KVH Industries today reported an increase in revenue, but lower profits, for the fourth quarter and an increase in revenue for the fiscal year.
Revenue for the fourth quarter, which ended Dec. 31, was $27 million, up 3 percent from the same period in 2009. Diluted earnings per share for the quarter totaled 2 cents on net income of $200,000. During the same period last year the company reported net income of $1.8 million, or 13 cents a diluted share, on revenue of $26.3 million.
For the year that ended Dec. 31, revenue was $112.2 million, up 26 percent from $89.1 million in fiscal 2009. KVH reported net income of $8.3 million, or 56 cents on a per-diluted-share basis, for the full year 2010.
Excluding transaction costs associated with the acquisition of Virtek Communication, and a decrease to the deferred income tax asset valuation allowance, full-year adjusted net income was $5.3 million, and adjusted diluted earnings per share was 36 cents. For 2009, the company reported a net loss of $100,000, or 1 cent a diluted share.
"[This] was a milestone year for KVH, as we grew our top line for the full year by 26 percent and passed $100 million in annual revenues for the first time. In addition, we increased our annual operating profit by more than $6 million, compared to 2009. Our VSAT business accelerated, with significant growth in subscribers, units shipped and major new long-term fleet contracts, while in our commercial guidance and stabilization business we saw increasing demand for our inertial navigation systems," CEO Martin Kits van Heyningen said in a statement.
In the fourth quarter of 2010, mobile communications revenue was $14.4 million, up 3 percent on a year-over-year basis. Mobile communications revenue from marine and land products and services was up 37 percent on a year-over-year basis.
"During the fourth quarter and in early 2011, we expanded capacity significantly in North America, Europe, Africa, Asia, the Indian Ocean, Australia and New Zealand. During 2010, we delivered more than 60 terabytes of data and handled more than 1.5 million voice calls to and from vessels around the globe via our mini-VSAT Broadband network," Kits van Heyningen said. "The result is that our VSAT business is now larger than our core marine satellite TV business on a run-rate basis."
The Middletown, R.I.-based company, which plans to introduce new products at this week's Miami International Boat Show, said it expects that 2011 will be a year of "strong top-line growth of 15 percent to 20 percent and an approximately 75 percent improvement in operating profit, compared to the reported level in 2010."