The pace of new orders for KVH Industries’ TracVision A5 mobile s...
The pace of new orders for KVH Industries’ TracVision A5 mobile satellite antenna was “weaker than we would have liked” in the first quarter, CEO Martin Kits van Heyningen told analysts. Despite the setback, KVH, which shipped the TracVision…
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A5 last fall, is “gaining traction” for the product at retail and remains on target to ship 10,000 units this year, he said. KVH officials declined to provide an update beyond the 1,700 units that had shipped as of Dec. 31, but confirmed analyst speculation that about 1/3 of this year’s total will be delivered in the first half. The TracVision A5 attaches to the top of a motor vehicle and rises about 5” above the roof to enable reception of DirecTV programming. KVH is seeking agreements with conversion companies to include the A5 in customizations of mini-vans and SUVs, van Heyningen said. It has also made some progress in having the antenna sold through car dealerships, he said. Meanwhile, KVH said first-quarter net income declined to $128,000 from $183,000 as revenue increased to $17.9 million from $13.1 million. Mobile and land-based satellite revenue rose 81% during the quarter, as overall gross margin moved to 39% from 45% a year ago, but up from 29% a year ago. TracVision A5 gross margins were 28%, CFO Patrick Spratt said. Sales to the marine market accounted for 47% of revenue during the quarter. The U.S. Army has postponed indefinitely delivery of a $2-million order for KVH’s TacNav satellite-based navigation systems for Humvee vehicles in Iraq, Spratt said. KVH had expected to record the order in the first quarter.