Boating Business

KVH Reports Positive Sales

KVH

KVH’s mini-VSAT broadband products can give an entrepreneur the ability to run his business from a yacht anywhere in the world.

Many people are turning to living aboard as a way to protect their families by social distancing. Business owners who take to living on a yacht need the ability to communicate consistently with employees and clients. KVH Industries supplies mobile connectivity and navigation systems and the Rhode Island-based company reported a 1 percent revenue gain for the first quarter of 2020. 

Continued Momentum

Two major contributors to that gain were the growth of the company’s AgilePlans communications, connectivity and vessel-monitoring services. The company reported total revenues of $36.6 million for the first quarter of 2020 that ended on March 31. That surpassed the $36.4 million reported for the same quarter in 2019.

KVH also experienced an increase in the number of shipments of its mini-VSAT broadband products. TracPhone VSAT systems provide connectivity when a vessel is at sea with speeds as fast as 20 Mbps worldwide. Subscribers can pay by the month for airtime, which provides flexibility for vessel owners who want to remain at sea longer while isolating themselves.

Riding out the Storm

Product revenues for the first quarter of 2020 were reportedly down slightly, but company CEO Martin Kits van Heyningen remains optimistic moving forward. “Despite the impact of the COVID-19 global pandemic at the end of the quarter, we are pleased that we delivered first-quarter results largely in line with our expectations,” he said in a statement.

KVH

KVH CEO Martin Kits van Heyningen.

The first quarter of 2020 started strong for KVH, continuing the momentum that the company experienced in the second half of 2019. Airtime revenue is up 5.0%, which is a 12% bump in total V-SAT shipments and a 10% increase in its subscriber base. KVH’s AgilePlans product shipments grew by 19% in the first quarter with an 85% boost in revenue.

By mid-February, the CEO said the company started feeling impacts from the pandemic in the Asia-Pacific region. European boatbuilders, dealers and marinas started closing in March and a similar situation followed in the U.S.

KVH implemented a plan to let employees work from home and continue providing service support. The company is considered essential because it supplies telecommunications and defense navigation products and has maintained full operations at both of its factories. Modifications are being made for social-distancing and additional cleaning. Workers are also wearing masks and gloves for safety.