MIDDLETOWN, R.I., May 05, 2021 (GLOBE NEWSWIRE) — KVH Industries, Inc., (Nasdaq: KVHI), reported financial results for the quarter ended March 31, 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.
First Quarter 2021 Highlights
- Total revenues increased by 16% in the first quarter of 2021 to $42.3 million from $36.6 million in the first quarter of 2020.
- Revenues for AgilePlans, our Connectivity as a Service program for the commercial maritime sector, were up more than 48% compared to the first quarter of 2020.
- AgilePlans amounted to 84% of total commercial maritime mini-VSAT Broadband shipments, and 67% of the total mini-VSAT Broadband shipments for the quarter. AgilePlans now represent 41% of our mini-VSAT Broadband subscriber base.
- Our mini-VSAT Broadband airtime revenue increased $2.2 million, to $21.4 million, or 11%, in the first quarter of 2021 compared to the first quarter of 2020, driven primarily by a 7% increase in subscribers.
- TACNAV product sales increased $4.2 million in the first quarter of 2021 compared to the first quarter of 2020, and fiber optic gyro (FOG) product and OEM product sales increased $0.9 million, or 16%, in the first quarter of 2021 compared to the first quarter of 2020.
- Net loss in the first quarter of 2021 was $4.0 million, or $0.22 per share, compared to a net loss of $6.2 million, or $0.35 per share, in the first quarter of 2020.
- Non-GAAP net loss in the first quarter of 2021 was $0.9 million, or $0.05 per share, compared to a non-GAAP net loss of $4.3 million, or $0.25 per share, in the first quarter of 2020.
- Non-GAAP adjusted EBITDA in the first quarter of 2021 was $1.1 million, compared to a negative $3.7 million in the first quarter of 2020.
Commenting on the quarter, Martin Kits van Heyningen, KVH’s chief executive officer, said, “Despite continuing pandemic-related headwinds, KVH recorded a strong first quarter, with total revenue up 16% over the first quarter of 2020, net loss improved by $2.2 million and adjusted EBITDA was up $4.8 million over the first quarter of 2020. We continued to make progress against our strategic priorities, with shipments for our AgilePlans subscription offering up almost 50%. 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 improved as well. We recently introduced the TracPhone V30, an ultra-compact VSAT antenna that is easy to install and will deliver high-performance, affordable Internet at sea, and we believe it will further strengthen our position in this market and drive future growth and profitability. Within the mobile connectivity segment as a whole, revenue was up compared to a year ago, and 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.”
“In the inertial navigation segment, we successfully completed a large tactical navigation order that we had announced in the second quarter of last year, which increased TACNAV revenue in the first quarter by $4.2 million over a year ago. Even without the growth in TACNAV, inertial navigation product sales increased by more than 15%, and we made substantial progress in our transition to production of our photonic integrated chip (PIC)-based inertial systems. While uncertainty in our markets continues to complicate any forecasting, we maintain our view that if customer activity returns to a more normal level early in the third quarter we can anticipate full-year revenues to increase by mid-to-high single digits over 2020 revenues 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 first quarter of 2021, net sales for the mobile connectivity segment increased by $1.6 million compared to the first quarter of 2020. mini-VSAT Broadband airtime revenue increased by $2.2 million. The increase was offset primarily due to a $0.9 million decrease in our content service sales. In the first quarter of 2021, net sales for our inertial navigation segment increased by $4.1 million, or 54%, compared to the first quarter of 2020. Inertial navigation sales increased primarily due to a $4.2 million increase in the volume of TACNAV product sales and a $0.9 million increase in our FOG and OEM product sales.
Financial Highlights – From Continuing Operations (in millions, except per share data)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2021 | 2020 | |||||||
| GAAP Results | ||||||||
| Revenue | $ | 42.3 | $ | 36.6 | ||||
| Net loss | $ | (4.0 | ) | $ | (6.2 | ) | ||
| Net loss per share | $ | (0.22 | ) | $ | (0.35 | ) | ||
| Non-GAAP Results | ||||||||
| Net loss | $ | (0.9 | ) | $ | (4.3 | ) | ||
| Net loss per share | $ | (0.05 | ) | $ | (0.25 | ) | ||
| Adjusted EBITDA | $ | 1.1 | $ | (3.7 | ) | |||
For more information regarding our non-GAAP financial measures, see the tables at the end of this release.
First Quarter Financial Summary
Revenue was $42.3 million for the first quarter of 2021, an increase of 16% compared to $36.6 million in the first quarter of 2020.
Product revenues for the first quarter of 2021 were $18.4 million, an increase of 41% compared to the prior year quarter, primarily due to a $5.0 million increase in inertial navigation product sales and a $0.3 million increase in mobile connectivity product sales. Inertial navigation product sales increased primarily as a result of a $4.2 million increase in the volume of TACNAV product sales and a $0.9 million increase in our FOG and OEM product sales. The increase in mobile connectivity product sales was primarily due to a $0.4 million increase in mini-VSAT Broadband product sales.
Service revenues for the first quarter of 2021 were $23.9 million, an increase of 2% compared to the prior year quarter primarily due to a $1.3 million increase in mobile connectivity service sales, partially offset by a $0.9 million decrease in inertial navigation service sales. Inertial navigation service sales decreased primarily due to lower contract engineering service revenue. Mobile connectivity service sales increased primarily due to a $2.2 million increase in our mini-VSAT Broadband service sales, which resulted in part from a 7% increase in subscribers, primarily as a result of AgilePlans. Partially offsetting this increase was a $0.9 million decrease in our content service sales.
Our operating expenses decreased $0.1 million to $19.3 million for the first quarter of 2021 compared to $19.4 million for the first quarter of 2020. This decrease resulted primarily from a $0.4 million decrease in warranty expenses and a $0.3 million decrease in travel expenses. Partially offsetting this decrease was a $0.7 million increase in professional fees, primarily relating to Board governance matters.
Other Recent Announcements
- KVH Introduces P-series IMUs with PIC Technology and New Accelerometer
- KVH Offers High Performance Ultra-Compact Ku-band V30 VSAT Antenna
- KVH Offers TACNAV 3D with Photonic Integrated Chip Technology
- KVH Industries Names Roger A. Kuebel as New CFO
Please review the corresponding press releases for more details regarding these developments.
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.
