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 ...

Core Insights - KVH Industries, Inc. has announced an expanded relationship with Starlink through a bulk data distribution agreement, allowing for the development of custom airtime plans using Starlink's mobile priority service [1] - The agreement includes a prepayment for a large block of Starlink data at favorable rates for over a year, and KVH has added Starlink Standard flat-panel terminals to its product offerings [1] Group 1: Business Expansion - The CEO of KVH expressed excitement about the expanded Starlink portfolio, highlighting nearly doubled antenna shipments and activations in Q1 2024 compared to Q4 2023 [2] - KVH's offerings now include a suite of value-added services that enhance user experience with seamless monitoring and control over Starlink services [2] Group 2: Customer Demand and Product Integration - There is a rising interest in Starlink due to its high speeds, low latency, and affordability, but some users require advanced network management tools not supported by native tools [3] - KVH is introducing the CommBox™ Edge Communications Gateway, which integrates with Starlink to provide advanced network and bandwidth management capabilities [3] Group 3: Company Overview - KVH Industries, Inc. is a leader in maritime and mobile connectivity, providing solutions for various applications including commercial maritime and leisure marine [4] - The company has a global presence with research, development, and manufacturing operations in Middletown, RI, and multiple offices worldwide [4]

Core Insights - KVH Industries, Inc. has announced an expanded relationship with Starlink through a bulk data distribution agreement, allowing for the development of custom airtime plans using Starlink's mobile priority service [1] - The agreement includes a prepayment for a large block of Starlink data at favorable rates for over a year, and KVH has added Starlink Standard flat-panel terminals to its product offerings [1] Group 1: Business Expansion - The CEO of KVH expressed excitement about the expanded Starlink portfolio, highlighting nearly doubled antenna shipments and activations in Q1 2024 compared to Q4 2023 [2] - KVH's offerings now include a suite of value-added services that enhance user experience with seamless monitoring and control over Starlink services [2][3] Group 2: Customer Demand and Product Integration - There is a rising interest in Starlink due to its high speeds, low latency, and affordability, but some users require advanced network management tools not supported by native tools [3] - KVH is introducing the CommBox™ Edge Communications Gateway, which integrates with Starlink to provide advanced network and bandwidth management tools [3] Group 3: Company Overview - KVH Industries, Inc. is a leader in maritime and mobile connectivity, providing solutions for various applications including commercial maritime and leisure marine [4] - The company has a global presence with research, development, and manufacturing operations based in Middletown, RI, and multiple offices worldwide [4]

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 ...

[First Quarter 2024 Results Overview](index=1&type=section&id=First%20Quarter%202024%20Results%20Overview) KVH Industries experienced a significant financial downturn in Q1 2024, marked by decreased revenues, a net loss, and strategic shifts to adapt to industry changes and reduce costs [First Quarter 2024 Highlights](index=1&type=section&id=First%20Quarter%202024%20Highlights) KVH Industries reported a significant decline in financial performance for Q1 2024, with total revenues decreasing by 14% and a shift from net income to a net loss compared to Q1 2023. Adjusted EBITDA also saw a reduction, alongside substantial employee termination costs Financial Performance (in millions, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Revenues | $29.3 million | $34.1 million | | Airtime Revenue | $23.6 million | $27.1 million | | Net (Loss) Income | $(3.2) million | $0.4 million | | Net (Loss) Income per Share | $(0.16) | $0.02 | | Non-GAAP Adjusted EBITDA | $2.0 million | $3.7 million | - Recorded **$2.2 million of employee termination costs** due to the staged wind-down of manufacturing activities in Middletown, Rhode Island[5](index=5&type=chunk) [CEO Commentary and Strategic Direction](index=1&type=section&id=CEO%20Commentary%20and%20Strategic%20Direction) CEO Brent C. Bruun highlighted the satellite connectivity industry's disruption by LEO networks and KVH's adaptive multi-orbit strategy. The company is undergoing reorganization to become a more nimble, integrated solution-oriented organization, anticipating approximately $9 million in annualized savings - Adopted a **multi-orbit, multi-channel strategy** to adapt to unprecedented disruption from LEO networks[4](index=4&type=chunk) - Starlink shipments nearly **doubled in Q1 2024** compared to Q4 2023, with related activations and service fees expected to contribute in Q2[4](index=4&type=chunk) - Anticipates new revenue growth from Q3 with the launch of OneWeb LEO service and strong interest in the new CommBox Edge Communications Gateway[4](index=4&type=chunk) - Ongoing reorganization efforts are expected to result in **annualized savings of approximately $9 million**, with benefits starting in Q3[4](index=4&type=chunk) - Experienced a reduction in VSAT and TV product sales and an approximately **4% contraction in the active vessel base** during the quarter[4](index=4&type=chunk) [2024 Financial Guidance Update](index=1&type=section&id=2024%20Financial%20Guidance%20Update) KVH Industries has reduced its full-year 2024 revenue and adjusted EBITDA expectations due to intensifying competition, industry transition, and an accelerated shift by a major customer to Starlink services Revised 2024 Guidance | Metric | Revised 2024 Guidance | | :--- | :--- | | Revenue | $117 million to $127 million | | Adjusted EBITDA | $6 million to $12 million | - A key driver for the reduction in guidance is the accelerated transition of one of the largest customers' primary satellite service relationship to Starlink[5](index=5&type=chunk) [Detailed Financial Performance](index=2&type=section&id=Detailed%20Financial%20Performance) KVH's Q1 2024 financial performance shows a **14% revenue decrease**, increased operating expenses, and a net loss [First Quarter Financial Summary](index=2&type=section&id=First%20Quarter%20Financial%20Summary) KVH's first quarter 2024 financial summary reveals a 14% decrease in total revenue, driven by declines in both service and product sales. Operating expenses increased primarily due to workforce reduction costs, partially offset by lower professional and marketing fees Financial Highlights (in millions, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenue | $29.3 | $34.1 | | Loss from operations | $(3.8) | $(0.2) | | Net (loss) income | $(3.2) | $0.4 | | Net (loss) income per share | $(0.16) | $0.02 | | Non-GAAP Adjusted EBITDA | $2.0 | $3.7 | [Revenue Breakdown](index=2&type=section&id=Revenue%20Breakdown) Total revenue decreased by 14% year-over-year. Service revenues declined by $3.7 million, mainly due to a $3.5 million drop in airtime sales. Product revenues decreased by 22%, primarily from VSAT broadband and TracVision products, despite a $1.4 million increase in Starlink product sales - Total revenue for Q1 2024 was **$29.3 million**, a **14% decrease** from $34.1 million in Q1 2023[7](index=7&type=chunk) - Service revenues decreased by **$3.7 million to $25.0 million**, primarily due to a **$3.5 million decrease in airtime service sales**[7](index=7&type=chunk) - Product revenues decreased by **22% to $4.2 million**[8](index=8&type=chunk) - Product sales decrease was mainly due to a **$1.3 million decrease in VSAT broadband product sales** and a **$0.8 million decrease in TracVision product sales**[8](index=8&type=chunk) - The decline in product sales was partially offset by a **$1.4 million increase in Starlink product sales**[8](index=8&type=chunk) [Operating Expenses](index=2&type=section&id=Operating%20Expenses) Operating expenses increased by $0.8 million to $13.7 million in Q1 2024, primarily driven by $1.7 million in workforce reduction costs and a $0.5 million reduction in reimbursements from EMCORE. This increase was partially mitigated by decreases in professional fees, marketing expenses, and credit loss provisions - Operating expenses increased by **$0.8 million to $13.7 million** in Q1 2024, compared to $12.9 million in Q1 2023[9](index=9&type=chunk) - The increase was primarily due to **$1.7 million in costs related to workforce reduction** and a **$0.5 million reduction in EMCORE reimbursements**[9](index=9&type=chunk) - Offsetting factors included a **$1.0 million decrease in professional fees** (legal, accounting, consulting), a **$0.2 million decrease in marketing expenses**, and a **$0.2 million decrease in the provision for credit losses**[9](index=9&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP financial measures, including adjusted EBITDA, are defined, with future guidance reconciliation explained [Non-GAAP Definition and Use](index=3&type=section&id=Non-GAAP%20Definition%20and%20Use) This section clarifies that non-GAAP financial measures, such as adjusted EBITDA, are used by management for internal analysis and operational assessment, supplementing GAAP results. It also outlines the specific items excluded from adjusted EBITDA and explains why a reconciliation for anticipated 2024 adjusted EBITDA to net income is not provided - Non-GAAP financial measures are used internally to analyze financial results and assess operational performance, not as a substitute for GAAP[13](index=13&type=chunk) - Non-GAAP adjusted EBITDA excludes items such as interest income, income tax expense, depreciation, amortization, stock-based compensation, employee termination costs, and other variable charges[14](index=14&type=chunk) - A reconciliation of anticipated 2024 adjusted EBITDA to anticipated 2024 net income (loss) is not provided due to the unreasonable efforts required to determine unavailable or unpredictable information[16](index=16&type=chunk) [Company Information](index=4&type=section&id=Company%20Information) This section provides an overview of KVH Industries, its global operations, product offerings, and important disclosures regarding forward-looking statements and associated risks [About KVH Industries, Inc.](index=4&type=section&id=About%20KVH%20Industries%2C%20Inc.) KVH Industries, founded in 1982, is a global leader in maritime and mobile connectivity, offering solutions for various applications including commercial, leisure, military/government, and land mobile. The company provides connectivity via its KVH ONE network and a range of products and services - KVH Industries, Inc. is a global leader in maritime and mobile connectivity delivered via the KVH ONE network[18](index=18&type=chunk) - Founded in **1982** and based in Middletown, RI, with global research, development, manufacturing, and offices[18](index=18&type=chunk) - Provides connectivity solutions for commercial maritime, leisure marine, military/government, and land mobile applications[18](index=18&type=chunk) - Product lines include TracNet, TracPhone, TracVision, KVH ONE OpenNet Program, AgilePlans Connectivity as a Service (CaaS), and KVH Link crew wellbeing content service[18](index=18&type=chunk) [Forward-Looking Statements and Risk Factors](index=4&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) This section advises that the press release contains forward-looking statements regarding future financial results, strategic initiatives, and anticipated benefits, which are inherently subject to various risks and uncertainties. These factors could cause actual outcomes to differ significantly from projections - Forward-looking statements include projections for financial results, anticipated benefits of new initiatives, cost savings, investment plans, and development goals[19](index=19&type=chunk) - Actual results could differ materially due to risks such as increasing competition (especially from LEO systems), lower product/service margins, hardware/software competition, and unanticipated obstacles in manufacturing wind-down[19](index=19&type=chunk) - Other significant risks include customer reliance on third-party hardware, lack of product differentiation, uncertain impact of new service offerings, industry consolidation, and challenges in employee retention[19](index=19&type=chunk) [Condensed Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including statements of operations, balance sheets, and reconciliation of GAAP to non-GAAP measures [Condensed Consolidated Statements of Operations](index=5&type=section&id=CONDENSED%20

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 ...