In Midst Of Class-Action Suit, KVH Reports 2Q Results
KVH Industries Inc. [KVH] reported a slight increase in its revenues for the second quarter ended June 30 compared with the same period last year as well as a net income for the just-completed quarter. The results were released following the announcement late yesterday of a class-action lawsuit against the company.
KVH reported it earned $14.5 million in revenues during the just-completed quarter, up 1 percent from the $14.4 million earned during the second quarter of 2003. For the quarter, the company reported a net loss of $4.9 million, down from a net income of $400,000 earned during the same period one year ago. KVH said its mobile satellite communications revenue for second quarter reached $12.3 million, up 33 percent from the same period one year ago. The company attributed the growth to strong sales in the domestic and European maritime markets.
This financial news comes less then one day after Lerach Coughlin Stoia & Robbins LLP commenced a class-action law suit in the U.S. District Court for the District of Rhode Island on behalf of purchasers of KVH publicly traded securities between Jan. 6 and July 2. The suit alleges KVH issued “materially false and misleading statements” regarding its increasing financial results and the strong demand for its newly developed TracVision A5 and G8 satellite TV systems.
It’s too early to say whether this lawsuit has any traction, but seeing class-action suits like this are not all that uncommon. KVH spokesman Chris Watson told Satellite Today the company is aware of the suit and, based on information that has been released to the public, KVH views the claims as having no merit. KVH is prepared to “fully defend” itself against the allegations. He noted that KVH has not yet received any official documentation on the suit.