KVH Provides First Quarter Update
07 April 2009 - 9:30PM
PR Newswire (US)
MIDDLETOWN, R.I., April 7 /PRNewswire-FirstCall/ -- KVH Industries,
Inc., (NASDAQ:KVHI) announced today that preliminary indications
are that the company will report revenue of approximately $18
million for the first quarter of 2009 compared to revenue of $23.1
million in the year earlier period. Due to the revenue shortfall,
the company's preliminary estimate is that it will report a loss of
roughly $0.18 per share for the first quarter, below its original
expectations of a more modest loss. In the first quarter of 2008,
KVH reported net income of $1.6 million or $0.11 on a per-diluted
share basis. The company's prior guidance anticipated that first
quarter 2009 revenue would be approximately 10% lower than the same
period last year. However, the declining macro-economic conditions
during the first quarter and their impact on sales of boats, cars
and recreational vehicles affected the sale of KVH's mobile
satellite television products to the leisure markets. The reduction
in sales of KVH's TracVision(R) products for new leisure vessels
and vehicles accounted for the majority of the decline in company
revenues. Illustrating the challenges faced in the leisure market,
two leading recreational vehicle manufacturers that sold KVH
products as factory-installed options declared bankruptcy during
the first quarter. Sales of the TracPhone(R) V7 and mini-VSAT
Broadband(sm) service to the commercial maritime market along with
sales of military products appear to have met the company's
expectations for the quarter. Recently the company also received
significant orders for its military and commercial products, much
of which are expected to begin shipping in the second quarter.
Taking these orders into account along with the company's prior
backlog, the company expects that its second quarter results will
be sequentially better than those for the first quarter of 2009.
Nevertheless, economic conditions continue to be a significant
challenge and make it a difficult environment in which to project
performance. KVH's first quarter closed on March 31, 2009, and all
statements in this release reflect a preliminary analysis of the
company's quarterly financial results. The company expects to
release its first quarter 2009 results on April 23, 2009. About KVH
Industries, Inc. KVH Industries (http://www.kvh.com/) 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. KVH is also a premier manufacturer of high
performance sensors and integrated inertial systems for defense and
commercial guidance and stabilization applications. The company is
based in Middletown, RI, with facilities in Tinley Park, IL, and
Kokkedal, Denmark. This press release contains forward-looking
statements that involve risks and uncertainties. For example,
forward-looking statements include statements regarding our
financial goals for future periods, anticipated revenue growth,
anticipated profitability, anticipated orders for our mobile
communication and military products, and anticipated improvements
in our competitive position. The actual results we achieve could
differ materially from the statements made in this press release.
Factors that might cause these differences include, but are not
limited to: the impact of the worsening recession, such as
availability of consumer credit or increases in fuel prices, on the
sale and use of motor vehicles and marine vessels; delays or an
inability to expand coverage of the mini-VSAT Broadband service to
new regions; the potential inability to secure adequate Ku-band
satellite capacity or the licenses necessary for any expansion of
the mini-VSAT Broadband network; risks associated with the delivery
or performance of critical hardware; future decisions about the
expected profitability of additional satellite regions; the need
for qualification of products to customer or regulatory standards;
unanticipated declines or changes in customer demand, due to
economic, seasonal and other factors, particularly with respect to
the TracPhone V7; the unpredictability of order timing, purchasing
schedules and priorities for our defense products; order
cancellations or unexercised options, particularly for longer-term
defense orders; and weakened consumer demand for our products and
services, especially at the more price sensitive low end of our
product offerings. These and other factors are discussed in more
detail in our Annual Report on Form 10-K filed with the Securities
and Exchange Commission on March 13, 2009. Copies are available
through our Investor Relations department and website,
http://investors.kvh.com/. We do not assume any obligation to
update our forward-looking statements to reflect new information
and developments. KVH, TracVision, and TracPhone are registered
trademarks of KVH Industries, Inc. "mini-VSAT Broadband" is a
service mark of KVH Industries, Inc. All other trademarks are the
property of their respective companies. DATASOURCE: KVH Industries,
Inc. CONTACT: Chris Watson of KVH Industries, +1-401-845-8138, Web
Site: http://www.kvh.com/
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