KVH Industries, Inc. (KVHI) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $6.78 million, or $ 0.43 a share in the quarter, against a net profit of $4.10 million, or $0.26 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $2.15 million, or $0.13 a share compared with $6.77 million or $0.43 a share, a year ago.
Revenue during the quarter dropped 18.68 percent to $43.93 million from $54.02 million in the previous year period. Gross margin for the quarter contracted 459 basis points over the previous year period to 43.51 percent. Operating margin for the quarter stood at negative 0.61 percent as compared to a positive 9.57 percent for the previous year period.
Operating loss for the quarter was $0.27 million, compared with an operating income of $5.17 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $4.33 million compared with $9.67 million in the prior year period. At the same time, adjusted EBITDA margin contracted 804 basis points in the quarter to 9.85 percent from 17.90 percent in the last year period.
Commenting on the quarter, Martin Kits van Heyningen, KVH's chief executive officer, said "We are generally pleased with our fourth quarter results having met the high end of, or exceeded, our most recent guidance at almost every level. In 2017, we will be investing in key strategic initiatives such as low cost fiber optic gyros for self-driving cars and new high throughput satellite services for the maritime market that have the potential to transform the company going forward. We are taking a more conservative view with respect to near term TACNAV revenue guidance, but we continue to be extremely optimistic about this part of our business as well."
For financial year 2017, KVH Industries, Inc. forecasts revenue to be in the range of $170 million to $190 million. It projects net loss to be in the range of $11.10 million to $6.10 million. It expects diluted loss per share to be in the range of $0.69 to $0.38. It expects diluted earnings per share to be in the range of $0.07 to $0.27 on adjusted basis for the same period.
For the first-quarter, KVH Industries, Inc. forecasts revenue to be in the range of $39 million to $41 million. It projects net loss to be in the range of $6.10 million to $5.30 million. It expects diluted loss per share to be in the range of $0.38 to $0.33. It expects diluted loss per share to be in the range of $0.13 to $0.10 on an adjusted basis for the same period.
Working capital decreases marginally
KVH Industries, Inc. has witnessed a decline in the working capital over the last year. It stood at $69.19 million as at Dec. 31, 2016, down 3.28 percent or $2.35 million from $71.53 million on Dec. 31, 2015. Current ratio was at 2.75 as on Dec. 31, 2016, up from 2.64 on Dec. 31, 2015.
Debt comes down
KVH Industries, Inc. has recorded a decline in total debt over the last one year. It stood at $58.05 million as on Dec. 31, 2016, down 10.26 percent or $6.64 million from $64.69 million on Dec. 31, 2015. Total debt was 29.06 percent of total assets as on Dec. 31, 2016, compared with 28.59 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.55 as on Dec. 31, 2016, when compared with the last year.
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