KVH Industries today reported revenue was down 2 percent for the second quarter of 2009, and net income also was down for the period.
Revenue for the second quarter of 2009 was $21.9 million, while net income for the period was $0.2 million, or one cent per diluted share. During the same period last year, the company reported net income of $2 million or 14 cents on a per-diluted-share basis.
For the six months ending June 30, revenue was $40.1 million, down 12 percent, compared to $45.4 million for the six months ending June 30, 2008. KVH reported a net loss of $2.4 million, or 17 cents on a per-share basis, for the first six months of 2009. During the same period last year, the company reported net income of $3.6 million, or 24 cents on a per-diluted-share basis.
In the second quarter of 2009, mobile communications revenue from marine, land and aeronautical products and services was $12.5 million, down 31 percent on a year-over-year basis.
"We set a series of aggressive goals for our business with the aim of achieving a strong sequential improvement in our results for the second quarter," CEO Martin Kits van Heyningen said in a statement. "I'm pleased to say that we met and exceeded many of those goals. Despite the continuing economic volatility, our strategic growth drivers gained ground and helped set us on a course for what I believe will be long-term success.
"While domestic and international sales of satellite products into the leisure land and leisure marine markets declined compared to the second quarter last year, our TracPhone V7 and mini-VSAT Broadband initiative continued to make significant strides," he added.
Company officials said they expect similar results for the remainder of the year,
"We expect that total sales in the third quarter should be about equal to the second quarter, followed by a sequential increase in the fourth quarter," chief financial officer Patrick Spratt said in a statement. "For the second half of the year, we expect net margin to be about break-even, reflecting a modest loss in the third quarter and turning to a modest profit in the fourth quarter. Ongoing strong investments in the mini-VSAT Broadband service infrastructure are contributing to the near-term margin pressure, and visibility in most markets remains very limited.
Middletown, R.I.-based KVH Industries is a leading manufacturer of solutions that provide global high-speed Internet, television and voice services via satellite to mobile users at sea, on land and in the air.