Continued strong momentum from first half of year continues into third quarter
Rhode Island-based KVH Industries has released operating results for its third quarter which show strong momentum from the first half of the year carrying forward through the period ended September 30.
Total revenue for the third quarter of 2018 increased to $43.5m from $40.4m in the third quarter of 2017, growth attributed to an increase in FOG product sales and an increase in mini-VSAT broadband airtime revenues. This resulted in a net loss of $1.2m for the quarter, compared to a net loss of $2.4m for Q3 2017, and produced non-GAAP net income of $0.7m, compared to $0.4m for the third quarter of 2017.
Non-GAAP adjusted EBITDA was reported at $3.2m, up significantly over the $1.8m for Q3 2017.
KVH CEO Martin Kits van Heyningen attributed the positive performance to higher sales in several key categories, including shipments of VSAT products. “Our third-quarter results reflect a continuation of the strong momentum that drove the first half of our year,” he said. “Our VSAT shipments were a third-quarter record for us, growing more than 125% compared to the third quarter of 2017. Our VSAT shipments through the first nine months of the year have already surpassed our shipments for all of 2017 by more than 40%.”
KVH’s AgilePlans Connectivity as a service program was also identified as a significant driver of Q3 growth.
The company announced revenues of $127m for the nine months ended September 30, 2018, representing a 5% increase compared to the nine months ended September 30, 2017. Product revenues were reported at $46.5m, representing a 7% year-over-year increase, while service revenues were stated as $80.5m representing a YOY increase of 3%.