"While the economic situation is a serious challenge for all companies, our innovative strategic plan and diversified business model are generating revenue from satellite communications on land, sea and air, as well as growth from our defense and commercial businesses," CEO Martin Kits van Heyningen said in a statement.
Revenue for the fourth quarter of 2008 was $21.2 million, compared to $19.7 million in the 2007 quarter. Net income for the period was $300,000, or 2 cents per share, compared to net income of $1 million, or 6 cents per share, last year.
For the full year, revenue was $82.4 million, up 2 percent compared to $80.9 million for 2007. KVH reported net income of $3.1 million, or 21 cents per share, versus net income of $2.5 million or 17 cents per share for 2007.
"Within our marine business, the market weakness we saw at the end of the third quarter of 2008 in the leisure market carried over into the fourth quarter and worsened, affecting our sales both in Europe and domestically," said Kits van Heyningen. "However, sales of our TracPhone V7 and mini-VSAT airtime service helped to offset much of that weakness resulting in only a 2 percent decline in revenue from marine products and services compared to the fourth quarter of 2007."
Most of the growth in fourth quarter revenue came from KVH's defense-related guidance and stabilization products. The company's fiber-optic gyro solutions, TACNAV military navigation systems, and related services totaled about $10.1 million in the 2008 fourth quarter, up 79 percent on a year-over-year basis.
Looking ahead for 2009, assuming overall economic conditions get no worse, KVH expects revenue to grow about 10 percent for the year, driven by the growth of the company's mini-VSAT broadband and fiber-optic gyro businesses as well as the initial shipments of its new satellite antenna system for LiveTV aeronautical installations.