Morning Update: KVH Industries, Inc.’s (NASDAQ: KVHI)

On 07 Dec 18, KVH Industries, Inc.’s (NASDAQ: KVHI) oscillated between $11.00 and $11.16 before concluding trading period lower/higher +0.45% at $11.05. The stock recorded total trading quantity of 41,308 shares as compared to its average volume of 18,817 shares. The firm has a total market worth of $195.998M and $17.74M shares remain outstanding.
KVH Industries, Inc., (KVHI) stated financial results for the quarter ended September 30, 2018 recently.
Third Quarter 2018 Highlights
• Shipments of VSAT units raised over 125% contrast to the third quarter of 2017.
• AgilePlans subscription service, our Connectivity as a Service Program for the commercial maritime sector, amounted to 64% of total commercial maritime VSAT shipments, and 54% of the total VSAT shipments for the quarter. Installations for the quarter raised 27% contrast to the second quarter of 2018.
• Fiber optic gyro (FOG) product sales grew 53% contrast to the third quarter of 2017, the seventh consecutive quarter of double-digit growth.
• Our mini-VSAT Broadband installed base of subscribers raised 9% contrast to the third quarter of 2017.
• Total revenue raised in the third quarter of 2018 to $43.5M from $40.4M in the third quarter of 2017, driven primarily by an raise in FOG product sales and an raise in mini-VSAT Broadband airtime revenue. Revenue raised even though revenue is not recognized immediately on AgilePlans shipments as revenues under the AgilePlans program are recognized over time.
• Net loss in the third quarter of 2018 was $1.2M, or $0.07 per share, contrast to a net loss of $2.4M, or $0.15 per share in the third quarter of 2017.
• Non-GAAP net income in the third quarter of 2018 was $0.7M, or $0.04 per share, contrast to $0.4M, or $0.02 per share in the third quarter of 2017.
• Non-GAAP adjusted EBITDA in the third quarter of 2018 was $3.2M, contrast to $1.8M in the third quarter of 2017.
• On October 30, 2018, we amended and restated our existing credit contract. As part of the new, three-year contract, we repaid about $17.0M of outstanding borrowings, raised the amounts accessible under our revolving facility to $20.0M, and changed certain covenant requirements to be less restrictive. At the closing of the transaction, we borrowed $5.0M under the revolver.
The company operates in two sections, mobile connectivity and inertial navigation. Net sales for the mobile connectivity section raised $0.7M, or 2%, contrast to the third quarter of 2017Because of a $1.1M raise in our mini-VSAT Broadband airtime revenue and a $0.5M raise in marine mobile connectivity product sales, partially offset by a $0.9M decrease in content and training revenue. Net sales for our inertial navigation section raised $2.4M, or 31%, contrast to the third quarter of 2017,Because of a $2.7M raise in FOG sales and a $0.5M raise in contracted engineering service sales, partially offset by a $0.9M decrease in TACNAV sales.
Third Quarter Financial Summary
Revenue was $43.5M for the third quarter of 2018, an raise of 8%, contrast to the third quarter of 2017.
Product revenues for the third quarter of $16.3M were 16% higher than the previous year quarter, Because of an raise in inertial navigation product sales of $1.8M and a $0.4M raise in mobile connectivity product sales. Mobile connectivity product sales raised primarily Because of a $0.5M raise in marine product sales, partially offset by a $0.1M decrease in land mobile product sales. The raise in marine product sales was Because of a $0.2M raise in mini-VSAT Broadband product sales and a $0.3M raise in marine accessories and LTE product sales. The adoption of ASC 606 negatively influenced marine product sales by $0.4M. Inertial navigation product sales raised primarily Because of a $2.7M raise in FOG product sales, partially offset by a $0.9M decrease in TACNAV product sales.
Service revenues for the third quarter were $27.2M, an raise of 3% contrast to the third quarter of 2017,Because of a $0.6M raise in inertial navigation service sales and a $0.3M raise in mobile connectivity service sales. Airtime service revenues, which include mini-VSAT Broadband airtime revenues, raised 6% in the third quarter of 2018 contrast to the third quarter of 2017Because of a 9% raise in subscribers. Content and training revenues, which include our entertainment, eLearning, and safety content, reduced by 12% in the third quarter of 2018 contrast to the third quarter of 2017. Our engineering service revenues in the third quarter of 2018 raised by $0.5M contrast to the third quarter of 2017 as a result of a substantial contract which began in the first quarter of 2018 and was extended through the third quarter.
EPS growth for this year is -21.00% and EPS growth for next year is expected to reach at 300.00%. EPS growth in past five years was -34.60% while EPS growth in next five years is projected to arrive at 30.00%. Sales growth past 5 years was measured at 3.10%.

 

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