sales. The increase in TracVision product sales was due to
an increase in sales volume.
Service revenues for the second quarter of 2021
were $26.1 million, an increase of $3.1 million compared
to the prior year quarter primarily due to a $3.2 million
increase in mobile connectivity service sales, partially offset by
a $0.1 million decrease in inertial navigation service sales.
Mobile connectivity service sales increased primarily due to a
$2.9 million increase in our mini-VSAT Broadband service
sales, which resulted in part from a 13% increase in active
subscribers, primarily as a result of AgilePlans. Inertial
navigation service sales decreased primarily due to lower contract
engineering service revenue.
Our operating expenses increased $4.7 million to
$21.1 million for the second quarter of 2021 compared to
$16.4 million for the second quarter of 2020. This increase
resulted primarily from an increase in professional fees, primarily
relating to a stockholder’s nomination of a competing slate of
directors at our annual meeting of stockholders, as well as an
increase in salaries and employee benefits.
Six Months Ended June 30 Financial
Summary
Revenue was $85.7 million for the six
months ended June 30, 2021, an increase of 17% compared to
$73.5 million for the six months ended June 30, 2020.
Product revenues for the six months ended June
30, 2021 were $35.7 million, an increase of 32% compared to
the six months ended June 30, 2020 primarily due to an increase of
$7.0 million in inertial navigation product sales and an
increase in mobile connectivity product sales of $1.6 million.
The increase in inertial navigation product sales was primarily due
to a $4.7 million increase in TACNAV product sales and a $2.4
million increase in FOG product sales. The increase in mobile
connectivity product sales was due to a $1.6 million increase
in marine mobile connectivity product sales, which was primarily
driven by a $0.9 million increase in TracVision product sales and a
$0.6 million increase in mini-VSAT Broadband product sales.
Service revenues for the six months ended June
30, 2021 were $50.0 million, an increase of 8% compared to the
six months ended June 30, 2020 primarily due to an increase in
mobile connectivity service sales of $4.5 million, partially
offset by a decrease of $1.0 million in inertial navigation
service sales. The increase in mobile connectivity service sales
was primarily due to a $5.0 million increase in our mini-VSAT
Broadband service sales, which resulted in part from a 13% increase
in active subscribers, primarily as a result of AgilePlans.
Partially offsetting this increase was a $0.6 million decrease
in content service sales. The decrease in inertial navigation
service sales was due to a decrease in our contract engineering
service revenue.
Our operating expenses increased
$4.6 million to $40.4 million in the six months ended
June 30, 2021 compared to $35.8 million in the six months
ended June 30, 2020. This increase resulted primarily from the
increase in professional fees described above, as well as an
increase in salaries and employee benefits, partially offset by a
decrease in warranty expense.
Other Recent Announcements
- KVH Ships Record Number of VSAT Units in First Quarter
2021.
- V.Ships Norway Subscribes to KVH linkHUB Service Providing
Quality Movie and TV Entertainment for Seafarers.
- KVH Elite Unlimited VSAT Streaming Service for Yachts Expands
to Eastern North America.
- KVH Introduces TracPhone LTE-1 Global Cellular Marine
Communications Solution for Offshore Internet Access.
- KVH Industries Shareholders Elect Both of Company’s Director
Nominees at 2021 Annual Meeting, Cielo Hernandez and Cathy-Ann
Martine-Dolecki.
- Anglo-Eastern Chooses KVH’s NEWSlink Special Edition Sports
Package as Morale Booster for Their Crew.
- KVH Partners with StratumFive for KVH Watch Maritime IoT
Solution.
- RIX Shipmanagement Selects KVH AgilePlans VSAT Connectivity to
Improve Crew Welfare and Optimize Operations.
Please review the corresponding press releases
for more details regarding these developments.
Conference Call Details
KVH Industries will host a conference call today
at 9:00 a.m. ET through the company’s website. The conference call
can be accessed at investors.kvh.com and listeners are welcome to
submit questions pertaining to the earnings release and conference
call to ir@kvh.com. The audio archive will be available on the
company website within three hours of the completion of the
call.
Non-GAAP Financial Measures
This release provides non-GAAP financial
information, which may include constant-currency revenue, non-GAAP
net income (loss), non-GAAP diluted EPS, and non-GAAP adjusted
EBITDA, as a supplement to our condensed consolidated financial
statements, which are prepared in accordance with generally
accepted accounting principles (“GAAP”). Management uses these
non-GAAP financial measures internally in analyzing financial
results to assess operational performance. Constant-currency
revenue is calculated on the basis of local currency results, using
foreign currency exchange rates applicable to the earlier
comparative period, and management believes that presenting
information on a constant-currency basis helps management and
investors to isolate the impact of changes in those rates from
other factors. The presentation of this financial information is
not intended to be considered in isolation or as a substitute for
the financial information prepared in accordance with GAAP. The
non-GAAP financial measures used in this press release adjust for
specified items that can be highly variable or difficult to
predict. Management generally uses these non-GAAP financial
measures to facilitate financial and operational decision-making,
including evaluation of our historical operating results,
comparison to competitors’ operating results, and determination of
management incentive compensation. These non-GAAP financial
measures reflect an additional way of viewing aspects of our
operations that, when viewed with GAAP results and the
reconciliations to corresponding GAAP financial measures, may
provide a more complete understanding of factors and trends
affecting our business.
Some limitations of non-GAAP net income (loss),
non-GAAP diluted EPS, and non-GAAP adjusted EBITDA, include the
following:
- Non-GAAP net income (loss) and diluted EPS exclude, as
applicable, amortization of intangibles, stock-based compensation
expense, goodwill impairment charge, intangible asset impairment
charge, transaction-related and other variable legal and advisory
fees, variable inventory reserves, other variable costs, foreign
exchange transaction gains and losses, the tax effect of the
foregoing and certain discrete tax charges, including changes in
our valuation allowance and other tax adjustments.
- Non-GAAP adjusted EBITDA represents net income (loss) before,
as applicable, interest income, net, income taxes, depreciation,
amortization, stock-based compensation expense, goodwill impairment
charge, intangible asset impairment charge, transaction-related and
other variable legal and advisory fees, variable inventory
reserves, other variable costs and foreign exchange transaction
gains and losses.
Other companies, including companies in KVH’s
industry, may calculate these non-GAAP financial measures
differently or not at all, which will reduce their usefulness as a
comparative measure.
Because non-GAAP financial measures exclude the
effect of items that increase or decrease our reported results of
operations, management strongly encourages investors to review our
consolidated financial statements and publicly filed reports in
their entirety. Reconciliations of the non-GAAP financial measures
to the most directly comparable GAAP financial measures are
included in the tables accompanying this release.
About KVH Industries, Inc.
KVH Industries, Inc., is a global leader in
mobile connectivity and inertial navigation systems, with
innovative technology designed to enable a mobile world. A market
leader in maritime VSAT, KVH designs, manufactures, and provides
connectivity and content services globally. KVH is also a premier
manufacturer of high-performance sensors and integrated inertial
systems for defense and commercial applications. Founded in 1982,
the company is based in Middletown, RI, with research, development,
and manufacturing operations in Middletown, RI, and Tinley Park,
IL, and more than a dozen offices around the globe.
This press release contains forward-looking
statements that involve risks and uncertainties. For example,
forward-looking statements include statements regarding our
financial goals for future periods, the success of our new
initiatives, our investment plans, our migration of legacy
customers to our HTS network, our development goals, our
anticipated revenue and earnings, and the impact of our future
initiatives on revenue, competitive positioning, profitability, and
product orders. Actual results could differ materially from the
results projected in or implied by the forward-looking statements
made in this press release. Factors that might cause these
differences include, but are not limited to: the adverse impact of
the COVID-19 pandemic, as well as governmental, business and other
responses thereto and any resulting economic slowdown, on our
revenues, results of operations and financial condition, which
could continue to be material (particularly for our media and other
travel-related businesses); possible SBA determination that all or
a portion of our PPP loan is not eligible for forgiveness;
challenges or delays in the transition of customers from our legacy
network to our HTS network, which could result in a material loss
of revenue; the reluctance or refusal of remaining legacy network
customers to migrate to our HTS network; unanticipated changes or
disruptions in our markets; increased competition, including as a
result of industry consolidation and from companies offering
networks with greater communication security options; technological
breakthroughs by competitors; changes in customer priorities or
preferences; potential customer terminations; unanticipated
liabilities; the potential that competitors will design around or
invalidate our intellectual property rights; a history and
expectation of continuing losses as we increase investments in
various initiatives; continued fluctuations in quarterly results;
the uncertain duration of the initial adverse impact on our overall
revenues of our AgilePlans and KVH Watch, under which we recognize
no revenue for product sales, either at the time of shipment or
over the contract term; potential delays in the development of a
market for our IoT services; the need to develop an ecosystem of
applications for our new IoT services; higher costs arising from
the HTS network; costs arising from the termination of our legacy
network; the uncertain impact of federal budget deficits,
Congressional deadlock and the change in administration; the
uncertain impact of changes in trade policy, including actual and
potential new or higher tariffs and trade barriers, as well as
trade wars with other countries; unanticipated obstacles in our
photonic chip and other product and service development, cost
engineering and manufacturing efforts; delays in anticipated orders
for our products and services, including significant orders for
TACNAV products, or the potential failure of such orders to occur;
adverse impacts of currency fluctuations; our ability to
successfully commercialize our new initiatives without
unanticipated additional expenses or delays; potential reduced
sales to companies in or dependent upon the turbulent oil and gas
industry; continued substantial fluctuations in military sales,
including to foreign customers; the unpredictability of defense
budget priorities as well as the order timing, purchasing
schedules, and priorities for defense products, including possible
order cancellations; the uncertain impact of potential budget cuts
by government customers; the impact of extended economic weakness
on the sale and use of marine vessels and recreational vehicles;
the potential inability to increase or maintain our market share in
the market for airtime services; the need to increase sales of the
TracPhone V-HTS series products and related services to maintain
and improve airtime gross margins; the need for, or delays in,
qualification of products to customer or regulatory standards;
potential declines or changes in customer demand, due to economic,
weather-related, seasonal, and other factors, particularly with
respect to the TracPhone V-HTS series, including with respect to
new pricing models; increased price and service competition in the
mobile connectivity market; exposure for potential intellectual
property infringement; changes in tax and accounting requirements
or assessments; and export restrictions, delays in procuring export
licenses, and other international risks. These and other factors
are discussed in more detail in our Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 3, 2021.
Copies are available through our Investor Relations department and
website, investors.kvh.com. We do not assume any obligation to
update our forward-looking statements to reflect new information
and developments.
KVH Industries, Inc., has used, registered, or
applied to register its trademarks in the USA and other countries
around the world, including but not limited to the following marks:
KVH, TracVision, TracPhone, TACNAV, KVH Watch, mini-VSAT Broadband,
and AgilePlans. Other trademarks are the property of their
respective companies.
KVH INDUSTRIES, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(in thousands, except per share amounts,
unaudited)
|
Three months ended June 30, |
|
Six months ended June
30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Sales: |
|
|
|
|
|
|
|
Product |
$ |
17,269 |
|
|
$ |
13,949 |
|
|
$ |
35,701 |
|
|
$ |
27,043 |
|
Service |
26,094 |
|
|
22,977 |
|
|
49,954 |
|
|
46,451 |
|
Net sales |
43,363 |
|
|
36,926 |
|
|
85,655 |
|
|
73,494 |
|
Costs and
expenses: |
|
|
|
|
|
|
|
Costs of product sales |
11,894 |
|
|
9,554 |
|
|
23,114 |
|
|
19,190 |
|
Costs of service sales |
16,124 |
|
|
14,378 |
|
|
31,547 |
|
|
29,573 |
|
Research and development |
4,505 |
|
|
3,866 |
|
|
9,072 |
|
|
8,153 |
|
Sales, marketing and support |
7,937 |
|
|
6,795 |
|
|
15,483 |
|
|
15,495 |
|
General and administrative |
8,705 |
|
|
5,769 |
|
|
15,848 |
|
|
12,167 |
|
Total costs and expenses |
49,165 |
|
|
40,362 |
|
|
95,064 |
|
|
84,578 |
|
Loss from operations |
(5,802 |
) |
|
(3,436 |
) |
|
(9,409 |
) |
|
(11,084 |
) |
Interest income |
222 |
|
|
217 |
|
|
455 |
|
|
530 |
|
Interest expense |
14 |
|
|
3 |
|
|
32 |
|
|
7 |
|
Other (expense) income, net |
(1 |
) |
|
(161 |
) |
|
(790 |
) |
|
1,341 |
|
Loss before income tax expense (benefit) |
(5,595 |
) |
|
(3,383 |
) |
|
(9,776 |
) |
|
(9,220 |
) |
Income tax expense
(benefit) |
78 |
|
|
169 |
|
|
(75 |
) |
|
546 |
|
Net loss |
$ |
(5,673 |
) |
|
$ |
(3,552 |
) |
|
$ |
(9,701 |
) |
|
$ |
(9,766 |
) |
|
|
|
|
|
|
|
|
Net loss common
share: |
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.31 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.54 |
) |
|
$ |
(0.56 |
) |
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding: |
|
|
|
|
|
|
|
Basic and diluted |
18,174 |
|
|
17,648 |
|
|
18,057 |
|
|
17,588 |
|
KVH INDUSTRIES, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(in thousands, unaudited)
|
June 30, 2021 |
|
December 31, 2020 |
ASSETS |
|
|
|
Cash, cash equivalents and marketable securities |
$ |
34,368 |
|
|
$ |
37,719 |
|
Accounts receivable, net |
32,995 |
|
|
33,687 |
|
Inventories, net |
22,300 |
|
|
24,674 |
|
Other current assets and contract assets |
5,276 |
|
|
4,980 |
|
Total current assets |
94,939 |
|
|
101,060 |
|
Property and equipment, net |
59,102 |
|
|
56,273 |
|
Goodwill |
6,622 |
|
|
6,592 |
|
Intangible assets, net |
1,760 |
|
|
2,254 |
|
Right of use assets |
4,492 |
|
|
6,893 |
|
Other non-current assets and contract assets |
9,602 |
|
|
10,446 |
|
Non-current deferred income taxes |
35 |
|
|
73 |
|
Total assets |
$ |
176,552 |
|
|
$ |
183,591 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
Accounts payable and accrued expenses |
$ |
29,024 |
|
|
$ |
27,525 |
|
Contract liabilities |
4,245 |
|
|
4,445 |
|
Current portion of long-term debt |
6,927 |
|
|
4,992 |
|
Current operating lease liability |
2,505 |
|
|
3,826 |
|
Total current liabilities |
42,701 |
|
|
40,788 |
|
Other long-term liabilities |
161 |
|
|
674 |
|
Long-term operating lease liability |
2,114 |
|
|
3,204 |
|
Long-term contract liabilities |
4,314 |
|
|
4,688 |
|
Non-current deferred tax liability |
386 |
|
|
418 |
|
Long-term debt, excluding current portion |
— |
|
|
1,935 |
|
Stockholders’ equity |
126,876 |
|
|
131,884 |
|
Total liabilities and stockholders’
equity |
$ |
176,552 |
|
|
$ |
183,591 |
|
|
KVH INDUSTRIES, INC. AND
SUBSIDIARIESRECONCILIATION OF GAAP NET LOSS TO
NON-GAAP NET LOSS(in thousands, except per share
amounts, unaudited)
|
Three months ended June 30, |
|
Six months ended June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net loss - GAAP |
$ |
(5,673 |
) |
|
$ |
(3,552 |
) |
|
$ |
(9,701 |
) |
|
$ |
(9,766 |
) |
Amortization of intangibles |
280 |
|
|
241 |
|
|
556 |
|
|
489 |
|
Stock-based compensation expense |
1,055 |
|
|
742 |
|
|
1,987 |
|
|
1,547 |
|
Transaction-related and other variable legal and advisory fees |
2,720 |
|
|
58 |
|
|
3,585 |
|
|
201 |
|
Foreign exchange transaction (gain) loss |
(73 |
) |
|
28 |
|
|
284 |
|
|
(1,157 |
) |
Tax effect on the foregoing |
(806 |
) |
|
(211 |
) |
|
(1,330 |
) |
|
(224 |
) |
Change in valuation allowance and other tax adjustments (a) |
1,658 |
|
|
1,070 |
|
|
2,847 |
|
|
2,974 |
|
Net loss -
Non-GAAP |
$ |
(839 |
) |
|
$ |
(1,624 |
) |
|
$ |
(1,772 |
) |
|
$ |
(5,936 |
) |
|
|
|
|
|
|
|
|
Net loss per common
share - Non-GAAP |
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.05 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.34 |
) |
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding |
|
|
|
|
|
|
|
Basic and diluted |
18,174 |
|
|
17,648 |
|
|
18,057 |
|
|
17,588 |
|
(a) Represents a change in
the valuation allowance on current year United States net operating
losses, research and development tax credits and uncertain tax
position adjustments.
KVH INDUSTRIES, INC. AND
SUBSIDIARIESRECONCILIATION OF GAAP NET LOSS TO
NON-GAAPEBITDA AND NON-GAAP ADJUSTED
EBITDA(in thousands, unaudited)
|
Three months endedJune 30, |
|
Six months
ended
June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
GAAP net loss |
$ |
(5,673 |
) |
|
$ |
(3,552 |
) |
|
$ |
(9,701 |
) |
|
$ |
(9,766 |
) |
Income tax expense (benefit) |
78 |
|
|
169 |
|
|
(75 |
) |
|
546 |
|
Interest income, net |
(208 |
) |
|
(214 |
) |
|
(423 |
) |
|
(523 |
) |
Depreciation and amortization |
3,613 |
|
|
2,752 |
|
|
6,963 |
|
|
5,402 |
|
Non-GAAP
EBITDA |
(2,190 |
) |
|
(845 |
) |
|
(3,236 |
) |
|
(4,341 |
) |
Stock-based compensation expense |
1,055 |
|
|
742 |
|
|
1,987 |
|
|
1,547 |
|
Transaction-related and other variable legal and advisory fees |
2,720 |
|
|
58 |
|
|
3,585 |
|
|
201 |
|
Foreign exchange transaction (gain) loss |
(73 |
) |
|
28 |
|
|
284 |
|
|
(1,157 |
) |
Non-GAAP adjusted
EBITDA |
$ |
1,512 |
|
|
$ |
(17 |
) |
|
$ |
2,620 |
|
|
$ |
(3,750 |
) |
KVH INDUSTRIES, INC. AND
SUBSIDIARIESREVENUE AND OPERATING INCOME (LOSS) BY
SEGMENT(in millions except for percentages,
unaudited)
Segment Net
Sales |
Three months ended June 30, |
|
Six months
ended
June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Mobile connectivity
sales |
|
|
|
|
|
|
|
Product |
$ |
8.0 |
|
|
$ |
6.7 |
|
|
$ |
14.9 |
|
|
$ |
13.3 |
|
Service |
25.7 |
|
|
22.5 |
|
|
49.3 |
|
|
44.8 |
|
Net sales |
$ |
33.7 |
|
|
$ |
29.2 |
|
|
$ |
64.2 |
|
|
$ |
58.1 |
|
|
|
|
|
|
|
|
|
Inertial navigation
sales |
|
|
|
|
|
|
|
Product |
$ |
9.2 |
|
|
$ |
7.2 |
|
|
$ |
20.8 |
|
|
$ |
13.7 |
|
Service |
0.4 |
|
|
0.5 |
|
|
0.6 |
|
|
1.7 |
|
Net sales |
$ |
9.6 |
|
|
$ |
7.7 |
|
|
$ |
21.4 |
|
|
$ |
15.4 |
|
Operating Income
(Loss) |
Three months ended June 30, |
|
Six months
ended
June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Mobile connectivity |
$ |
0.6 |
|
|
$ |
0.6 |
|
|
$ |
0.2 |
|
|
$ |
(1.7 |
) |
Inertial
navigation |
0.6 |
|
|
0.2 |
|
|
2.7 |
|
|
(0.7 |
) |
|
1.2 |
|
|
0.8 |
|
|
2.9 |
|
|
(2.4 |
) |
Unallocated |
(7.0 |
) |
|
(4.2 |
) |
|
(12.3 |
) |
|
(8.7 |
) |
Loss from operations |
$ |
(5.8 |
) |
|
$ |
(3.4 |
) |
|
$ |
(9.4 |
) |
|
$ |
(11.1 |
) |
|
Three months ended
June 30, |
|
Six months ended
June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
(percentage of total revenue) |
|
(percentage of total revenue) |
Mobile Connectivity
Revenue Components |
|
|
|
|
|
|
|
Product sales |
19 |
% |
|
18 |
% |
|
17 |
% |
|
18 |
% |
mini-VSAT Broadband airtime |
53 |
% |
|
55 |
% |
|
52 |
% |
|
54 |
% |
Content service |
4 |
% |
|
4 |
% |
|
4 |
% |
|
5 |
% |
Inertial Navigation
Revenue Components |
|
|
|
|
|
|
|
FOG-based products |
17 |
% |
|
16 |
% |
|
16 |
% |
|
15 |
% |
Tactical navigation products |
3 |
% |
|
3 |
% |
|
8 |
% |
|
3 |
% |
Contact: |
KVH Industries,
Inc.Roger Kuebel401-608-8945rkuebel@kvh.com |
FTI
ConsultingChristine Mohrmann212-850-5600 |
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