Core Insights - KVH Industries reported a revenue of $25.4 million for Q1 2025, a decrease of 13% from $29.3 million in Q1 2024, attributed to the transition to LEO satellite services and a downgrade of the U.S. Coast Guard contract [6][7] - The company experienced a net loss of $1.7 million, or $0.09 per share, an improvement from a net loss of $3.2 million, or $0.16 per share, in the same quarter last year [5][7] - The CEO highlighted a 5% sequential increase in subscribing vessels and a growth in gross profit, indicating effective cost management and positive impacts from strategic initiatives [3][4] Financial Performance - Total revenues decreased by 13% year-over-year to $25.4 million, with airtime revenue down 15% to $20.0 million, largely due to the U.S. Coast Guard contract downgrade [6][7][8] - Service revenues were $21.6 million, down $3.4 million from the previous year, primarily due to a $3.5 million decrease in airtime service sales [8] - Product revenues fell to $3.8 million, an 11% decrease compared to Q1 2024, with declines in TracVision and accessory sales, partially offset by increases in Starlink and CommBox Edge product sales [9] Cost Management - Operating expenses decreased by $4.0 million to $9.7 million compared to Q1 2024, driven by a reduction in salaries, benefits, and taxes [10] - Non-GAAP adjusted EBITDA was $1.0 million for Q1 2025, down from $2.0 million in Q1 2024, reflecting the impact of lower revenues [5][7][26] Business Developments - The company reported record connectivity terminal shipments of over 1,300 units for the fifth consecutive quarter, serving more than 7,400 active vessels [4] - KVH launched its OneWeb service, providing an additional LEO option for customers, alongside the integration of Starlink into its offerings [4]

Company Overview - KVH Industries, Inc. is a global leader in maritime and mobile connectivity, operating through the KVH ONE network [3] - The company was founded in 1982 and is headquartered in Middletown, RI, with research, development, and manufacturing operations also in Middletown and over a dozen offices worldwide [3] - KVH provides connectivity solutions for various sectors including commercial maritime, leisure marine, military/government, and land mobile applications, featuring product lines such as TracNet, TracPhone, and TracVision [3] Financial Results Announcement - KVH Industries will announce its financial results for the first quarter ending March 31, 2025, on May 7, 2025 [1] - An investor conference call will be held at 9:00 a.m. ET, hosted by CEO Brent Bruun and CFO Anthony Pike [1] Investor Engagement - A live broadcast of the conference call will be available online at investors.kvh.com, with an audio replay accessible for at least two weeks post-call [2] - Investors can submit questions during or after the call via email to IR@kvh.com [2]

Sales Performance - Global high-throughput satellite (HTS) airtime service sales accounted for 71% of consolidated net sales in 2024, down from 81% in 2023[17] - Product sales represented 15% of consolidated net sales in 2024, an increase from 13% in 2023[17] Business Strategy - The company plans to wind down capital-intensive manufacturing activities by the end of 2025 due to reduced demand and increased competition[21] - The company plans to discontinue most manufacturing activities by the end of 2025, transitioning to third-party hardware for its solutions[59] - Significant inventory is held to support customer demand, with a ramp-up in production to meet anticipated needs before ceasing manufacturing[64] Product Offerings - The KVH ONE OpenNet Program allows vessels with non-KVH VSAT antennas to subscribe to KVH's global HTS network without hardware exchanges[27] - An exclusive multi-year agreement with Kognitive Networks was signed to integrate enterprise-grade network management tools into maritime communication services[28] - The company offers AgilePlans, a Connectivity as a Service (CaaS) model, which includes satellite communication hardware and services for a single monthly fee[24] - KVH Media Group distributes licensed entertainment content, contributing to the company's content service sales[30] - The global HTS network utilizes 182 Ku-band transponders on 31 satellites, with 138 transponders on high-throughput satellites[26] - TracNet H-series terminals offer data speeds of up to 20/3 Mbps for the H90 model, supporting a wide range of vessels from 40 feet to superyachts[38] - TracNet Coastal, introduced in late 2024, provides data speeds up to 300 Mbps and enables automatic switching from satellites to shore-based Wi-Fi[41] - The company began selling Starlink terminals in March 2023 and became an authorized reseller in September 2023, offering a hybrid solution with KVH's services[45] - A distribution agreement with Eutelsat OneWeb was announced in January 2024, aiming to expand multi-orbit hybrid network services with over 630 LEO satellites[46] - The company offers a range of products including TracPhone V30 and TracVision UHD7, catering to both leisure and commercial vessels[40][49] Market Competition - Competition is intensifying, particularly from SpaceX's Starlink and Eutelsat OneWeb, which are entering the high-speed marine market[68] - The company is facing increased competition from providers offering fully managed IT services, which may complicate its competitive position[74] Workforce and Operations - The global turnover rate for the company in 2024 was 37%, primarily driven by a reduction-in-force cost savings initiative[85] - Approximately 40 team members, or 15%, are directly involved in supporting technology in roles such as engineers, technicians, or software developers[84] - The company's total headcount as of December 31, 2024, was 260, including 247 full-time employees[81] - The average length of employee service at the company is 9 years, indicating a stable workforce[86] - The company has established relationships with major universities and professional associations to attract talent, hiring 15 professional level team members in 2024[92] Safety and Compliance - The company's OSHA total recordable incident rate in 2024 was 1.1%, compared to the national average of 2.4%[90] Research and Development - The company is focusing on research and development related to cellular products and emerging non-geostationary satellite orbit (NGSO) products and services[75] - The company anticipates ongoing demand for hybrid connectivity solutions offering GEO, LEO, and 5G/LTE Cellular connectivity in 2025[74] - The company expects to continue offering KVH-manufactured VSAT and satellite TV terminals through 2025 and potentially into 2026[72] Intellectual Property - The patent portfolio includes approximately seven issued patents and one pending application, with expiration dates between May 2031 and May 2037[55]

KVH Industries, Inc. (NASDAQ:KVHI) Q4 2024 Results Conference Call March 6, 2025 9:00 AM ET Company Participants Anthony Pike - CFO & Chief Accounting Officer Brent Bruun - President, CEO & Director Conference Call Participants Caleb Henry - Quilty Space Chris Quilty - Quilty Space Operator Good day. Thank you for standing by. Welcome to KVH Industries Fourth Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. To ask a question during the session, you will need t ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $26.9 million, a decrease of approximately 4.5% from Q4 2023 and effectively flat sequentially when excluding a $1.7 million revenue reduction from the U.S. Coast Guard [16][17] - Airtime gross margin for Q4 was 28.2%, down from 36.5% in the prior quarter, while excluding depreciation, it was 41.4%, compared to 48.6% in the prior quarter [21][22] - Adjusted EBITDA for Q4 was $0.5 million, with capital expenditures of $0.8 million, resulting in adjusted EBITDA less CapEx of negative $0.3 million [23][24] - Ending cash balance was $50.6 million, up approximately $0.8 million from the beginning of the quarter [25] Business Line Data and Key Metrics Changes - The company shipped over 1,000 Starlink units and approximately 200 VSAT terminals in Q4, marking a record for terminal shipments [8][9] - Active maritime Starlink terminals reached over 2,300 by the end of 2024, with around 1,000 terminals awaiting activation [9][10] - Demand for the CommBox Edge communication gateway remains strong, with Q4 activations doubling compared to Q3 [12] Market Data and Key Metrics Changes - Non-U.S. Coast Guard GEO Airtime revenue contracted by around $1 million in Q4, offset by increased Starlink revenues [16] - The total subscribing vessels at the end of Q4 were just below 7,100, representing a 4% increase from the prior quarter [22] Company Strategy and Development Direction - The company is transitioning from a focus solely on VSAT services to offering multi-orbit multichannel solutions, including LEO solutions like Starlink and a high-speed cellular solution [7] - Strategic initiatives include the addition of OneWeb to the satellite communications service portfolio and the launch of the TrackNet Coastal cellular Wi-Fi system [14][15] Management's Comments on Operating Environment and Future Outlook - Management anticipates that Starlink and other new revenue sources will outpace the decrease in GEO airtime revenue [17] - The company has implemented cost reduction initiatives, bringing recurring operating expenses down by almost 10% for the full year [17] - Management believes the company is in a stronger position now than a year ago and is on a path toward renewed growth and profitability [19] Other Important Information - The company is preparing to roll out new capabilities for the CommBox Edge, including cybersecurity features [13] - The company has made hard decisions to reconfigure operations and streamline costs, focusing on core strengths [19] Q&A Session Summary Question: Expectations for Starlink activations - The company shipped 1,000 terminals in Q4, with approximately 700 Starlink Maritime Terminals activated during the quarter [28][29] Question: Reasons for activation delays - Delays can occur due to terminals being installed on boats not yet taken over by owners or held by OEMs [32][33] Question: Customer base for Starlink - Activations include both new and existing customers, with new customers often transitioning from lower bandwidth systems [34][35] Question: Market response to emerging constellations - Anticipated market response to new constellations, but it is still early for significant impact [37] Question: Challenges with terminal pricing relative to competitors - OneWeb terminals are more expensive than Starlink, but customers seek diversity in network options [40][41] Question: CommBox traction and competitive features - The feature set of CommBox is expanding, particularly in cybersecurity, making it competitive in the market [45][46] Question: Cost management with VSAT terminal losses - The churn rate has decelerated, and the company is managing costs effectively alongside terminal losses [49][50]

Revenue Performance - Fourth quarter 2024 total revenues decreased by 14% to $26.9 million from $31.5 million in the fourth quarter of 2023[6]. - Airtime revenue for the fourth quarter of 2024 decreased by $5.1 million, or 20%, to $20.8 million compared to the same quarter in 2023[5]. - Full year 2024 revenue was $113.8 million, a decrease of 14% compared to $132.4 million for the year ended December 31, 2023[10]. - Full year 2024 service revenues were $96.4 million, a decrease of 16% compared to the previous year, primarily due to a $17.1 million decrease in airtime service sales[11]. - Net sales for Q4 2024 were $26,917 million, a decrease of 14.5% compared to $31,455 million in Q4 2023[23]. Profitability and Loss - The net loss for the fourth quarter of 2024 was $4.3 million, or $0.22 per share, an improvement from a net loss of $12.2 million, or $0.63 per share, in the fourth quarter of 2023[6]. - The net loss for Q4 2024 was $4,310 million, compared to a net loss of $12,193 million in Q4 2023, showing a significant improvement[23]. - Non-GAAP adjusted EBITDA for the fourth quarter of 2024 was $0.5 million, down from $2.3 million in the fourth quarter of 2023, impacted by a $2.2 million reduction due to the U.S. Coast Guard contract downgrade[5]. - The company reported a non-GAAP adjusted EBITDA of $512 million for Q4 2024, compared to $2,284 million in Q4 2023, highlighting ongoing operational challenges[27]. Cost Management - Operating expenses decreased by $8.1 million to $47.1 million for the year ended December 31, 2024, compared to $55.2 million in 2023[13]. - Total costs and expenses for the year ended December 31, 2024, were $125,711 million, down from $149,724 million in 2023, reflecting cost-cutting measures[23]. - Research and development expenses for the year ended December 31, 2024, were $8,439 million, down from $9,399 million in 2023, indicating a focus on cost management[23]. Asset and Liquidity Position - Total assets decreased to $155,081 million in 2024 from $172,634 million in 2023, reflecting a reduction in cash and cash equivalents[25]. - Cash, cash equivalents, and marketable securities decreased to $50,572 million in 2024 from $69,771 million in 2023, indicating liquidity pressures[25]. - Interest income for the year ended December 31, 2024, was $3,039 million, down from $3,646 million in 2023, indicating a decline in interest-earning assets[23]. Future Outlook - For full year 2025, the company anticipates revenue in the range of $115 million to $125 million and adjusted EBITDA between $9 million and $15 million[5]. - Starlink terminals shipped exceeded 1,000 in the fourth quarter, with over 2,300 activations in 2024, marking it as the fastest growing product line in the company's history[4]. - Product revenues for the fourth quarter of 2024 increased by 24% to $4.6 million, driven by a $1.2 million increase in Starlink product sales[8]. Goodwill and Asset Valuation - The company incurred a goodwill impairment charge of $5,333 million in 2023, which was not repeated in 2024, suggesting improved asset valuation[23]. - The weighted average number of common shares outstanding for Q4 2024 was 19,453 million, slightly up from 19,250 million in Q4 2023[23].

MIDDLETOWN, R.I., March 06, 2025 (GLOBE NEWSWIRE) -- KVH Industries, Inc., (Nasdaq: KVHI), reported financial results for the quarter and full year ended December 31, 2024 today. The company will hold a conference call to discuss these results at 9:00 a.m. ET today, which can be accessed at investors.kvh.com. Following the call, a replay of the webcast will be available through the company’s website. Fourth Quarter 2024 Highlights Total revenues decreased by 14% in the fourth quarter of 2024 to $26.9 millio ...

Company Overview - KVH Industries, Inc. is a global leader in maritime and mobile connectivity, operating through the KVH ONE network [3] - The company was founded in 1982 and is headquartered in Middletown, RI, with research, development, and manufacturing operations also located in Middletown, RI, and over a dozen offices worldwide [3] - KVH provides connectivity solutions for various sectors including commercial maritime, leisure marine, military/government, and land mobile applications, featuring product lines such as TracNet, TracPhone, and TracVision [3] Financial Results Announcement - KVH Industries will announce its financial results for the fourth quarter and fiscal year ending December 31, 2024, on March 6, 2025 [1] - An investor conference call will be held at 9:00 a.m. ET, hosted by CEO Brent Bruun and CFO Anthony Pike [1] Investor Engagement - A live broadcast of the conference call will be available online at investors.kvh.com, with an audio replay accessible for at least two weeks post-call [2] - Investors can submit questions during or after the call via email to IR@kvh.com [2]

Core Viewpoint - KVH Industries, Inc. has announced the sale of its Rhode Island office and factory, expecting to generate approximately $12 million for working capital and strategic opportunities, while also initiating a share repurchase program of up to $10 million [2][5]. Group 1: Property Sales - KVH has entered into a purchase and sale agreement with Knight Capital LLC to sell its property at 75 Enterprise Center, Middletown, Rhode Island, for $8.5 million, including related buildings and assets [2][4]. - The company will remain a tenant under a triple-net lease for an initial term of six months, with the option to extend for an additional three months as it transitions to a new headquarters [3]. - A second agreement was made with 50 Enterprise LLC, a subsidiary of Seacorp, Inc., to sell its property at 50 Enterprise Center for $4.5 million, also including related buildings and assets [4]. Group 2: Share Repurchase Program - The Board of Directors has authorized a share repurchase program allowing the company to buy back up to $10 million of its common stock [5]. - The repurchase may occur through various means, including open market purchases and privately negotiated transactions, with management having discretion over the timing and volume [6]. - The program does not obligate KVH to repurchase a minimum number of shares and can be modified or terminated at any time [6].

Core Insights - KVH Industries, Inc. has launched TracNet Coastal and TracNet Coastal Pro terminals, enhancing its maritime connectivity portfolio with a cellular/Wi-Fi system [1][2] - TracNet Coastal offers connectivity in 135 countries, utilizing KVH Fusion eSIM technology for high-performance communication [1][3] - The demand for faster and more reliable connectivity at sea is increasing, with TracNet Coastal providing cellular speeds up to 300 Mbps and data costs as low as $1 per gigabyte [2][3] Product Features - TracNet Coastal is a standalone hybrid communication system that can also enhance existing VSAT and low earth orbit (LEO) services [1][2] - The system features intelligent hybrid switching, allowing automatic switching to marina Wi-Fi when in port, thus saving data costs [2][3] - TracNet Coastal is available in two configurations: a standalone system and a more advanced Pro version that supports additional WAN connections [3] Technology and Innovation - The exclusive KVH Fusion eSIM technology enables seamless global cellular service without the need for physical SIM cards [3] - TracNet Coastal supports Wi-Fi calling and integrates with various WAN connections, including Starlink and OneWeb, providing flexibility for users [3] - The system is designed for easy installation with a single cable and optional mounting brackets, making it user-friendly for maritime applications [2][3] Market Position - KVH Industries is positioned as a global leader in maritime and mobile connectivity, serving various sectors including commercial maritime and leisure marine [5] - The introduction of TracNet Coastal and Pro terminals aims to meet the growing expectations for high-speed connectivity in coastal waters and ports [2][3]