[Satellite TODAY 05-02-11] KVH Industries reported a 59 percent increase in its 2011 first quarter VSAT sales, but it was not enough to offset disappointing losses in its other divisions, the company announced in its latest financial results issued April 29.
    KVH’s 2011 first quarter overall revenues were down 13 percent from the same period in 2010 at $24.4 million, with net losses at $1.5 million compared with net income of $2.1 million last year. KVH mobile communications revenues fell 2 percent to $15.7 million due to the lack of production shipments of the company’s aeronautical TV antenna to its LiveTV customer. Revenue from the company’s Tacnav military navigation services dropped 27 percent year-over-year to approximately $8.7 million.
    In a statement, KVH CEO Kits van Heyningen said satellite TV system sales to the leisure marine and recreational vehicle markets were far weaker than expected due to rising fuel prices and a decline in new boat sales. "The weakness in the consumer satellite TV markets is not slowing the strong growth in our VSAT business. Although our near-term expectations have been lowered, this does not change our long-term outlook. We expect that the leisure markets will recover eventually and that our [military navigation] business will resume its top line growth as our RWS business returns to previous levels," he said.
    KVH CFO Patrick Spratt said the company’s first quarter results were at the low end of his expectations due primarily to a shortfall in sales to satellite TV markets. "Looking ahead, we are now making two adjustments to our guidance for the year. The first is to lower expectations for the leisure satellite TV markets. Based on the first quarter results, and renewed weakness in general consumer confidence, we feel we must take a more cautious outlook with regard to these markets."