Amid shaky seas for the cruise ships, KVH Industries, which is a maritime satellite-connectivity company in the United States, expects smooth sailing ahead. KVH stated cost-cutting initiatives combined with good revenues of its TACNAV tactical navigation items to military customers concerned about GPS resiliency resulted in one of the company’s best fourth-quarter earnings in the last five years.
In the final quarter of the year 2020, total sales increased by 4% to about $44.1 million, relative to the same time in 2019. Sales of TACNAV, KVH’s range of battlefield navigation programs that enable militaries to place ground vehicles even though GPS signals are interrupted or blocked, rose from $3.7 million to around $7.2 million, more than offsetting declines in the company’s inertial navigation segment. Overall, sales of inertial navigation rose by 13% to about $14.2 million.
For the three months ended December 31, net revenues for KVH’s mobile connectivity segment stayed unchanged at $29.9 million. While revenue from mini-VSAT broadband airtime rose by 6% year over the year to about $20.3 million, sales of the content services and products dropped due to the cruise ship shutdown. Adjusted EBITDA, or the earnings before interest, taxes, depreciation, as well as amortization, rose by over $7 million to about $3.1 million for the entire year, up from a $4.2 million loss in the year 2019.
KVH, on the other hand, stated its net loss for 2020 increased to $21.9 million, up from $16 million in the year 2019. This is partially due to a non-cash impairment charge of the $10.5 million incurred by the organization as a result of the global travel decrease. “While there is still a lot of volatility in our industries,” KVH Chief executive officer Martin Kits van Heyningen stated, “we anticipate the patterns we experienced in the fourth quarter to continue.”
“Implying the pandemic proceeds to subside and we’ve seen a return to more usual consumer behavior beginning in July, we expect higher growth in both of markets in the second half of the year. As a result, we expect full-year revenues to rise in the mid-to-high single digits on a yearly basis, with adjusted EBITDA growing at a faster pace than revenue.”
Roger Kuebel, most lately the chief financial officer (CFO) of the subsea fiber optic operator, Seaborn Networks, would join KVH in the same capacity on March 8. Brent Bruun will continue to serve as KVH’s chief executive officer and will hand over the reins to Kuebel. “I look forward to concentrating my initial energies on deepening our cost containment activities, increasing operating efficiencies, and assisting in the optimization of our resource allocation,” Kuebel stated.https://clarkcountyblog.com/