Benzinga | Jul 30, 2021 09:47AM EDT

KVH Industries Beats On Q2 Earnings, Posts Positive EBITDA Margin, Reiterates FY21 Guidance

* KVH Industries Inc (NASDAQ: KVHI) reported second-quarter FY21 revenue growth of 17% year-on-year to $43.4 million, beating the analyst consensus of $41.3 million

* Product revenues rose 23.8% Y/Y to $17.3 million due to higher inertial navigation and mobile connectivity product sales.

* Service revenues increased 13.6% Y/Y to $26.1 million due to higher mobile connectivity service sales, partially offset by a decline in inertial navigation service sales.

* Non-GAAP EPS loss of $(0.05) beat the analyst consensus loss of $(0.11). It posted a positive EBITDA margin of 3.5%.

* KVH ended Q2 with $34.4 million in cash and equivalents.

* KVH achieved record mini-VSAT Broadband shipments for the third consecutive quarter, primarily driven by new AgilePlans subscriptions.

* Airtime revenue, a function of prior shipments, grew at double-digit rates Y/Y. The gross margin remained stable as it added network capacity to its expanding mini-VSAT Broadband HTS network.

* The TracPhone V30, an ultra-compact VSAT antenna, made up 26% of the total mini-VSAT Broadband shipments.

* In the inertial navigation segment, product sales increased by over 27%, and it made substantial progress in integrating the photonic integrated chip (PIC) across its product portfolio.

* Outlook: KVH maintained that FY21 revenues would increase by mid to high single digits Y/Y revenue against the analyst consensus of $174.1 million.

* Price action: KVHI shares traded higher by 0.60% to $11.80 on the last check Friday.