KVH Industries reported an increase in second-quarter revenue, but a drop in revenue for the first six months of this year.
Revenue for the quarter that ended June 30 was $30.6 million, up 4 percent from $29.5 million in the quarter that ended June 30, 2010. Diluted earnings per share for the quarter totaled 1 cent on net income of $200,000. In the same period last year the company reported net income of $5.3 million, or 36 cents a diluted share.
Excluding a change in the deferred tax asset valuation allowance in the second quarter of 2010, quarterly adjusted net income was about $1.3 million and adjusted earnings per share was 9 cents for that period.
For the six-month period that ended June 30, revenue was $55.0 million, down 4 percent from $57.5 million for the six months that ended June 30, 2010. KVH reported a net loss of $1.3 million, or 9 cents a share, for the first six months of this year.
During the same period last year, the company reported net income of $7.4 million, or 50 cents on a per-diluted-share basis. Excluding a change in the deferred tax asset valuation allowance in the second quarter last year, adjusted net income for the first six months of the year was about $3.4 million and adjusted earnings per share was 23 cents a diluted share for that period.
“The excellent performance of our global satellite communication business helped us achieve record revenue for the second quarter and a substantial sequential improvement on the bottom line,” CEO Martin Kits van Heyningen said in a statement.
In the second quarter this year, mobile communications revenue was $19 million, a 14 percent increase on a year-over-year basis. Revenue from mobile communications and satellite TV products and services for the marine and land markets was up 25 percent on a year-over-year basis on the strength of KVH's mini-VSAT Broadband system hardware, airtime and network management products.
“We're very pleased with the revenue growth we achieved in the second quarter, as well as the sequential improvement on the bottom line,” van Heyningen said. “Our strategic businesses are performing as expected and we're making excellent progress, including the outstanding performance of our VSAT initiative and the introduction of exciting new FOG technology. While the leisure markets remain a challenge, we continue to have confidence in our long-term strategic plans and in our ability to lead the market in maritime VSAT and in fiber-optic gyros.”