KVH Industries said it had $40.2 million in third-quarter revenue with strong growth in its satellite service business.
The Rhode Island-based company reported net income of $1.4 million, or 9 cents a diluted share, for the quarter that ended Sept. 30. During the same period last year, the company reported a profit of $1.7 million, or 12 cents a share, on revenue of $38.8 million.
For the first nine months of this year, revenue was $123.3 million, up 26 percent from $97.6 million in the same period last year. KVH reported GAAP net income of $4.9 million for the period this year or 32 cents a diluted share.
KVH's mobile communications revenue, which included $3.3 million from Headland Media's operations, was $29 million in the quarter, a 31 percent increase year-over-year. Combined, mini-VSAT broadband airtime and TracPhone product revenue in the quarter amounted to $18.1 million, up 25 percent from the same period last year, and maritime satellite TV sales were up 5 percent year-over-year.
"Although we saw increases in our global mobile broadband revenues, continuing poor economic conditions in many parts of Europe resulted in lower revenues in the European marine markets, with shipping companies continuing to delay equipment upgrades," KVH CEO Martin Kits van Heyningen said in a statement.
KVH's guidance and stabilization revenue, which relates to fiber-optic gyro solutions, military navigation systems and related services, was $11.2 million in the quarter, down 33 percent year-over-year.
Revenue from the sale of tactical navigation products was $2.6 million, 59 percent lower than the figure for the same period last year.
Tactical navigation product revenue under the previously announced Saudi Arabian National Guard contract ended in the second quarter this year. Sales of fiber-optic gyro solutions products were $5.8 million, down 17 percent from the same period last year.