Financial Data and Key Metrics Changes - Second quarter airtime revenue was $23.0 million, down $3.9 million from Q2 2023, with total revenue for the quarter at $28.7 million, representing a 15% decrease year-over-year [4] - Airtime gross margin decreased to 36.0% from 41.8% in the prior quarter, primarily due to churn in traditional VSAT vessels [9] - Adjusted EBITDA for the quarter was $2.6 million, with capital expenditures also at $2.6 million, resulting in adjusted EBITDA less CapEx of 0 [11] Business Line Data and Key Metrics Changes - The company experienced a slight increase in subscriber vessel count, reversing the decline from Q1, and shipped a record number of communication antennas for the second consecutive quarter [5] - Product gross profit for Q2 was negative $0.3 million, including $0.5 million in employee severance charges, but excluding these charges, product gross profit was positive $0.2 million compared to negative $1.4 million in Q1 of the previous year [10] Market Data and Key Metrics Changes - The maritime industry is undergoing significant changes due to the emergence of NGSO networks, impacting the company's service offerings and market positioning [4] - The company signed a bulk data distribution agreement with Starlink, enhancing its ability to develop and sell custom data plans [5] Company Strategy and Development Direction - The company has completed reorganization efforts aimed at repositioning for future growth, expecting annualized operating expense savings of approximately $5 million [4] - New product and service enhancements are underway, including the rollout of OneWeb service and expanded capabilities of CommBox Edge [7] Management's Comments on Operating Environment and Future Outlook - Management noted that the industry is changing rapidly, with a decline in stand-alone VSAT service subscriptions, but they are seeing growth in hybrid solutions [8] - The company anticipates subscriber growth in Q3 and is optimistic about achieving strategic, financial, and operational goals for 2024 [8] Other Important Information - The ending cash balance was $49.3 million, down approximately $17 million from the beginning of the quarter due to a payment related to the Starlink agreement [11] - The company expects 2024 revenue to be in the range of approximately $117 million to $127 million, with adjusted EBITDA expected between $6 million and $12 million [11] Q&A Session Summary Question: Clarification on cost savings - Management confirmed $5 million in annualized operating expense savings, correlating with previously mentioned figures [13] Question: Customer bundling trends - Existing customers are both swapping for Starlink and adding it to their existing VSAT services, with trends observed across leisure and commercial markets [14][15] Question: ARPU trends - ARPU is currently flat, with Starlink being a relatively small portion of the overall business [16][17] Question: Impact of maritime market dynamics - No significant negative impact from broader market dynamics, but Starlink is opening up new markets for both leisure and commercial vessels [19] Question: Status of OneWeb service - OneWeb service is currently in testing and expected to launch later this quarter [20] Question: Competitive landscape beyond Starlink - The next significant competitor expected is Amazon Kuiper, with OneWeb launching soon [26]

Sales Performance - Net sales decreased by $4.9 million, or 15%, for the three months ended June 30, 2024, compared to the same period in 2023, primarily due to a $5.6 million decrease in VSAT service sales driven by a decrease in subscribers[101]. - Service sales decreased by $4.1 million, or 14%, to $24.7 million for the three months ended June 30, 2024, while Starlink service sales increased by $1.7 million[101]. - Product sales decreased by $0.8 million, or 17%, to $4.0 million for the three months ended June 30, 2024, primarily due to a decrease in unit sales volume[104]. - Net sales for the six months ended June 30, 2024 decreased by $9.8 million, or 14%, to $57.9 million compared to $67.7 million for the same period in 2023[114]. - Service sales decreased by $7.8 million, or 14%, to $49.7 million, primarily due to a $9.7 million decrease in VSAT service sales[114]. - Product sales decreased by $2.0 million, or 20%, to $8.2 million, driven by a $2.4 million decrease in VSAT Broadband product sales[115]. Costs and Expenses - Costs of sales decreased by $2.0 million, or 9%, in the three months ended June 30, 2024, to $19.8 million from $21.8 million in the same period in 2023[105]. - Costs of service sales remained flat at $15.5 million for both the three months ended June 30, 2024, and 2023, with costs of service sales as a percentage of service sales increasing to 63% from 54%[106]. - Costs of sales decreased by $4.0 million, or 9%, to $39.1 million, with costs of service sales at 59% of service sales for H1 2024, up from 55% in H1 2023[116]. - Research and development expense for Q2 2024 decreased by $0.1 million, or 4%, to $2.3 million, representing 8% of net sales compared to 7% in Q2 2023[108]. - Research and development expense for H1 2024 increased by $0.4 million, or 8%, to $5.4 million, representing 9% of net sales compared to 7% in H1 2023[118]. - Sales, marketing, and support expense for Q2 2024 increased by $0.2 million, or 4%, to $5.3 million, accounting for 19% of net sales, up from 15% in Q2 2023[109]. - General and administrative expense for Q2 2024 remained flat at $4.1 million, with an increase in percentage of net sales to 14% from 12% in Q2 2023[110]. - General and administrative expense for H1 2024 increased by $0.7 million, or 7%, to $9.4 million, accounting for 16% of net sales, up from 13% in H1 2023[120]. Strategic Changes - The company prepaid $17.0 million for access to a large block of Starlink Mobile Priority data under a new bulk data distribution agreement[96]. - The company expects the trend of declining VSAT service sales to continue, particularly due to the accelerated transition of the U.S. Coast Guard to Starlink services[103]. - The restructuring plan included a reduction of approximately 75 employees, or about 20% of the total workforce, resulting in severance charges of $3.4 million for the six months ended June 30, 2024[95]. - The company anticipates ceasing substantially all manufacturing activity by the end of 2025 as part of its strategic shift towards multi-orbit, multi-channel integrated communications solutions[94]. Customer Growth - Starlink terminal subscribers approximately doubled from March 31, 2024, to June 30, 2024, indicating a significant growth in the customer base for Starlink services[101]. Cash Flow - Net cash used in operations for H1 2024 was $15.5 million, an increase of $12.3 million compared to $3.2 million in H1 2023[125].

MIDDLETOWN, R.I., July 29, 2024 (GLOBE NEWSWIRE) -- KVH Industries, Inc. (Nasdaq: KVHI), will announce its financial results for the second quarter that ended on June 30, 2024, on Thursday, August 1, 2024. In conjunction with the release, the company will conduct its investor conference call at 9:00 a.m. ET, hosted by Mr. Brent Bruun, CEO and Mr. Anthony Pike, CFO. A live broadcast of the call will be available online at investors.kvh.com. In addition, an audio replay of the conference call will be availabl ...

MIDDLETOWN, R.I., June 25, 2024 (GLOBE NEWSWIRE) -- KVH Industries, Inc. (Nasdaq: KVHI), today announced a greatly expanded relationship with Starlink through a bulk data distribution agreement with Starlink. The new agreement offers KVH increased flexibility in the development and sales of custom, costeffective airtime plans using Starlink's mobile priority service. Under the agreement, KVH prepaid for access to a large block of Starlink data at favorable rates over a period of more than a year. In additio ...

MIDDLETOWN, R.I., June 25, 2024 (GLOBE NEWSWIRE) -- KVH Industries, Inc. (Nasdaq: KVHI), today announced a greatly expanded relationship with Starlink through a bulk data distribution agreement with Starlink. The new agreement offers KVH increased flexibility in the development and sales of custom, costeffective airtime plans using Starlink's mobile priority service. Under the agreement, KVH prepaid for access to a large block of Starlink data at favorable rates over a period of more than a year. In additio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2024 50 Enterprise Center, Middletown, RI 02842 (Address of Principal Executive Of ices) (Zip Code) (401) 847-3327 (Registrant's Telephone Number, Including Area Code) Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Trading Symbol(s) Name of Each Exchange ...

Exhibit 99.1 FOR IMMEDIATE RELEASE Contact: KVH Industries, Inc. Chris Watson 401-845-2441 IR@kvh.com KVH Industries Reports First Quarter 2024 Results MIDDLETOWN, RI, May 6, 2024 — KVH Industries, Inc. (Nasdaq: KVHI), reported financial results for the quarter ended March 31, 2024 today. The company will hold a conference call to discuss these results at 4:30 p.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 websit ...

MIDDLETOWN, R.I., May 01, 2024 (GLOBE NEWSWIRE) -- KVH Industries, Inc. (Nasdaq: KVHI), will announce its financial results for the first quarter that ended on March 31, 2024, on Monday, May 6, 2024. In conjunction with the release, the company will conduct its investor conference call at 4:30 p.m. ET, hosted by Mr. Brent Bruun, CEO and Mr. Anthony Pike, CFO. A live broadcast of the call will be available online at investors.kvh.com. In addition, an audio replay of the conference call will be available on t ...

MIDDLETOWN, R.I., May 01, 2024 (GLOBE NEWSWIRE) -- KVH Industries, Inc. (Nasdaq: KVHI), will announce its financial results for the first quarter that ended on March 31, 2024, on Monday, May 6, 2024. In conjunction with the release, the company will conduct its investor conference call at 4:30 p.m. ET, hosted by Mr. Brent Bruun, CEO and Mr. Anthony Pike, CFO. A live broadcast of the call will be available online at investors.kvh.com. In addition, an audio replay of the conference call will be available on t ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-28082 KVH Industries, Inc. (Exact Name of Registrant as Specified in its Charter) Indicate by check mark if the regis ...